6 questions asked at 2024 Stanmore Resources AGM

Q1. In March 2022 we did a 7-for-3 "renounceable" capital raising at $1.10 to raise $694m with unlimited overs for the 861 retail shareholders in the $38m retail offer. The retail offer attracted $23m from 280 participants but finished $15m short & this 1st went to those who applied for $4.9m worth of overs with the balance of $10.1m going to the lucky under-writers. Why did we prioritise the under-writers over retail shareholders giving them a $25 million windfall with the stock closing at $3.30 last night?

Answer: The CFO confirmed that retail were shafted, describing the offer as being "over-subscribed". So why give $10m to the under-writers in that case? See video of exchange via Twitter.

Q2. The Queensland Government increased their coal royalties revenue from $1.74 billion in 2020-21 to a record $15 billion in 2022-23, after introducing one of the world's highest taxing royalties regime in July 2021. How much are we currently contributing to the Queensland Government in coal royalty payments and are we aware of any other jurisdiction which taxes resources more highly than Queensland's coal royalties regime?

Answer: CEO agreed that Queensland has the highest coal royalties in the world. See video of exchange via Twitter.

Q3. Will a change of government in Queensland later this year have any implications for our business or are both sides of politics committed to some of the world's highest coal royalties? What is our policy in terms of making political donations to Australian political parties or paying to attend events they put on?

Answer: CEO said LNP are yet to reveal their policy and question wrangler Reece read out an excellent company policy banning all political donations. See video of exchange via Twitter.

Q4. Indonesia's Widjaja family has controlled Stanmore since 2020. Could Jimmy Lim please provide the full history of his relationship with the family. Do they spend much time in Australia? And why was it other companies associated with the Widjaja family which recently struck a $2.5 billion deal to buy South32's Illawarra coking coal mines, rather than Stanmore?

Answer: Jimmy was hired through a mutual connection to represent the family and the CEO said they didn't bid, instead focusing on their Queensland operation. See video of exchange via Twitter.

Q5. Why did the Widjaja family vote their shares on the remuneration report. If they had abstained there would have been a first strike, based on the proxies disclosed to the ASX with the formal addresses. Which of the 5 main proxy advisers - ACSI, Ownership Matters, Glass Lewis, ISS and ASA - cover us and did any recommend a vote against any of today's resolutions, including the rem report? If so, what reasons did they give?

Answer: Question wrangler Reece, who did an excellent job, explained that ISS and Glass Lewis recommended a vote against the rem report. See video of exchange via Twitter.

Q6. Could new director Keira Brennan and the chair comment on the recruitment process that led to her appointment to the board. Was a head hunter involved, did the full board interview Keira and did they interview any other candidates? Did Keira know any of our directors before engaging with the recruitment process and had she previously provided legal advice to Stanmore?

Answer: No head hunter was used and they didn't address the connections or service provider element. A shame Keira didn't speak to this or her nomination to the board. Five blokes spoke during the meeting. See video of exchange via Twitter.

Copyright © 2024 The Mayne Report. All rights reserved

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