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Whitehaven wins AGM vote, but activist shareholder emerges from scrap with a chunk of its flesh<\/strong> \u00a0<\/p>\n Whitehaven Coal (ASX:WHC) <\/a>has kept the wolves at bay, passing its remuneration report in an eventful AGM.<\/p>\n But the acquirer of BHP\u2019s (ASX:BHP)<\/a> 17Mtpa Daunia and Blackwater met coal mines has copped a chastening blow, promising to engage with shareholders over the next 12 months after copping a strike on the vote, with 40.62% of proxies voting against the resolution.<\/p>\n That is, in baseball and business terms, a first strike. A second 25% no vote at next year\u2019s AGM would result in a motion to spill the board.<\/p>\n It comes after an aggressive lobbying campaign from London hedge fund Bell Rock Capital, which launched an online and media blitz called Fair Shareholder Returns to encourage a vote against key resolutions at the AGM.<\/p>\n The root cause of the near 5% holder\u2019s discontent was the company\u2019s up to $6.4 billion deal to acquire BHP\u2019s mines, which will make the $6.5b capped thermal coal miner one of Australia\u2019s largest coking coal producers.<\/p>\n Steelmaking coal is currently trading at a big premium to that of the energy variety and demand is considered less prone to green transition risks.<\/p>\n But Bell Rock says the acquisition will stifle investor returns, accusing Whitehaven of paying MD Paul Flynn three times the remuneration of his peers and complaining about last year\u2019s introduction of a single incentive plan that took Total Shareholder Returns out as a KPI.<\/p>\n Whitehaven claimed Bell Rock hid that it actually held an 11% direct and indirect interest in Whitehaven, calling on the Takeovers Panel to get involved and discount its votes. The TP said no dice.<\/p>\n Regardless, the vote would have been strong enough anyway to force that first strike. Over 38% of proxies were also voted against Paul Flynn\u2019s incentive plan awards.<\/p>\n Chairman Mark Vaile said WHC had \u201cquite a bit of work to do\u201d to engage with shareholders over the next year.<\/p>\n \u201cThis is disappointing given the terms of the Single Incentive Plan were included in last year\u2019s remuneration report, which received a 92.5% support from shareholders,\u201d he said.<\/p>\n \u201cIt is critical that we maintain a remuneration framework that is enduring, supports our business strategy and drives long-term sustainable shareholder value.<\/p>\n \u201cHowever, we will continue to engage with shareholders on opportunities to enhance our remuneration practices and seek feedback on how we can better meet stakeholder expectation on these matters.<\/p>\n \u201cJust my view in the consultations we\u2019ve had, there has been a concern on the TSR component and there\u2019s been a concern on discretion, which we\u2019ve had many discussions with many institutional and retail shareholders (about).\u201d<\/p>\n READ: Angry Whitehaven Coal shareholder ratchets up campaign to kill BHP mine bid<\/a><\/p>\n READ: Monsters of Rock: Whitehaven fires back at activist shareholder by calling in the referee on eve of big vote<\/a><\/p>\n \u00a0<\/p>\n The Daunia and Blackwater deal, which will include an initial payment of US$2.1b, deferred payments of US$1.1b and additional payments contingent on coal prices of up to US$900 million, significantly doesn\u2019t require the sign-off of shareholders.<\/p>\n Vaile said a recent survey of 400 retail holders, in what is one of Australia\u2019s three largest pure play coal stocks, came back with 88% supporting its current capital allocation framework.<\/p>\n \u201cWe believe the majority of our shareholders support the acquisition and the financial and strategic benefits it will deliver. Certainly the initial market reaction to the deal suggests that is a view the market shares,\u201d Vaile said.<\/p>\n \u201cWe do, however, recognise it has been a somewhat challenging time for shareholders in recent months, as we assessed this strategic growth opportunity and observed the appropriate restrictions around confidentiality and information sharing.\u201d<\/p>\n The deal is expected to close in June next year.<\/p>\n Bearing in mind Russia\u2019s invasion of Ukraine did send energy coal surging well beyond met coal to levels in excess of US$450\/t last year, thermal coal is currently trading at around US$135\/t.<\/p>\n Meanwhile premium hard coking coal is fetching US$350\/t, with intermediary products like the semi-hard coking coal and low vol PCI also sold at Daunia and Blackwater in the middle. After June 70% of Whitehaven\u2019s revenue is expected to come from steelmaking coal.<\/p>\n While thermal coal typically attracts a small pool of investors willing to brave the ESG flack, metallurgical coal has a less demonised character. The increased scale and strategic direction Whitehaven is taking will improve its attractiveness to financiers and broaden its institutional reach, Flynn told investors in a Q&A session.<\/p>\n Sitting on $2.45b of net cash at September 30, it had seen banks decline to engage on a new debt facility earlier this year, but was able to get Jefferies and Bank of America on board to help fund the Daunia and Blackwater deal.<\/p>\n \u00a0<\/p>\n <\/span>\u00a0<\/p>\n \u00a0<\/p>\n \u2026 to \u201cgreen gold\u201d.<\/p>\n The glistening metal was up again overnight to US$1981\/oz as war continues to rage in the Middle East.<\/p>\n Safe haven demand has led Aussie gold stocks higher in recent weeks.<\/p>\n One, now hoping it can now get to the next up-leg of the Lassonde Curve, is Bellevue Gold (ASX:BGL)<\/a>, which announced the delivery of its first 8.3kg gold bar yesterday.<\/p>\n It is the first output from the mine of the same name in the northern Goldfields.<\/p>\n Closed in 1997 after producing 800,000oz at 11g\/t over around a decade, the mine spent 20 years as a water pit after it was thought a fault ended the high-grade mineralisation.<\/p>\n That was until a then 3c Bellevue picked up the ground in 2017, soon making the Viago and Tribune Lode discoveries that would revive the mine and shoot the firm into the ASX 200.<\/p>\n Now valued at $1.61 billion, Bellevue is trading at a share price of $1.41 today.<\/p>\n With its high grades and renewable power penetration, the company has ambitious plans to target net zero on a tonnes of CO2 per ounce basis by 2026, with renewable energy to comprise 70-80% of its initial mix.<\/p>\n But also, just get a look at that gorgeous, weighty gold. The bar in BGL MD Darren Stralow\u2019s hands clocks in at around $840,000 cash.<\/p>\n That\u2019ll get you a couple of good jumbo operators, for sure.<\/p>\n Big Darren Stralow handles some tasty gold bar. Pic: Bellevue<\/p>\n The newly minted miner says it all came in on time and on budget, though the real proof in the pudding will be in the ramp up as operating costs and production numbers start flowing through.<\/p>\n It\u2019s still a good day for the big MD.<\/p>\n \u201cThe start of production is the culmination of an incredible journey which started with an exploration project,\u201d Stralow said.<\/p>\n \u201cTo achieve this on time and on budget is a huge feat, particularly given the skills shortage and economic climate of recent times.<\/p>\n \u201cThis is a major credit to our construction and operations teams who, alongside our key contractors, have worked tirelessly to deliver this project.\u201d<\/p>\n \u00a0<\/p>\n <\/span>\u00a0<\/p>\n \u00a0<\/p>\n To a couple of the big dogs of the gold industry, by production at least if not market cap.<\/p>\n Regis Resources (ASX:RRL) <\/a>ironically trades at just $1.27 billion, well below Bellevue despite its more than 400,000ozpa production rate.<\/p>\n The miner has been urgently busting to expel its hedge book which is, an extremely excited and probably agitated MD Jim Beyer notes, now just nine months away.<\/p>\n Once that happens it may actually be able to enjoy the benefits of its 30% share of the massive Tropicana mine and its 100% owned Duketon operations.<\/p>\n Regis was up slightly today after announcing 111,400oz of gold production in the September quarter at AISC of $2106\/oz, including 76,400oz at $2180\/oz at Duketon and 35,000oz at $1859\/oz from Tropicana.<\/p>\n Its gold sales came in at 106,600oz at a price of $2560\/oz, laying bare the impact of its hedgebook.<\/p>\n Other gold miners have pulled in prices closer to $3000\/oz for the September quarter. After a hedging loss of $41m, Regis still managed to generate $97m of operating cash before spending $64m in capex, $13m on exploration and $4m on the pre-development McPhillamys project in NSW.<\/p>\n In FY25 Regis, which expects to produce 415,000-455,000oz at AISC of $1995-2315\/oz this financial year, could produce $170m in free cash at current prices.<\/p>\n \u201cGold production and costs are right on plan. It was our first full quarter where all key operating assets were in commercial production and the performance clearly demonstrates the cash generating capacity of the operating assets as they transition to cash harvest phase,\u201d Beyer said.<\/p>\n \u201cWith the closure of the hedge book now less than nine months away it is crystal clear that the Company\u2019s free cash flow generation in FY25 is set to accelerate and we expect to deliver more than $170M in additional pre-tax cash flow at current spot gold prices.<\/p>\n \u201cIt is also very pleasing to see the next potentially long life growth project at Tropicana, the Havana underground, progress through the Pre-Feasibility stage and onto the next evaluation stage.<\/p>\n \u201cTropicana continues to prove to be an exceptional long-term investment that continues to grow in value.\u201d<\/p>\n And $2b capped Gold Road Resources (ASX:GOR)<\/a> meanwhile maintained guidance of 320,000-350,000oz at its 50% owned Gruyere mine near Laverton in WA, with AISC for the 2023 calendar year expected to remain within guidance of $1540-1660\/oz.<\/p>\n It produced a record 88,668oz at $1682\/oz in the September quarter, with Gold Road\u2019s sales on an equity basis coming in at 44,231oz at a price of $2946\/oz, generating some $93.5m in operating cash flow and a record $51.7m in free cash.<\/p>\n Gold Road, which also has a 19.9% stake in De Grey Mining (ASX:DEG) <\/a>worth in excess of $345 million, was sitting on cash and equivalents of $209.3m on September 30.<\/p>\n \u00a0<\/p>\n <\/span>\u00a0 The post Monsters of Rock: Whitehaven keeps wolves at bay\u2026 just, Bellevue pours first gold, Gold Road and Regis rep the goldies<\/a> appeared first on Stockhead<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"
\nBellevue pours first gold bar (psst \u2026 want to see what $840,000 of gold bar looks like?)<\/strong>
\nGoldies Gold Road and Regis roll out solid numbers<\/strong><\/p>\nA broader church<\/h2>\n
Whitehaven Coal (ASX:WHC) share price today<\/h2>\n\n
From dirty coal \u2026<\/h2>\n
Bellevue Gold (ASX:BGL) share price today<\/h2>\n\n
Last but not least<\/h2>\n
Gold Road Resources (ASX:GOR)<\/a> and Regis Resources (ASX:RRL)<\/a> share prices today<\/h2>\n\n
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