How Junior Mining CEOs Can Lower Their Cost Of Capital - Five Fail-proof Ways

How Junior Mining CEOs Can Lower Their Cost Of Capital - Five Fail-proof Ways

In today's fiercely competitive mining sector, junior mining CEOs are tasked with the critical challenge of minimizing capital costs to secure a robust financial footing. Whether the market is in your favour or not, the pressure is on to get the best terms at all times. By implementing these five fail-proof methods, junior mining CEOs can significantly reduce their cost of capital, attract and retain investors, and ultimately drive their companies toward sustained growth

Maximize Investor Reach

Listing a junior mining company on the TSX Venture Exchange (TSXV) and the OTC market in the US effectively maximizes investor access. In contrast, exclusively listing on the Canadian Securities Exchange (CSE) can significantly restrict investor reach. The TSXV not only attracts a wider array of both retail and institutional investors worldwide, enhancing the company's visibility and appeal, but also boasts international recognition that opens doors to foreign capital from the United States, Europe, and other regions. This global access is crucial; without it, a company may find its stock less actively purchased, limiting capital influx from international investors. This will make every marketing dollar spent a little less useful. 

In practice:

✔️ Consider upgrading to TSX.V if possible.

✔️ If listed on the CSE, promptly secure an OTC and Frankfurt listing.

 

Frequent and Strategic Communication

Many junior mining companies consolidate news, potentially missing opportunities to engage investors continuously. Although this might seem more efficient, we tend to advise against this, since a more constant rhythm of communication does keep investors engaged and keeps some from hitting the sell button too soon. Sitting on news, apart from being troublesome from a compliance perspective, does not help the anxious investors that’s being bombarded by other news of faster-paced companies creating a buzz. Many stocks get sold off due to lack of news and investor boredom, not fundamental failures. 

In practice: 

✔️Release project updates in stages instead of one large batch. 

✔️ Detail upcoming geological plans and start of new explorations publicly. 

✔️ Announce beginning of drilling campaign or mobilization of drill rigs. 

✔️ Make marketing engagements public

Amplify Your Message

Keeping up with the current conversation within the mining and investment communities can have a significant impact on your company's profile. In order to amplify your story and get it to as many potential investors as possible, you must consider there are two ways of doing it: news platforms and brand ambassadors. 

News Platforms: These are your bread and butter marketing partners that will allow you access to their subscribers as you generate news. They can offer highlights or special packages to make sure your company gets in front of as many investors as possible. One valuable tip is to choose platforms that are very niche. Exposing your story to copper investors in Canada, if those are your intended investors, is multiple times more valuable than simply investors in Canada. 

Brand Ambassadors: Engaging with these key opinion leaders can help to amplify your message, reach a wider audience, and attract interest from potential investors. Whether it’s through interviews, guest posts, or social media collaborations, leveraging their influence can be a powerful tool in lowering your cost of capital. Sure, here's another way to express that: Initially viewed as an innovative approach to connect with potential investors, it's now regarded as a fundamental aspect of engaging with investors.While it's natural for a CEO to promote their company, the endorsement from an external source carries significantly more weight.

In practice:

✔️ Identify and collaborate with influential figures within your niche to leverage their reach and credibility. 

✔️ Have an active partnership with at least one platform to amplify your message as news comes out. 

✔️ Create an engagement pod - a contact list of emails / WhatsApp users whom you can always share both news and media pieces with in order to create some buzz around company updates. These are large investors, board members, management and shareholders with influence and a large following on social media. 

The Next Big Rush can help your company with this strategy and put you in front of over 30 thousand  junior mining investors through its channels on YouTube, X.com (former Twitter) and an exclusive newsletter. Let’s discuss how we can elevate your company’s profile together. Schedule a call with us today to explore next steps.

Responsiveness Builds Trust, Silence Destroys It

Responsiveness is key in building and maintaining investor confidence. It’s the simplest way of putting your best foot forward with the investing community and it costs zero dollars. By answering messages, emails, and inquiries quickly, you not only show that you value your investors and their concerns but also that you're on top of your game. This level of engagement can be crucial in retaining current shareholders and winning over new ones, ultimately lowering your cost of capital through a stronger and more loyal investor base.

As a rule-of thumb, most emails should be answered within 24 hours or less. If the answer to a particular question cannot be given or is unknown, it’s better to communicate that clearly in your answer rather than wait for the perfect answer many days later. A quick “let me get back to you on that” is much more transparent than silence. 

✔️ Answer emails as quickly as possible

✔️ Check social media accounts at least twice a week for quick response

Visual Engagement 

Visuals and real-life examples of your work can be much more compelling than words alone. Take potential investors on site visits, share videos of your operations, and provide visual updates on your progress. This strategy not only serves as great marketing but also helps to build credibility and trust by showing exactly what you're achieving on the ground. Showing real-time progress and results can turn casual interest into committed investment. Also, the lack of visuals (maps and cross-sections) on assay results is seen as a negative when a piece of pr hits the wires.

In practice:

✔️ Include maps and cross-sections with all geological releases.

✔️ Take at least 30 pictures and 3 short videos for every site visit. These can be used throughout the year on your social media. 


We encourage CEOs to embrace these fail-proof strategies to not only attract but also retain a loyal and engaged investor base. Ready to transform your approach and secure a brighter financial future? Reach out to us at The Next Big Rush to discuss how we can help amplify your company's presence in the investor community.




Simon Iredale

Group marketing director at Alsico, one of the world’s largest workwear brands. Entrepreneur with investments in several B2C brands. Passionate about wellbeing and human value

6mo

I suggest you read your messages about the debt you left

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