ASIC Just Changed the Way You Can Say ‘JORC Compliant’
ASIC Clarifies “JORC Compliant”: What ASX Mining Companies Need to Know
In its latest Corporate Finance Update (Issue 27), the Australian Securities and Investments Commission (ASIC) issued an important clarification regarding how mining companies describe Mineral Resources and Ore Reserves under the Australasian Joint Ore Reserves Committee (JORC) Code.
At first glance, the issue may appear technical. In reality, it goes to the heart of disclosure precision and how resource statements are interpreted by investors.
For ASX-listed mining companies, this is not simply a semantic adjustment. It is a governance and risk management issue.
The Core Issue: “JORC Compliant” Is Being Used Too Broadly
ASIC has observed companies referring to Mineral Resources or Ore Reserves as “JORC compliant.”
While this phrasing is common market shorthand, ASIC’s concern is straightforward:
The JORC Code is a reporting standard - not a guarantee of the technical quality, certainty or economic viability of the underlying estimate.
In other words, describing a resource as “JORC compliant” may unintentionally imply more than the Code is designed to represent.
The JORC Code governs how estimates must be prepared and disclosed. It does not certify the commercial robustness of the project.
Why This Matters
Investors - particularly retail shareholders - may interpret the phrase “JORC compliant” as a form of endorsement or validation of:
Geological certainty
Economic viability
Project feasibility
Reduced development risk
That interpretation may go beyond what the JORC reporting framework actually guarantees.
ASIC’s message is not that companies cannot report under JORC - they must.
The message is that wording must not blur the distinction between:
Compliance with a reporting standard; and
Implicit assurance of project quality or investment outcome.
In the current regulatory environment, ASIC scrutiny around forward-looking statements, resource assumptions and disclosure clarity is increasing.
What Has Changed?
Technically, the JORC Code itself has not changed.
What has shifted is ASIC’s emphasis on how issuers describe compliance in public communications.
ASIC expects companies to:
Avoid using “JORC compliant” in a way that suggests a quality guarantee.
Clearly state that Mineral Resources or Ore Reserves are reported in accordance with the JORC Code (2012) and ASX Listing Rules.
Ensure forward-looking statements derived from resource estimates have a reasonable basis (see ASIC Information Sheet 214).
This is about precision of language, not restriction of reporting.
Practical Example: Before and After
Common Market Wording:
“The Company has 10Mt at 1.2% Cu -JORC compliant Mineral Resources.”
ASIC-Aligned Wording:
“The Company reports 10Mt at 1.2% Cu as a Mineral Resource in accordance with the JORC Code (2012) and ASX Listing Rules.”
The difference is subtle but important.
The second version clarifies that:
The estimate has been prepared and reported under the JORC framework;
It does not imply a technical guarantee beyond that framework.
Interaction With Forward-Looking Statements
This clarification becomes particularly important where:
Resource statements underpin production targets;
Scoping or feasibility studies are referenced;
Financial modelling is disclosed in investor presentations;
Valuations are discussed in capital raising materials.
ASIC’s Information Sheet 214 reminds issuers that forward-looking statements must have a reasonable basis, including appropriate consideration of modifying factors.
Boards and IR teams should ensure consistency between:
Reported Mineral Resources and Ore Reserves;
Assumptions underpinning production guidance;
Language used in presentations and investor communications
What Boards and Management Should Do Now
A prudent response includes:
1. Conduct a Disclosure Review
Audit recent:
ASX announcements
Annual reports
Investor presentations
Website project pages
Identify instances where “JORC compliant” is used as shorthand.
2. Update Standard Templates
Revise boilerplate disclosure language to clarify:
Resources and Reserves are reported in accordance with the JORC Code;
Compliance refers to reporting standards, not commercial guarantees.
3. Align Legal, Technical and IR Teams
Ensure Competent Persons, legal advisers and investor relations teams are aligned on wording consistency across all materials.
4. Review Forward-Looking Commentary
Cross-check production targets and financial forecasts against ASIC’s guidance on reasonable basis requirements.
A Governance Issue, Not Just a Technical One
For directors, this is ultimately a disclosure governance matter.
Precision in language:
Reduces regulatory risk;
Protects against misleading and deceptive conduct exposure;
Strengthens investor confidence through clarity rather than marketing shorthand.
In an environment where regulators are focused on disclosure quality, subtle wording shifts can carry meaningful implications.
The Broader Signal
ASIC’s reminder reflects a broader regulatory theme:
Clear separation between:
Technical reporting compliance; and
Investment inference.
For ASX mining companies -particularly those advancing development projects or raising capital — clarity is now paramount.
The takeaway is simple:
JORC is a reporting framework.
It is not a quality badge.
Ensuring your disclosure reflects that distinction is both prudent and necessary.