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Companies considering the appointment of an investor relations firm to assist them in Europe will often be presented by a large number of apparent choices that are available. Ranging from specialist firms such as Stellium through to the more traditional Financial PR companies who also purport to undertake investor relations as part of their offering, the choice can sometimes feel a little bit overwhelming. …


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2020 uncertainty proving to be a boon for gold

Investors in mining companies have had a rough ride over the past few years. Despite significant geopolitical uncertainty led by Brexit, US-China trade and military tension as well as continuous rumble of discourse in the Middle East, gold prices had not performed particularly well.

One of the reasons for this has been the emergence of other sectors which have attracted speculative risk capital in recent years. Cryptocurrency, block-chain and more recently cannabis have all had a negative impact with respect to capital flows into the mining industry (especially with respect to retail and HNW money. …


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In October 2017 S&P Global stated that $23 trillion of investments under management globally are oriented towards an ESG based approach. This figure is now closer to $30 trillion. Furthermore, S&P report that 95% of responding institutional investors plan to engage with companies they invest in about issues related to the UN sustainable development goals (SDG’s).

deVere Group conducted a recent survey of 1,125 people which identified that 77% of the people born between the early 1980’s and mid 1990’s (aka “Millennials”) consider ESG factors to be their top priority when picking investments. Nigel Green, CEO of deVere states:

“For this reason, and because the biggest-ever generational transfer of wealth — likely to be around $30trn (£23trn) — from baby boomers to millennials will take place in the next couple of years, ESG investing is set to grow exponentially in the 2020s.Institutional investors are increasingly looking to allocate capital towards companies which help address environmental and social challenges. The idea that responsible businesses can and should have a positive impact on the communities in which they operate is quickly moving from niche to mainstream. There has been a shift towards fund managers taking an active role engaging with companies and providing stewardship, as well as an increase of passive funds incorporating ESG screening as part of their investment…


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A roadshow is the process by which a company management team visits various cities to engage directly with the investment communiity in pre arranged 1 on 1 meetings or lunches. Roadshows can have a specific purpose, when a company wishes to raise capital for instance or explain a set of corporate results. They can also form part of an ongoing investor relations program (which is where the majority of Stellium’s roadshows sit).

The roadshow process

We would strongly advise that an IR program is undertaken prior to any roadshow in a new jurisdiction. This serves the purpose of raisign awareness of the client company before they undertake the roadshow; thereby ensuring the best possible program of meetings during the roadshow days. …


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Professional investor reach — The benefits of using social media to amplify corporate messaging are well documented. Investors are also increasingly taking account of content posted on social media in making investment decisions. A Greenwich Associates study showed that 80% of institutional investors used social media as part of their workflow with 30% stating that information gathered via social media platforms had a direct influence on their investment decision making process. So, we know that professional investors are using social media at least as part of their process (whether formally or informally).

Communicating with the retail community — the marginal retail buyer of a stock will likely be using one or more social media platforms. Placing your corporate messaging on these platforms gives a company a direct line to the retail investor to grab their attention and communicate your message. …


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We have been getting a lot of questions around the consolidation that is occurring within the UK broking industry.

Late last year, Northland Capital Partners announced a merger with SP Angel. Shortly thereafter, (this year) we have seen the tie up of privately owned Stockdale Securities with publicly listed Shore Capital (AIM: SGR) to create arguably the UK’s 4th largest mid cap broker. The very next week we saw an announcement from Cannacord that they would be implimenting a program of redundancies costing £9mln this quarter; primarily within their Capital Markets division (aka. broking).

Where consolidation has not occurred, some brokers have seen their profits decline markedly. Cenkos Securities (AIM: CNKS) for example saw profits fall by 90% in October 2018 resulting in the CEO stepping down. …


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One of the first things that we are often asked when speaking to prospective clients is “why don’t we have more European participation on our share register?”. It’s a simple question but the answer requires a slightly more complex response.

If you are involved or managing a company that is either private or not listed in the United Kingdom then there are a number of things that you can do to increase investor awareness of your business which, if done in a methodical and professional way should increase the understanding of your business with investors outside of your home market.

The first thing we ordinarily like to do at Stellium is develop a baseline of where your business is today from an IR perspective. This will usually involve comparing your register with those of companies that are in the same peer group. This peer group could comprise companies at a similar stage of development (as the client), involved in a similar field (for example, in the natural resources space, it could be a gold exploration business) or of a similar size. …

About

Stellium

Stellium Services is a UK based Investor Relations and Corporate Development consultancy. www.stelliumservices.com

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