A friend of mine recently told me that I shouldn’t put much stock in what some posters on HC say and it’s just wasting time playing the man, not the ball!!
I have to admit that ‘playing the man’ might be part of my MO!! I guess what he’s saying is that most holder’s only want to hear good things about their stocks and I won’t find a lot of integrity in a lot of posts so I should stop wasting time on them. I also guess old habits are hard to break, including just retiring and not posting, but I’ll get there!!!!
Since reading that IDG Energy received $9.53 Million in earnings from LNGL I’ve been looking into LNGL’s financials. Something I found interesting is that the $28.2 Million share investment made by Mulliner Investment Limited (a subsidiary of IDG Energy) was stated by LNGL and other sources as being a ‘short term investment’ (short term deposit $25 Million, page 72 2018 Annual Report).
And since this investment is being primarily used for ‘downstream marketing efforts’, of which IDG Energy is certainly involved in, I thought I’d post a summary of some of LNGL’s financials for anyone who is interested in following the ‘money trail’ as I am.
The information is mostly from LNGL’s last Annual Report, although some is taken from the last Quarterly Report, and is pretty close to accurate given that LNGL like to adjust their figures between $US and $AUD as well as mix up / change their methods of reporting, evident in past financial reports. LNGL’s net asset value can be questionable too given the value they place on Bear Head.
JULY 2018 NET ASSETS
Cash and cash equivalents:$22.47 Million
Other financial assets:$28.22 Million
Property, plant and equipment: $11.92 Million
Total: $63.00 Million
Total liabilities:$ 2.81 Million
Net assets: $60 Million (FY18)
Following the IDG $28.2 Million Capital Raise, we have an increase ofjust $6 Million(AUD) in assets from last year.
FINANCIAL YEAR 2018 INCOME
IDG Share Purchase Capital Raise $28.2 Million (AUD)
(Restricted Cash)
FINANCIAL YEAR 2018 EXPENSES
Project development expenses: $11.4 Million (AUD)
Administrative expenses: $12.3 Million (AUD)
Share based expenses: $1.2 Million (AUD)
2018 SEPTEMBER QUARTER
Cash and cash equivalents:$ 17.67 Million (AUD)
IDG Share Purchase: $28.20 Million (AUD)
Total cash / cash equivalents:$46.80 Million (AUD)
LNGL’s OVERALL EQUITY METRICS
Equity contributed: $420 Million (AUD)
Total accumulated losses in equity: $404.8 Million (AUD)
Net Loss to equity holders for the year ended 30/06/18: $22.8 Million (AUD)
For those who believe LNG’s SP will again reach $5.00, it is worth noting that the share value has been diluted by millions of shares, this last year alone!!!! (Exact figures at end of 2018 Annual Report)
Above are facts and figures, as far as my opinions, most countries buying LNG in the Northern Hemisphere do it prior to the onset of winter, last week US Natural gas stockpiles have increased and this week the consensus is for them to increase again, while natural gas prices have been decreasing.
December has gone, there are only two winter months left and winters are getting shorter and milder while summers are getting longer and hotter.
With depressed natural gas prices at the moment, now seems like a good time for buyers to seek contracts as they also organise their own supply to be liquefied, but between ‘the Donald’ and GV running things, my guess is to agree with GV on at least one thing: “buyers aren’t in a hurry”.
