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Data taken from a report by Justin Pugsley of metal-pages.com on the use of social media by junior mining companies to generate retail investors.
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Junior Mining Companies Embrace Social Media
Metal-Pages.com Study
In a recent survey of 30 randomly selected junior mining companies, mostly listed in North America, Metal-Pages found that 24 (80%) of the sample use Social Media as part of their IR programs to raise their profiles.
Study Author
Justin Pugsley has over 20 years experience writing about commodities, finance and business working for Dow Jones, Wall Street Journal, Thomson-Reuters and Platts.
At Metal-Pages.com Justin is responsible for the European coverage of rare earths and the minor metals Cadmium, Bismuth, Arsenic, Rhenium and Hafnium.
@JJPugsley
From The Author
“A growing number of junior mining companies with marketcaps below US$50 million are using Social Media to connect with small investors”
“Success with Social Media for Investor Relations professionals is very much down to keeping investors interested between the really important announcements, such as earnings, which drive the share price.”
- Justin Pugsley – Metal-Pages.com
The Stats For Junior Mining
The Stats – Twitter + Facebook
Of the 24 using Social Media for Investor Relations, all said they used Twitter, while 19 (~80%) use Facebook.
The two Social Media platforms were cited as very clear favorites for engaging with investors.
The five that were not yet using Facebook, said they were investigating the prospect of doing so.
The Stats – LinkedIn
12 mining companies (50%) said they used LinkedIn, though that was more for recruitment and finding suitable technical partners.
Other platforms used include: YouTube, Slideshare, Flick, StockTwits, Vimeo, Disqus and SeekingAlpha.
The Audience
The Audience - Retail
Retail Investors use Social Media to
monitor their investments and to find
new investment opportunities
Around 1.6 million Facebook users
include investing as part of their
profile
Forums like StockTwits are useful for
measuring Investor sentiment
The Audience - Institutional
Institutional Investors, analysts and brokers are increasingly using Twitter to ‘listen’ to what’s being said about the companies they follow
They often look to see breaking news before it hits the newswires, thereby giving them an edge over other Investors and Traders
Social Motivation
Social Motivation? No…
Why DON’T Junior Mining Companies use Social Media?
potential compliance violations
not having enough personnel
too time consuming
websites are sufficient for informing investors
the company has very few investors
Social Motivation? Yes!
Why DO Junior Mining Companies use Social Media?
to continuously engage with their investor base
for tracking what is being said about them
to ensure investors are kept up to date
to better educate investors
to build new relationships with peers
Social Media Strategies
Strategies - Websites
The more creative junior mining companies treat their websites as if they are a media outlet using high quality written copy and a diverse range of audio-visual content to inform and educate visitors with a regular stream of news and views.
Strategies - Mobile
Many social media platforms such as Twitter adapt well to mobile devices, which are becoming increasingly prevalent
All the big website providers have apps designed for such devices.
Done well, Social Media can greatly enhance mobile visibility and profile.
Strategies - Focus On Listening
IR professionals can quickly pick up on
dissent in Social Media and Forums
Searching chat rooms and Twitter is
useful to anticipate possible questions
from stakeholders ahead of phone calls
E.g. “when you attend the meeting ask
the CEO this..”
Strategies – Start Early
Social Media allows companies to actively engage with stakeholders from the earliest stages of a mining project and to ensure concerns are promptly addressed.
A transparent and honest communications strategy is highly advisable.
Strategies – Crisis Management
Social Media is about dialogue. There is an opportunity early in a crisis to get involved and put across the company’s point of view.
A crisis can pass quickly in the Social Media sphere once addressed.
Search engines such as Google don’t forget a crisis quickly, but Social Media will help
More Info?
To read the full report visit: blog.metal-pages.com
Or for more information about IR Smartt and our Social Media strategies for the Investor Relations industry, please contact us on:
Website: irsmartt.com/contact
Email: [email protected]
