Kenneth A.

Fox,
The usefulness of NI 43-101 technical reports for financial analysts,
Resources Policy,
Volume 51,
2017,
Pages 225-233,
ISSN 0301-4207,
https://doi.org/10.1016/j.resourpol.2017.01.008.
(https://www.sciencedirect.com/science/article/pii/S0301420716302513)
Abstract: This paper uses interviews to examine the practices and perceptions of
financial analysts related to their use of mining company technical reports
prepared under Canadian National Instrument 43-101 Standards of Disclosure for
Mineral Projects. The results suggest that the information contained in the reports
is used and useful for financial analysis, and demonstrate how they use it as an
input to their valuation models. The analysts do, however, identify some concerns
with the reports. These concerns relate to three areas: the experience of the
“qualified person” with specific minerals; the independence of third-parties who
provide assurance over the report; and the frequency of the reports. The
implications of these results for future policy amendments include changes to the
definition of a “qualified person” that should state a minimum number of years’
experience with specific minerals reported on, standards to disclose the
relationship between third party assurance providers and the companies that engage
them, and specific guidance over the materiality of events that trigger an updated
report. Consideration of such policy amendments is relevant for accounting standard
setters attempting to harmonize standards over the extractive industries, and for
regulators that use mining disclosure codes that share similar “competent person”,
independence, and technical reporting requirements.