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50.5¢ leo lithium limited

Ann: Notice of Annual General Meeting, page-268

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intelseb

3,440 Posts.

186

25/07/24

12:47

Post #: 74912859
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Originally posted by camban: ↑

I don’t think the analysts are alone in being shocked at the cherry-on-the-top: the remuneration, retirement and bonus requests to reward management who have arguably simply discharged their duties. A predictable political environment was not a condition of employment and, like investors, everybody went in with their eyes wide open to sovereign risk and sector uncertainty. Executives are paid to navigate the company and provide stewardship of shareholders funds, not just to build a mine to a set plan with fixed situational variables. My sense is that portfolio managers aren’t particularly impressed with the requests or the timing or the lack of strings attached (including no retention requirement for the benefits sought). It is easy to read here that retail investors are being emotional or mean-spirited and spray us for being “delusional” and “pathetic”, but not so the analysts and portfolio managers who are looking at this with very clear eyes.

With regards to getting all of the resolutions across the finish line at the upcoming meeting - including the transaction itself - imo the sub holder Firefinch will have no viable option but to abstain in the very least from the Res 3 vote as it is a party to settlements that form a wider part of what LLL shareholders are being asked to approve. Voting for, against, or leaving their 17.6% stake to the proxy chairman’s discretion simply won’t wash imo. Firefinch directors will surely know that if they fail to correctly discharge their arms length fiduciary responsibility here, there is a real chance they might face legal (and regulatory) action. The best they can do (and probably have done) is to fail to distribute the Leo shares pro rata to their own shareholders prior to Leo’s AGM, thus reducing the potential protest vote on individual/all resolutions (but still not helping the overall “for” effort). Tho maybe they think they can vote for the money giveaway to execs & AB’s re-election but not for the transaction itself?

I think this gets even more tricky for everybody if there is a future dispute over the promised $11.5m contribution payment from Firefinch to Leo (when there was a catchall demerger indemnity already in place), or if evidence is easily obtainable that the Firefinch board knew about a “funding gap” at Morila prior to the end of May 2022. I think if the possibility exists that this “gap” was or could reasonably have been known about by directors & management prior to the cap raise attempt (and even before the demerger completed) - as has been previously reported by podcasters like “Money of Mine” and discussed elsewhere around the traps (tho not yet confirmed or denied by Firefinch) it could spell big trouble. It might potentially drag in the former “shared” chairman (Cowden) and the others who crossed over from one board to the other, and imo the emergence of a litigious investor - or the regulator - would introduce additional risk & uncertainty for holders in both of the companies. This underscores why Firefinch will imo be reluctant to vote its shares either way on the day.

(All imo of course, conduct your own inquiries & fireside chats, dyor etc etc)

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Someone needs to ask what firefinches voting preferences are on the day of the AGM

LLL Price at posting: 50.5¢ Sentiment: Hold Disclosure: Held
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