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Transcription of The Stock Network Interview with Far East Gold (ASX:FEG), Managing Director and CEO Shane Menere
Izaac Ronay: Far East Gold shareholders have backed the board majority extraordinary general meeting voting to remove three directors. The Gold and Copper Explorer is advancing its Idenburg project in Indonesia. Its largest shareholder, Xingye, has called a second meeting for 3rd of November to remove four directors, including the CEO.
Far East Gold Managing Director and CEO Shane Menere joins me to discuss what the results mean for shareholders, the 3rd of November vote and the relationship with Xingye from here.
Shane, shareholders voted to remove three directors, leaving Far East Gold board with just four members. What does the result tell you about what shareholders want from the company?
Shane Menere: Well, Isaac, firstly, what are the results? It was a massive day for Far East Gold and our shareholders.
And I really do want to start by thanking our shareholders for their continued support. Look, we’ve received what has been an extraordinary result and outcome. And I don’t think any of us, including the board, take that for granted.
We’ve been through a pretty tough few months and there’s been a lot of noise and a lot of distractions and plenty of challenges along the way. But yesterday, our shareholders stood up and made their position very clear. And when you consider the level of participation and overwhelming support from shareholders outside of Xingye, I think that says an enormous amount.
So we’ve heard from our shareholders loud and clear. They want us to get on with the job. They want us to advance our projects, bring in funding and strategic partners and realise the value that we all believe is still sitting within Far East Gold.
And frankly, that’s what we’ve been trying to do throughout this whole process, Isaac. So yes, it’s a fantastic result. And I think we’re entitled to be pretty pleased about it, actually.
But more than anything, it’s a responsibility. And our shareholders have backed us and now we have to deliver for them.
Izaac Ronay: Absolutely. So Xingye now holds around 35% of Far East Gold and has called a second meeting to remove four directors, including you. Does this result give you confidence for the next meeting? And what could go wrong before then?
Shane Menere: Yeah, absolutely. It gives us confidence, Izaac. How could it not? We’re very pleased with that result. So yesterday was a strong endorsement of the direction we’re taking. And I think the result speaks for itself.
But we’re not getting ahead of ourselves. We’ve still got another meeting on the 3rd of November, as you mentioned, where Xingye is seeking to remove Justin, Paul, Chris and myself from the board. And I want to be very clear with shareholders about that.
So we’ve won an important battle, but this isn’t over yet. We need shareholders to come out and support us again, still for that second meeting, November 3rd, if you haven’t already. And it’s incredibly important that people don’t sit back and assume the job is done.
So my message is really simple. Thank you for the tremendous support yesterday. We’re nearly there, but we need you one more time.
Please vote accordingly on the resolutions to remove the board. So we’ve got some very exciting opportunities ahead of us. And the last thing that this company needs is another period of uncertainty and disruption.
I’m feeling very positive about where we are, but we won’t be complacent.
Izaac Ronay: Excellent. And so if shareholders do back the board again for this next meeting on November 3rd, you’ll have come through two votes.
And how do you think that will change the working dynamic you have with Xingye, your largest shareholder? And how will you approach that relationship moving forward?
Shane Menere: Look, I’ve said it many times and I’ll say it again. Our door is always open. Xingye owns just under 35% of Far East Gold.
They’re our largest shareholder and we respect that position. But there’s also a lot of other shareholders who invested that hard-earned money into the company and we have responsibility to all of them. I don’t have an issue with Xingye wanting to invest in Far East Gold.
In fact, we’ve always welcomed investment and strategic partnerships. The issue has always been about the value and what’s fair for all shareholders. And I think yesterday’s result sent a pretty powerful message about that.
If Xingye want to come back to the table with a sensible, reasonable offer that properly recognises the value of Forrest Gold, then absolutely we’ll listen. There’s always a seat at the table for a fair proposal. So we’re business people, Izaac.
We want to do deals, develop projects, create value. We’re not interested in fighting for the sake of fighting. I’d much rather spend my time talking about how we can advance our assets than continuing this boardroom battle.
So yes, the door remains open. It always has.
Izaac Ronay: Shane, money of mine has weighed in on yesterday’s result, including a rather colourful message to Xingye.
What did you make of the commentary and its broader message about the value of Far East Gold?
Shane Menere: Well, Isaac, I’d have to say I had a pretty good laugh over my morning coffee when I read that one. I think money of mine finished with something along the lines of, don’t be stingy. I probably couldn’t get away with saying that in an ASX announcements, of course, but I did have a chuckle.
And look, putting the humour aside, there’s actually a pretty serious point there. Xingye made a takeover offer at $0.13 per share and our independent expert valued the company between $0.32.4 and $0.44.4 per share. So that’s a pretty substantial difference.
And yesterday, shareholders delivered that very clear message about who they want representing their interests. Now, I’m not going to put words in the mouths of shareholders, but I think it’s fair to say they recognise this considerable value in Forrest Gold and that’s the value that we’re working to unlock. So I enjoyed the commentary.
It was certainly colourful and I think the money of mine boys captured the mood pretty well. But again, if Xingye wants to come back with a reasonable proposal, we’re happy to talk. Just make it a fair one.
Izaac Ronay: And with the EGM behind you and shareholders having delivered such a strong message, where does Far East Gold go from here? Are you continuing discussions with potential strategic partners and investors, including opportunities at the asset level?
Shane Menere: This is actually the part I’m most excited about, because despite everything that’s been going on, we haven’t stopped working on the business, not for a moment. We’ve continued talking to potential investors, strategic partners, groups that are interested in our assets. And there’s still considerable interest in what we’ve got.
Of course, we’ve got Idenburg, Warrock, Wanagiri, Trenggalek and the two assets, the Copper and the Gold assets in Australia. So there’s some tremendous potential there. And we believe there’s a number of ways to unlock that value.
So we’re looking at opportunities of both the corporate and the asset level. That might mean bringing in a strategic partner, doing a joint venture, securing development funding or potentially transacting on an individual asset where it makes commercial sense. We’re not wedded to one particular structure.
We’re interested in doing the right deals for shareholders. And importantly, we’re always in discussions. We haven’t been sitting around waiting for these meetings to finish.
Of course, there’s a limit to what I can say about individual discussions until we’re in a position to announce something to the market. But I can tell you, we’re very focused on moving forward. We’ve got a lot of work to do.
And yesterday’s result gives us a real boost. Now we need to turn that support into progress. Can I just finish by saying something directly to our shareholders? Yesterday was a fantastic day for Far East Gold.
And to every shareholder who took the time to vote, who supported us, who sent messages of encouragement and who stuck with us through what’s been a pretty challenging period. Thank you. I genuinely mean that.
Justin, Paul, Chris and I are incredibly appreciative of the support you’ve shown us. You’ve made your voices heard and we’ve heard you loud and clear. We know what you expect of us and we’re absolutely committed to delivering.
But I do want to remind everyone that we’ve got that one important meeting on November 3rd. So please don’t think the job’s done. We still need your support.
And after that, I sincerely hope we can put this period behind us and focus all of our energy on what really matters, building Far East Gold, advancing our projects and creating that value for our shareholders. We’ve got a great portfolio. We’ve got opportunities in front of us and we’ve got shareholders who have just now shown tremendous confidence in the company.
Now it’s time to get on with it. So again, thank you to all shareholders. Sincerely, we won’t forget the support that you’ve given us.
Izaac Ronay: Shane, thank you very much for your time today.
Shane Menere: Thank you very much, Izaac.
Ends