A timely reminder – Chapter 5 disclosure requirements for investor presentations

New (or material updates to) exploration results, mineral resource estimates or ore reserves

These announcements must comply with the relevant disclosure requirements in Chapter 5 of the ASX Listing Rules and the relevant sections of JORC Code Table 1.

ASX generally expects that this information is disclosed in a standalone announcement before being used in an investor presentation (with the investor presentation to include the required cross-references to that standalone announcement). 

Proximate cautionary statements

The ASX Listing Rules (and relevant Guidance Notes) require ‘proximate’ cautionary statements for the disclosure of:

• Exploration Targets
• Visual Estimates
• Historical or Foreign Estimates
• Production Targets (in certain circumstances) and Scoping Study Outcomes 

ASX’s compliance update re-iterates both the need for proximate cautionary statements in these contexts and ASX’s requirement for that cautionary statement to be 'proximate'.

Competent person statements

Investor presentations must include either: (i) a competent person’s statement; or (ii) a ‘streamlined’ statement that cross-references the previous market announcement containing the competent person’s statement and consent and confirms the absence of any relevant material changes since that announcement. 

ASX also notes that a streamline competent person statement cannot be used for reporting exploration targets (ie a competent person’s statement and consent must be obtained each time an exploration target is reported).

Categorisation of mineral resources and ore reserves

ASX noted the following requirements for reporting categories of mineral resources and ore reserves:

• investor presentations must specify the relevant categories of indicated / measured / inferred and proved / probable for mineral resource and ore reserve estimates;
• mineral resource and ore reserve estimates must not be reported on a combined basis unless the individual categories (ie indicated / measured / inferred and proved / probable) are also reported (eg in a table);
• mineral resource / ore reserves must not be reported in terms of contained metals or minerals unless corresponding tonnages (or ounces) and grades are also disclosed;
• if both ore reserves and mineral resources are reported, the presentation must clarify whether mineral resources are inclusive of (or in addition to) ore reserves.

Peer comparisons

ASX notes the following requirements for reporting peer comparison (eg charts which compare a listed company’s reserves or resource with industry peers):

• the entity must disclose the relevant categories of reserve / resource estimate and grade for each of the peers (eg usually in the form of a summary table)
• the comparison projects must be comparable (eg comparing a project which has only an exploration target to a project with a reserves / resource estimate is likely to be objectionable);
• the entity must disclose the differences in the stage of development of peer projects (eg study status and whether the project is at the exploration, development or producing stage); and 
• the entity must disclose the material assumptions and sources of the information used to prepare the peer comparison (including detail of relevant peer announcements) – this information is typically disclosed in a table as an annexure to the presentation.

Even if these disclosure requirements are met, ASX may still require retraction of a peer comparison if ASX considers it is potentially misleading due to the way the information is presented or the comparators chosen (eg comparison of an early stage explorer with late stage developers or producers). 

Visual results

ASX reiterates its position that it does not encourage the reporting of estimates of mineralisation based only on visual estimates. 

If an entity forms a view that it must disclose an estimate of mineralisation based on visual observation only, ASX expects the following information to be disclosed:

• a description of the nature of the mineral occurrence;
• the minerals observed;
• an estimate of the abundance of any mineral observed (eg where sample results are being reported);
• state the anticipated timing for the release of assay results in respect of the visual estimates (eg where sample results are being reported).

A proximate cautionary statement must also be included. 

Other investor communications

ASX-listed companies should be aware that Chapter 5 of the ASX Listing Rules and the JORC Code cover all public reports, which may include website materials, social media posts or sponsored content.