Subject: Follow-Up on Investor Relations Communication
Good Morning Catherine,
I hope this message finds you well.
I would like to enquire about who will address my questions if I do not receive a response from the investor relations officer within the two-week timeframe provided, as mentioned by the chairman in his recent communication.
If the questions have been lost you can follow this email trail.
I have been waiting patiently for nearly four weeks and have only received what seems to be a political deflection from the chairman. My questions are critical, as they impact the value for all retail shareholders. At Minimum, we would like to confirm that these issues are being taken seriously and addressed.
I am following up on my inquiries submitted on August 12, 2024. While I appreciate your acknowledgment, the responses did not address my core concerns. To clarify, I sent a revised version of my questions on September 4th, followed by additional follow-ups on September 6th, 9th, 16th, and 23rd. I learned that Shaan, the designated investor relations contact, was on annual leave without prior notice, extending the expected turnaround time for responses.
My enquiries also pertain to the varying perspectives on the West Australian-sponsored advertisement, which has further complicated my understanding. It has been challenging to find industry professionals who grasp the project's funding objectives, especially given the significant changes since the November 2022 DFS, which estimated costs at approximately $1.6B, including contingencies, compared to the current figure of around $2.4B. Could you clarify how this increase of $800M occurred?
Additionally, I have concerns regarding the confusing guidance provided to the market, which is essential for maintaining transparency. As previously noted, the project’s pre-production capital cost was estimated at A$1,394M, with a contingency of A$196M (14%). Despite assurances that there would be no increase in capex due to engineering savings, the recent announcement in July brought the figure up to $2.4B without prior warning, before being adjusted again in the sponsored West Australian article (now that has changed again) to reflect $800M in equity. This inconsistency raises doubts about the accuracy of the information shared with shareholders.
Moreover, I understand that approximately 120 million shares were returned to shorters, which is particularly significant considering Canaccord, who managed the raise, subsequently downgraded ARU.
Significantly, all while shareholder value has been lost, executive remuneration has been substantially increased. I would like you also to talk to this.
You mentioned last week that Shaan would respond to my questions. What timeframe do you believe is reasonable for that response? The chairman indicated that you would reply within the communicated two-week period; when can I expect to receive a response given we now move into week 5?
In the chairman letter dated September 20, 2024, was but merely a general political sideshow, and it was stated that shareholder communication would be managed by our head of investor relations. I quote:
As always, we appreciate this incredible support from our shareholders who will of course ultimately have their chance to vote for or against our funding approach. Our head of investor relations is responsible for shareholder communications and will respond within the timeframe communicated.
Please also see my response from Shaan Beccarelli dated the 01/10/2024, whereby Shaan suggests she will make every effort to respond by 2 weeks.
I quote: As promised, I will continue to make every effort to respond to you within two weeks. Shaan
It is disheartening to see the shareholder value and confidence eroded and to feel that communication has been one-sided, and somewhat evasive.
Thank you for your attention to this matter. I look forward to your prompt response.
Best regards,
(20min delay)