Getting your head around mining resources and reserves can be a bit tricky if you’re new to the investing game, but it’s simple enough once you know what’s what.
If you start to look at the ASX mining scene, you’ll start to see that companies report on by using certain terms.
Ranging from an inferred resource at the minimum level of certainty to a proved reserve at the maximum level of certainty — all these terms have been agreed by the mining industry as standard language.
The uniformity is part of the ‘JORC Code’ and was created in the 1960s as a response to concerns not all miners were reporting their finds in uniform fashion, leading to confusion for shareholders at best and widespread fraud at worst.
So if you know how mining companies report on their finds, you’ll know how all ASX-listed miners report.
You can dig into the detail by visiting the JORC site here, but we’ve put together a small guide here.
This content does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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