Up & Coming Geoscientists - a sample of our AIG Honours Bursary Recipients

A less obvious, but important change to
accounting firm; in comparison, the VALMIN
The divergence in terminology between
the VALMIN Code was to the definitions. With
Code (2005 Edition) definition of expert
the JORC Code and the PRMS guidelines
some pre-existing terms within the VALMIN
largely refers to mining sector expertise. It is
combined with the requirements of the ASX
Code (2005 Edition) being inconsistent with
common for a VALMIN Report to be part of
Listing Rules led to compromises for both
definitions already defined by Australian
an overarching document published by an
sectors using VALMIN Code. Recognising the
and International regulatory language. This
AFSL holder, leading to a situation where all
mineral-centric nature of the VALMIN Code,
Valmin Code Changes
included inconsistencies with the JORC
Code and ASX listing rules, as well as other
international terms. For example, the VALMIN
2005 Code’s term Fair Market Value was
changed to Market Value, the definition of
which is similar to that published in the IVS
Glossary. The definition of Technical Value
was aligned with the IVSC term Investment
Value. Another area of misaligned terms
authors were describing themselves as ‘the
expert’ in a report that leads to a Valuation of
Securities. To provide clear guidance and to
reduce any ambiguity or misinterpretation of
broader regulations, the VALMIN Code (2015
Edition) adopted the term Specialist, a term
which is consistent with what is described
in the ASIC definitions. By updating the
definitions and terms in this manner, VALMIN
the wording around petroleum is changed
from ‘mandatory’ to ‘guidance’. This change
allows for the general concepts and good
practice outlined in VALMIN (2015 Edition) to
be applied in the Reporting and Valuation of
petroleum assets without running the risk of
incorrectly attributing a ‘must’ statement to
a similar sounding, but significantly different
petroleum term. Counterintuitively, this
concerned ‘who is the expert?’. In the ASIC
Code (2015) is clear and consistent, providing
strengthens the VALMIN Code in relation to
regulatory guides, the expert is typically the
a better framework that interdisciplinary
petroleum, as it gives disciplinary panels and
entity that holds an Australian Financial
teams can understand and with less risk of
regulators more latitude to make a case while
Services Licence (AFSL), such as an
misinterpretation.
minimising the risk of a potential loophole
being exploited.
The VALMIN Code is part of a complex
regulatory framework with a wide range
of stakeholders within Australia and
internationally. This framework includes
government regulations, security exchange
listing rules and financial standards relating to
the mineral and petroleum industry. Changes
to the regulatory environment occurring
immediately before and during the VALMIN
review process, necessitated a significant
restructure and realignment of the Code.
While containing many common elements,
the VALMIN Code (2015 Edition) has a new
structure and feel to its predecessor. The
result is a new Code which is clear, concise
and more effective in communicating
international good practice in Public Reporting
and Valuation in the mineral and petroleum
Industries.
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AIG NEWS Issue 123 · February 2016