ASX has released proposed changes to the ASX Listing Rules, and associated Guidance Notes, applicable to reserves and resources reporting by ASX-listed mining and oil & gas companies.
Following on from our July 2012 Energy & Resources update, attached is a short note discussing the proposed new reporting requirements.
While the new requirements will create greater compliance obligations for ASX-listed mining and oil & gas companies, they reflect a welcome movement towards a more internationally acceptable and transparent disclosure regime. This will enhance the prospects of increased capital flows for listed Australian mining and oil & gas companies.
- A new reporting framework (including draft Listing Rules and associated Guidance Notes) for ASX listed mining and oil & gas companies has been proposed by ASX.
- In parallel, JORC has released a revised JORC Code which includes updated requirements for reporting exploration targets and a maiden ore reserves declaration.
Key changes proposed to the reporting framework for ASX listed mining and oil & gas companies include:
- Mining companies will be required to report in accordance with the revised JORC Code.
- Oil & gas companies will be required to report in accordance with the Petroleum Resources Management System (SPE-PRMS).
- Mining companies will be required to report company level production targets and production targets for material projects when reporting exploration results, reserves and/or resources estimates, production targets and historical or foreign estimates for material projects.
- The introduction of industry definitions and comprehensive classification system for oil & gas company resources and reserves reporting for material projects.
- Mining companies will be required to include annual resources and reserve statements in mining companies annual reports and oil & gas companies will be required to include annual petroleum statements in reports.
- A 12 month transition period for companies to comply with the new reporting requirements.
- Comments to ASX on the proposed changes can be made anytime up to 26 October 2012.
To download the Proposed New Reporting Framework for ASX Listed Mining and Oil & Gas Companies please click here.