Canadian Reporting Practices

In 1556, Agricola noted that "a prudent owner, before he buys shares, ought to go to the mine and carefully examine the nature of the vein, for it is very important that he should be on his guard lest fraudulent sellers of shares should deceive him"(1). In today's world, the owner rarely has the opportunity to visit the mine and, instead of reading about the `nature of the vein' in annual reports, prospectuses, government publications, et cetera he sees the words `reserves' and `resources'. Unfortunately, the subject of reserves and resources has become increasingly complex and Canadians, along with their counterparts in Australia and elsewhere, are still struggling with definitions which will attempt to cover all conceivable circumstances from national or regional resource endowment to the material to be extracted next week from a given stope or open pit bench. The providers and recipients of reserve and resource data are: - Government agencies who are concerned with questions of national endowment, strategic use of raw materials and other questions of public policy. - Stockholders who have a vested interest in the basic assets of their companies. - Financiers who are concerned about the security of their loans. - Regulatory bodies whose function is to protect a frequently naive investor from unscrupulous practices. - Management, at head office and on-site, who need basic information for decision-making, whether it be to open up a new mine, expand or close an existing operation, acquire or merge with other entities, or, more mundanely, for routine mine planning. To satisfy their demands with unanimously accepted definitions is a formidable task but, it is my impression that, little by little, a concensus appears to be growing within the industry.