Energy, Natural Resources & Renewables
The team at Buchanan have provided unwavering support to Centamin, helping us make the transition from exploration and development through to being a FTSE 250 gold producer. Buchanan’s knowledge of the mining sector, and the level of influential contacts they have, adding considerable value to us beyond providing their counsel.
Andy Davidson – Head of IR at Centamin
Centamin has been a client of Buchanan since 2009. Centamin is a FTSE 250 listed gold miner with producing assets in Egypt and exploration and development assets in Burkina Faso, Cote d’Ivoire and Ethiopia. Buchanan has advised the company since development stage through to its first production in 2010, including delisting from the Australian Stock Exchange and its transfer from AIM to a Premium Market listing on the London Stock Exchange. Buchanan has also advised the company through the political crises in Egypt during the revolution in 2012 and the subsequent changes of government. In addition, Buchanan has provided strategic counsel on the company’s acquisitions of assets in Ethiopia and latterly in Burkina Faso and Cote d’Ivoire (ASX listed Ampella Resources in 2014).
With 2014 revenues of $472 million and EBITDA of $165 million, generated from production of over 377,000 ounces of gold, Centamin was the best performing gold mining stock on the London Stock Exchange in 2015 despite the challenges of falling gold prices, the significant sell-off of mining equities over the last 12-18 months and the perception of risk towards Egypt. Centamin has also laid strong foundations for future growth as a result of its debt-free position, robust balance sheet and experienced management team.
Centamin’s share price has significantly out-performed its immediate peer group in 2015 through Buchanan’s delivery of a well-executed financial communications programme which has centred upon the key messages of delivering on guidance, whilst highlighting the significant growth potential of the company through strong media, analyst and investor relations initiatives.
Buchanan has provided Financial PR services to Cape since 2013. The team has structured bespoke communications strategies for Cape on an annual basis and also offered senior counsel on a range of activities ranging from M&A to crisis management. They are proactive and professional in their approach and have become a trusted adviser with whom we enjoy working.
Joe Oatley - Group Chief Executive of Cape
Cape has been a client of Buchanan since 2013. Cape is listed on the Main Market of the London Stock Exchange and provides critical industrial services, principally access, insulation and painting, to some of the largest operators and contractors in the energy and natural resources sectors. Cape employs over 17,000 people working across 21 countries and in 2014 reported adjusted revenue of £698.3 million.
Following a disappointing year in 2012 which was impacted by onerous contracts and multiple profit warnings, Buchanan was appointed as part of a turnaround under a new management team. The communications brief centred on rebuilding the company’s reputation by clearly articulating the strategy firstly to stabilise and then return the business to growth.
Despite the challenges experienced in the Oil Field Services sector as a result of weak commodity prices through 2014/5, Cape has outperformed its sector peers. This outperformance can be partly credited to the understanding that Buchanan helped establish in the market with regards to the diversity and resilience of Cape’s business.
Cape’s communication strategy has centred on transparent communication of the company’s approach and business model – ensuring regular progress updates were provided with regards to its strategy. Cape is now firmly in the growth phase of its strategy having acquired Motherwell Bridge for £38 million in March 2014 and Redhall Engineering Services for £6 million in May 2015.
Beyond the financial calendar advisory services and support provided to Cape, Buchanan has organised a Capital Markets Day and a site visit for investors and analysts, and obtained strategic profile pieces and supportive investment articles in the national media. We have also provided strategic counsel on M&A transactions and crisis management.