AJM AGM and future, page-5

Hi All,

Disclaimer first, everything below is my out take (Notes) from the AGM. It is not finical advice! They are my thoughts (opinions/assumptions)) of what I got out of the AGM presentation and, with a direct chat with JB and a few other senior staff members afterwards). If I’ve interpreted anything wrong that my fault! (Too much nitrogen bubbles left in my head). Also, an apology for the long worded report however, I thought I’d pass on as much as I could.

If you want any clarification call AJM (they stated that several times they are open for phone calls) what I know is that everything here on HC is hearsay, assumptions and BS. That is until ANN’s are released.
Note: some of the information below is already known however, for me some of the hearsay is now confirmed!

So, to the AGM debrief, I think it went well I thought (for my first one), it started 09:30 and was completed by about 10:35, about 35 people attended (about 8 senior management included). Not many questions were asked during the presentation really. It was great to see everyone (AJM staff) made themselves available for a direct chat afterwards with coffee and Biscuits (talked a bit too long with JB I missed my biscuit L ).

To the Resolutions: All passed

1. 94.7% for – 2.6% against (the rest abstained or didn’t vote)

2. 98.1% for – 0.9% against (the rest abstained or didn’t vote)

3. 98.5% for – 0.5% against (the rest abstained or didn’t vote)

4. 97.8% for – 1.1% against (the rest abstained or didn’t vote)

5. 98.3% for – 0.7% against (the rest abstained or didn’t vote)

6. 98.1% for – 0.8% against (the rest abstained or didn’t vote)

There was no one in the AGM who physically voted against any resolution (no little pinkie popped their head up!) Now yes, all staff holds shares (stated by JB) however, all the BS, Down-Rampers and scaremongering on HC now appear to just be [insert comment here]. IMO my out take from the voting appears to be extreme confident in the; Organisation, Board, staff and mine (happy to be corrected).

For the Presentation: JB ran, it was pretty straight forward.

-They are extremely wrapped about the big shipment the other day!

-They were 50t off product target for October.

-Stated “what we thought was there was there” (regarding the product) which to me means their people know their sh*t.

-Still working at bringing cost down (target still $250)

-Used the term “our precious workforce”. As an X blue collar worker hearing a senior management member state that means something.

-Product is “well received”

-Admitted the early hiccups with regards to offtake partners and share dumping was not helpful but they have learned some valuable lessons from it! “Put them on the front foot” (hence multiple offtake partners who can take their product straight away and more offtake partners).

Question time (including discussions after the AGM): only a few questions were asked after the presentation (no negative questions were asked).

-Somebody asked about the Gold and Coal. For the gold, I don’t think they have progressed any further with it other than knowing it’s there at Cleopatra (priority appears to be Lithium for now). As for the coal asset, they stated they are trying to digest of it (but alluded to it not being a big asset). I they don’t think they expect to make much from the sale (could be wrong, it’s just my opinion)

- Noted Slide 13 indicates an ‘Index’ column and not a monitory $$$$ (somebody asked that), the FOMO in Oct of 17 was brought up.

- There was a bit of focus around slide 17 and 18 ‘got to crawl before you walk’. Have exceeded their expectations with regards to the product and where they are at etc.

- There was no discussion regarding the recent shortfall from the ‘NON-RENOUNCEABLE ENTITLEMENT OFFER’ at all, they didn’t appear concerned at all [insert your own interpretation here].

-They didn’t appear to distressed regarding the debt, the August date was the only date mentioned [insert your own interpretation here]. JB stated they do have a few “options” up their sleeves to address this which they are working on. Stated all 4 note holders are ok with how AJM are progressing (constantly talking with them) [insert your own interpretation here].

-Know the SP is an issue but really can’t do anything about it until the market sentiment changes and refinancing is dealt with…………

-Is visiting china roughly every 3 weeks (He mentioned he’d conducted 30 meetings in one of the recent visits!) his word on the street in china is that; there is not that much of a stock pile over there and that they don’t normally let it get down that low?????????

Lithium sentiment:

-JB mentioned the recent Volkswagen and Tesla deals J, knows the tide will turn sooner rather than later. Knows there won’t be enough product around for everyone.

-Alluded that all the recent shutdowns and slowed may be A benefit for them (doesn’t expect it to last too long).

-Is expecting sentiment to change “clarity” for the sector, probably after the Chinese New Year?

-They don’t appear to have some of the issues the other Li miners have i.e. aren’t getting too much waste product in their own product and have systems in place to reduce reduce it.

-Maintenance is still costing them “Rocks harder than they thought” however, the blasting program in place is perfected.

For the next milestones:

-Priority is the refinancing, JB alluded to it being finalised before this quarter is out (watch this space) Well that's how it appeared to come across....

-Stage 2 is still on the cards!

-Expecting an offtake agreement with SS next year!

-“long haul’ is to continue to reduce the risk profile and diversify

-Still working on improvement programs (across the board)

-More exploration, it costs about $450,000 a month to have a drill rig in the field. For comparison it costs over $50,000 a day to have a Rig tender in the field on hire (for the uninitiated that a really big boat services an offshore oil platform)

IMO what I can away with:

I chatted with JB afterwards and found him very approachable (actually he came up to me and another gent I was chatting with) very friendly, concise, articulated. I really think he ‘walks what he talk’. AJM are definitely on the right track and am glad I bought in for the ride J

Regards and remember the above information is all my own opinion, and should be treated as such….

CD

DYOR, GLTALTH and bring on 2020!