LMR - Lemur Resources

[System]

Lemur Resources Limited (LMR) is a Madagascan focussed coal exploration company incorporated in Australia in November 2010.

Lemur is the 100% shareholder of the Guernsey registered company, Coal of Madagascar Limited, which is the 99% Shareholder of the Malagasy registered company, Coal Mining Madagascar SARL (CMM). CMM has an interest in seven mining permits located in the Imalato Coal Basin, the initial focus being the Imaloto Coal Project. This project contains a gross in situ JORC compliant inferred resource estimate of 175mt, which was defined through an initial two phase drilling program completed in 2008 and 2009.

The Imaloto Coal Project is located in the Imaloto Coal Basin, which is the northern-most coal field in the greater Sakoa Basin of South West Madagascar. Lemur will be commencing the Phase III work programme in July 2011, which has a primary objective of better defining the limits of the coal seams and to bring the current inferred resource up to the measured category.

http://www.lemurresources.com.au

 

[springhill]

MC - $19.2m
SP - 10c
Shares - 192m
Options - 13m (unlisted)
Cash - $19.8m

About Lemur Resources
Lemur Resources is focused on the development of the Company’s significant coal assets in Madagascar. Headquartered in Perth, Western Australia, the Company is planning to develop a thermal coal mine at its 99% owned Imaloto Coal Project, located in the Imaloto Coal Basin in Madagascar. Lemur’s board and management have significant experience in developing commercial coal mining operations in Africa. The Company listed on the ASX in August 2011.

Completion of the Western Drilling ProgrammeThe Company confirms that the Western Drilling Programme was completed on 25 July 2012, with 36 bore holes having been drilled for a total of 3,715m since remobilisation on 10 April 2012.
All core samples (save for the last hole) have been shipped to Inspectorate Laboratories with results expected to be received in two batches, the first of which is due imminently, and the second due in approximately six weeks. Wash table analysis will be released in due course.

See March quarterly for detailed information on coal quality, will report June quarterly as it becomes available.

 

[springhill]

Fresh information from June quarter.

Imaloto Coal Project and Extension (99%)
Exploration
 During the quarter, as part of the Western Drilling Programme, 35 boreholes were drilled for a total of 3,715 metres with the programme being completed on 25 July 2012.

Laboratory Results
 40 core samples were dispatched to Inspectorate Laboratories for analysis with a further 11 samples having been dispatched subsequent to quarter end.

Revised Resource Statement
 Work commenced on the Revised Resource Statement which will be released once the final results of the Western Drilling Programme and associated laboratory analysis have been incorporated.

Infrastructure and Mining Scoping Studies
 A final version of the Port Scoping Study has been received.
 Work continued on the Mining Scoping Study and Mine Infrastructure and Land Logistics Scoping Study.
 Result of all Scoping Studies will be released post receipt of the Revised Resource Statement.

Proposed Independent Power Producing Licence
 Developmental stage one pre- prefeasibility study/ business hypothesis is now complete.
 Developmental stage two feasibility study is nearing completion.

 

[springhill]

LMR now fundamentally undervalued with a SP under 8c. Cash position is nearly twice the MC.

MC - $10.8
SP - 7.8c
Shares - 139m
Options - NQ
Cash - $20.4m

I have to correct my previous post, not all FPO shares are quoted for LMR, dropping its official MC.

4th Batch of Laboratory Results – Imaloto Coal Project
Lemur Resources announce that results from a further 28 core samples taken as part of the Western Drilling Programme have now been received, with highlights as follows:
• Consolidated results of the Phase III Drilling Programme received to date suggest beneficiation of the coal within the Main Seam will yield approximately 70% export grade thermal coal;
• The latest results represent a further improvement in the overall yield and therefore a likely improvement in the economics of the project;
• The specifcations of the resulting Main Seam secondary product (assuming a single stage wash) have again been confirmed as suitable as feedstock for a domestic coal fired power station, thus delivering a theoretical yield of 100% for the entire Main Seam; and
• Wash table analyses of the Upper and Top seams again indicate both seams have the potential to generate a product suitable for power station feedstock with yields of 75.3% and 81.3% respectively.

 

[springhill]

I have accumulated a position in LMR based on my usual criteria of MC:Cash ratio, as well as a liquidity position that suits my style of investment. Not without its risks, as with most specs.

MC - $12.65m ($17.5m fully diluted)
SP - 9.1c
Shares - 139m quoted (192m total)
Options - 13m (unlisted)
Cash - $19.14m

Cash burn for the following quarter is at an acceptable level ($1.6m), with administration costs not exorbitant.

Director buying on market recently.
http://www.asx.com.au/asxpdf/20121221/pdf/42c468hd83gpwj.pdf
http://www.asx.com.au/asxpdf/20121214/pdf/42bypjkfsykrkq.pdf

From the latest quarterly.

Imaloto Coal Project and Extension (99%)
Exploration
 During the quarter 25 boreholes were drilled for a total 3,075 metres as part of the Phase III exploration programme.
 Western Drilling Programme was completed on 25 July 2012.

Laboratory Results
 Wash table results of 61 core samples were returned from Inspectorate Laboratories with the consolidated results confirming a beneficiated Main Seam could produce an export grade thermal product yielding approximately 67%.

Revised JORC Compliant Resource Statement
 Work continued on the revised JORC compliant resource statement.

Infrastructure and Mining Scoping Studies
 Final versions of the Port and Mine Infrastructure and Land Logistics Scoping Study have been received.
 Work continued on the Mining Scoping Study.
 Results of all Scoping Studies will be released post receipt of the revised JORC compliant resource statement and completion of the Mining Scoping Study. Proposed Independent Power Producing Licence
 During the quarter, the Company commenced a Pre- Feasibility study on the IPP project, representing the third of a four stage process designed to assess the environmental and social impacts, political willingness and project economics for constructing and operating a coal fired power station in the Imaloto precinct.

Some history on the Board of Directors.
http://www.lemurresources.com/Board-of-Directors/

Andrew Love also has history of success with the Rio takeover of Riversdale (RIV)

 

[springhill]

Revised Resource Statement – Imaloto Coal Project

Lemur Resources announce that, following the incorporation of laboratory results from the recently completed Western Drilling Programme at the Company’s Imaloto Coal Project in Madagascar, the JORC compliant resource statement for the Project has been upgraded, with the key highlights being as follows:

• The Imaloto Coal Resource contains 147.5 million Gross Tonnes in Situ (“GTIS”);
• 52% of the Imaloto Coal Resource now in Measured category and 80% is Measured and Indicated;
• Coal contained in the Main Seam, which now totals 73.3 million GTIS, is expected to generate a primary product when washed yielding approximately 67% export grade thermal coal;
• The secondary product generated will be suitable as feedstock for a domestic coal fired power station, therefore, assuming a single stage processing, the overall theoretical yield is 100% for the entire Main Seam.

 

[springhill]

The LMR board seems to have been in an element of turmoil lately.

First there was the resignation of Andrew Luck
Resignation of Chairman
Lemur Resources Limited wishes to advise that Andrew Love has resigned as the Company’s Chairman, effective
25 March 2013.
During his tenure, Andrew oversaw the Company’s listing on the Australian Securities Exchange. The Board thanks Andrew for his contribution to the Company and wishes him well in his future endeavours.

Now the departure of Blair Sergeant
Board Changes
Lemur Resources Limited wishes to advise that Mr Blair Sergeant has resigned as the Company’s Managing Director, effective immediately. To ensure the smooth transition in management of Lemur, Mr Sergeant will continue to be available to the Company in a consulting capacity for a period of 3 months. The Board expresses its appreciation for Mr Sergeant’s contribution in advancing the Company’s Imaloto coal project in Madagascar.

The only area of conflict I can think of is the relatively new intended diversification of LMR's asset portfolio.
Perhaps the board, despite public proclamations that they will continue to develop Imaloto to production, see the project may be as feasible as touted.
This could explain the departure of Luck, as he was involved in the float and probably believed in the project.

A change in direction may not suit him, so leaving was the only option.

LMR still have a war chest of cash available to them ($17m) for acquisition and development purposes and only 139 FPO listed shares. Fundamentally undervalued on cash position alone.

 

[springhill]

Volume alert for LMR.

They have made no secret they are in the market for an acquisition, I am not aware they have been in the media.

News could be in the pipeline soon.

Pure speculation at this point.

 

[springhill]

LMR's latest quarterly tends to support my thoughts that the Imaloto Project will be mothballed and potentially sold.

Project acquisition seems to be high in order of priority.

With a current cash position of $17m+, any proceeds from the sale of Imaloto would hold LMR in good stead to make substantial acquisition/s.

Even with full release of FPO shares (192m), LMR has a market cap of only $11.5m (ther options seem way out of the money at this point).

 

[springhill]

TRADING HALT: LEMUR RESOURCES LIMITED (COMPANY)

In accordance with Listing Rule 17.1, the Company herewith requests a trading halt of its securities with immediate effect pending the release of an announcement in relation to an approach regarding a potential change in control transaction.
There is no assurance any transaction will proceed.
The trading halt will continue until the earlier of the release of the relevant announcement or commencement of normal trading on Tuesday 14 May 2013.

 

[springhill]

ADVICE TO SHAREHOLDERS IN RESPONSE TO TAKEOVER OFFER BY BUSHVELD MINERALS LIMITED

Lemur Resources Limited (ASX: LMR) (Lemur) wishes to advise that AIM-listed Bushveld Minerals Limited (a company incorporated in Guernsey) (Bushveld) has informed Lemur that it will announce that it intends to make an unsolicited off-market takeover bid for all of the ordinary shares in Lemur. Lemur understands Bushveld will offer 3 Bushveld shares for every 5 Lemur shares (the Offer), which values Lemur at A$0.099 per share (based on the closing share price for Bushveld shares of £0.109 per share on 9 May 2013 and an exchange rate of A$1.00:£0.659). As the consideration offered comprises Bushveld shares, the value of the consideration will vary with the market price of Bushveld shares.
A copy of Bushveld’s proposed announcement dated 13 May 2013 has been provided to Lemur and is annexed. Lemur understands that Bushveld intends to release the announcement on AIM later today.
Two directors of Bushveld are also on the board of Lemur. Accordingly, the Lemur Board has established an Independent Board Committee consisting of Mr Marcello Cardaci and Mr Ryan Rockwood (Independent Directors) to consider and respond to the Offer. The Independent Directors will review the offer documents once they are received and provide further advice in due course.
Meanwhile, Lemur's shareholders are advised to TAKE NO ACTION in relation to the Offer or any document received from Bushveld.
The Independent Directors will keep shareholders informed of further developments as they occur and will provide a formal recommendation on the Offer in ample time for shareholders to make an informed decision.

 

[Knobby22]

Takeover! Does it look like a win for you Springhill? If so, well done.

Have to say I love the name. made me wonder if there was ever a company called Lemming Resources.

Looked it up but there didn't seem to have been one

 

[springhill]

Takeover! Does it look like a win for you Springhill? If so, well done.

Have to say I love the name. made me wonder if there was ever a company called Lemming Resources.

Looked it up but there didn't seem to have been one

It is a terrible deal, only marginally above their cash in hand.

It may be a significant premium over the share price, but values LMR project at only around $2m.

If the independent committee recommends this, I for one will be questioning their independence.

Current share price action suggests it will not go ahead.

 

[springhill]

Recommendation is to REJECT Bushveld's raid on LMR's cash.... I mean takeover offer.

Anyone who accepts this has rocks in their head or is a shareholder of Bushveld.

Bushveld down to their last $500k.

http://www.proactiveinvestors.com.a...ion-to-reject-busveld-takeover-bid-45241.html

 

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by special request:



In the above chart, I have zoomed in on the Momentum section of my standard Trinity template. It highlights a dual Bearish Divergence between price peaks. Such a setup is telling me to use tight stops, even if I wish to take a position for some other reasons.

"Which other reasons?" you ask? Good question - and I can't find anything compelling in this chart. Volume is erratic. A big gap looms down to 2.9c. Some people may believe there's something fundamental coming up; I don't know.

If anything, the volume spike on July 16th MIGHT have alerted me to wait for the price to follow (VPP = Volume Precedes Price). But t hat is now history, and even if I had taken a trade on that basis, I'd be gone with a secure profit.

Now let's look at the longer-term, Weekly chart. (rarely my "thang" for penny stocks, but let's try it.)



First thing I notice is the double bottom formation. So I overlay a Fibonacci tool, in this case not looking for phi and Phi, but using the trivial 100% and 200% levels to show where the range doubles. It seems the target has been reached and now sp is dropping back again. Note also a previous resistance at the same level.

Conclusion: If I had a good reason to enter a long-term trade (or if I were already Long and had to decide whether to stay or exit), I might set an alert at 6.1c and wait for that to be broken. If, after a break, 6c became holding support, I might consider a Long position after all.