6 questions lodged at 2024 Sandfire Resources hybrid AGM

Q1. Australia is in the midst of an unprecedented deluge of takeovers that has contributed to listed entities on the ASX falling by 176 or 7.5% to 2,118 since June 2022, including 21 straight months of declines. There have already been 27 major takeovers above $200m completed so far this calendar year. The ASX is losing long standing names such as CSR, Boral, OZ Minerals and Newcrest. 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? Does the chair agree this is a problem for the nation, particularly with so few new floats replenishing the ASX ranks? Finally, BHP is bullish on copper and we're becoming globally important. Why haven't they already made a bid?

Answer: The chair John Richards had to ask the question wrangler Pippa to repeat a couple of aspects and she did well. Nothing useful in the response, which was the usual "best defence is a high share price", which they are certainly delivering at the moment. Watch video of exchange via Twitter.

Q2. Did any of the 5 main proxy advisers - ACSI, Ownership Matters, Glass Lewis, ISS and ASA - recommend a vote against any of today's resolutions, including this remuneration report item? If so, what reasons did they give and did this translate into any material protest votes? Please don't say proxy adviser for and against recommendations are confidential. It is standard for companies to be across this detail and inform shareholders where relevant without publishing the full proxy adviser reports, of course.

Answer: The chair John Richards was poor on this, particularly given he was yet to reveal the whopping 54% vote against the rem report, triggering a second strike. He even quibbled on calling against votes a "protest". Never heard that before.

Q3. Australia's biggest industry fund, Australian Super, is a big believer in the energy transition and our biggest shareholder with 14.8%. How influential are they as our biggest shareholder and have their ever been any discussions about giving them a board seat. Who do we deal with at Australian Super and are they happy given that Sandfire is one of the best major value investments they've made on the Australian equity market. If BHP did make a takeover bid, is your sense that Australian Super would be reluctant to sell for cash as they really value their over-weight long term position in Sandfire, which gives them great exposure to the global electrification theme. In essence, does the presence of Australian Super on our register represent a blocking stake for a takeover and could the chair John Richards explain his history with Australian Super?

Answer: This questions raised some interesting issues as industry fund power rises in Australia, particularly given Aussie Super obviously led the charge in causing the 54% second rem strike, whilst voting for the re-election of the chair. Apart from saying Aussie Super has lots of involvement, no detail was provided by chair re-election candidate John Richards who was comfortably re-elected. Watch video of exchange via Twitter.

Q4. Sandfire has more than 15,000 shareholders but less than 2% of them will have voted today on this proposed increase in the fee cap for the non-executive directors. I'm curious to know what retail shareholders thought about this resolution, rather than just big end of town investors who dominate corporate voting. Therefore, when disclosing the outcome of voting today, 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 and insight into Australia's chronically low retail shareholder participation rate. The likes of ASX, Qantas, Computershare, Flight Centre, Suncorp, Tabcorp and Myer all did this after their latest AGM. It would also be better to disclose the proxies early with the formal addresses ahead of next year's AGM to allow for a more fully informed debate. Will you commit to doing this next year?

Answer: The chair read a scripted response presumably prepared by the company lawyer. As a rule, lawyers are usually in the "admit nothing and just promise to follow the law" camp and this one had shades of that, although he did promise to have a look at the issue and monitor market practice. This AGM would have been a lot better if the 54% rem second strike had been known from the outset. Watch video of exchange via Twitter.

Q5. Is Sally Langer related to Mineral Resources director Justin Langer?

Answer: Was expecting a straight "no" but the chair declared this "inappropriate", which it would be if I started going on about sisters or wives only getting gigs due to the connections of powerful men in their families. Perhaps they are related. Perth is a small town. As a Mineral Resources shareholder, I'm wanting Justin Langer to step up and fix all the various scandals but am worried he's just a cricketer thrown into a different world. If's he's related to an experienced mining executive and director then that's actually a good thing in terms of his own mining industry familiarity, knowledge and understanding. Watch video of exchange via Twitter.

Q6. Thank you for offering shareholders a hybrid AGM this year and for the excellent comprehensive formal addresses, including suitable contrition and straight forward rem explanations. Well done. Many Perth-based resources companies don't offer a hybrid, forcing east coast shareholders to fly to the world's most isolated city to participate in the meeting. Will you commit to keep doing hybrids in future years to maximise shareholder participation? Big companies like Bank of Queensland, BHP, Brickworks, Fortescue Metals, Harvey Norman, Origin Energy, Premier Investments, Ramsay Healthcare, Rio Tinto, Seven Group, Soul Pattinson, Whitehaven Coal and Worley all banned online questions and voting in 2024, so well done for showing them up. What was the experience like from your end?

Answer: The chair said they were "delighted" to offer a hybrid even though I was the only shareholder asking questions via the Zoom meeting and he wasn't happy with some of them. No unconditional promise to continue the practice but sounds promising. Watch video of exchange via Twitter.

Copyright © 2024 The Mayne Report. All rights reserved

• share
  Share
  • 
    Facebook
  • 
    Twitter
  • email
    Email
  • print
    Print
  • link
    Copy Link
  • cancel
    Cancel