Navigating Growth in Mining: Wes Hall on M&A and Shareholder Expectations

Earlier, Wes Hall, Kingsdale Advisors’ Chairman & CEO, sat down with Global Business Reports (GBR) to discuss how mining industry leaders are balancing growth with risk management. In this in-depth conversation, Wes shares insights on key trends shaping the sector, including M&A activity, executive compensation, shareholder engagement, and governance best practices.

Below is the full transcript of the interview, offering a comprehensive look at the challenges and opportunities facing the mining industry today.

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GBR: How does Kingsdale Advisors serve the mining industry?

Wes Hall: Kingsdale Advisors was established in 2003 once I realized that the Canadian markets would soon see a rise in activist investors and potentially hostile takeover bids, as was happening in the U.S. At the time, the Canadian market was relatively small and cordial, and few thought about activist investors or hostile takeovers. However, I saw something interesting starting to happen in the junior mining space where terminated board members would go after the company and the board. If this was happening in the junior mining space, it was probably going to take hold in other areas as well. Today, 21 years later, Kingsdale is the leading advisor to Canadian public companies on all shareholder, governance, and transaction-related matters, ensuring the success of transactions or resolutions driven by shareholder votes.

One of the first big deals Kingsdale worked on in the mining space was when Wheaton River Minerals wanted to merge with IAMGOLD, but there was a hostile takeover bid attempt on both Wheaton River Minerals as well as IAMGOLD. Mitigating this four-way hostile takeover bid and successfully executing the merger deal put Kingsdale on the map.

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GBR: What are the current trends in demand from mining clients?

Wes Hall: CEOs today are more cautious than ever before. Companies want to grow but they are now doing it responsibly driven by heightened expectations for mine and workplace safety. In line with broader market trends, there is also a greater emphasis on long-term value creation and shareholder returns. Companies are looking for the right opportunities with minimal risk to expand. It can get difficult for junior mining companies today to access capital. Until market sentiment returns, it will remain challenging for companies to fund exploration and infrastructure development. As a result, we do not see much deal activity in the junior space, and it is the bigger, more capitalized companies that are doing the deals.

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GBR: How would you assess mining executive compensation compared to other sectors?

Wes Hall: Compensation has always been an issue in the mining space, and mining companies receive more negative attention from proxy advisory firms and ‘Against’ recommendations on their Say on Pay proposals than other sectors. We have to keep in mind that many mining companies operate in risky jurisdictions and it takes a certain personality at the executive level to be successful in working in these areas.

Mining executives have to deal with safety concerns and many issues unique to this sector, and their compensation packages reflect the risk they are taking on versus a CEO who never has to leave their office. Executive compensation should be higher for executives operating in riskier jurisdictions. The mining industry is often unfairly targeted, and people do not really consider the risk mining companies and their executives take.

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GBR: Is there a strong correlation between company performance and executive compensation in the mining sector?

Wes Hall: I have worked on deals where the company’s stock price quadrupled but the executive compensation did not, and in cases where executive compensation did increase, we had to work hard to get shareholders to support it by making them realize that though the stock price took off, it was not just due to commodity prices but also the company running a better business. I strongly believe that each company should be looked at individually. For example, in cases where commodity prices are down and the company’s stock is doing well, it is likely because of the good work of the executive team which then justifies the increased compensation.

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GBR: How are mining M&As today different to how they were in the past?

Wes Hall: There is a night and day difference in the way M&As are done today compared to the past. Executive teams are significantly more cautious around taking risks and the sector is certainly less aggressive and active in deal-making activities than in the early 2000s. In today’s environment, you might not be able to recover if you make a mistake and shareholders are demanding that your decisions are perfect. We no longer see extremely bold risks being taken by executives, and what we will continue to see is bigger companies being very strategic but not as aggressive as they do not want to take on the risk that their predecessors would have taken. As a result, the deal flow we see today is not near the levels that we saw in the past.

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GBR: How can mining companies improve communication between management and shareholders?

Wes Hall: Historically, CEOs knew their investors extremely well and even had personal relationships. This meant that when doing deals, companies had an easier time building investor trust. Many investors would follow particular CEOs because of their track record. My advice to CEOs in the mining space would be to try to foster great relationships with your investors, allowing for open communication and building trust in your decision-making. The last thing you want to do is announce a deal that surprises analysts and investors as that will be extremely difficult to sell to investors.

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GBR: Do you have a final message?

Wes Hall: Kingsdale has gone beyond hostile bids and shareholder activism and offers an array of specialized services focused on strategic and defensive advisory, governance advisory, compensation advisory, strategic communications and voting analytics. Our expert team of dedicated industry professionals remains committed to providing individualized client solutions, whether it is helping them with having a better relationship with their investors, dealing with governance issues, or staying on top of what shareholders are looking for in today’s climate.

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For more industry insights, you can read the full Ontario Mining and Toronto’s Global Reach 2025.