It's a promising sign for US exporters when Cheniere signed a deal on Jan 16 2018 with Trafigura and Venture Global getting a deal signed with Edison on Sept 26 2017..." Buyers will sign when they are ready ", a direct JB quote, and if you look at the market environment currently, its certainly improving but wouldn't say BTA contracts are flying off the shelf. To my knowledge, Venture Global's 1mt BTA with Edison, Anadarko Mozambique's 2.6mt BTA with PTT and Gunvor's 2.2mt BTA with Equitorial Guniea's Fortuna were the only investments made in the "next wave", aspiring new projects in 2017.
The reality is, a BTA can be signed any day now, will take just one significant volume contract, say 1.5mt-2mt, to set the "domino effect" in motion. In the Quarterly Highlights dated 30th October, the company stated "over the last quarter (being August through October), our discussions with potential off-takers has increased significantly. With a colder than normal winter expected in Asia and a closing window to secure a long term LNG supply, buyers are more willing to have serious discussions, and we remain confident in signing off-take agreements with credit-worthy buyers later this year or early in 2018". When GV states "early", i would interpret "early" as by the end of the 1st quarter! But i will say this, although I've always backed our CEO 100% to this day, i don't "hang my hat" on his every word. To me he lacks an (Charif Souki) edge but assure you he's just as desperate to get Magnolia across the line as we are... that was evident while in his presence last October.
What does concern me a little was the statement in the Quarterly highlights from December 2017, "management believes the liquidity management plan remains on course to deliver its goal of liquidity to the end of 2018 but acknowledges there remains risks to realising the goal". As of December 31st 2017 our cash balance was $33 Million and our quarterly expenditures in 2017 read:
Jan 31 - March 31 $7.1 Million
March 30 - June 30 $4.5 Million
June 30 - Sept 30 $6 Million
Sept 30 - December 31 $5.3 Million
Thats an average of $5.7 Million. You don't have to be a rocket scientist to understand the numbers don't add up... our liquidity should last till March 2019 if we burn an average of $6 million a quarter + $3 million still in the kitty, shall dig deeper and find out whats going on! Regardless, we will have to extend our liquidity runway at one point in 2018 and its the company's goal to raise $100 million in new capital to see us through till 2021. Remember, Cheniere had to return to the market for a CR (after their 1st IPO on 4/4/1994) on the 20th December 2007 and raised $283.5 Million by selling 13.5 Million common units for $21 per unit... before their first BTA's began rolling in from the 26th Oct 2011 onwards.
On a side note, the appointment of Joseph B'Oris as Chief Development Officer was not an extra addition to LNGL's KMP (Key Management Personnel) payroll. He was simply replacing the position that was left by the departed Anthony Gelotti on July 1 2017.
For your interest, the Base Salaries & Total Renumeration Packages (including STI's, LTI's, Benefits) our KMP are on are as follows:
MD/CEO *Greg Vesey* Base - $208,953 TRP $219,218 (2016) Base - $846,667 TRP $1,283,018 (2017) Appointed Apr 4 2016.
COO *John Baguley* Base - $546,196 TRP $1,187,109 (2016) Base - $549,937 TRP $950,229 (2017) Appointed CTO in May 2014. Appointed COO Jun 16 2017.
CFO *Michael Mott* Base - $546,196 TRP $1,031,280 (2016) Base - $548,920 TRP $1,096,670 (2017) Appointed Oct 1 2014.
CDO *Anthony Gelotti* Base - $313,162 TRP $336,054 (2016) Base - $533,333 TRP $726,777 (2017) Appointed Dec 1 2015 & left the company July 2017.
General Council & Joint Company Secretary *Kinga Doris* Base - $353,715 TRP $413,746 (2016) Base - $435,441 TRP $627,430 (2017) Appointed Sept 1 2015.
Chairman of Board *Paul Cavicchi* Base - $165,367 TRP $241,560 (2016) Base - $231,378 TRP $340,713 (2017) Appointed Nov 2016.
Total cash fees paid to NEDs in 2016 $970,630 & Total NED Remuneration $1,123,527. 2016 $894,204 & $1,192,746.
Even though the company's goal is to sign 8mt in 2018 (shareholders should be prepared for that timeline to be stretched into 2019 given our competition), reaching FID, as well as raise $100 Million , the agreed scorecard and weightings for the Managing Director/ Chief Executive Officer for calendar year 2018, which scorecard shall be used to assess performance relative to fiscal 2018 STI payments are:
Signing of 4mtpa in binding offtake agreements with an investment grade counterparties for MLNG (50%)
Consistent with the level of off-take marketing success, develop a firm commitment for the next capital infusion to support LNGL through 2021 (30%) - raise $30 Million.
The purchasing, selling history of Ordinary Shares & ADRs from our KMP:
Maurice Brand EX CEO: 13 Sept 2004 buys 15,000,050 shares...
6 Feb 2008 Buys 7,692 @ 65c $5000 value
6 May 2008 Sells 2,000,000 @ 71c $1,420,000 value
15 May 2009 Buys 750,000 @ 30c Avg
15 May 2009 Sells 1,000,000 @ 56c
6 Nov 2009 Buys 12,000 $1.25
29 Jun 2011 Sells 2,769,742 @ 30c
27 Oct 2011 Sells 4,000,000 @ 30c
22 Aug 2013 Buys 100,000 @ 19c
6 Sep 2013 Buys 70,000 @ 20c
30 Jul 2014 Sells 850,000 @ $3.72
31 Jul 2014 Sells 820,000 @ $3.57
6 Aug 2015 Buys 100,000 @ $2.64
6 Apr 2016 Buys 200,000 @ 47c
4 Jul 2016 Buys 951,843 @ 78c
5 Jul 2016 Buys 48,157 @ 78c Total: Currently holds 5,800,000 ordinary shares
Greg Vesey MD/CEO:
29 Apr 2016 Buys 200,000 @ 59c
7 Mar 2017 Buys 500,000 @ 71c Total: Currently holds 700,000 ordinary shares
Richard Beresford NED: 13 Sep 2004 buys 50,000 ordinary shares
15 Jan 2008 Buys 200,000 @ .455c $91,000 value
6 Feb 2008 Buys 7,692 @ 65c $5000 value
15 May 2009 Buys 150,000 @ 56c
15 May 2009 Sells 50,000 @ 56c
22 May 2009 Buys 12,000 @ $1.25
6 Sep 2013 Buys 70,000 @ 20c
30 Jul 2014 Sells 25,000 @ $3.78
25 Nov 2015 Buys 32,145 @
2 Dec 2016 Buys 25,388 @ $1.47
13 Dec 2017 Buys 127,014 @ 59c Total: Currently holds 472,225 ordinary shares
Paul Cavicchi Chairman:
25 Nov 2015 Buys 7,097 @
31 Mar 2015 Buys 30,000 LNGLF ADRs @ $2.44 (USD) each ADR - 1 LNGLF ADR = 1 ord shares
31 May 2015 Buys 30,000 LNGLF ADRs @ $3.23 (USD) each ADR
20 Oct 2016 Buys 25,000 LNGLY ADRs @ $1.78 (USD) each ADR - 1 LNGLY ADR = 4 ord shares
2 Dec 2016 Buys 13,495 @ $1.47
5 Apr 2017 Buys 25,000 LNGLY @ $2.06 (USD) each ADR
Date unknown Buys 40,000 ordinary shares or 40K LNGLF ADRs or 10K LNGLY ADRs
13 Dec 2017 Buys 213,938 @ 59c Total: Currently holds 534,530 (ADRs inc)
Douglas Steuert NED:
2 Dec 2016 Buys 13,495
23 Dec 2016 Buys 31,520 LNGLY ADRs @ $1.90 (USD) each ADR - Ratio 1 : 4
13 Dec 2017 Buys 127,014 @ 59c Total: Currently holds 267,523 (ADRs inc)
Leeanne Kay Bond NED:
13 Aug 2015 Buys 10,000 @ $2.99
25 Nov 2015 Buys 19,428 @
2 Dec 2016 Buys 14,121 @ $1.47
13 Dec 2017 Buys 127,014 @ 59c Total: Currently holds 170,563
Philip Moeller NED:
21 Jul 2016 Buys 10,000 LNGLY ADRs @ $2.10 (USD) each ADR - Ratio 1 : 4
11 Aug 2016 Buys 1,500 LNGLY ADRs @ $1.99 (USD) each ADR
8 Feb 2017 Buys 5,000 LNGLY ADRs @ $2.41 (USD) each ADR
13 Dec 2017 Buys 127,014 @ 59c Total: Currently holds 193,014 (ADRs inc)
As highlighted in bold, its worth noting that 4 NEDs purchased the equivalent of $74,938 worth of shares with Chairman chipping in with $126,223, all in mid December. Although not significant parcels, still signifies buying power during our perceived " BTA window of opportunity ". GV has skin in the game at $473,000.
Baupost is our No. 1 shareholder with a holding of 62,340,529
Valinor No. 2 with a holding of 41,967,223
Take a deep breath and lets keep soldiering on!
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