how best way for ORV to increase share price?
1) Investors need things to get excited about.
Make sure there is more to your story then just the PEA or the feasibility study. Investors aren’t investing and bidding you up because of what you did, they’re investing because of what they believe you’re going to do. As crazy as it sounds, try to ensure that whatever economic study, resource estimate, etc, you put out out is stale-dated by the time it is made public, because of what you are about to do next and what’s to come.
2) Majors are valuable strategic partners.
Having a major company take equity ownership in your junior company is an excellent thing. Don’t get too fussed on 9.9% vs 14.9% vs 19.9% (…many do). Contrary to what some bankers may believe, a corporate position in your stock does not stymie competitive tension in future M&A and is worth it 100% of the time if you have that luxury. It might mean more work when the M&A discussions begin and competitive tension is desired, but that’s what advisors get paid to do. 4 of the 6 transactions that I’ve been part of, had corporate ownership of some form on the registry
3) Leverage board “been there, done that” experience.
Having someone on your board or executive team who has “been there, done that” is key during M&A activity. Especially when nerves are frayed during late night/early morning negotiations and you are being stared-down by the other side, by your own shareholders or both. Conversely, having people who have never “been there, done that”can be an impediment to M&A progress as fear takes over, massive second guessing takes hold and chaos and confusion creeps in. All 6 of the deals that I’ve been a part of had at least one person on the team who was well versed on M&A.
4) Don’t let egos get in the way.
Massive egos in the resource business are one of the biggest impediments to creating shareholder value. A bit of ego is a very good thing. A lot of ego destroys ideas and shareholder value. Don’t let ego get in the way of M&A or any other business deal that makes sense for shareholders. Just because you’ve had successes in the past and have made money for shareholders on a past deal does not give you license to put you own ego between the Company and its shareholders. Often an ego is just a disguise for having been lucky enough to have had investors throw money at you in a hot market
5) Keep the drill bit running.
6) In contrast is your
junior producer, operating only one mine while holding a small pipeline of generative projects. Going from 1 to 2 mines, expanding operations at its flagship mine, or making
a huge discovery is a lot-bigger of a deal. This type of news typically sends junior-level stocks flying.