The CFA® Path Led Me to Gold Mining
A CFA charterholder walks into a bar and the bartender asks, “Are you an investment banker? A research analyst? A portfolio manager? A Gordon Gekko wannabe?” The charterholder responds, “No, I am a gold digger.”
Of the few online searches I did on CFA career paths when I first contemplated writing my Level I exam 15 years ago, working in the mining space was not on any top 10 lists that I came across. Yet in the decade that has passed since I first started my mining career (mostly gold, with some copper and a sprinkle of silver), I have worked closely with both the buy-side and sell-side while simultaneously acquiring industry-specific knowledge. I worked on M&A deals, raised debt and equity, hedged metal and currency exposure, and managed investments. This exposure would have required moving between various roles over a longer period of time if I were to follow a more traditional career path as a charterholder. So how does one choose an unconventional path? With the benefit of hindsight, here is what I can share:
Keep an Open Mind
Ask yourself: “Why did I want to become a CFA charterholder?” If the answer is dealmaking, become an investment banker. If the answer is managing investments, join the buy-side. If the answer is quantitative analysis, take on a risk management role. Having clarity on what you want to do is great as it allows you to focus your energy on joining and succeeding in your area of choice. I didn’t have such clarity on next steps when I started writing the CFA exams. I knew I enjoyed the challenges and stimulation of financial analysis, but having done engineering for my undergraduate degree, I didn’t have the same specific aspirations as someone who may have spent years immersed in commerce or finance education from an early age.
And then came mining. It was a total fluke that I was approached about interviewing for a role at a junior mining company that was looking to add some horsepower in treasury and financial analysis. It would not have been as glamorous as working for a global bank or boutique investment firm, but it would have given me exposure to the global commodities and foreign exchange markets. These are two distinct areas that have separate and dedicated teams on many trading floors around the world, and I knew in this job that I would have an opportunity to learn about both.
So in short, keep an open mind. Don’t let a preconceived notion of what a CFA charter exposes you to hinder you from seeing the many other opportunities out there that could give you career satisfaction while utilizing your training in financial analysis.
Widen Your Area of Influence
In mining and in the context of M&A, an area of influence is normally a few-mile radius around a project that precludes a potential business partner or acquirer who has access to confidential information during their due diligence phase from staking claims in that area at a later time. This is done to prevent a party that has received important information confidentially from using it for their benefit outside the business arrangement being contemplated with the discloser of that information. The greater the area of influence, the more opportunities a party could have to stake claims exclusively in the vicinity of its project (generally speaking).
So widen your personal area of influence. Position yourself to have access to a larger network of successful professionals from different industries and fields but who understand the quality that comes with having a CFA charter. Don’t limit yourself to only bank-sponsored events or CFA society programs; they’re all great, but why not do more?! There are many industry associations that host conferences and seminars on topics that you might find interesting, even if the topics aren’t directed at investment professionals, per se.
Find a Sponsor
You read stories about how successful people had mentors early on in their careers. Someone who guided them, supported them, and gave them insight and a voice of reason. You all need mentors, both personally and professionally, regardless of how high you aspire to soar. But what you also need is a sponsor. “What’s the difference?” you might ask. Sylvia Ann Hewlett wrote a great book about finding sponsors, and the essence is this: sponsors go to bat for you and help you get ahead, while mentors give you advice and guide you. Both are great to have but serve very different purposes. Read her book—it’s fantastic! And when you’re done, give a thought to finding a genuine sponsor who knows you well and is happy to use their influence to help you.
About the Author
Khalid Elhaj, P.Eng., CFA, is the Director of Corporate Development and Business Planning at Alamos Gold Inc., a TSX and NYSE listed Canadian-based intermediate gold producer. He has worked in various roles in the mining industry since 2007, including treasury, financial analysis, investor relations, and corporate development. He is a graduate of the Engineering Science program at the University of Toronto and is a professional engineer registered with Professional Engineers Ontario.