Proposed changes to mining and petroleum reporting
25 September 2012
What do you need to know?
- ASX has released its exposure draft of proposed amendments to Chapter 5 of the ASX Listing Rules (Additional reporting on mining and oil and gas production and exploration activities) and related Guidance Notes. The draft includes an updated position on mining production targets. Simultaneously, an exposure draft of amendments to the JORC Code was released, and can be accessed on the JORC website. The exposure drafts are open for comment until 26 October 2012.
- Production targets, and forecast financial information derived from production targets, must be based on reasonable grounds or they will be considered “misleading” for purposes of the Corporations Act. Before the exposure drafts were released, it appeared from the related consultation process that ASX and ASIC held different views about whether there could be a reasonable basis for publishing a production target based solely on inferred mineral resources, or on inferred mineral resources and exploration targets. However it appears that gap has been bridged, with early stage production targets being permissible in exceptional circumstances with appropriate cautionary disclosure.
- More generally, ASX’s exposure draft seeks to impose an enhanced reporting framework for the disclosure of mineral resource and ore reserve information, and to require oil and gas companies to report in accordance with SPE-PRMS (with additional requirements for material disclosures in relation to their resource assets).
- Helpfully, it is proposed that it will no longer be necessary to obtain the prior written consent of the relevant competent person for the subsequent re-publication of exploration results or resource or reserve estimates, provided no material information or assumptions have changed and the original announcement is cross-referenced in the subsequent public report (although it will still be required for annual reporting).
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