Insights

Section 12.11 of the JSE Listing Requirements

How this will Affect Annual Reporting

A number of companies have been notified that their annual reports are not compliant with Section 12.11 of the JSE Listing Requirements.

A number of companies have been notified that their annual reports are not compliant with Section 12.11 of the JSE Listing Requirements.

Section 12.11 had previously been Section 8.63(l), describing annual reporting requirements for projects owned by mineral companies on the JSE, but little attention seems to have been devoted to the text until it was renamed Section 12.11 on the 30th September 2014.

Mineral companies have historically provided a brief overview of the mineral projects that they were involved in, together with a summary of the mineral resources, and many were not even aware of the text that related to Section 8.63(l), which is virtually identical to the present Section 12.11 and which was introduced initially in the mid-2000s as Section 8.63(m).

However, with the JSE clamping down on mineral companies that have not complied with this Section, it may be worthwhile for companies to more closely consider this Section, which requires that annual reports include significant amounts of information on exploration and mining projects. To this end, a JSE Section 12.11 checklist was compiled by Venmyn Deloitte’s Tendani Rampai, who adapted it from Section 12 of the JSE Listing Requirements. The checklist can be downloaded alongside.

It is considered that many companies will not have sufficient information in their annual reports to comply with these requirements.

In addition, these information requirements will place an additional burden on major mining companies with large portfolios of mineral projects. This is because major mining companies that list on the JSE have historically aggregated information on projects, rather than providing significant amounts of information on individual projects, as is required.

To find out more about how Section 12.11 will influence annual reporting, please contact Tarryn Orford or Andy Clay on +27 (0)11 517 4205. 

 

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