After being greyed out while at the same time having to read voluminous amounts of conjecture from GV and other commentators, I’ll give my version of today’s report and highlights so I’ve got hopefully something to show for my efforts on this thread page. If it’s not here long, it’s pretty well just stating the obvious anyway, and it wouldn’t hurt if GV to took some ownership for his past and present comments because he still doesn’t seem to be able to get his wording accurate in this report, so here’s my highlights:
29/04/19 LNG Quarterly Highlights and Appendix 4C
GV’s Quarterly Highlight Comments:
“We have received comments from multiple shareholders claiming that our competitors are all signing deals, but I would encourage you to read each of those carefully”....
.... I myself would encourage shareholders to read carefully too because as far as I’m aware, no one has said our competitors are all signing deals. And there is a pretty good list of the deals being done on the threads for those wanting to read the facts themselves!!
“Many are non-binding headline grabs, or they contain elements we would never incorporate”....
....Not like when GV said: “As we finalize LNG offtake agreement efforts”;“We will be moving to finalize firm offtake agreements in the New Year”; “Construction on the Magnolia facility is expected to begin later this year”; “In discussions for more than three times the 8mtpa capacity of Magnolia”; “Construction at Bear Head could start by as early as next year”; “Forecast FID in July 2017”; “All three projects are in an advanced stage of development”; “Expected to have the whole facility contracted in the next 6 - 12months”; “Likely finish selling remaining capacity at the Magnolia project by the end of 2018”; “Confident of signing offtake agreements with credit-worthy buyers later this year or early in 2018”; “We hope to have it done by now to mid to 3rd quarter 2018”; “Talking about deals up to 25 m tons just to see what's real and who's going to sign first”: “There’s ‘real potential’ to get a final investment decision by the end of the year”
GV also says: “They do not provide the type of economics an LNG development project requires” and “We are emboldened by the advanced engagement we have with several customers through a significant number of bilateral consultations during the quarter” and “The interest and jam-packed schedule our team experienced for Magnolia LNG at the recent LNG2019 conference in Shanghai and other events exceeded even our strong expectations”....
....Just like when GV said: “Buyers of LNG are no longer balking at contracts”; “Contract talks have picked up significantly this year”; “Buyers are willing to sign 20 year deals”; “When we got back from holidays, the phone started ringing like crazy”; “Meanwhile, demand has taken off”; “Expected to make that call by the end of the year”; “We remain confident in our ability to reach FID whether or not China participates”; “Free up desired capacity”.... But of course these aren't headline grabs when they come from GV!!!!
Other Highlights
B’Oris(Chief Development Officer of LNGL) vested 60,000 Retention Rights on January 31, 2019.
On March 20, 2019, LNG Limited was given a Notice of ceasing to be a substantial holder by Valinor
The Company contemplates the continuity of normal business activity in delivering its goals of reaching financial investment decisions, constructing, and operating its liquefaction projects....Normal business being ‘More excuses and more urgency to raise capital’!!!!
LNG’s Financial Position
During the three‐months ended March 31, 2019, net operating cash outflow was A$7.9 million
Compared with the net operating cash outflow of A$10.5 million for the three-months ended 31/12/18
Staff costs for the quarter was nearly $4 Million (greater than project development, and administration costs)
Available cash balance as at 31/03/19 was A$26.7 million
The New Excuses
Following on from past excuses of Low Oil Prices; Gas Glut; Qatar; China Trade Issues, we now have some new and innovative excuses including: General Malaise and Soft Spot Pricing!!!!
Future Capital Raising Requirements
LNGL’s ability to extend available liquidity beyond existing capacity is dependent upon the future successful raising of incremental funding through any one or a combination of: the successful marketing of offtake capacity and the resulting financing of one or more of its projects; marketing of the OSMR® technology and services; the sale of equity and/or debt; or the sale of assets. Management believes it has options for raising incremental capital and that execution of its plans will enable extension of existing liquidity as and when required. However, Management acknowledges the risks and uncertainty of raising additional capital through the above means and that failure to do so would impose negative implications to the business.
Great report, thanks GV
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