Is it realistic to expect a company to have positive cash flow when it is operating at only 15% of production capacity?

The recent financials are not surprising at all given that LBE is currently only operating at 15% of its full capacity. We know that 30% will be achieved in May of 08 and LBE will reach 100% of its production capacity in November.

McWatters was delayed by at least 3 months and we can't do anything about that.  LBE will show its projected positive numbers in six to nine months; LBE's achievements are remarkable and six to nine months is a short time to wait for the market to take its blinders off and realize this.

A very positive point from the M D & A is LBE's cost of producing a pound of nickel.  LBE's cost of $7.83 per pound when operating at 15% production shows that at full production the projected cost of $ 3.50 per pound is easily attainable when both mines are in commercial production.

The market seems to be evaluating LBE as a producer at its current production rate of 15% and this valuation is very shortsighted. When LBE's production reaches 100% in November, myopic naysayers will fully experience the meaning of regret.

Best,  

Nickel77