Agoracom Blog

Small-Cap CEO Lesson: This Is How You Communicate With Investors During Turmoil

Posted by AGORACOM at 1:02 PM on Friday, October 24th, 2008

Pursuant to my recent post entitled “Best Investor Relations Practices During Market Turmoil” I’m pleased to provide you with a communique sent by Kim Tyler, President of Canadian Arrow Mines, to his shareholder base via AGORACOM. Take a look at my comments following his message as to why this was a simple but effective move.


Friends and investors;

Attached below is a link to an interview regarding the latest Canadian Arrow and Kenbridge update. We are not dissuaded by the current and ongoing financial turmoil as we believe the underlying fundamentals for economic growth, hence nickel and stainless steel, are still secure. Demand by the emergent Asian middle class may slow temporarily but will ultimately not be appeased by the current mine closures, lack of new supply coming on-stream and expected run on supply thereafter.

The current spate of high cost operations closures may well continue. This is healthy for Canadian Arrow and Kenbridge. Canadian Arrow is still perfectly poised to bring production on-stream over the next 1.5 to 2 years at a projected operating cash cost of US$3.47 per lb of nickel net of copper credits, well under current and projected prices, at a perfect time to meet the next upswing in the base metals sector.

Canadian Arrow has a competent team with a commitment to succeed, a completed positive scoping study, NI43-101 Measured and Indicated lbs in the ground, and more than all that, infrastructure in the ground by way of the existing shaft.

Thanks once again for your continued support.

Best regards,

Link To Interview


This was a simple but very effective message for 4 reasons.

First of all, hats off to Kim for exercising best investor relations practices during a period of market turmoil. Investors may be fearful but they are looking for leadership and confidence. Kim delivered it.

Second, I commend Kim for communicating with investors via text and video. The text message was strong and to the point. He didn’t ramble, he stuck to pertinent facts. The video, on the other hand, then creates a conversation between Kim and his shareholders.

Third, everyone should take note of the fact that Kim used this opportunity to remind investors about the long-term reasons they originally used to invest in his company. In an environment in which fear can blind investors from fundamentals, CEO’s need to make sure that fundamentals trump emotions.

Fourth – and I love this one – Kim uses market and industry weaknesses to his advantage by specifically demonstrating to investors how Canadian Arrow Mines is positioned to benefit from such weakness. Brilliant.

Simple but extremely effective. You can bet Canadian Arrow shareholders are breathing a whole lot easier today.

This is how you communicate with investors during market turmoil.

AGORACOM clients have been taping or in the process of taping their own messages to shareholders. If you have not done so, what are you waiting for?


2 Responses to “Small-Cap CEO Lesson: This Is How You Communicate With Investors During Turmoil”

  1. […] Investors might be fearful but they’re looking to you for leadership and confidence. Exercising best investor relations practices during a period of market turmoil is not only crucial its necessary. See how one of our clients demonstrated this for their shareholders. Read more… […]

  2. Chris M says:

    Just reading it made me feel better in general, just goes to show smart communications in tough times has to be done by all companies. Kudos to CDN Arrow and its shareholders. I’m going to take a look at them now just because of this letter…