CIRI British Columbia Chapter Update

Members of the British Columbia Chapter gathered for an informative roundtable session with four of B.C.’s top analysts. The experts gave insight into a day in the life of a research analyst: from the morning call to market close, and beyond.

Analysts gave advice on dos and don’ts when it comes to building an amicable and mutually beneficial relationship with them:

Do:  Issue news releases at 6:00 a.m. Eastern Time or 4:00 p.m. Eastern Time to ensure analysts have the time to prepare to include your news in their morning calls.

Don’t:  Set guidance expectations too high. The experts agreed that overpromising and underdelivering on guidance is the fastest way to damage a relationship with an analyst.

Do:  Help to build a relationship between the analyst and your management team. A strong relationship with management allows an analyst to mitigate risks and reduce market value discounts.

Don’t:  Lie. Lies on the part of the IRO and management lead to significant market value discounts.

Do:  Be prepared to provide accurate, timely and non-promotional information to analysts. As an IRO, you are often the first point of contact between an analyst and your company, and being prepared is the key to gaining the research coverage your company desires.

The B.C. Chapter Board is looking forward to another year of great programming sessions in 2013 to help IROs in their professional development.

CIRI Ontario Chapter Update

At a sold-out September webcast luncheon seminar on “Understanding NI 43-101 and How it Impacts Investor Relations,” Fran Manns, Senior Manager, Compliance and Disclosure, Mining from the Toronto Stock Exchange offered these tips on this standard of disclosure for mineral projects:

• Have all technical or scientific disclosure prepared by a Qualified Person (QP);
• Remember the TSX does not enforce this disclosure, the Canadian Securities Administrators (CSA) does;
• Use TSX Company Manual Appendix B as a template – it covers disclosure standards for companies engaged in mineral exploration, development and production;
• Drill results must not be disclosed selectively – balance the disclosure;
• Re operating cost disclosure, Appendix B recommends using defined unit costs;
• TSX issuers are encouraged to send a copy of all news releases to IIROC.

At another CIRI Ontario hosted event this fall, a panel of three experts offered their perspectives on “Attracting Retail Investor Interest”. The main takeaways from this event were as follows: 

• There are over 800,000 licensed retail brokers in the U.S. and Canada.
• Some get investment ideas from quant screens; others get their ideas from IROs.
• The way to get noticed by a broker is not just to have a great story, but to have a receptive audience.
• Do your homework: find out what the broker is interested in and his/her investment preferences.
• Develop a relationship with the broker as you would your sell-side analyst – call with good news, bad news, or just to say that you are there.
• Don't just email all the time, pick up the phone and call.
• Have patience and persistence as it may take 1-2 years for the broker to see the value and/or investment could be dependent on market cycles.
• Ensure you prepare a presentation for retail brokers that is distinct from the one for institutional brokers.
• A one-page fact sheet on your website is helpful for retail brokers.
• Some retail brokers use Twitter to gather information and stay on top of news from companies.

Panelists included Dale Houser, Financial Advisor, Raymond James; Christine Stewart, Vice President, Renmark Financial Communications; and Darrell Thompson, Portfolio Manager, Macquarie Private Wealth.

CIRI Quebec Chapter Update

The CIRI Quebec Chapter had another great year with a number of events featuring first-class speakers who focused on very interesting topics and trends relevant to the IR community. Events included a fall meeting highlighting the importance of an IR ‘road show’ as well as the closing year cocktail with presentations on annual reports. Both functions featured well-known and respected experts in their fields. With some very interesting speakers planned for the 2013 season, the Quebec Chapter is looking forward to strong attendance and continuing success.