What Miners Need To Fix To Attract Investors Again
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(Kitco News) â€“ The mining industry was bested by rivaling cannabis stocks which attracted significantly more capital last year, and the miners themselves are at fault for this, said Kerry Smith, vice president and senior mining analyst of Haywood Securities.
â€śThe leadership has to start with the seniors, the producers. Weâ€™ve had an industry over time that hasnâ€™t delivered good returns to investors, squandered a lot of shareholder capital by making poor acquisitions and if we canâ€™t return capital to shareholders through meaningful dividends or share buybacks or stock appreciation, then nobody is going to invest in the sector,â€ť Smith told Kitco News on the sidelines of the 121 Mining Investment conference in New York.
Social media presence is also key, Smith said, and that is an area that newer sectors like cannabis and bitcoin have done more prominently.
â€śIf youâ€™re a senior or intermediate producer you have the resources internally to have a proper social media presence. You should have it. I donâ€™t think every company utilizes that side of the business as well as they could, but a lot of the smaller companies donâ€™t even have a social media presence and to be relevant in the space,â€ť he said.