Investor Marketing for Mining Companies

Of the 2,200 companies listed on the ASX, around 700 are metals and mining stocks. The mining industry is the breadwinner of the Australian economy, contributing $200 billion annually, or about a 10 per cent share of the GDP. As we enter the next commodities supercycle, we’ll see more resource companies vying for the attention of investors. So, what steps is your resource company taking to stand out from the crowd? Here are six ways resource companies can elevate their investor relations game.

1. Start macro with a purpose investors can get behind

A strong, consistently communicated purpose is one way to differentiate your company from the run-of-the-mill rock kickers.

Frame your purpose around what benefit you provide to society. For instance, if you are a lithium explorer, you are creating a better planet for future generations by assisting the transition to renewables. Dealing in rare earths? Then you are advancing the way billions of people around the world communicate by providing the raw materials needed for developing electronic advancements.

Selling the bigger picture of the problem your company solves is key. The loftier the vision, the better. Robert Friedland is the doyen of this space, you only need to look at his PDAC 2020 presentation.

2. Encourage stickiness with regular 2-way communication

The best resource companies recognise increased transparency is key to attaining a premium valuation. “Communication is a two-way street” is an oft-used phrase, but one that many listed companies ignore. Instead of simply pumping out news and announcements (one-way street), seek feedback from your investor audience to make your investment case stronger.

Some great forums for two-way communications:

• Webinars with interactive Q&As give you the opportunity to interact with investors in real-time.

• Social media is a cost-effective way to communicate with a large investor audience. Leveraging it to focus on defining your company’s growth strategy in a distinctive and compelling way can attract investors and allows you to get feedback and a read on sentiment and engagement with your equity story, in real time.

This strategy works for the not-so-good news, too. The best way to avert a full-blown crisis is to get on the front foot and proactively communicate with shareholders and the investment community, listen and seek feedback.

4. Use content as a tool to stay visible

In this fast-paced world, we tend to forget about what we do not frequently see. Staying visible is integral and is a must when attracting — and retaining — investors. But with the average person receiving over 5,000 marketing messages a day, how do you get noticed by the right investors (those ready to invest in your company)? Compelling content is key! It can include an ASX press release, an article, information on your website, a podcast or a video. Consistency of message across multi-platforms is therefore critical.

Nearly half of all users consume 3 to 5 pieces of content about a company before speaking to a representative or investing. Investors typically consume 5 to 10 pieces of content on a company before making the decision to invest.

Consider your target audience and avoid “geo-speak.” We’ve found short, explanatory videos where the CEO walks through the significance of drilling results — in layman’s terms — to be a great way to encourage more investors (particularly retail) to enter the resource stock and keep shareholders engaged.

5. Measure results and feed market intelligence into the plan

Best-in-class investor marketing for mining companies involves conducting social listening and perception audits to ascertain investor objections (what’s holding them back from investing). Use both quantitative and qualitative indicators and then feed the learnings back into the marketing plan. Quantitative metrics can include share liquidity, media-monitoring measures and sentiment tracking, whilst qualitative metrics could involve sentiment tracking, social listening and interviews with members of the investment community to ascertain a representative sample of perceptions about your company.

6. Build a great team

H.E. Luccock once said, “No one can whistle a symphony. It takes an orchestra to play it.” This extends not only to the company’s internal team but also to its advisors and stakeholders. With this in mind, it’s important to appoint:

• brokers and corporate advisors with good access and reputations in the mining industry; and

• investor relations partners with deep expertise and relationships with institutional investors, analysts, retail investors, and the media.

Yeah, baby?

Ready to learn more about our gold standard for metals and mining investor relations? Get in touch with us.