BC Chapter Update

CIRI BC hosted a high value panel in February, featuring: Mauk Breukels, VP Investor Relations & Corporate Affairs, Finning International Inc.; Patrick Donnelly, President, First Mining Finance; Steven Hansen, Senior Vice President, Equity Analyst, Transportation, Chemicals & Fertilizers, Raymond James Ltd; and moderator Cindy Burnett, Vice President, Investor Relations and Communications, Capstone Mining Corp.

This was a powerhouse group discussing market trends and recommending strategies for IR in today’s marketplace. Burnett did an excellent job directing the discussion and maintaining the focus on three areas: IR programs, market trends and reporting.

One theme that resurfaced time and again was the importance of transparency and regular communication with all stakeholders. It is important for IROs to remember that while we hear our message repeated over and over, we cannot assume shareholders, analysts and other stakeholder groups are aware or remember this message. Be prepared to simplify the message as necessary and understand the needs of the individuals you are striving to reach. An analyst will have different requirements than a retail shareholder; know what these expectations are and initiate each conversation well prepared.

This was a very well attended and successful event due to the quality of the panel. I would encourage readers to take advantage of the experience and insight shared at the event by listening to the playback available at CIRI.org.

Alberta Chapter Update

CIRI Alberta Roundtable – Transitioning from the Street into a Senior IRO Role

CIRI Alberta held its annual meeting in early May. In addition to electing some new directors and thanking departing Executive members, there was an extended networking session and an interesting roundtable.

More and more investment bankers and analysts are crossing the street into IRO positions. Bevin Wirzba, Senior Vice President, Business Development and Capital Markets, ARC Resources Ltd. and Kam Sandhar, Vice President, Investor Relations and Corporate Development, Cenovus Energy Inc. spoke about their experiences:

• Both were familiar with the companies they joined (each firm had a strong IR department and solid process), which made the transition easier. One reason for the jump was the expectation of a better work-life balance – although the speakers have found their new roles just as demanding;
• Building internal relationships was an important priority to ensure they understood both the operational and financial parts of the business;
• The extensive and structured IR calendar was a surprise compared to the fluid and changing landscape in their previous roles;
• They noted that analysts and investment bankers are paid for opinions – in sharp contrast to an IRO, who needs to be factual. Wirzba said that communications in IR is a marathon, whereas in his previous role it was a sprint. The IRO has to articulate a consistent value proposition and not react too much to mood swings in the market;
• Both sit at the senior management table, which they admitted was a major advantage in their role. Both interact with their respective Boards, updating them on market dynamics and the shareholder base; and
• The comment was made that some portfolio managers have written the oil and gas sector off for the year (lost too much money early on with market volatility). The advice to the audience was to stay connected to investors and analysts and keep your messaging on track.

Our next event will be with Todd Hirsch, Chief Economist at ATB Financial, on September 27 at noon. Mark the date in your calendar and don’t miss the opportunity to come out and connect with your peers.