8 questions asked at 2023 29Metals AGM

June 4, 2023

Here is the text of the 8 written questions asked at the 2023 29Metals hybrid AGM held on June 1, along with a summary of the answers and some videos grabs of the exchanges via Twitter. The only protest vote was 5% against the CEO's incentive grant.

1. 29 Metals has a market cap today of $339m and the audited net assets at a December 31 was $715m. Could Ernst & Young audit signing partner Fiona Drummond please comment on the carrying value of Capricorn Copper and the key inputs that will be assessed as to whether it can return to be a cash generating unit that justifies the current book value.

Answer: chairman Owen Hegarty waffled and then the audit partner said they'd go through the usual process. Watch video via Twitter.

2. With the benefit of hindsight after the flood event at Capricornia in March, were there any obvious design flaws in how the site was constructed and laid out which exacerbated the damage and length of time operations will remain suspended?

Answer: CEO Peter Albert gave a considered response emphasising that all untreated water was contained on the site. Watch video via Twitter.

3. How much did EMR pay for the Capricorn Copper project and who was the previous owner? How much was invested to restart operations and how much of this had been recovered in operating profit by the time the storm hit on March 6 this year.

Answer: Owen refused to disclose the purchase price so the question wasn't properly addresses.

4. Why did EMR wait almost 2 years after the 29 Metals float to exercise its right to appoint a second nominee director. Also, could the two EMR nominees please clarify how old they are and whether there are any plans for the next generation of EMR representatives to be appointed to the 29 Metals board at some point.

Answer: Not a great question given the company does disclose the age of its directors in the annual report and both are still in their 60s.

5. Given that the shares were floated at $2 and fell another 4% to 67c this morning, will the 4 long serving non-executive directors collectively be paid another $1 million in cash this year, similar to calendar 2022, and why don't they collectively own more than 165,000 shares directly in the company?

Answer: Probably the best question lodged and no meaningful answer provided. Watch video via Twitter.

6. What is the legal advice as to whether EMR can vote on the rem report given that it's founder is our chair and is paid $250,000 a year to perform the role?

Answer: Owen waffled and it wasn't until we got to the third speaker than an appropriate "we follow the rules" response was provided. Owen pointed out that his $250,000 fee is paid to the fund but I still don't think the fund should have voted in favour, even though there was no material protest vote. Watch video via Twitter.

7. Could Tamara comment as to whether she has been informed about the funds under management situation at EMR Capital. Given the deterioration in the 29 Metals share price, is there a risk that redemptions at EMR could put pressure on it to raise cash by selling down its stake in 29 Metals. Could Owen also comment on whether this has happened and how much EMR is currently managing.

Answer: An unusual response where Tamara said she took her independence seriously and offered a post-AGM catch up, whereas Owen waffled about this not being an EMR meeting but denied there were any redemptions to worry about.

8. Thank you for not sugar coating Creagh's CV in the notice of meeting. From a shareholder point of view, his 5 years as executive director of Australian Magnesium Holdings between 1996 and 2001 was not a good experience, culminating in an $813 million loss being reported in 2002-03. CVs matter with directors so could Creagh please comment on the lessons learnt and summarise what went wrong at that company.

Answer: chairman Owen Hegarty laughed as the question came in and handed over to Creagh who didn't make any excuses and said his key lesson was to focus on mainstream metals like copper. Watch video via Twitter.

Finally, check out this end of Q&A wrap where Owen Hegarty repeats his irresponsible "screaming buy" rhetoric.