What Is That I See? Mining Stocks Dropping The Ball When It Comes To Marketing When There Has Never Been A Better Time For Gold, Silver And Copper Or More Tools To Get The Message Out
My radar screen is pretty big because I monitor many companies in gold, silver and copper. I’m seeing a distinct trend. I first focus on projects so I am actively monitoring a large group of companies with excellent projects. The trend I am seeing is that those with great projects that aren’t committed to marketing using digital marketing tools are lagging in a big way. While those with great projects and strongly committed to marketing with digital marketing tools are seeing much better performance.
Which is why I am paying close attention to companies that have impressive projects and want to promote their stories using digital marketing tools. One without the other is a recipe to see low trading activity and low valuations.
Recently, there was a series of mining conferences in Europe and I watched a bunch of video interviews and presentations. It was alarming to hear many of the companies, very early in their interview or presentation, highlight that it is a tough market.
This kind of messaging is troublesome for two reasons. The market for mining stocks always has its challenges, even in a bull market, it takes hard work for small companies to reach their goals no matter what the market is doing. Lets face it, even the major gold mining companies are still very small when looking at the tech stocks and other Wall Street stocks. They are huge in the minds of mining stock investors, but small in the grand scheme of things so they also need to be constantly telling their stories to resonate with generalist investors.
Secondly, I immediately think to myself, why are companies spending their money to go to a mining conference to promote themselves and starting out with such a depressing message early in their presentations on video? I’m no marketing genius, but starting out on such a downer of a note is no way to instill confidence.
One of the reasons that I watch videos of mining company executives is to get a sense of their confidence. I’m always shocked when I hear a presentation when an executive says they are very excited about something, but they say it with no exciting facial expressions, or enthusiastic hand gesturing. These are things that can’t be faked and when said without excitement evident leaves a viewer questioning just how excited they are? These are tells, that investors pay attention to whether or not they recognize it, we are hardwired to look at people this way.
I’ve been in the mining sector for 30 years, and throughout that time, I have seen good cycles and tough ones. Whether the market for metals is bullish or bearish, it is never easy, mining is not made for the weak of heart.
In reality, there has never been a better time to be in gold, silver and copper exploration, new mine development and mining. Sure, I will be the first to acknowledge that the metals stocks are not performing like it is the best of times. I have seen this movie before, it was very similar in the early days of the 2001 to 2011 metals bull market. But, when they got going it was magical.
With gold, due to the massive debt, the world is heading back to the Gold Standard. Will there be twists and turns along the way, of course. But, that big picture narrative is not well understood amongst generalist investors. That is a phenomenally exciting story to tell, but if the majors, mid-tiers, junior miners and explorers aren’t enthusiastically telling it and pounding it out there with digital marketing tools, who will?
Silver has a spectacular story as well. There has been a big deficit between physical production and physical demand for the past few years. How many generalist investors are told that story in a way that resonates? Not many. Again this is the responsibility of companies exploring for silver, developing new silver mines and mining silver.
Copper is the most critical metal of all in an electrified world. Are the companies in copper exploration, new mine development and mining copper effectively getting the message out to generalist investors? Hardly.
Mining is one of the most important industries there is. To make everything and make it all work needs metals. Is the industry proudly telling that story to generalist investors using digital marketing tools? Sadly, the answer is no.
It is time for people in the mining business to have a hard look in the mirror and ask why are we misunderstood and underappreciated. Lamenting the challenges, delivering “exciting” details in an uninspiring way, plus dropping the ball on digital marketing is a recipe for the industry to be where it is when it comes to generalist investors.
Therefore, I am focusing on companies with great projects that are enthusiastically telling their stories, and the big picture of the metals they are involved with, and embracing digital marketing tools to get the word out. Investors should as well.
All the best,
Allan Barry Laboucan