nxs responds to shareholder questions

Cut and Paste of my questions and NXS response. In summary LLead are progressing, CRUX / LT commercially sensitive and confidential.

I am a long suffering NXS shareholder who has just read the June quarterly report and are very disappointed at the omission of comment regarding the Crux long lead items and the degree of insight regarding the Crux divestment process.
1) I refer to the investor briefing dated 6 June 2013 -slide 23 " .....with proceeds of $6m expected from proceeds from partial sale of former Crux liquids project long lead items". It is astonishing to me that the quarterly report has not made reference to the previously flagged sale, has the sale been cancelled , delayed or in progress???. I would appreciate a response to this enquiry and additionally what proportion of the original cost $82m does the $6m relate (ie original cost of the items considered for sale at $6m). Whilst comment re: an amount of $6m may not be viewed as material in some circles, it is important to NXS longterm shareholders who are still "swallowing hard to digest that bitter pill."
2) For 5 years + we have been hearing about the sale in one way or another of Crux or part thereof and the current Board have indicated over recent times an increased degree of interest following the grant of the Retention licence however this quarterly is devoid of similar statements (apart from an over statement referring to a dual divestment process). In it's place greater attention is given to the attractiveness of LongTom to new investors. The quarterly subtley suggests that unlocking Crux value is tied to the year 2 work program as per page 1 of the quarterly. What inference can be taken by shareholders from this report that the previous reported divestment activities are continuing or have ceased or slowed??.
I for one are very thankful and grateful for the various Board changes made over the past 15 months, acknowledge the recent trend to communicate with shareholders but respectfully suggest that greater attention needs to provided to communication with greater clarity

Responses

.....your comments in respect of communication with greater clarity are duly noted.

The $6m reference (as per the Open Briefing lodged with the ASX on 3 June and 6 June 2013) relates to the partial sale of a few components of the long lead items and was intended to provide guidance as to expected near term cash receipts. The sale process for the long lead items by components is ongoing and involves numerous third parties, they are at various stages that includes: deposits received and awaiting close out, contracts entered and equipment in process of being packed, close out contracts being negotiated. As these transactions complete they will be reported in our financial statements. There is no further update to the total expected sales to report at this stage.

2. The points in respect of Longtom in the June quarterly is the result of the revised terms of the Longtom Gas Sales Agreement that were announced during the June quarter. As announced, a strategic review of our assets is underway (this includes the asset divestment processes) with the objective of optimising our assets and portfolio to meet our future funding requirements. We will provide an update on the outcome of the strategic review and the divestment activities in accordance with our continuous disclosure obligations (noting that these are commercially sensitive and confidential).