Continuing with AGM questions, there were some impairments of the NHC New Acland Mine asset but that was more about approvals risk for Stage 3.
Activist Mr Mayne asked re the SOL and BKW cross shareholding. The Chairman referred this to Mr Walker, the leading independent Director, who said the arrangement was legal and that the Millner family has chaired the company for a long time but has outperformed the ASX index. BKW is well worth having.
Mr Mayne also asked why Tom Millner, son of Rob, was on a Board. The independent Director said that Mr Barlow's performance had been very good. 'technically strong'. There is no plan for Tom to become Chairman.
The Chairman said Bengalla mine (an NHC asset) is generating good cash at the moment.
Re the takeover offer for Regis Health Care and the Moran development, the Chairman said that it was excited about its prospects in these areas. (This was covered in the CEO's speech).
If New Acland Mine Stage 3 gets approved, it will only be until the late 2030s. NHC assesses the outlook for coal prices and demand, and SOL is comfortable with this. Many global thermal coal producers are much much higher cost than NHC. The Chairman said in some countries, HELE coal plants were still being built and would operate for 30 to 40 years.
SOL was 'bid its shares re NHC': it wasn't (originally) in the market (to sell six per cent of NHC).
Director Ms Tiffany Fuller agrees with earlier comments re the cross shareholding in BKW and re NHC.
Mr Stephen Mayne asked why a 100 per cent bid re Regis. The MD said it was partnering with a REG Board member Mr Dorman, the REG founder.
Disappointing to see how these shareholder activists, most I'd daresay with tiny holdings of the minimum required to ask questions, try to hijack meetings. If they ran SOL it wouldn't generate the investment returns that Mr Millner and Mr Balow, plus Directors, have generated.
There were no 'first strikes' on voting resolutions. Good!
An excellent company!
SOL Price at posting:
$29.53 Sentiment: Hold Disclosure: Held
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