As previously reported by Stockwatch, Safeguard took approximately $350-million off the table through the AMG initial public offering and subsequent sale of shares.

"The rationale of combining Timminco as a subsidiary into AMG is based on the fact that AMG is the world leader in the technology of the second step in the solar value chain," Mr. Schimmelbusch went on.

"You have heard that Timminco is preparing itself to become the leader in the first step -- the transformation of silicon metal into solar-grade material which can be used in the further steps in the value chain," he said.

Mr. Schimmelbusch suggested that "a joint learning process" with respect to the first step will be of enormous value as Timminco and AMG co-operate in the interface between the production of solar-grade silicon and the second step in the solar value chain, which is the production of solar-grade silicon ingots in the parent company's vacuum furnace systems.

Protection

Timminco's chief financial officer, Robert Dietrich, was called upon to respond to a question about the company's patent application to protect its secret proprietary process.

According to Mr. Dietrich, the process involves filing a patent application and within a certain period of time the application is published.

"Most people are aware that our first patent application was published in March of this year," Mr. Dietrich said.

Concurrent with that publication, examiners begin the process of reviewing the patent claims to determine whether they can be upheld, Mr. Dietrich explained, adding that the company has been through the "first pass of that patent examination."

According to Mr. Dietrich, it can take between three years and four years from the time an application is filed until a patent is granted. Timminco, he said, is in "about the middle of that process."

Mr. Schimmelbusch chimed in to say that while the patent application is proceeding, the company's secret technology has "sort of a second level of protection" because one key element of its purification process relies on very proprietary equipment for which Timminco has exclusive use.

It may be worth noting that while Timminco is evidently confident that it has a lock on its secret process, many other players are piling into the market with their own upgraded metallurgical silicon.

In fact, Q-Cells AG, a Timminco customer and the world's largest producer of solar cells, is reportedly evaluating upgraded metallurgical silicon from 16 companies.

Short story

After offering his sunny perspective on the future of the solar energy industry, one in which he believes both Timminco and AMG will play significant roles, Mr. Schimmelbusch fielded a question about recent negative news articles.

Timminco's leader said that the company is analyzing the negative press, which he believes is related to short selling.

"There are short sellers running up and down the streets here telling idiotic, bizarre -- my English is not good, in German I would be much more eloquent on this -- statements on the company because they were short," Mr. Schimmelbusch said. "And when you are short in a volatile stock which has a rising trend it is dangerous. And I really hope that they are still short.

"So some journalists obviously have been influenced by these guys.

"And the matter is, by the way, before courts because we are following such statements very carefully.

"If somebody oversteps a certain line, he's over the line, its straight going to the courts."

In the wake of Mr. Schimmelbusch's remarks, Stockwatch contacted Timminco for some basic information about the court action, but the company refused to disclose the nature of the action, the names of the defendants or even where the suit was filed.

Notwithstanding the company's evident reluctance to discuss the matter beyond Mr. Schimmelbusch's animated commentary at the annual meeting, a June 3 Globe and Mail article by Mr. Hoffman disclosed that Timminco is suing Ravi Sood and his Lawrence Asset Management Inc. for libel.

Stockwatch will review the lawsuit in more detail in a future article.

Returning to Mr. Schimmelbusch's May 29 remarks, Timminco's chief executive officer went on to offer what he characterized as the interesting observation that in Toronto, while you might expect applause for an innovation, you are met with skepticism.

Mr. Schimmelbusch said that the company has decided to focus completely on execution, report quarter by quarter and the negative media coverage will be replaced by "a normal reception by the press."

It is not clear whether Mr. Schimmelbusch thinks that a normal reception by the press and skepticism are mutually exclusive.

In any event, Timminco's chief executive officer had some parting advice for shareholders as he wrapped up the meeting a short time later.

"If you read another negative article, just put it aside," Mr. Schimmelbusch said.

With more than 1.6 million shares changing hands, Timminco closed at $30.60 on June 3.

Comments regarding this article may be sent to lwebb@stockwatch.com.

(More information regarding Timminco Ltd. is available in Stockwatch articles published on May 14, 16 and 27, 2008.)