informal agm report

Well last Thursday was one of the best attended meetings I can recall with about 45 people present, including more than a few in suits and ties, given it was the AGM. A display of MST weaponry was on hand, including an 'unwound' Maul Taser round. Also dedicated MST staff were on the display to answer any queries. To cut to the chase, the format of the meeting was formal and geared to an 'annual' meeting - necessarily with a broad coverage of the last year, including video of the shareholders range shoot last November. For those of us who were personally at the range shoot that was certainly not new stuff - but upon reflection it was absolutely appropriate in the context of the Annual meeting and its particular attendance. In that respect the AGM was not geared to an 'in the trenches' debate about the specific details that we often bring up on this Forum. That said, all of the key items were covered, as you will have read (or should certainly review) the Chairmans address (TOD) and the CEO's address (Lee) that were posted on the day.

One important issue I would highlight relates to a recent concern by some about the patent expiry story. Lee's excellent summary identified that a major early patent from 1994 by the original inventor MOD on 'wedge sealing' is due for expiry in 2014. However MST has moved on from that issue and no longer uses that type of sealing in their stacked rounds, so this expiry is not a risk issue at all. Apparently in the past year they have filed another 12 new patents and so patent protection is very much kept up to date, and focuses on more effectively protecting what really needs to be protected. As we have noted before, patent protection issues continue to cost the Company around $250K+/month, so our investment is as secure as it reasonably can be on that front.

I asked a few other questions off the floor, but these were reasonably tailored to the structure of the meeting. Director Trevor Tappendean took the Chair briefly during TOD's retirement and re-election to the board. Trevor spoke a few words of appreciation about the Companies efforts, and in particular Terry's unrelenting and sterling efforts for the Company, and this was met with a round of heartfelt applause. For what it was worth, I provided a minor brief unscripted endorsement of Trevor's remarks off the floor i.e. shareholder's appreciation of TOD's effort in overseeing the capital reconstruction and other matters. Specific details of how the ASOF debt swap was setup were not offered, and frankly would not have been expected (even though I asked!!). It was noted that the Company cashburn has been screwed right down (further from an existing low base) to zero fat in the last year, and that has required some good staff to leave. I should also mention that there was no debate on adoption of the Remuneration Report for the Board and the CEO - informed people realise what an incredible job has been done for so little outlay in the wider context of things.

A side highlight of the meeting for myself, meetoaswell, and a couple of others was to meet Andrew Winston Doyle who had travelled across from Singapore for the meeting. There was no public announcement that he was there, so it was no big deal - but needless to say 2 or 3 of us took the opportunity to lodge a handshake and say a private word of thanks from the 'long-termers' for his critical support to keep the show afloat on some past occasions. All good.

So that's about it. It was a steady as she goes affair with no formal 'left field' predictions provided (or required) from the Board. I didn't have a problem, and I hope Forum readers are relaxed as well. My takeaway sense was a different atmosphere is in the air - a bit of a pregnant pause until the current capital deals are bedded down in the next month or so, and then hopefully onto anticipated serious announcements from there. I note the final bedding of the Luxinvest Capital issues will require another meeting shortly; and I further note the Chairman was looking forward to increasing operations "from mid-August". I kinda like the feeling that we have definitely shifted atmospherics from 'if we will survive' to 'how we go forward'. Hoo Boy.

Good luck to all.