Snowden has observed the development of the 2016 ASIC Information Sheet 214 in relation to Forward-looking statements.
ASIC has released Information Sheet 214: Mining and resources: Forward-looking statements (INFO 214) to provide improved guidance on the content of forward looking statements commonly made for production targets and forecast financial information. The Information Sheet also provides guidance as to how reasonable grounds can be established.
Commentators, notably Nick Evans of the West Australian, have described the effect that this interpretation may have on the minerals exploration and development industry.
In effect, a minerals explorer will now require something akin to a Feasibility Study before any financial results can be released regarding their project. This is likely to preclude most of the junior explorer section from announcing much about their projects , who, as Nick points out, commonly rely on the release of scoping studies, based on preliminary technical results to date, in order to attract capital to push their projects through the various stages.
Of course, then they will need to demonstrate that they can get project financing, and being a Junior explorer, this may in itself be a challenge So before you yell at your competent person/consultant as to why they can’t give you Reserves and what you can’t tell the market, please read the 2016 ASIC Information Sheet 214