Major resources project impacted by regulatory change

The challenge:

fowlstone was engaged after a surprise regulatory change threatened the entire viability of a client’s business.

Significant shareholder funds had already been invested in the project on the expectation of imminent government approval. The adverse decision triggered a sharp fall in the client’s share price and generated significant negative media attention. The negative focus in Australia began spilling over into other regions, threatening the viability of the client’s international operations.

fowlstone’s approach:

The fowlstone team developed a strategy to strengthen the client’s position by building third-party endorsements, including a prominent industry body, shareholders, favourable broker research, and opinion leaders. That allowed the client (through a series of op-ed pieces in the mainstream media) to recast the regulatory decision as an issue of policy stability and sovereign risk, as opposed to company-specific factors.

fowlstone also worked to communicate the client’s strategy of diversification, which had served to de-risk its operations. To boost the client’s credibility among its offshore partners, fowlstone engendered supportive coverage in international media.

The results:

The board concluded that fowlstone’s communications program had successfully protected the company’s reputation.

The client’s message was clearly articulated in the media, and fowlstone achieved significant international coverage endorsing the client’s position. As a result, the client’s share price recovered substantially.