BC Chapter Update:

CIRI BC hosted an event in November on key Board issues and trends. Chris Britch of DuMoulin Black LLP moderated a panel that included: Catherine McLeod-Seltzer, Chairman, Bear Creek Mining; Terry Lyons ICD.D, Corporate Director; and Geoff Burns, Chairman, Pan American Silver Corp. The panelists agreed on a number of points, including the following:

• Board diversity is a very prominent issue and a common objective for public issuers. However, setting gender quotas or limiting Board terms is not the right approach and could, in fact, have a negative effect on Board quality and corporate governance.
• A more effective approach is to invest in junior talent at the academic and management levels to develop a larger pool of candidates to gradually assume Board positions as they become available through the natural Board renewal cycle of any public company.
• The issue of diversity should not only focus on gender but also be extended to encompass other considerations, such as ethnicity.

In addition, panelists do not think it is necessary to limit the number of Boards a director can join. The demands of belonging to a handful of Boards can surpass those of a single executive management position, naturally putting a cap on how many Board seats a director can and will effectively assume.

Alberta Chapter Update:

The CIRI Alberta Chapter hosted four events. The first was a September session entitled Discussion on the Current Oil & Gas Price Environment, its Repercussions & the Future Landscape.  The second was an October Brains Over Beer get-together that featured good beer and good conversation. In November, our program was entitled: Can We Talk? Tips for Communicating in Tough Times. Finally, we held a holiday social in early December.

The Current Oil & Gas Price Environment, its Repercussions and the Future Landscape

This session featured Peter Argiris, Principal Analyst (Canada Upstream Research) Wood Mackenzie and Michael Rimell, Director (Energy Group), UBS.

Argiris gave a presentation on global oil and North American oil and gas markets. He said the story in 2015 has been the surge in world oil supplies, with expected growth of 2.4 million bbl/d, which is almost double the level of demand growth. Weakening prices will have an impact in 2016, with overall oil supply staying flat. Non-OPEC supplies will fall and it is assumed that OPEC will continue producing above its ceiling of 30 million bbl/d.  However any sharp increase in price will be met by a rebound in U.S. supply. (About 500,000 bbl/d could be brought on relatively quickly at $60/bbl).

He added that the longer-term outlook is bullish. The world will need to add 10 million bbl/d of supply by 2025, which implies $80/bbl or more, given marginal supply costs. OECD oil demand is projected to fall over the next 20 years, but total global demand for oil will increase.

Argiris said that natural gas prices are expected to remain low for the foreseeable future. The lower 48 can bring on approximately 300 Tcf at $3 per mcf. Wood Mac also provided a good regional overview of different oil and gas plays.

Peter was joined by Mike Rimell for a question and answer session. Key takeaways included:

• The UBS oil price forecast for 2015-2018 is (US$ per bbl) 45,52,60,75.
• The Wood Mac oil price forecast 2015-2018 is (US$ per bbl) 49,50,54,64.
• The risk reward premium for E&P stocks is very attractive, but short-term risks remain high.
• UBS estimates oil stocks are being priced at $65 per bbl.
• Wild cards are geopolitical risk (not much spare capacity) and China economic growth.
• The M&A market is relatively quiet – with seller expectations high – and buyers in no rush.
• Given lack of access to markets and political uncertainty, Canadian E&Ps have underperformed the U.S. by 25%.

Can We Talk? Tips for Communicating in Tough Times

Featured guests were: Brian Ector, SVP, Capital Markets and Public Affairs, Baytex Energy; Ryder McRitchie, former VP Investor Relations and Communications, Encana; and Laurie Stretch, General Manager, Edelman Calgary.

The panel discussed a number of topics posed by Jess Nieukirk, CIRI Alberta Chair and Director Finance & Communications, AltaGas Ltd. The main points covered were:

• In difficult times companies need to be transparent and out-front. In a changing environment be prepared to communicate more!
• Maintain the trust of existing investors and stay relevant in the minds of potential investors. Consistency is important – when the macro environment changes, you want people to know your story.
• Prepare for questions not normally asked during good times – particularly about balance sheet strength and debt covenants.
• Stay in touch – don’t hide and keep checking the pulse of your investors. Stay in front of your employees, even if there is nothing new to say.
• Think about ways to improve the cost-effectiveness of your communications (fewer conferences and marketing trips – more web-based communication). Target specific investors and investor groups (e.g. deep value funds).
• For big news – ensure you have a communications plan, develop key messages, engage all key stakeholders and consider how to disseminate the information (e.g. do you press release layoff announcements versus just being available to media?).
• Be empathetic – investors may be angry. Don’t be defensive, acknowledge concerns and tell your story. But don’t overpromise and don’t jump ahead of the story. (Be optimistic, but don’t promise better times ahead if you really don’t know.)
• In a crisis ‘get big fast’. Consider bringing in a PR firm that can get up to speed quickly – make sure you have enough arms and legs if the crisis goes 24/7 for a long period of time. Communicate as soon and as often as you can – initially, even just to acknowledge the situation and say that your crisis team is up and running.
• Practice potential crisis situations and have a plan in place, with designated spokespeople (make sure they are trained and proficient) and contact information for key stakeholders. Don’t forget the details (ensure your receptionist knows what to say when reporters show up).

Ontario Chapter Update:

CIRI Ontario began its 2015-2016 year with a networking session in September. More than 30 CIRI Ontario IR practitioners and service providers enjoyed a free cocktail and plenty of appetizers at Beerbistro in Toronto. Acquaintances were renewed and new friendships formed. Look for another networking session in the spring.

Also in September, the Chapter hosted its 2^nd Annual IR Speaker Series. This luncheon program was sponsored by RBC Capital Markets and featured Laurie Little, Senior Vice President of Investor Relations for Valeant Pharmaceuticals. The event was attended by 25 people.

Little provided insight into how she manages external, internal and government relations for one of the country's fastest-growing pharmaceutical companies. When asked the most challenging location from which she has issued a press release, Little described a camping trip in Northern British Columbia with her family; dealing with time zone differences and lack of cell service made for an entertaining challenge and story.

One point of information that stood out concerned Valeant's interaction between Board members and the investment community. Little explained that some top shareholders are invited to attend a Board meeting and engage in a closed-door discussion; an initiative that has been well received by investors and sell-side analysts.