Notes From Shareholder(s) MeetingIt should be singular--I was the ONLY shareholder there. In a room full of suits--I counted 22--I stuck out like a sore thumb in my jeans and short sleeved shirt.
The meeting had not yet started when two company officers left the podium and came over to introduce themselves. Chair of the Board of Directors Jessica Macdonald and CEO Ricus Grimbeek! I introduced myself, said I was a shareholder and had come a long way--Ottawa--for the meeting. Jessica thanked me for attending, Ricus too and said they were about to start and would be available afterwards for any questions i might have.
Jessica chaired the meeting, read the agenda, summarized each issue and quickly brought them to a vote. Routine business, all uncontested by those present and decided by the 47% of company voters who had submitted their votes by proxy.
Governance completed Jessica yielded the podium to Ricus who introduced the company officers present. It was definately a show of 'all hands on deck'. In addition to the corporate officers present were the four operating managers of trevali's mines. Also present was the only other non-suit in the room, I'll call himTrevali's chief technical manager as I can't recall his exact title.
Ricus thanked the analysts present and began his power point presentation with a general overview. It didn't seem so at the time but in reading my notes and printing them up here you can see how general they are.
He immediately referenced what he called the previous 'super cycle' driven by chinese consumption of resources. He acknowledged that while chinese consumption will continue to be important, it will be but a part of a new super cycle.
This ten to fifteen year cycle will be driven by the estimated 2.4 billion people who will be newly urbanized. It will be marked by efforts to 'decarbonize'. Battery storage will will grow. This environmental focus will 'lower the cost curve' and is 'the right thing to do'. Productivity will be 'digitally enhanced', diesel fueled equipment will dissappear from mines.
Industry revenues will grow to support the newly urbanized. Then he addressed trevali.
In trevali's budget for the next 6-12 months the foucs will be on cost reductions. The short mining lives must be extended.
New mining methods have been tested in Caribou and he expects a strong 2nd half.
The expansion study continues at Rosh Pina. He expects the outcome of this study to result in an 50% increase of output by Q2 2020.
Santander continues to go smoothly.
I have no notes on Perkoa.
The company's exploration focus will be on near mine deposits.
He then opened the floor to questions. An analyst, citing numerous problems in Africa--war in Mali, instability threatening seemingly from every direction--asked what tv is doing in response.
Ricus replied that while Trevali has a 'strong security presence' at it's african mines it's real answer is in strong bonding with the community via outreach programs.
An analyst cited low LME inventory and asked what ricus made of their negligable effect on zinc prices. He replied "I wish I knew. Some things in the world are hard to get our heads around."
Those were the only two questions from the analysts. I had received one message from a Stockhouse member requesting i ask the following question. 'With glencore's Trevali shares coming free trading in september do you anticipate any interest in their continuing to acquire trevali's shares."
Ricus yielded the microphone to a corporate officer--I didn't catch his name--who said there remains a 12 month stand still period commencing september which precludes Glencore from acquiring more shares.
Meeting adjourned. As we were leaving the room i was able to introduce myself to mark cruise who was sitting quietly in the back. I told him i had been a shareholder on and off since 2015 and said that obviously no once could have seen the china trade war coming and asked him 'would you do the African acquisitions again or do you have any second thoughts?" He did not hesitate and said 'No, it was a great opportunity. And now (he nodded towards ricus) we have the operations people in place to make it work--that's not really my skillset'.
It was a gracious answer. I'm glad i asked it. Otherwise i was standing in the corridor waiting for the elevator when i recognized the technical chief standing next to me and said 'so what's up with those stopes in new brunswick? It's like you guys just look at them and they collapse.' He laughed and said "they have been quite a challenge but we think we've fixed them."
Presumably management and the anaysts will conduct private interviews to help with any forthcoming reports.
That's my report. for what they are worth here are my personal impressions. Mark cruise is a gentleman. Ricus is indeed an 'operations' guy in charge. For what it's worth Jessica was the shark in the room. The woman can run a mean meeting.