Manager of Corporate, Graham Jeffress will present on ‘JORC and VALMIN – Friend or Foe? Decoding investments and raising funds’ on Thursday 9 May at 1.00pm.
The Sydney investment community is well renowned for their strong appetite for investment in the sector. Listed exploration and mining companies will come from all parts of Australia to reach out to the large contingent of retail and sophisticated investors including one of the biggest gatherings of brokers and funds attending the Conference.
Investors and industry representatives view the RIU Sydney Resources Roundup as tremendous value. The popularity of the event provides the environment to network and connect with key decision makers from the large number of resources companies participating at the Conference.
The Banking Royal Commission generated quite a few headlines recently, but 45 years ago it was the Rae Review into the Poseidon Nickel Boom and its spectacular bust that was grabbing headlines and political attention.
The findings from the Rae Review led to the mining industry creating JORC and VALMIN Codes to provide minimum standards for public reporting.
Both codes provide a unique advantage for mining stocks and for investors who need to quickly and confidently assess results and estimates.
Are the codes perfect? No? But they were developed by highly experienced people from the mining industry and not imposed by politicians and bureaucrats.
Unlike other speculative stocks on the market, such as cryptocurrency vendors, cannabis purveyors, drug companies or technology promoters, mining and exploration stocks have one clear advantage.
When companies talk about projects, there is an immediate understanding of the jargon used that investors can reasonably understand. For example, one doesn’t need to waste time explaining what a blockchain is every time a release is made – savvy investors understand the difference between a mineral resource and an ore reserve, and don’t need it spelt out everytime there is news.
Likewise for investors! There is a consistent approach to providing the key information one requires to make an investment decision; a way to compare projects, opportunities and news flow that is mostly absent from other investment types.
Sometimes, however, it doesn’t quite work like this in the real world, but the underpinning principles of the codes – materiality, transparency and competence – provide the means for investors to separate the wheat from the chaff.
Knowing how to read public reports prepared according to the JORC and VALMIN Codes allows the investor to better evaluate the technical skills of the company, their integrity and ethics, assess risks and spot opportunities.
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