CANADIAN IR PRACTITIONER PERSPECTIVE

Investor relations practitioners invest a lot of time in building relationships with shareholders, potential shareholders, brokers, analysts and other people from the Street. We know how valuable those external relationships are – they are so important to what we do that they define our title.

But how often do we think about the relationships we’re building with people inside our own company? For many leading investor relations officers, their internal network is as important as their external one. “You need to build credibility from both ends – internally and externally,” says Isabelle Adjahi, Senior Vice President Investor Relations and Communications, WSP Global Inc. She’s a CIRI Fellow who was awarded the Belle Mulligan Award for Leadership in Investor Relations in 2017, and was recognized by IR Magazine Awards – Canada as Best IRO in 2016 and 2007.

So who are our critical partners in crafting a message that’s accurate, transparent and credible? “Pretty well everyone,” laughs Tamara Brown, Vice President Investor Relations and Corporate Development (Americas), Newcrest Mining Limited, before starting to list key people, starting with the Chief Executive Officer. “You need to have a good solid relationship and rapport with the CEO, even if you don’t report to them,” Brown says. “Hopefully you’ve got an IRO who can answer the sentences of the CEO.”

Pat Marshall, who won CIRI’s Award for Excellence in Investor Relations last year shortly after retiring from her role as Vice President, Communications and Investor Relations of Cineplex Inc., also points out that IROs spend a lot of time with the CEO, something that’s easier when you have a strong working relationship.

Not surprisingly, all three say a good relationship with your Board of Directors should be next on your list. IROs need to understand the Board’s strategy for the company and be attuned to whether the Street is aligned with and supportive of that strategy. “My best friend on the Board is the Chairman,” says Adjahi. “Plus, the Board’s job is to represent the shareholders, which is an extension of what I’m doing as well.”

For Maura Lendon, who serves as a director at Eastmain Resources Inc., a strong IR person helps put all information about the company in context. “They bring the glue that binds it all. And with the increase in shareholder activism, it’s important to know if any of the dialogue with shareholders is potentially aggressive,” she says.

Lendon is the founder and Chief General Counsel of Scalable General Counsel and served as Chief General Counsel and Corporate Secretary at Primero Mining Corp. from 2012 to 2018 (when it was acquired by First Majestic Silver Corp.). She says she has a particular affinity for investor relations.

“We share a common unsung purpose – to understand the whole organization, and then step above to provide a concise and coherent picture of what is going on.”

That’s why building internal relationships that go beyond the CEO, Board of Directors, CFO and corporate secretary is so important for IROs – it’s how you get the type of information that you need to understand your company at a granular level.

Marshall recommends building strong relationships with business unit heads, because they can help you understand the business like no one else, while Brown highlights the importance of getting to know mine general managers and the corporate controller. “These are the first ones with hands on information,” she says. “You want them to think of you when there’s a material change; you don’t want to be the last to know, you want to be the first.” 

First on the list for any new IRO at a mining company should be getting to site and going down in the mine, which is also your chance to start building a relationship with the mine manager, according to Brown. This is also a chance, she added, to help the mine manager and other operations personnel understand what the Street is saying, IR’s function, and how the operations team contributes to the way that the company is perceived by the Street.

Adjahi says not everyone in the company understands her role at first, so she takes time to explain IR to those in senior operations roles, and puts them in the spotlight on roadshows and during office visits with analysts. “This helps them to see that they are playing a vital role and have an impact on valuation. Once they understand the rationale behind it all, you become an important part of their team,” she says.

For IROs at junior mining or exploration companies, it’s the senior geologist who is key.

Christopher Haldane, Manager of Investor Relations, Marathon Gold Corporation, says he took the time to develop a strong relationship with the company’s Senior Vice President of Exploration, driving her crazy with many questions, and bringing her on roadshows. “She’s well respected, good at reading an audience, and has a lot of knowledge,” he says. “I’m able to answer technical questions with some level of knowledge, thanks to all that I’ve learned from her.

All of these IR leaders agree that internal relationships do not develop overnight but are critical to being a successful IRO. And as Brown notes, “IROs who think that internal relationships aren’t as important aren’t going to be promoted as quickly.”

Annemarie Brissenden, CPIR is a Consultant at SimpleLogic Inc.