New MB Chapter 18 GEM Chapter 18A Mineral Companies.ppt

New MB Chapter 18 / GEM Chapter 18A Mineral Companies Janet Chiu Assistant Vice President Compliance and Monitoring Department Listing Division, HKEx    Summary of events triggering listed issuers’ obligations under the new Rules  Competent Person’s Report (CPR) (1) Notes: Subject to modifications under MLR 18.30/18.33 or GLR 18A.30/18A.33 MB Appendix 25 / GEM Appendix 18 set out the content of a CPR for petroleum assets Mineral Reporting (Modifications) For CPR on mineral reserves and/or resources, issuers must also satisfy the modifications under MLR 18.30 / GLR 18A.30: Estimates of mineral reserves are supported, at a minimum, by a pre-feasibility study. Estimates of mineral reserves and resources must be disclosed separately. Indicated and measured resources can be included in economic analyses but basis on which they are economically extractable and the discount for conversion to mineral Reserves must be disclosed. Valuations for inferred resources are not permitted For profit forecasts and forward looking valuations, the basis for commodity prices and material assumptions must be included, as well as sensitivity analyses on price. Petroleum Reporting (Modifications) For CPR on petroleum reserves and/or resources, issuers must also satisfy the modifications under MLR 18.33 / GLR 18A.33: Method and reason for choice of estimation of petroleum reserves must be disclosed (i.e. deterministic or probabilistic). If NPVs attributable to proved and proved plus probable reserves are disclosed, they are presented: - on a post-tax basis at varying discount rates or a fixed discount rate of 10% - using a forecast price or a constant price as base case Economic values must not be attached to possible reserves, contingent resources or prospective resources Valuation Report (1) Note: Only VALMIN Code is applicable to petroleum assets. Disclosure of basis of valuation, assumptions and reasons for the selection of valuation method If