further background to the agm

I have not had time to fix up that AGM report. Another meeting that I had to prepare for.

I would like to make a few points to those who were able to fathom that post I made. The one I failed to check the accuracy when pasting on this site.

Since 2002 I have attended between 6 and 10 AGMs each year. For a year or two around 2004 I became the mouth piece for a group of members on another forum. Because I live in Perth they would arm me with several pages of questions to be asked of a certain Iron Ore company in the Mid West – recently high jacked by Chinese directors. I learned that if you keep asking questions of the people who are supposed to be representing you they either become exposed as seat warmers or you find the true worth of management. This was not my research but I became used to asking questions and reporting back the directors reactions. I should also add that this company had a series of meetings in addition to AGMs.

Let me give recent experiences of directors performances. At a large company AGM in the last couple of weeks all those directors who put themselves up for re-election had to stand before the crowd of shareholders and explain what skills they were able to bring to the organisation that would add to shareholder value. This was REALLY interesting especially when they were questioned from the floor.
Last Wednesday I went to an AGM of a small oil company with a similar market capitalisation to STB. The chairman stood and gave a clear outline of the progress made by the company during the last twelve months. He also conducted the business end of the meeting using the large screen to show voting results. Yes, boring to most but what is expected. The M.D. then gave a similar type of presentation to Lorry but given while standing for the benefit of those sitting everywhere in the room. Every director and member of the management team was present and had a large identifying label. After the meeting was over the whole team made a point of engaging with the shareholders.
Last night I mentioned the integrity of IGO. After the last AGM when I was speaking to one of the directors I heard that they alternated their director meetings between Perth and the mine at Kambalda. When on the mine site they invite all the foremen from the mine face to contribute to the discussions and plans.

I mention these to answer the people questioning my criticism of the meeting yesterday. This was not the professionalism of a company that may in the future need to raise very large sums of capital. I said that I had no doubt of the mining skill of the chairman and I believe he would be a sort after director of mining companies. A chairman these days needs to be able to sell the company as much as the M.D.
I did not get to meet the other director. I now have doubts that he was even there.
If I expressed any doubt about Lorry I am sorry if I gave that impression. I think he is a good fit for this company going forward. Is he the person to lead a major mining operation? He seems to be putting in the hard yards so we will see.

Next point. I have often checked this HC site and I have yet to see anyone question something like sovereign risk or have we got directors that can guide the company to the ever expanding goals that are being set before us? I have had shareholder experience of the Eritrean Govt suddenly changing the rules by which resource companies are to operate within their borders. In that case the company decided the instability of law making did not justify remaining. Since then the international reputation of Eritrea has been in free fall.

I made a comparison with Laos. Before they began mining I spoke with the Oxiana MD about how they would overcome investors doubts with this secretive communist regime. His policy of social development along with mine development helped change Laotian attitudes to the Western world. At one time OXR copper and gold exports were 25 per cent of Laotian exports. This is why I asked the questions yesterday. Were the board thinking that far ahead? Has STB the leaders to work in such a country?
Food for thought I would say. To answer a question I saw on H.C. yes I am happy with my investment. This potash story is a bonus to me. Do I think that the potash could be as huge as we are being lead to believe? With each drill result it looks more likely. Will I stay for the long ride? Like others I will watch the share price carefully.

And yes I will try fixing the AGM posting late this afternoon.
James