lrfo 700pct fv upside

I've just done a back of the envelope valuation for LRF as at 11-Oct-2006. I revalued holding shown in the Annual report current at 30-June-2006 (therefore it's back of the envelope)

Valuation estimate at 11/10 is 1.40 / unit.

If LRF traded at FV today it would be up 40%. That would mean a fair value of 40c for LRFO. ie +700% return.

Valuation Summary

Stocks 30/6 per Annual Report $76.0M
Stocks 11/10 $99.1M
Options 30/6 per Annual Report $17.1M
Options 11/10 $22M

Cash & Other 30/6 per Annual Report $45M
Cash & Other 11/10 per Annual Report $45M

Description Purchase Price Last Price Units 30-Jun Val 11-Oct Val Change %
CHINA GOLD MINES PLC 80 108 91162.5 7293000 9845550 35
ALLIANCE RESOURCES FPO 0.254 0.925 4098425 1040999.95 3791043.125 264.17
ARGONAUT RESOURCES FPO 0.11 0.135 481818 52999.98 65045.43 22.73
ATLAS IRON LIMITED FPO 0.51 0.54 11504000 5867040 6212160 5.88
AVOCA RESOURCES FPO 0.7 1.23 3500000 2450000 4305000 75.71
CENTENNIAL COAL FPO 3.11 3.83 449196 1396999.56 1720420.68 23.15
COPPERCO LIMITED FPO 0.37 0.475 22083783 8170999.71 10489796.93 28.38
DE GREY MINING FPO 0.12 0.11 1200000 144000 132000 -8.33
DIORO EXPLORATION NL FPO 0.065 0.058 41307692 2684999.98 2395846.136 -10.77
EASTERN STAR GAS FPO 0.105 0.17 14104761 1480999.905 2397809.37 61.9
ENCOUNTER RESOURCES FPO 0.25 0.42 1000000 250000 420000 68
GEODYNAMICS LIMITED FPO 0.73 1.1 3447945 2516999.85 3792739.5 50.68
HERITAGE GOLD NZ FPO NZ 0.04 0.03 5625000 225000 168750 -25
INDEPENDENCE GROUP FPO 2.72 4.42 3444485 9368999.2 15224623.7 62.5
JABIRU METALS LTD FPO 0.42 0.57 9702381 4075000.02 5530357.17 35.71
MATRIX METALS FPO 0.066 0.06 53363636 3521999.976 3201818.16 -9.09
MINERAL SECURITIES FPO 1.5 1.22 1440000 2160000 1756800 -18.67
MINTAILS LIMITED FPO 0.21 0.2 728571 152999.91 145714.2 -4.76
MONARCH GOLD MINING FPO 0.26 0.235 1826923 474999.98 429326.905 -9.62
NIDO PETROLEUM FPO 0.185 0.18 5000000 925000 900000 -2.7
RIVERSDALE MINING FPO 0.88 1.37 10662500 9383000 14607625 55.68
OM HOLDINGS LIMITED FPO 10C 0.8 0.505 50000 40000 25250 -36.88
PRAIRIE DOWNS METALS FPO 0.33 0.36 3069697 1013000.01 1105090.92 9.09
SALLY MALAY MINING FPO 1.1 1.61 267272 293999.2 430307.92 46.36
SUN RESOURCES NL FPO 0.13 0.12 7284615 946999.95 874153.8 -7.69
SUNSHINE GAS LIMITED FPO 0.41 0.315 1317073 539999.93 414877.995 -23.17
WEDGETAIL FPO 0.29 0.245 29868966 8662000.14 7317896.67 -15.52
WESTERN AREAS NL FPO 2 3.03 295000 590000 893850 51.5
PRAIRIE DOWNS METALS OPT MAY08 0.125 0.155 2296000 287000 355880 24

* As the market has rallied strongly this month the valueation for 30/9 is estimated to be less than $1.40

This info is for information/ comment only and is not advice.