LNGL has published its quarterly report for the first quarter of its fiscal year.
- On 5 July 2017, LNGL announced that certain wholly owned subsidiaries of LNGL and Stonepeak signed an amended and restated ECA and have updated the associated Magnolia LLC Agreement (LLC Agreement). The amended ECA and LLC Agreements replace the existing Stonepeak agreements signed in October 2013 in their entirety.
- On 1 August 2017, LNGL announced that Magnolia LNG had executed a Servitude Agreement with Turners Bay, LLC, a Louisiana limited liability company, for the right to deposit dredge spoils on certain tracts of land located in Calcasieu Parish, Louisiana.
- During the September quarter, marketing of Magnolia LNG capacity continued with several investment-grade, as well as some non-investment grade counterparties. Substantially all the offtake negotiations are for initial 20-year terms under liquefaction tolling agreements (LTA) or sales and purchase agreements (SPA).
- LNGL also continued to examine technical improvements in the OSMR® technology and plant modular design to further reduce costs.
Bear Head LNG:
- During the September quarter, Bear Head LNG continued to market capacity to all three potential gas paths: US, offshore Nova Scotia; and Western and Central Canada.
- On 6 October 2017, the Board of LNGL announced that it had resolved to suspend all activity related to the redomicile of the Company in the United States to focus on current business.
- On 1 September 2017, LNGL changed its registered office address to 45 Ventnor Avenue, West Perth, WA 6005.
- As disclosed on page 100 of the 2017 Annual Report, LNGL has in excess of 13.6 million unlisted performance rights over ordinary shares held by 41 holders. The rights do not carry a right to vote. The number of performance rights reported on 12 July 2017 in the Appendix 3B (14.8 million) has reduced by 1.2 million due to the forfeiture of Performance Rights by an Executive who has left the company.
- During the three-months ended 30 September 2017, net operating cash outflow was A$6.0 million, which compared with the net operating cash outflow of A$4.5 million for the three months ended 30 June 2017. Management believes the liquidity management plan remains on course to deliver its goal of liquidity to the end of 2018 but acknowledges there remain risks to realising the goal.
- LNGL’s total cash balance as at 30 September 2017 was A$38.2 million, which compares to A$44.5 million as at 30 June 2017, reflecting a net reduction in reported cash of A$6.3 million. The change in reported cash between periods reflected net cash outflows of A$6.0 million, a non-cash reduction of A$0.2 million from currency translation effect relating to movements in exchange rates associated with cash held in denominations other than the Australian dollar (primarily U.S. dollars), and rounding.
- LNGL maintains a material portion of its existing cash and cash equivalents denominated in US dollars. The preponderance of forecasted cash outflows is denominated in US dollars, supporting maintenance of a majority of cash and cash equivalents denominated in US dollars as a foreign exchange risk mitigation strategy. Because LNGL’s reporting currency is Australian dollars, the US dollar denominated cash balances are translated to Australian dollars at each balance sheet date, with the net effect reflected as unrealised gain (loss) from translation as a period end-toperiod end reconciling item in reported cash balances. The Company has no debt.
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