9 questions asked at 2022 White Energy AGM

January 2, 2023

Here is the text of the 9 questions asked at the 2022 White Energy hybrid AGM held on November 25. I was the only questioner and it lasted for 50 minutes.

1. A question for auditor Scott Tobutt from PKF. Our market capitalization is $10.5 million but we claim to have net assets of negative $38.6 million. Could the auditor address the question of why he isn't insisting on write-backs to reflect the fact that we are not insolvent with a negative asset position. Could the chair and CEO also comment as to whether our accounts are inaccurate.

Answer: There's a loan on the books to a joint venture partner which won't be repaid. The auditor wasn't able to make it and his fill in wasn't across the details but tried to claim there were deliberate limits on the sorts of questions auditors could be asked.

2. With 774 million shares on issue and a market capitalisation of just $10.5 million, why don't we do a 1-for-10 share consolidation so our shares don't trade at such an embarrassingly low level.

Answer: they did a 30-for-1 at an EGM in August this year, hence the stock has gone from 1c to 28c.

3. The accounts show that we have $524 million in accumulated losses which is one of the 10 biggest of the 2000+ companies currently listed on the ASX. Where did all the money go and could CEO Brian Flannery clarify how much of those losses he has personally suffered?

Answer: Chair gave a solid explanation of all the losses in the US, Indonesia, South Africa and South Australia. What a mess.

4. Given the interesting discussions across a range of topics today, could the chair undertake to make an archived copy of the webcast plus a full transcript of proceedings available on the company's website? The likes of Nine, AGL, ASX, ANZ, Domino's and Lend Lease all produced their 1st AGM transcripts in 2021. Will you follow suit today? This is something IAG has been doing since 2003.

Answer: we'll take that no notice and see if we can.

5. Thank you for offering shareholders a hybrid AGM this year and will you commit to keep doing this in future years to maximise shareholder participation? Big companies like Altium, Argo Investments, AUB Group, Austal, Bank of Queensland,
Beach Energy, Bega Cheese, BHP, Blackmores, Boral, Brickworks, Commonwealth Bank, Cleanaway, Downer, Flight Centre, Fortescue Metals, Harvey Norman, Metcash, Netwealth, Origin Energy, Premier Investments, Ramsay Healthcare, Reliance Worldwide, Rio Tinto, Seven Group, Seven West Media, Soul Pattinson, Super Retail Group, The Reject Shop, Whitehaven Coal and Worley all banned online questions and voting in 2022, so well done for showing them up. What was the experience like from your end?

Answer: It was a good experience from our end, we enjoyed your questions and it doesn't cost much.

6. Is chair Graham Cubbin intending to serve a full 3 year term and why does he persist with White Energy given the shares have plunged from more than $10 in 2015 to just 28c today. Also, why do we persist with a 3 man board? Shouldn't we have at least 1 female director?

Answer: Yes, Graham has invested plenty since 2010 and will remain supportive. Re gender, Graham Cubbin said there weren't enough skilled women in the mining industry - listen to audio via Twitter.

7. The annual report says that we have around 4,500 shareholders and that more than half of them hold an unmarketable parcel. When did we last do a mop up offer to unmarketable parcel holders and why don't we another one as a cost saving measure?

Answer: CFO said the costs would outweigh the benefits.

8. Have there been any material proxy votes against any of today's resolutions?

Answer: there was an 18% vote against the constitutional amendment allowing for virtual meetings but the two jointly controlling shareholders, Brian Flannery and the Travis Duncan estate rammed it through.

9. If a coal company like New Hope or Whitehaven made a takeover bid for our company, would they be able to access all the White Energy tax losses as both are paying large whacks of corporate tax in Australia at the moment as the coal price booms.

Answer: chair Cubbin said it was very complicated but many of the losses were suffered in other countries.