Ann: Results of Meeting, page-7

After analysing the AGM results, they certainly paint an interesting picture. It’s clear the recent CR significantly bolstered institutional voting power, with proxy votes jumping from ~130M last year to over 275M this year. As @TBALL mentions, without those 149M new shares, as retail shareholders, we might have had a chance to sway key resolutions.

Retail influence here on HC is still substantial, likely accounting for 35-50M shares, which translated into ~35% dissent on contentious issues like performance incentives. This is a promising indicator of retail cohesion but also a stark reminder of how strategic decisions like the CR can shift the scales.

Here are some figures from observations and analysis:
1. Proportional Influence of Proxy Votes:

• In 2023, the total proxy votes across resolutions ranged from approximately 124 to 130M, with voting heavily in favor of the board’s recommendations, showing 97%+ approval rates on average.
• In 2024, the total proxy votes surged to over 275M, attributed primarily to the addition of 149M shares from the recent CR. This sharp increase suggests institutional investors and strategic placements significantly impacted the outcome.

2. Retail Shareholder Banding:

• Despite the overwhelming increase in total votes, the retail shareholder presence is evident and appears cohesive, as suggested by the resistance seen in specific resolutions.
• Estimating from forum discussions and vote tallies, retail holders on HC likely control between 35 and 50M shares, equating to approximately 15-18% of pre-CR voting power. This aligns with the notable ~35% dissent in certain resolutions.

3. Capital Raise's Pivotal Role:

• Without the capital raise, the institutional voting bloc would have been reduced by 149M votes, creating a scenario where retail opposition could have significantly altered outcomes, especially on contentious resolutions like performance incentives.

4. Cosmo Metals Context:

• The AGM also reflects a growing concern about GBR’s operational and strategic focus, particularly in the handling of Cosmo Metals. The financial support and spin-off strategy for this venture remain under scrutiny, with annual expenditures rising disproportionately compared to tangible project milestones. The ongoing financial and operational support should be weighed carefully against the opportunity cost of allocating those resources to GBR’s core gold projects.