The enhanced reporting requirements are aimed to promote greater
investor confidence and support efficient capital formation for ASX
listed resources companies. They also aim to align Australia's
reporting framework with other markets.
Although the changes do not take effect until 1 December 2013,
it can be expected that listed resources companies would begin to
voluntarily adopt the reporting framework in the coming 12 months.
In particular, companies undertaking capital raisings should bear
in mind the new regulations when reporting on reserves, resources
and production targets.
Under the new rules, mining companies will be required to report
in accordance with the JORC Code which is in the process of being
revised and is anticipated to be released in mid-December 2012 (a version of the revised JORC Code has
been released for consultation). The new rules include
reporting requirements for exploration results, production targets
and mineral resources and ore reserves (including a new requirement
for a preliminary feasibility study (at a minimum) to support a
maiden ore reserve) and the ability to report historical or foreign
resource or reserves estimates.
Oil and gas companies will be required to report in accordance
with the Society of Petroleum Engineers Petroleum Resources
Management System (SPE-PRMS) and
provide additional information when disclosing reserve estimates,
contingent resources and prospective resources (being material
assumptions and the basis on which those estimates were made).
For both mining and oil and gas companies, the amended Listing
Rules imposes further annual reporting obligations, such as
requiring the inclusion of a resources reserves statement.
We will provide a detailed overview of the amended Listing Rules
and implications for resources companies shortly.
Clayton Utz communications are intended to provide
commentary and general information. They should not be relied upon
as legal advice. Formal legal advice should be sought in particular
transactions or on matters of interest arising from this bulletin.
Persons listed may not be admitted in all states and
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