For those that are voting no - I've sent the below email to axiom, I've debated in my mind putting it on here, but if you have similar concerns please use it for ideas if you feel you want to send something similar. Please do not use it verbatim as it suits how i have voted, and you may have voted differently and may feel differently to how i feel. Also do follow up any email with a phone call.
FAO - Stephen Williams & Ryan Mount
Dear Sirs,
I'm emailing to register my disgust as an ordinary shareholder of the resolutions put forward for the upcoming AGM. I have voted against most of the resolutions, my reasons are listed below.
Resolution 2: I have voted against the remuneration report largely as a protest vote, recognising that it is advisory only. My reason is that the CEO has sold essentially all his holdings only days after the EGM where he professed absolute confidence in the company's future. To not have any skin in the game while giving yourself a 50% salary increase from a very generous salary base already, and after having the share price trashed by 50% in a year, is a major slap in the face to all ordinary shareholders. Mr Mount has done a very commendable job to date, but I believe that only once the appeal has been done and dusted and the mining licence issued for Isabel Island a pay rise should be given, until that occurs we're in the same place we have been for the past 3 or 4 years, ie in litigation and not able to mine.
Resolution 4: I find this resolution another slap in the face to ordinary investors. For the years that I've been invested in this company, never have ordinary investors been able to buy shares and options below the market rate unlike the billions of shares and options that have been offered to so called sophisticated and professional investors. If their options expired before they got a chance to exercise them, I think it is a good thing, as it means my shares hasn't been further unnecessarily diluted. Find another way to raise capital, or offer the same to ordinary shareholders. The 250m shares issued to Anuita above market rate was a great outcome.
Resolution 6: Mr Mount already had performance rights, these new reduced targets seem to show a further loss in confidence by Mr Mount of the company's potential. The way I see it, with the extremely large base salary Mr Mount is paid including the large increase in base salary, the performance targets shouldn't get easier!
Resolution 8: I do think a consolidation is required, and to be fair the board has been upfront about a consolidation occurring at a future point during past AGM's. However I don't believe that now is the time for the consolidation, it will be a matter of months until the litigation is complete, why not wait until that is complete before consolidating? There has been a severe lack of communication from the board about why they're making this decision, a consolidation will upset a lot of ordinary shareholders as it is typical for a spec stock to have its share price trashed on a consolidation. More communication from the board about this would go a long way to calming shareholders.
Resolution 9: my objection to this relates to resolution 4 above - find a new way to raise capital, rather then just issuing shares like confetti under market value, but excluding ordinary investors from being able to take part in that.
Resolution 10: why is this needed, if ore will be shipped by the end of the year? Certainly an extra 4 billion shares should not be required, again it makes me concerned that the board is not confident of achieving its goals.
Resolution 11: similar objection to resolution 4.
Further to the above, communication from the board to shareholders has not been satisfactory. In particular announcements are made to market that should be price sensitive but are not, announcements are not made in a timely manner (like the ASX rule breach that the board were made aware of in November, but announcement not made until the end of December), and announcements that would be viewed as bad news are being released at times that make it look like they are being snuck through, like the ASX breach announcement being released in the Christmas holiday period and buried amongst other announcements, and the directors reduction of shareholding announcement, released after the market close on a Friday afternoon. Incidents like that do not reflect well on the board.
I do think that we have the right man for the top job in Ryan Mount, however I do think that more respect can be shown to ordinary shareholders from the board. A lot of shareholders have been waiting patiently years to see the end of litigation and the commencement of mining on Isabel, don't forget them. I hope that you take the above comments on board.
Regards,
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