Sorry a bit late, but as promised the take-aways from yesterday’s AGM:
(1) In attendance there were around 30 shareholders which is probably double compared to the last 2years AGM’s. Some having flown in to Brisbane
(2) Of the 4 resolutions, the remuneration resolution was overwhelming lost(even with 45M shares abstaining, it still would have lost), 2 resolutions were withdrawn at the beginning of the AGM and one which got up was supported by the largest shareholder (IMO) to avoid appointing a new Director if the 2nd resolution had been lost. Every public listed company must have 3 Directors to operate.
(3)Voting results for the 2 resolutions withdrawn were not disclosed to shareholders but are known to MLM
(4)The chairman’s address touched on the remuneration for the CEO/MD saying the salary (incl Super) was $280,000 and not the remuneration package mentioned in the Annual Report. Shareholders questioned this with the Chairman disagreeing but Metallifa’s auditor (who was present) insisting that the audited Annual Financial Report was correct.(see Financial Report page 11). It seems packages roll from year to year eg bonus etc. from 16-17 may be paid in 17-18 and bonus etc from 17-18 are paid in 18-19. And these form part of the remuneration package and not part of the salary. Confused. … well even a management person from MLM admitted it was confusing. Pity us poor shareholders.
(5)The chairman rightly clarified in his report that a small group of minority shareholders are “seeking to call a general shareholders meeting....and this, of course, is a right they collectively have”. It was good to see this clarification in light of persistent previous claims by the company in various forms that the “minority” shareholders were attempting to take control of the company.
(6)It was disappointing and surprising that the Chairman’s address publicly outlined an example of the legal threats that have been mounted against the minority shareholder group. To date these had been contained to a number of letters sent from MLM’s solicitors to the shareholder Action group solicitor. The Action group had hoped that shareholders would consider the merits of both MLM and the Action Groups information to shareholders on the facts as they were provided. Shareholders can now realise the behind the scenes activity that is being thrown against the action group.
(7)The chairman’s address noted that the “Minority” Shareholders have proposed no genuine new direction or plan for the Company. Perhaps somebody better tell him the web-site details of the action group www.metallicamineralsshareholdersactiongroup.com where the plan has been posted for a number of weeks.
(8)Managing Director of Melior was present at the meeting along with the Merchant Banker who is facilitating the merger between Melior and MLM. Action group members met with them with no new information that changed the view of action group members that the merger is high risk, value destructive and unnecessary. Particularly now in the context that the haul road has received consent and all indications by the company are that Urquhart Bauxite will be in production in the first half of 2019.(see MD presentation to AGM meeting)
In summary if there were any HC posters at the meeting and you disagree or wish to clarify or add to any point, then I would welcome your feedback.
MLM Price at posting:
3.6¢ Sentiment: Hold Disclosure: Held
(20min delay)