7 questions asked at 2024 29 Metals AGM

May 29, 2024

Here is the text of the 6 questions asked at the 2024 29 Metals AGM, along with a summary of the answers and some video grabs via Twitter. Biggest protest vote 9.6% against rem report. Watch webcast of 77 minute meeting.

Q1. The latest quarterly report notes a $27 million stamp duty liability owed to the WA Government related to Golden Grove. The mine was bought by EMR in 2017 and EMR floated 29 Metals business in July 2021. How on earth was this liability not sorted before the float and why are we seeking a payment plan from the WA Government when we keep talking up the strength of our cash position? Based on the $27m provision, how much is the WA Government saying that we paid for Golden Grove?

Answer: Chair Owen Hegarty palmed it off to the CFO who said the liability related to the 2021 float and they've asked for a payment plan because the company is hard up. See video of exchange via Twitter.

Q2. After booking a $440 million loss in 2023, our claimed net assets are down to $421.7 million, but this is still $70 million higher than our $351 million market cap based on last night's closing price of 54c. Could one of our two Ernst & Young audit signing partners from the Perth office comment on why the $170 million Capricornia impairment wasn't larger and the process they went through to establish that $139 million was a suitable rehabilitation provision for that mine?

Answer: See video of exchange via Twitter, plus this additional comment from the auditor on rehabilitation provisions.

Q3. Australia is currently in the midst of an unprecedented deluge of takeovers that has contributed to listed entities on the ASX falling by 145 to 2,172 since June 2022, including 15 straight months of declines. There have already been 7 major takeovers completed this year with another 18 deals announced and in the works. The ASX is losing long standing names such as CSR, Boral, Blackmores, Alumina, Coca Cola Amatil, Sydney Airport, Invocare, OZ Minerals, Newcrest Mining, Crown Resorts and Ausnet, which have all disappeared over the past 3 years. There is a clear mis-pricing between public markets and private markets. Why are public markets not valuing ASX listed companies like ours more highly and what are we doing to avoid being gobbled up like so many other companies companies.

Answer: Ever the spruiker Owen Hegarty suggested the stock was "oversold and undervalued" but they said they need to perform to lift the price. See video of exchange via Twitter. Director Creagh O'Connor made some extra comments including suggesting BHP overpaid for OZ Minerals.

Q4. Despite markets being near record highs, Australia is currently going through a drought when it comes to major IPOs, partly because recent investor experience in new floats has been pretty poor with the likes of APM, Pexa, Coranado Global, Judo Capital, Latitude Financial, Liberty Financial, Pexa, Pointsbet and, our company 29 Metals, all costing public investors more than $200 million over the past 5 years. Does the chair have any regrets that the experience of 29 Metals has made it harder for major companies to float because the investor experience has been so disappointing? What would he do differently if he had his time again?

Answer: Not asked.

Q5. Given that the shares were floated at $2 in July 2021 and closed at 54c last night, why haven't the directors taken a cut in their fees? How can we ask the WA Government for a payment plan on outstanding stamp duties payable whilst paying our 6 non-executive directors a collective $1.1 million in calendar 2023? Also, well done for cranking up the payments in shares this year? Will this continue going forward?

Answer: See video of exchange via Twitter. This additional component from the rem chair makes it sound like a pay cut is coming.

Q6. EMR Capital is our largest shareholder with a controlling 45% and has 2 nominees on the board, including chair Owen Hegarty. Australian Super is our second largest shareholder with 14.4% or 101 million shares. Why doesn't Australian Super have a nominee on the board and who do we deal with at Australian Super to get their input on the running of the company?

Answer: Owen Hegarty handed this to director Fiona who said the 4 independent directors often caucus without the 2 EMR nominees. See video of exchange via Twitter.

Q7. We would have had a strike if EMR hadn't voted. Did we get legal advise as to whether that was appropriate given the 2 EMR nominees on the board are paid by the company? Doesn't this mean EMR is effectively voting on the pay of its own people?

Answer: The rem committee chair Martin said there was no legal advise and EMR was entitled to vote. See video of exchange via Twitter.

Also, watch Owen Hegarty request Tamara, the only director who hadn't spoken, address the meeting at the end. She did well.