The curtains have fallen on a 2023 AGM season punctuated by significant investor unrest over executive pay packages – particularly in relation to termination benefits – and poor performances.
Granted, there is nothing new about those two areas attracting the ire of investors – and it obviously was not the norm across all companies that held their annual shareholder gatherings over the past six weeks.
But what stood out during this season was the scale of the protests when shareholders were unhappy.
No one blinks an eye anymore when a remuneration report resolution attracts a 25 per cent, strike-level protest – this season, non-binding resolutions to adopt remuneration reports were voted down.
Similarly, resolutions to elect directors proved prime opportunities for aggrieved investors to vent their frustration. Attracting a 30 per cent against-vote is hardly a vote of confidence in a re-elected director.
It did not take a case of national shame such as Qantas to evoke shareholder unrest. Bad M&A activity, weak operating performances or a perceived lack of boardroom independence and diversity were enough to trigger shareholders.
Needless to say some companies handled – and explained or justified, depending on which side of the fence you are in – the protests better than others.
In WA, the likes of Fortescue (ASX: FMG), De Grey Mining (ASX: DEG), Emeco Holdings (ASX: EHL), Arafura Rare Earths (ASX: ARU), IGO (ASX: IGO), Poseidon Nickel (ASX: POS) and Silver Lake Resources (ASX: SLR) were among those to cop the wrath of investors. NRW Holdings (ASX: NWH) made history with a sixth consecutive strike against its remuneration report.
Yet it wasn’t all protests and unhappiness.
Plenty of companies enjoyed the strong support of shareholders as they presented on FY23 and spoke about the future – a future companies, and shareholders, exposed to battery materials such as lithium and rare earths hope will deliver improved commodity prices.
Here are some companies that used their AGMs to highlight a strong performance in FY23 and a positive outlook for FY24:
Core Lithium (ASX: CXO): Short-sellers have not been kind to lithium pure-plays such as Core but the owner of the Finniss project near Darwin, in the Northern Territory, has kept its focus on ramping up spodumene production.
FBR (ASX: FBR): A ground-breaking advance like the Hadrian bricklaying robot cannot be commercialised overnight though FBR told shareholders work on pushing into the US construction market was gaining pace.
Magnetite Mines (ASX: MGT): The company has just completed a rights issue that raised $6.5 million, leaving it well-positioned to advance study work and submit the mining proposal for its world-class Razorback magnetite iron ore project in South Australia.
Mineral Resources (ASX: MIN): The past year was punctuated by the start of construction of the $3 billion Onslow Iron project and a significant expansion of the lithium portfolio, part of the foundations for what is shaping as a big FY24.
Northern Star Resources (ASX: NST): Now the ASX’s largest gold stock (following Newcrest’s takeover by Newmont), the owner of Kalgoorlie’s Super Pit is focused on its profitable push to 2Mozpa – perfectly timed for a period of rising gold prices.
Sandfire Resources (ASX: SFR): Under new management, what is now the ASX’s premier copper pure-play is looking forward to ramping up production at Motheo in Botswana and continuing the improvement at MATSA, in Spain.
St George Mining (ASX: SGQ): St George has spent much of FY23 beefing up its portfolio of highly prospective, unexplored lithium projects in and around WA’s Goldfields. Add to that a line-up of strategic partners that include China’s Shanghai Jayson and Japan’s TDK and the tracks are laid for a busy FY24.
VRX Silica (ASX: VRX): It has been a slower-than-hoped journey for VRX to finalise the approvals process for its Arrowsmith North silica sand project north of Perth. Shareholders have moved into FY24 with confidence that VRX is on the right track.
Vysarn (ASX: VYS): The water services company signed off on a record year confident that its offering – which includes the Pentium Water business – will underpin FY24 growth including attracting more interest from the mining sector.
