Entire Section


    • Presentation of data (18.18)

      • 18.18

        Any data presented on Resources and/or Reserves by a Mineral Company in a listing document, Competent Person's Report, Valuation Report or annual report, must be presented in tables in a manner readily understandable to a non-technical person. All assumptions must be clearly disclosed and statements should include an estimate of volume, tonnage and grades.

    • Basis of evidence (18.19)

      • 18.19

        All statements referring to Resources and/or Reserves:—

        (1) in any new applicant listing document or circular relating to a Relevant Notifiable Transaction, must be substantiated in a Competent Person's Report which must form part of the document; and
        (2) in all other cases, must at least be substantiated by the issuer's internal experts.

    • Petroleum Competent Persons' Reports (18.20)

      • 18.20

        A Competent Person's Report for Mineral Companies involved in the exploration for and/or extraction of Petroleum Resources and Reserves must include the information set out in Appendix 25.

    • Competent Person (18.21-18.22)

      • 18.21

        A Competent Person must:—

        (1) have a minimum of five years experience relevant to the style of mineralization and type of deposit under consideration or to the type of Petroleum exploration, reserve estimate (as appropriate), and to the activity which the Mineral Company is undertaking;
        (2) be professionally qualified, and be a member in good standing of a relevant Recognised Professional Organisation, in a jurisdiction where, in the Exchange's opinion, the statutory securities regulator has satisfactory arrangements (either by way of the IOSCO Multilateral MOU or other bi-lateral agreement acceptable to the Exchange) with the Commission for mutual assistance and exchange of information for enforcing and securing compliance with the laws and regulations of that jurisdiction and Hong Kong; and
        (3) take overall responsibility for the Competent Person's Report.

      • 18.22

        A Competent Person must be independent of the issuer, its directors, senior management and advisers. Specifically the Competent Person retained must:—

        (1) have no economic or beneficial interest (present or contingent) in any of the assets being reported on;
        (2) not be remunerated with a fee dependent on the findings of the Competent Person's Report;
        (3) in the case of an individual, not be an officer, employee or proposed officer of the issuer or any group, holding or associated company of the issuer; and
        (4) in the case of a firm, not be a group, holding or associated company of the issuer. Any of the firm's partners or officers must not be officers or proposed officers of any group, holding or associated company of the issuer.

    • Additional requirements of Competent Evaluators (18.23)

      • 18.23

        In addition to the requirements set out in rules 18.21(2) and 18.22, a Competent Evaluator must:—

        (1) have at least ten years relevant and recent general mining or Petroleum experience (as appropriate);
        (2) have at least five years relevant and recent experience in the assessment and/or valuation of Mineral or Petroleum Assets or securities (as appropriate); and
        (3) hold all necessary licences.

        Note: A Competent Person's Report or Valuation Report may be performed by the same Competent Person provided he or she is also a Competent Evaluator.

    • Scope of Competent Persons' Reports and Valuation Reports (18.24)

      • 18.24

        A Competent Person's Report or Valuation Report must comply with a Reporting Standard as modified by this Chapter, and must:—

        (1) be addressed to the Mineral Company or listed issuer;
        (2) have an effective date (being the date when the contents of the Competent Person's Report or Valuation Report are valid) less than six months before the date of publishing the listing document or circular relating to a Relevant Notifiable Transaction required under the Listing Rules; and
        (3) set out what Reporting Standard has been used in preparing the Competent Person's Report or Valuation Report, and explain any departure from the relevant Reporting Standard.

    • Disclaimers and Indemnities (18.25-18.26)

      • 18.25

        A Competent Person's Report or Valuation Report may contain disclaimers of sections or topics outside their scope of expertise in which the Competent Person or Competent Evaluator relied upon other experts' opinions, but must not contain any disclaimers of the report in its entirety.

      • 18.26

        The Competent Person or Competent Evaluator must prominently disclose in the Competent Person's Report or Valuation Report the nature and details of all indemnities provided by the issuer. Indemnities for reliance placed on information provided by issuers and third party experts (for information outside the Competent Person's or Competent Evaluator's expertise) are generally acceptable. Indemnities for fraud and gross negligence are generally unacceptable.

    • Obligations of sponsor (18.27)

      • 18.27

        Any sponsor appointed to or by a new applicant Mineral Company under Chapter 3A must ensure that any Competent Person or Competent Evaluator meets the requirements of this Chapter.