Hi All
This thread is about the call to action
Below is a template holders concerned by the failings of the EGR BOD might consider sending out with your details and +/- wording to:
Robert Pett Chairman Ecograf: info@ecograf .com.au
That is the general email freely available on their website
Tim Canham Senior Portfolio Manager First Sentier Investors [email protected]
That is the general email freely available on their website
Allianz Global Investors GmbH [email protected]
That is the general email freely available on their website
Jefferies (Australia) Pty Ltd.
CEO Michael StockLevel 22
60 Martin Place
Sydney NSW 2000
Australia
Sorry can't find a general email so snail mail them
It was end of September that we found out poorly communicated details of Kwinana SGP being pulled. The lease option will have lapsed already by now if the extension hasn't been renegotiated. 'Who knows? ...not us'
Also progress on Epanko was promised last quarter (well...every quarter for the past 10 years but last quarter was meant to be the go ahead progress update...but like Kwinana that is in 'Who knows? ...not us'
This is in fact the status of every Ecograf project.
So as we head towards the AGM it is imperative to TAKE ACTION now if we want change. We need our INSTO holders who have a big impact on the vote, to either VOTE AGAINST or ABSTAIN each of the 6 Resolutions...the way to do that is to let them know how we are feeling being treated like mushrooms by the BOD of EGR and the BOD treating EGR like a lifestyle gig...while they faff about not adding shareholder value in the most vibrant market globally .
So act now and vote now by cut and pasting and emailing the letter to the emails above with your details AND if you haven't already done so VOTING AGAINST all 6 AGM Resolutions
Thankyou for helping create a better EGR that can live up to it's huge potential
564xxl
All naturally IMHO and DYOR
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Attention: Board of Directors Robert Pett, Andrew Spinks and John Conidi
Ecograf Limited
18 Richardson Street
West Perth, WA, 6005
Gents
As a holder of Ecograf Ltd, I wish to bring to the Boards attention my ongoing concerns with the management and progress of our company under your tutelage.
I have keenly followed Ecograf via the company's market announcement, since 2012 KNL day's to present EGR and I continue to hold because of the huge potential of Ecograf's graphite products as either promised or alluded to and more so given the vibrant and rapidly expanding global market in which Ecograf operates.
However, I see Ecograf's market leading potential slipping and the company's Market Cap lagging year after year due to the Board's failings; namely:
- Ongoing failure in bringing fully funded projects through to production and market.
- Inadequate levels of disclosure to the market on all projects, making decisions on whether to invest in the company extremely difficult if not impossible (both for potential holders and existing holders seeking to hold/expand my holdings)
- An almost relentless blind drive by the BOD to add new "shiny object' projects, which whilst likely added with the intention of "building a vertically integrate battery anode materials business", have resulted in a multitude of poorly understood (unknown financial benefits, costs, project plans, timeframes, "customers") projects with little or no perceived value to the company.
- A failure to fix the 'leaks in the ship' that have enabled shorters to correctly predict and advance pivot against every missed deadline including most recently the failure to progress Epanko mine as forecast by the end of last quarter and, more concerningly, the reversal on commencing the development of the worlds 1st ex-China Spherical Graphite Plant, both of which might otherwise have seen significant increases in the company's share price. Indeed so confident were the shorters they significantly increased their positions leading into what should have been 2 company making announcements.
- The crass decision by the BOD to uber-reward themselves with significant incentives with low or qualitative performance targets
- Dropping down to a 3 person Board where both Board member Conidi and Pett seemingly play no active or public role in progressing or promoting the company whilst concurrently enriching themselves with huge incentive rewards.
- Failing to meet ASX disclosure obligations in respect to the late cancellation of Kwinana Stage1 when clearly the BOD knew full well in advance of the cancellation and failure to take up the expiring lease option whilst making insipid announcement on development approvals only days before the cancellation of stage 1
These matters are made more egregious given that the company for some 2 years, has had some 50m+ at its disposal, raised specifically to bring already long in-development projects to commencement.
Competitive companies in Australia, once laps behind Ecograf and with significantly less potential, are now smashing Ecograf in the all important Board function of "adding Shareholder Value"; not least because their BOD's have not tried to be all things to all people but rather focussed on core projects, commenced these and have consequently bought handsome rewards to their shareholders; not simply enriched themselves.
Ecograf commenced its journey over 10 years ago as KNL, focussing on bringing the Epanko graphite mine to commencement, before additionally focussing on bringing the Kwinana Spherical Graphite Plant to commencement. Both of these projects remain poorly understood with unknown financials and commencement dates, if any.
What's more, recently the BOD has pursued a strategy of relentlessly adding more projects to the mix, all equally poorly understood and some seemingly forgotten as soon as they have been announced to market with no further updates at all. Total projects now include (as a non-exhaustive list):
Epanko Graphite Mine
Epanko Graphite Mine Expansion
Tanzanian Downstream processing
Merelani-Arusha Graphite mine
Innogy Demerger of Nickel tenements in Tanzania
FYI partnership
SungEel partnership
POSCO Partnership
EcoCHEM
hdFines
GreenReCARB
hdBAM
SuperBAM
Modular Pilot recycling plant
Patents
Spherical Graphite Plant Kwinana and associated lease
Spherical Graphite Plant Sweden and associated lease
Spherical Graphite Plant USA
Spherical Graphite Plant Germany
Spherical Graphite Plant Asia
Pilot plant
Germany Ecograf
London Ecograf
Mauritius Ecograf
Partners (various)
More projects in fact than staff.
The BOD has not provided detailed or even broad up to date financials/costs/markets/timeframes etc for any of these multitude of projects and indeed the two original core projects are also no longer understood.
The depth of confusion and angst related to Ecograf can easily be seen in the broader sharemarket forums both in Australia and Germany. A cursory glance at Hotcopper will attest to the failures of the Board to deliver concise, clear market guidance. Conjecture, angst and outright animosity at the vastly inadequate market communication are clear to see.
It is also of significance that the likes of Allianze, Paradice and Jefferies have all chosen to lighten their holdings since Ecograf's capital raise some 2 years ago. Strange in light of Ecograf having such 'rich' projects and 50m (eroding) in the bank specifically to commence projects. Why is this the case?
It is unfathomable and unacceptable that after 10 years and numerous calls from Members to the Board seeking clarification and improvements in communication, that such serious issues should remain today.
It does not auger well for the future of Ecograf if things remain unchanged. I therefore call on the Chairman to take immediate action as follows:
1. Seek John Conidi to step down from the Board of Ecograf effective immediately and his replacement nominee sought from within existing Ecograf Senior Management ranks.
2. Withdrawal of Resolutions 3 - 6 inclusive, prior to the AGM as a show of understanding the depth of register angst.
3. Chairman considers stepping down at 2022 AGM or provides a reasonable timeframe for same.
4. Addition of 2 new independent Directors to the BOD ...taking the Board to 5.
5. Completely revamping of the companies market communications protocols commencing with a full open briefing to the market on the status, financial imperative and timeframes for each proposed ongoing project.
6. Carry the 2022 AGM and future quarterlies, online and interactive including the addition of extended Q&A to enable broader participation from members across Australia and Internationally.
I additionally call on the support of our esteemed Institutional Investor Members to support my calls for change through either voting AGAINST all Resolutions at the 2022 AGM or ABSTAINING from voting at the Ecograf 2022 AGM. Your support will help enable better Shareholder value outcomes for all holders.
Respectfully
Name
Holding Name
HIN
Holding
(20min delay)