Providing research support to a marquee South African brokerage firm
Posted by | Fuld & Company
Background + Challenge
The brokerage business of one of South Africa’s largest banks engaged Fuld & Company to provide ongoing research support to its Metals & Mining team. Its research requirement included initiating and maintaining coverage of all metals and mining companies listed on the Johannesburg Stock Exchange (JSE) and the London Stock Exchange (FTSE 100). It was also looking for research support including updates on top mining producers and consumers such as Brazil, Canada, Australia, China, and India.
Fuld & Company’s Solution
Fuld & Company initially deployed one analyst to support the client’s Metals & Mining team and later expanded to two analysts – one dedicated to covering listed names in the JSE and the other covering the broader sector. The research coverage included building and maintaining detailed discounted cash flow (DCF) models, preparing company notes and investment thesis, and quarterly as well as special events updates. Sector coverage comprised the creation of company-specific commodity indices, guidance versus production analyses, and China-specific updates.
Outcome for Client
Fuld & Company analysts made independent site visits, and participated in roadshows and investor conference/ presentations. As a result of this successful engagement, the client decided to expand the research support to other sector/ industry groups.