Beyond the pan-european standard for reporting of exploration results, mineral resources and reserves

Abstract

The aim of this paper is to analyse in detail the “Pan-European Standard for Reporting of Exploration Results, Mineral Resources and Reserves,” which is commonly known as the PERC Reporting Standard.This research examines investor presentations, stock exchange announcements, the results of definitive feasibility studies, competent person reports and company reports from three ready-to-go investments in new tungsten mining projects around the world: the Barruecopardo open-cut tungsten project in Salamanca, Spain, the Hemerdon open-cut tungsten and tin project in Devon, United Kingdom, and the Sangdong underground tungsten project in South Korea.These case studies were selected because the projects are being developed by companies that are listed on European stock exchanges and have already obtained funding (Hemerdon and Barruecopardo) or are in advanced negotiations or have agreed to terms for funding (Sangdong).The conclusions of this research clearly define the direction in which future mining reporting standards should develop, mainly to address the weaknesses that were found in the results of feasibility studies that are presented to investors about the capital costs, net present value and internal rate of return calculations, sensitivity and uncertainty analyses and forecasted mineral prices, which are crucial for making sound investment decisions.These conclusions also consider the benefits of coupling the Competent Person's areas of specialization and the reported results with both the required relevant experience in the different fields of expertise and the type of corporate membership, registration or licensure by a recognised professional body.