Global Vista President, Tom Findley, comments on Investor Relations for jr. mining companies Published on September 10, 2009 in El Peruano

VISION. BIG CAPITALISTS ARE LOOKING FOR BETTER OPPORTUNITIES

Now is the time to attract new investments

Junior mining companies have great potential to grab their attention.  In this context, the role of investor relations is important

SONIA DOMíNGUEZ DOMíNGUEZ
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Being followed by investors should be the principal objective of companies, those that now are being affected (and those that are not) by the global crisis in order to be the first ones to take advantage of the benefits that will be present when the world economy recovers. 

For Tom Findley, President of Global Vista, to attract additional capital requires having investor relations services.  “Generally, large companies have an area dedicated to investor relations, but small and medium companies can also obtain these benefits through outsourcing, he says.  The idea, he added, is to attract investor’s attention from different parts of the world with information that is clear, accurate, and orderly and present it in a way that is easy to understand the company’s real economic situation and growth potential. 

“Its work (IR) consists in connecting companies that are listed on stock exchanges with the investment community, generating increased awareness and interest toward these companies by potential shareholders”, he explained. 

Sectors

According to Findley, the sectors that have the greatest potential to attract the attentions of investors are mining and industrial agriculture.  With the coming economic growth, the demand for raw materials such as minerals will increase, and with it international market prices.  “Here is where the sector’s opportunity lies.”  Additionally, industrial agriculture possesses a great potential due to the diversity of products that it can generate to satisfy world demand. 

Junior Miners

A junior mining company is a company that is in the exploration or extracting phase with an estimated useful life of three years or less.  In this regard, Findley emphasized that by its nature junior mining companies have been attractive to investors, but like all other companies, they are in constant competition for capital.  “Properly communicating their future strategy allows them to attract new capital and minimize the impact of the global crisis on the mining sector.”  Nevertheless, he considers it necessary that these companies list their shares on stock exchanges.”  This makes it easier for investors”. 

Additionally, he added that free trade agreements signed by Peru improve the country’s image in the eyes of investors.  “It is a big help in attracting the international investor”. 

Facts

Investor Relations is a new line of business for the country.  In Europe and North America it is a developed business, used by both large and small companies. 

*Text translated by Global Vista