mwilson, I was hoping for another Conference Call. The last one I was prepared to ask questions but I had a funeral to attend that morning, I had a hard time finding the church, then couldn't get a park near by. By the time I got to be able to participate Timbo was talking, and as usual he spoke very well and I felt it was best to just take a wait and see attitude.
I had my questions prepared for the next conference call and I have put them below for you and others to see. In regard to attending the next AGM, I don't know?! I get moderated enough on these threads, could you imagine me at the conference?! For a start I would want the microphone and I'm pretty sure after about 10 seconds their would be a bunch of people trying to take it from me and kick me out of there before any further embarrassment could occur to these overpaid and under achieving exec's.
Here it is as I had prepared it, however I have made changes since:
LNG Upcoming Conference Call Regarding Redomicilling to the US
I’ve been a long term holder of LNG and over the years I have invested over $250K in LNG and I have three questions for you....
Question 1 (Relates to reported marketing spend)
It’s just over a year since LNG’s last CR (with IDG) and that capital has now been spent. Following the IDG raise IDG reported that ....% of the amount raised was for marketing, yet since that date no LNG report has stated any amount being spent on marketing. Can you clarify on this?
Question 2 (Relates to a CR, Redomicile and Share Ratio Transfer)
You have known for some time that another CR raise is coming, and it's possible that a CR might come before redomicilling, can you give share holders your opinion on if the CR will come before or after redomiciling to the US (should redomicilling be approved). Could you also give shareholders your opinion on what the share ratio transfer might be.
Question 3 (Relates to Integrity, Transparency & Accountability)
The share holders that I talk to feel the biggest concerns with this company relate to integrity, transparency and accountability, and I will give you some examples:
In December 2016 and January 2017 you said you were
12/16 “Finalizing LNG offtake agreement efforts” and
01/17 “Moving to finalize firm offtake agreements in the New Year”
Between March 2017 and August 2018
7 Times between March 2017 and October 2018 you forecast reaching FID, having the whole facility contracted and beginning construction by 2018.
- 03/17, 03/17, 06/17, 08/17
- 03/18, 05/18, 10/18
During this time you also said (All before IDG invested, and you admitted only having lower level discussions)
CC “No one is horse trading”
CC “It’s not a matter of if; it’s a matter of when”
03/17 “In discussions for more than three times the 8mtpa capacity of Magnolia”
08/17 “Outlook remains bullish”
10/17 “Confident of signing offtake agreements with credit-worthy buyers later this year or early in 2018
12/17 “The discussions with potential customers are good
12/17 “Talking about deals up to 25 m tons just to see what's real and who's going to sign first”
05/18 “Buyers are willing to sign 20 year deals”
05/18 “Contract talks have picked up significantly this year”
05/18 “Expected to make that call by the end of the year”
10/18 “We remain confident in our ability to reach FID whether or not China participates”
In reference to other companies signing deals, you have previously said:
“Public statements relating to the timing of FID by unpermitted LNG export projects are purely speculative and unreliable”
You “would encourage people to read each of those statements carefully”
“Many are headline grabs” and “they contain elements we would never incorporate”
In previous announcements you have indicated that LNG is targeting European customers, yet Joe B’Oris only this year comes out and says that pricing discussions with European countries “break down very quickly”!!
More than 20 statements made by management, all substantiateable from LNG reports, and still no one has accepted responsibility and no one has been held to account!!
Excuses the company have used include
- Global political developments and US administration inaction
- Speculative proposals clouding the commercial landscape for buyers
- Low global oil prices
- A global supply glut
- Qatar
- The trade war
- General malaise and low spot prices
- Continuing glut period
- Warm winters in Asia and Europe
- Continuing soft Spot Market
- Japan focusing on nuclear
Additionally, I believe LNG has bias it’s marketing towards conjecture over risks and has failed to provide clarity around a number of speculative statements.
Given all this, and the last Conference Call press release stating your "commitment to providing a fair return to shareholders", how can you expect share holders to believe this, with the SP below 20c, only around $20 Million in cash, no binding agreements, the company dependant on raising incremental capital (thereby diluting the SP further) and future servicing of equity agreements, and debt and interest repayments.
*And how could you allow the recent **elli analyst’s speculative $10 SP valuation for 2020 go unquestioned!!!!
In March 2017 you said
03/17 “Forecast FID in July 2017”
03/17 “Construction on the Magnolia facility is expected to begin later this year”
03/17 “In discussions for more than three times the 8mtpa capacity of Magnolia”
Also during March 2017: you said
03/17 “All three projects are in an advanced stage of development” yet_ You didn’t renew the Fishermans Landing lease
03/17 And in an interview, John Baguley was quoted saying “Construction at Bear Head could start by as early as the following year”
From June 2017 to December 2017: you said
06/17 “Expected to have the whole facility contracted in the next 6 - 12months”
08/17 “Outlook remains bullish”
08/17 “Likely finish selling remaining capacity at the Magnolia project by the end of 2018”
10/17 “Confident of signing offtake agreements with credit-worthy buyers later this year or early in 2018 12/17 “The discussions with potential customers are good
12/17 “Talking about deals up to 25 m tons just to see what's real and who's going to sign first”
In March 2018 Quarterly Highlights: you said
03/18 “There’s ‘real potential’ to get a final investment decision by the end of the year”
05/18 “Demand has taken off”
05/18 “Buyers are willing to sign 20 year deals”
05/18 “Buyers of LNG are no longer balking at contracts”
05/18 “Contract talks have picked up significantly this year”
05/18 “Expected to make that call by the end of the year”
05/18 “When we got back from holidays, the phone started ringing like crazy”
10/18 “We remain confident in our ability to reach FID whether or not China participates”
In March 2019 Reuters Interview: you said
25/03 “Expected to make FID in the second half of 2019”
25/03 “We are emboldened by the advanced engagement we have with several customers during the quarter”
25/03 “The interest our team experienced for Magnolia recently exceeded even our strong expectations”
I have posted this information previously, here it is in the order I was going to ask GV. To be honest with you, it's bad enough dealing with the company's mismanagement without having to deal with HC's rotten editing format, so I hope this posts in a format this is easily read by you and others. I'm basically sick of this company and dealing with other BS like bad editing and being constantly moderated for providing a mix of humour with facts regarding this company.
Time to start spending more time in the surf and enjoying my coffee!!!!
