The Social Cues Blog

Junior mining exploration companies, years from producing tangible results, must find a way to increase value to investors in order to gain interest in their company's future.

BlackSharp Company Value

Is your company undervalued?

Junior gold exploration companies are often years away from actually mining or producing a tangible product like a mineral. This means that investors often see these companies as investment gambles, with profitable returns far off in the future, if at all. The onus is the junior to show that investing in their company’s future, instead of choosing an established company already producing tangible products, would be to the investor’s advantage.

Juniors all look the same

Rick Winters, President, RMB Resources, Merchant Bank in South Africa said,
“…for a lot of retail investors, it’s very difficult to know who’s who in the zoo.” Besides the fact that the market is currently hard on junior companies, investors have a hard time differentiating between companies. Companies must now fight to be seen before they can even begin explaining why their company is worth the investment.

In order to regain the interest of investors, companies must now catch their eye, and social media not only offers an exciting and new way to do this, it also offers a welcoming approach to get to know a company. No longer do we live in a world of faceless corporations, and the faster companies dare to be different and use this new medium, the faster investment will return.

Why Risk It?

“When this market turns, it will come back with a vengeance. Everybody will be very happy. The people who will be most happy will be the people who were already invested.” – Rick Winters

In short, many of these companies could become profitable. If companies can express convincingly how unique and valuable they will be one day, investors can begin to take an interest and start to form a relationship with them.

This trust is engendered by a level of transparency and honesty, which social media is engineered to deliver. Social media marketing allows investors to understand the heart of the company’s story – its goals, how they will be achieved, and why they will be achieved. Orienting the dialogue towards the over-arching story shows investors where your company is going, and why that direction is exciting, safe, and profitable.

The Reward

When you engage a social media marketing agency, their work compliments your outreach efforts and exposes you to a new audience of potential investors.