5 questions lodged at 2025 Australian Mines (AUZ) virtual EGM
August 27, 2025
Below is the text of the 5 written questions submitted at the 8 minute Australian Mines (AUZ) virtual EGM via this Zoom link held at 2pm on August 26, 2025, to approve 5 capital raising resolutions. Market cap $13.7m. See notice of meeting. There were 4 protest votes of circa 13%. The last balance sheet back in March 2025 showed accumulated losses of $74.1m and net assets of $45.8m so they're due for some big write-downs.
Q1. When negotiating terms with our new partner in Brazil, did they raise any concerns about the accuracy of our December 31 accounts given that our current market cap of $13.7m is barely one quarter of our claimed net assets of $45.8m in the latest accounts. Given that we've already wracked up accumulated losses of $74.1m, investors are overall down more than $100 million. Where did all this value go and will our new Brazilian partner help salvage some of this lost value?
Answer: The chair Michael Ramsden said this wasn't an issue and claimed exploration assets "can be valued differently on the market". Watch video of exchange via Twitter.
Q2. The last annual report said that we have 10,110 shareholders. Why weren't your loyal and long suffering retail shareholders offered an opportunity to participate in this latest $2.5m placement on the same terms as the big end of town investors? Will you launch an SPP before the upcoming AGM?
Answer: The chair Michael Ramsden said they were time-constrained but would take on board the suggestion. Watch video of exchange via Twitter.
Q3. After this placement, we'll have a slightly ridiculous 1.71 billion ordinary shares on issue, which is about the same as the Commonwealth Bank. With our stock trading at an embarrassing 0.008c a share, will the board propose a share consolidation for consideration at the upcoming AGM. If not, why not?
Answer: The chair Michael Ramsden said no, observing that some times share consolidations can lead to a lower share price. Presumably he meant a lower market cap, because by definition a consolidation pushes the share price up. Watch video of exchange via Twitter.
Q4. I'm not a fan of paying brokers with equity, or the standard 6% fee which is paid with most small cap raisings. Did we tender this job and why did the board agree to issue these options. Wouldn't it have been simpler to just pay cash, rather than creating these new categories of options?
Answer: The chair Michael Ramsden handed over to CEO Andrew Nesbitt who defended the practice and said it was market tested. Watch video of exchange via Twitter.
Q5. Now that we're doing deals in Brazil, are we going to change out name from Australian Mines to something more suitable?
Answer: The chair Michael Ramsden said a change was unlikely in the short term and it was a useful name to convince the locals they are a substantial business. Watch video of exchange via Twitter.
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