CONDITIONS FOR LISTING OF NEW APPLICANT MINERAL COMPANIES
In addition to satisfying the requirements of Chapter 8, a Mineral Company which has applied for listing must also satisfy the requirements of this Chapter.
A Mineral Company must:—(1) establish that it has the right to participate actively in the exploration for and/or extraction of Natural Resources, either:—(a) through control over a majority (by value) of the assets in which it has invested together with adequate rights over the exploration for and/or extraction of Natural Resources; or
Note: 'control over a majority' means an interest greater than 50%.(b) through adequate rights (arising under arrangements acceptable to the Exchange), which give it sufficient influence in decisions over the exploration for and/or extraction of the Natural Resources;(2) establish that it has at least a portfolio of:—(a) Indicated Resources; or(b) Contingent Resources,
identifiable under a Reporting Standard and substantiated in a Competent Person's Report. This portfolio must be meaningful and of sufficient substance to justify a listing;(3) if it has commenced production, provide an estimate of cash operating costs including the costs associated with:—(a) workforce employment;(b) consumables;(c) fuel, electricity, water and other services;(d) on and off-site administration;(e) environmental protection and monitoring;(f) transportation of workforce;(g) product marketing and transport;(h) non-income taxes, royalties and other governmental charges; and(i) contingency allowances;
Note: A Mineral Company must:
• set out the components of cash operating costs separately by category; • explain the reason for any departure from the list of items to be included under cash operating costs; and • discuss any material cost items that should be highlighted to investors.(4) demonstrate that it has available working capital for 125% of the group's present requirements, that is for at least the next 12 months, which must include:—(a) general, administrative and operating costs;(b) property holding costs; and(c) the cost of any proposed exploration and/or development; andNote: Capital expenditures do not need to be included in working capital requirements. Where they are financed out of borrowings, relevant interest and loan repayments must be included.(5) ensure that its working capital statement in the listing document under Listing Rule 8.21A states it has available sufficient working capital for 125% of the group's present requirements, that is for at least 12 months from the date of its listing document.
If a Mineral Company is unable to satisfy either the profit test in rule 8.05(1), the market capitalisation/revenue/cash flow test in rule 8.05(2), or the market capitalisation/revenue test in rule 8.05(3), it may still apply to be listed if it can establish that its directors and senior managers, taken together, have sufficient experience relevant to the exploration and/or extraction activity that the Mineral Company is pursuing. Individuals relied on must have a minimum of five years relevant industry experience. Details of the relevant experience must be disclosed in the listing document of the new applicant.
Note: A Mineral Company relying on this rule must demonstrate that its primary activity is the exploration for and/or extraction of Natural Resources.