Schematic Site Layouts for the proposed 8 mtpa or greater Magnolia LNG Project in the Port of Lake Charles, Louisiana, USA (left) and the 8 mtpa or greater Bear Head LNG Project, in Richmond County, Nova Scotia, Canada (right)
June 2016 Quarterly Highlights and Appendix 4CA Message from the Managing Director and Chief Executive Officer
Liquefied Natural Gas Limited's (LNGL or the Company) focus continues to be threefold: complete marketing of Magnolia LNG's offtake capacity to progress this project through financing and into construction; finalize Bear Head LNG regulatory permitting, engineering, and the marketing of liquefaction tolling capacity; and preserving our existing liquidity through effective cash management. The LNGL executives and staff are committed to delivering these key objectives.
The Company's total cash position as at 30 June 2016 was A$71.4 million and there is no debt.
The LNG industry is currently challenged by an LNG supply / demand imbalance. However, the Company's business model of mid‐scale LNG export projects, using our wholly owned patented OSMR® liquefaction process technology, positions the Company for long‐term global success due, in part, to our industry leading low cost solutions.
I look forward to meeting our shareholders who are able to attend the presentations this week in Sydney (25th July), Melbourne (27th July), and Perth (28th July), which we have highlighted in an ASX release on 6 July. If you have any queries, please contact our Perth office on (08) 9366 3700.
Yours sincerely,
Gregory M. Vesey, Managing Director and Chief Executive Officer
Liquefied Natural Gas Limited
ASX Code: LNG
OTC ADR: LNGLY
ABN: 19 101 676 779 CONTACT DETAILS
PERTH HOUSTON
First Floor, 1001 McKinney Street
10 Ord Street, Suite 600 West Perth 6005, Houston, TX 77002 Western Australia USA
Tel: +61(0)8 9366 3700 Tel: +1 713 815 6900 Fax: +61(0)8 9366 3799 Fax: +1 713 815 6905
Email: LNG@LNGLimited.com.au Website: www.lnglimited.com.au
BOARD OF DIRECTORS
Richard Jonathan Beresford Chairman Gregory M Vesey
Managing Director and Chief Executive Officer Fletcher Maurice Brand
Executive Director Leeanne Kay Bond Non‐Executive Director Paul J. Cavicchi Non‐Executive Director
Shares on Issue | 503,977,606 |
Performance Rights | 16,582,858 |
Unlisted Options on Issue | 1,759,000 |
ADRs on Issue | 2,951,949 |
D. Michael Steuert Non‐Executive Director Philip D. Moeller Non‐Executive Director ISSUED CAPITAL as at 30th June 2016
SUBSTANTIAL SHAREHOLDERS as at 30th June '16
Top 20 Shareholders | 55.5% |
North American | 48.0% |
− Baupost Group, LLC | 12.4% |
− Valinor Management, LLC | 8.3% |
Directors & Management | 2.0% |
1
QUARTER HIGHLIGHTS
Magnolia LNG:
Magnolia LNG received its United States Federal Energy Regulatory Commission (FERC) Order to site, construct, and operate facilities to liquefy and export domestically produced natural gas from the LNG export terminal
The Louisiana Department of Environmental Quality (LDEQ) approved the air permit for the Magnolia LNG project
FERC also authorised the Kinder Morgan Louisiana Pipeline LLC (KMLP Pipeline) to install compression and other related facilities on the KMLP Pipeline, facilitating the transportation of full feed gas volumes to the Magnolia LNG project
Magnolia LNG and the KSJV (a joint venture between KBR and SKE&C, led by KBR) agreed to extend the validity period of the signed engineering, procurement, and construction (EPC) contract price through 31 December 2016
Bear Head LNG:
Bear Head LNG received Governor in Council approval for a licence to import natural gas from the United States and a licence to export LNG from Bear Head LNG's project site
In early July 2016, Nova Scotia Environment (NSE) approved Bear Head LNG's Greenhouse Gas (GHG) Management Plan for its liquefied natural gas facility on the Strait of Canso in Richmond County, Nova Scotia
Corporate:
Appointments of a new Managing Director and Chief Executive Officer, Mr Greg Vesey, and Mr Maurice Brand as an Executive Director
Share movements:
On 22 June 2016, 250,000 ordinary shares were issued on the exercise of options on 21 June 2016, a further 250,000 ordinary shares were issued on the exercise of options on 28 June 2016
At the date of this report, there are 1,759,000 options outstanding, having option expiration dates of 8 July 2016 (759,000 options with strike prices ranging from A$0.24 to A$0.28) and 20 December 2016 (1,000,000 options with a strike price of A$0.465)
Financial Position:
During the June quarter 2016, net operating cash outflow was A$16.0 million, which compares with the March quarter 2016 figure of A$29.6 million. Management expects net cash outflows to continue to trend lower reflecting execution of the Company's cost management strategy
LNGL's total cash balance as at 30 June 2016 was A$71.4 million, which compares to A$85.8 million as at 31 March 2016. The Company has no debt
For further information contact:
Mr. Greg Vesey Managing Director and CEO LNG Limited +1 713 815 6900 Mr. Maurice Brand Executive Director LNG Limited +61 8 9366 3700 Mr. Mike Mott Chief Financial Officer LNG Limited +1 713 815 6909ABOUT LIQUEFIED NATURAL GAS LIMITED
LNGL is an ASX listed company (Code: LNG and OTC ADR: LNGLY) whose portfolio consists of 100% ownership of the following companies:
Magnolia LNG LLC (Magnolia LNG), a US‐based subsidiary, which is developing an 8 mtpa or greater LNG export terminal, in the Port of Lake Charles, Louisiana, USA;
Bear Head LNG Corporation Inc. (Bear Head LNG), a Canadian based subsidiary, which is developing an 8 ‐ 12 mtpa LNG export terminal in Richmond County, Nova Scotia, Canada with potential for further expansion;
Bear Paw Pipeline Corporation Inc. (Bear Paw), which is proposing to construct and operate a 62.5 km gas pipeline lateral to connect gas supply to Bear Head LNG;
Gladstone LNG Pty Ltd, a subsidiary which plans to develop the 3.5 mtpa Fisherman's Landing LNG (FLLNG) project at the Port of Gladstone in Queensland, Australia; and
LNG Technology Pty Ltd, a subsidiary which owns and develops the Company's OSMR® LNG liquefaction process, a mid‐scale LNG business model that plans to deliver lower capital and operating costs, faster construction, and improved efficiency, relative to larger traditional LNG projects.
Level 1, 10 Ord Street, West Perth WA 6005 Telephone: +61 (0)8 9366 3700 Facsimile: +61 (08) 9366 3799
Email: LNG@LNGLimited.com.au Website: www.LNGLimited.com.au
Disclaimer
Forward‐looking statements may be set out within this correspondence. Such statements are only predictions, and actual events or results may differ materially. Please refer to our forward‐looking statement disclosure contained on our website at www.LNGLimited.com.au and to the Company's Annual Report and Accounts for a discussion of important factors, which could cause actual results to differ from these forward‐ looking statements. The Company does not undertake any obligation to update publicly, or revise, forward‐looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.
Appendix 4C Quarterly report for entities admitted on the basis of commitmentsName of entity
Liquefied Natural Gas Limited
Rule 4.7B
ABN Quarter ended ("current
quarter")
19 101 676 779
30 June 2016
Current quarter $A'000 | Year to date (12 months) $A'000 |
247 (6,542) (37) (8,287) (1) (1,570) ‐ 105 ‐ ‐ ‐ | 625 (22,410) (175) (89,329) (3) (6,699) ‐ 620 (1) ‐ ‐ |
(16,085) | (117,372) |
Receipts from customers
Payments for:
staff and director costs
patent costs/trade marks
LNG project development
leased assets
other working capital
Dividends received
Interest and other items of a similar nature received
Interest and other costs of finance paid
Income taxes paid
Other (provide details if material)
- Net operating cash flows
Liquefied Natural Gas Limited published this content on 25 July 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 24 July 2016 23:10:04 UTC.
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