Junior Mining Companies Embrace Social Media

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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

  1. 1. Junior Mining CompaniesEmbrace Social Media
  2. 2. 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.
  3. 3. 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
  4. 4. 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
  5. 5. The Stats For Junior Mining
  6. 6. 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.
  7. 7. 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.
  8. 8. The Audience
  9. 9. 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
  10. 10. 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
  11. 11. Social Motivation
  12. 12. 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
  13. 13. 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
  14. 14. Social Media Strategies
  15. 15. 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.
  16. 16. 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.
  17. 17. 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..”
  18. 18. 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.
  19. 19. 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
  20. 20. 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: get@irsmartt.com

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