Twenty mining companies have just completed a two day investor roadshow in Sydney and Melbourne. Most have not yet commenced production or are at a very early stage in building output. How to choose from a presentation alone? Four criteria might offer a useful initial filter: a structured presentation built around a clearly stated single investment proposition, a well-defined future program of work to help track progress, identification of an appropriately skilled team with a relevant track record and a scorecard of how the company is tracking against previously stated goals. Scoring the presentations on these criteria, my top five were: Universal Coal, St George Mining, Kibaran Resources, Blackham Resources and Leigh Creek Energy. These have done enough, based on the criteria, for an investor to want to know more. One of the risks for these companies arises if investors consult advisers, as all the disclaimers urge them to do. Not having attended and without access to credible independent research to complement their clients’ initial impressions, advisers will often guide them towards better known names to ease their compliance burdens.
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