Hi guys
I attended the AGM today and have some comments below.
Please also read other commenters’ opinions and comments on the AGM and please DYOR as there is a good chance I could have skipped/misinterpreted a lot of stuff and is just my best opinion on today’s meeting based on what I think that I remember.
1/ Other documents and comments which might helpJust a few documents which might help while reading about today’s meeting.
AGM resultshttps://hotcopper.com.au/threads/ann-annual-general-meeting-results.6431690/?post_id=57682826It shows that resolutions were passed but also shows fair amount of people voted against some resolutions especially pertaining to performance rights
AGM presentationhttps://hotcopper.com.au/threads/ann-agm-presentation.6431105/?post_id=57676991A lot of the AGM was about this presentation. So obviously helpful to read at side of this comments. I’ve broken my comment based on pages of AGM below
My yesterday’s comment – interview with Cantor Fitzergeraldhttps://hotcopper.com.au/threads/running-discussion-on-sp.4111732/page-57149?post_id=57650816Since a lot of today’s AGM was about the presentation, it might be useful to read / hear what Nigel had to say about the company in detail during his meeting with Cantor Fitzgerald.
2/ Basic info about meeting Hybrid meeting- physical location and online
Meeting was quite professional with
John Clarke chairing the meeting from UK through video link, and several people from management attending – Nigel, Johnston, Rhett, Huljich, Jager and Cohen from memory. (
refer presentation pg 3/31)
Around 25 to 30 shareholders were present
3/ Chairman intro to companyHereon, I’ll mention what I remember.
We had a
successful year.
Substantially close to becoming a leading producerCapital raising was needed some months back to get the 10% extra equity stake
Mine life extension to be looked into
Pei Zhenua and CATL have funds, technical expertise etcPlacement some months backed by shareholders in different parts around the world
Debt component for funding now would be less than 50% because of substantial funding to be received from CATHFID to follow
Congrats to team and thanks to shareholders
We are transitioning from explorer to a leading producerMeeting declared open at 2:09 and quorum present
Technical stuff of meeting to start now
4/ ResolutionsResolutions to be discussed now. Refer point 1 of my comment where resolutions can be found (AGM results)
Resolution 1 - Remuneration report Management mentioned that number was considerably less when issued originally, is subject to performance hurdles.
As can be seen in the AGM results, around 20-25% shareholders in general had already case their “against” vote against most resolutions pertaining to performance rightsJohnston performance rights resolution 7
Query was that EPC contract is part of normal duty online query. Nigel mentioned that it is also a major milestone and useful for weeding out contractors, making sure budget is okay and everything is cost effective Management answers for resolution queries in general were Short and brief answers.
Now poll for resolution was conducted. Automic share registry and auditors were present
Meeting closed
5 / Nigel Ferguson short presentation (Refer presentation pages 1 to 7 of 31 pages)Nigel gave a short presentation now.
Most of management present can be seen on pg 3/31 of presentation
Same board and no changes this year
5A / Nigel speaks - Awakening monster (Pg 4/31) Expect 400 mil tonnes that we have to go up once drilling more
5B / Nigel speaks - Project background - Pg 5/31Mining license to be obtained fairly soon Shareholders would be pleased with BFS15 member committee reviewing as mentioned in my yesterday’s comment. 5 cases in front of them and 4 have been rejected. AVZ application still there
No hurdles expect Extension of life likely and lot more than 700,000 tonnes of sc6
Reserves jumped up
Power ministries MOU signed - hydraulic resource
Water readily available from man made lake
5C / Nigel speaks - Project timeline - Pg 6/31Project timeline. Self explanatory. Refer what is done and not
5D / Nigel speaks – Product export routes defined - Pg 7/31Kabondo Dianda first and then Export routes Dar es salaam and Lobito
Any issues will be handled. There are sufficient wagons. Transporter SNCC very engaged
Drc government considers batteries strategic – so good for us6 / Technical update by Graeme Johnston – Pages 8 to 14 of 31 pagesLook to expand Roche Dure resource and reserve Significant intersections more than 2%
Potential for tin Exploration plan to unlock potential
Tin price rise from 16000 to 35000 within reporting period
Plan for maiden tin resourceAccess problems earlier but solved
Carriere de L’este is an unusal body. Looking for maiden resource. Same procedure as Roche Dure
2types of tin deposits are there. One area alone exploration target 821 tonnes
Johnston looking to develop under explored assets while colleagues build mine
Tin has a bright future7/ Marketing and Project update by Ben Cohen – Pages 15 to 21 of 31 pagesEV revolution just startedonly 8000 Evs sold in 2020 – so still very early daysLithium demand to rise 700% rise in decade
Government policy is expanding the EV revolution
Plan to phase out ICE vehicles by 2040 Prices tripled for various types of lithium
Auction platform supports market price and transparency
AVZ Share price tracking SC6 price
Briefly on project – refer 3D pic on PG 21 - plant Rom pads, PLS trains, etc
Early works vision - waiting for mine license, FID , then contracts can be awarded quickly
8 / Finance update by Jan de Jager – Pages 22 and 23 of 31 pagesCap raise of 40 million some months back needed to increase stake in project Needed to sort this before further discussion for debt, dealing with CATH etc
CATH needs China government approval 20 million break fee received and is in escrow 9/ Summary update by Nigel Ferguson – Pages 24 of 31 till end pg 31Refer points below
9A / Opportunities – Nigel speaks – Pg 25/31Nigel gave summary of main stuff
Other opportunities are there
Significant exploration potentialTin and tantalum good potential – I think he said 600 000 tonnes but not sure if I heard rightLook to bring “middlings” to sc6
Don't need to transport sulphuric acid if plant on site and this can be cost effective
Discussion with transport providers including SNCC
Looking at solar for camp and process plant
SEZ on table for tax concessions
Downstream potential,- hydroxide etc.
Pei Zhenua and CATH very supportive - Looking to ship PLS around globe which would be more cost effective than SC6If sufficient money, we can easily expand 9B / ESG - Nigel speaks – Pg 26/31Avz foundation has role
Polio vaccination, treatment of polio and cholera
ESG report by qtr 1 next year
Plans for each qtr mentioned on Pg 26
9C / Sustainable development , High standards - Nigel speaks - Pg 27 and 28/31One of Lowest carbon footprint As close to zero emissions There is Carbon tax and waste charge in Europe. So we look to reduce carbon footprint and waste Hence push for PLS as PLS is 96% lithium and 4% waste
9D / Takeaway facts -Nigel speaks - Pg 29/31Tier 1 can only get betterGreat expansion plans CATH deal makes funding easier Lot of finance DFIs after CATH deal
Experienced team in DRC pushing with govt all way to top
Getting more traction Follow DRC forum meeting coming upDRC President has vision. DRC could be new force to reckon in batteries AVZ highly Leveraged to EVs obviously
Downstream plans for hydroxide
Diversification later as we start looking for more projects but need to walk before we run
Might be corporate activity
10/ Questions sessionCATH deal end of Nov – not absolute deadline. There won’t be issues
They need China approval. Mining license should be favourable11/ ConclusionsPlease DYOR and note that there could be several mistakes above and I could have heard a lot wrong. I’m only sharing my own notes based on what I think I heard and these should not be relied for any of your invesment decisions. Please refer comments by other commenters for full infoMeeting as can be seen was mainly Chairman intro, resolutions and then AGM presentation stuffI think my yesterday comment covers lot of stuff from presentation
https://hotcopper.com.au/threads/running-discussion-on-sp.4111732/page-57149?post_id=57650816Resolutions passed but with around 20-25% against votes for many performance share resolutions.
I like the fact that different management staff spoke about different aspects and this gave a perception of roles being very nicely delegated.
Cheers
