I have invested over $200,000.00 dollars in LNG Ltd. Recent investments of these were in November 2015 when I bought $90,000.00 worth of shares at $1.21 and July 2016 when I bought $70,000.00 worth at $0.74. Recently they have asked us to vote on granting the issuing of shares to Non Executive Directors: Approval of securities Non Executive Director; Incentive Rights; NED rights.
Before we vote we should look at the performance they and other directors and board members are doing for us:
They keep telling us that they are a market leader, yet they don’t have the off-take agreements in place to proceed to FID.
They keep telling us that they have a compelling market opportunity and they are committed to delivering key objectives like possibly beginning production by 2022 (6 years from now)
They keep telling us that they are actively marketing Magnolia and Bear Head, but in the last quarterly report (September) the money spent on advertising and marketing was $0.00. In fact the majority of money spent was 6 Million dollars on staff costs.
They are telling us that there is geopolitical uncertainty, a high risk of market disruption and volatility and activists slowing infrastructure that they have no control over yet this year they already offered over 5 Million in incentive rights (259,00 shares at $0.27 and 500,000 shares at $0.28 and in September).
If the people running the company were in any way dedicated to repaying (or acknowledging contributions from) shareholders they would be doing more to earn their pay and less in the way of issuing shares to NED. Do the Executive’s, Board Members etc really expect us to keep throwing money at them in the faint hope that in 6 years time they will begin production.
The worst mistake I have made in my investment life was deciding to buy $90,000.00 worth of LNG Ltd shares at $1.21 rather than buying A2M (Milk) shares at $1.10 at the time because A2M had just gone up 10% and I thought I may have missed the jump on them. They are currently trading at $1.75 (70% higher, and that’s the lowest they have traded in quite a while!!) My LNG Ltd stock by comparison is down well over $60,000.00 and getting lower every day.
If they really wanted to pay back shareholders like me (who believed the hype put out by this company) they would make some effort to put money back in our pockets instead of the NED. They could do this by getting what they can for the Fishermans Landing project (Santos, Origin and their partners are already increasing the number of trains they are producing there and still losing money, and the chances of LNG Ltd making any money there seems hard to believe) or sell LNG’s patented OSMR technology so at least we can get some return on our investment. I could have bought a block of land with the money I have invested in this company and it would probably be worth 10% more now rather than the more than 50% loss with LNG. So I’ll be voting ‘Against’ you resolutions in the upcoming AGM and I’m even seriously thinking of voting for the spill motion last of all.
LNG Price at posting:
53.3¢ Sentiment: None Disclosure: Held
