7 questions submitted at 2024 Iluka Resources AGM

May 7, 2024

Below is the text of the 7 questions submitted at the 2024 Iluka Resources hybrid AGM held in Perth on May 7, along with a summary of the answers and some video links via Twitter. ASA rep John Campbell and I were the only two questioners and the only protest was 7.7% against the rem report.

Q1. Why haven't we launched any takeovers in the rare earths space, given there is so much activity at the moment? And do we believe that our company could not be taken over by a foreign predator given the national strategic interest of our assets? Do we believe FIRB would block all foreign bids for our company?

Answer: Chair Rob Cole gave the usual "we don't comment on speculation or M&A" response, which was disappointing. Watch video of exchange via Twitter.

Q2. Did any of the main proxy advisers - ACSI, Ownership Matters, Glass Lewis and ISS - recommend a vote against any of today's resolutions? Which of the proxy advisers are covering us and has their been a material proxy protest vote against any of today's resolutions? Will you disclose the proxy votes before the debate on today's resolutions so shareholders can ask questions about the reasons if there have been any protest votes? And why not disclose the proxy position with the formal addresses at next year's AGM?

Answer: The chair said one of the 5 proxy advisers (yes, agree we should include ASA) recommended against the rem report but the protest vote only came in at 7%. Watch video of exchange via Twitter.

Q3. When disclosing the outcome of voting on all resolutions today, including Rob Cole's re-election, could you please advise the ASX how many shareholders voted for and against each item, similar to what happens with a scheme of arrangement? This will provide a better gauge of retail shareholder sentiment on all resolutions and was a disclosure initiative adopted by the likes of Metcash, Altium, Myer, Tabcorp, Qantas, Dexus and ASX after their AGMs. Retail shareholder participation is falling both at AGMs and in capital raisings, partly due to the move away from paper. Do you know how many shareholders voted by proxy before today's AGM, in addition to the ASA's 99 proxies?

Answer: Rob Cole gave us nothing on this. Disappointingly conservative. Watch video of exchange via Twitter.

Q4. Could the CEO summarise his past LTI grants as to whether they have vested or lapsed. Also, has he ever sold any ordinary shares in the company or bought any on market without relying on an incentive scheme to build his equity position in the company? Please don't say look it up in the annual report and through ASX announcements. It's complicated and the CEO could factually summarise the situation in 60 seconds.

Answer: CEO Tom O'Leary was a bit too much "look it up in the rem report" in his answer but it sounds like there have been many years of non-vesting over his long run in charge. Watch video of exchange via Twitter.

Q5. Sierra Rutile's share price hit an all-time low of 5.8c ahead of the recent PRM takeover bid, falling from as high as 43ยข at the time of the spinout from Iluka Resources in 2022. What does Andrea Sutton think about the terrible performance of Sierra Rutile since we spun it off. Was it the right decision and have we thought about buying it back seeing as it is now so cheap?

Answer: Both the chair and candidate Andrea Sutton were clearly relieved to have got out of the world's best rutile prospect in Sierre Leone. Much prefer focusing on Australia rather than the wilds of west Africa. Watch video of exchange via Twitter.

Q6. Is Rob planning to serve a full 3 year term and will this be his last term on the board, such that he won't serve longer than 5 years as our chair? What does he thing about director tenure limits?

Answer: The chair said he supports 9-10 year tenure limits without specifically saying this would be his last 3 year term after joining 6 years ago. Watch video of exchange via Twitter.

Q7. Did we elect to go to tender because of the PwC tax scandal? When did we last go to tender and how long was PwC our auditor for?

Answer: Chair Rob Cole said that after 33 years, it was mainly about tenure, not performance. The last tender was 5-6 years earlier. Watch video of exchange via Twitter.