Folks, please see below comments which I think perfectly...

Folks, please see below comments which I think perfectly demonstrates reality from market noise, which at times can be all consuming, indiscriminate and drown out what goes on in the real world.

On Thursday (14th Aug), BTIG hosted LNG AU CEO Maurice Brand and CFO Michael Mott for two group meetings with investors. The meetings were informal - Messrs. Brand and Mott summarized recent developments and took questions from investors. Much of the discussion involved familiar topics negotiations with prospective customers Magnolia LNGs engineering contract, project equity financing, debt financing, regulatory hurdles, and use of capital.

The customer foremost on everyones mind was Gas Natural Fenosa one of the original signers of the non-binding Heads of Agreement. GNF remains engaged, having delivered a revised version of an off take agreement in July, a revision that requires volumes of 2mtpa - not just the base of 1.7mtpa each train guarantees.

Compare this to the Meridian LNG firm contract for 1.7 mtpa, with an option for the remaining 0.3. Mr. Brand emphasized that GNF is not the only interested counterparty LNG AU is speaking with, and reminded investors that Meridian LNGs contracted volumes are only a portion of the volumes that its main customer, E.ON would be interested in.

The EPC contract is under negotiation with KBR, and Mr Brand spoke to the worries that KBR’s most recent earnings presentation sparked in some investors. He pointed out that KBR preferred using conservative guidance, and that the timelines has not actually slipped from KBR’s previous earnings release.

On the contrary he's encouraged by the increase in the amount of the modular content in the latest version of the EPC draft, which has climbed from 50 to 92%. He reiterated that the structure is to build MLNG in one phase, that the EPC will be flexible on the number of trains, and that he does not see cost escalation with this structure.

LNG AU continues its discussion with project equity sponsor Stonepeak to align the structure of the equity financing to mirror the single phase of the draft EPC. Messrs. Brand and Mott described those conversations as unfinished but constructive. Mr. Mott anticipates a preliminary term sheet on debt financing early in the fourth quarter.

Our meetings coincided with final approval from the Canadian regulators for Bear Head LNG and management reported no setbacks for that project's non-FTA application. Mr. Brand expects interventions against MLNG come September from the usual suspects (Sierra Club et al.) who routinely try and fail to derail LNG projects. He does not believe these predictable filings will slow progress towards a FERC order (i.e. “Notice to proceed”) for MLNG in the first quarter.

Mr. Mott told the groups that LNG AU has AUD180mm in cash at the moment, that the run rate cash usage internally is approximately $2.5-3mm per month, and that external engineering costs associated with early works are an additional $4-6mm per month depending on the workflow. Management strongly believes that this expenditure supports the timeline of construction, which in turn reassures potential off takers that they will see cargoes when they need them.

Our view of the company after these meetings remains unchanged: Magnolia LNG remains an attractive project for offtakers based on location, price, and timing. We think management understands what needs to be done, and has a detailed and rational plan for doing it.

Valuation: Our A$6 price target is based on 12x cash flow of FY21E DCF of $522.7mm for Magnolia and $251.2mm for Bear Head, discounted back at 12%

So sit back, look at the bigger picture and reflect on what LNG has achieved and in all likelihood will achieve with the undeniable progress and discussions at critical stages. No one said this would be easy and the current market backdrop certainly isn't helping. But it's pretty clear when GNF are upsizing to 2mtpa & implied comments E.ON may themselves be one of the other parties, all is NOT doom and gloom.

As I said, buy in gloom, sell in boom!

And you can bet, MB will be determined to share good news with shareholders in time for the AGM.

Go LNG!