eResearch

Monday, November 05, 2007

eResearch Blog: Market Information

Company Reporting

In each of Canada and the United States, securities regulators have set up a national web-site that compiles and presents corporate news releases, including quarterly and annual reports, annual information forms, management information circulars, material change reports, notice of meetings and material change reports.

In Canada, the web-site is known as SEDAR; in the United States, it is EDGAR.

These filings are required by securities law. As such, they can be a valuable source of information for the investor. News dissemination services and corporate web-sites are also useful places to find information.

Analyst reports are an alternative source of corporate disclosure. In efforts to gain more market exposure, companies will use any one, or all, of research analysts, investor relations firms, stock promoters, and brokerage account executives.

Stockbrokers and research analysts are regulated by securities regulators and professional associations. In research reports, a distinction must be made between information provided by the company and opinions expressed by the analyst. Sound rational for recommendations, conclusions, opinions, and target prices are required to be disclosed in research reports.

In the mining industry, companies are required to have a Qualified Person vet all information provided to shareholders and SEDAR.

The mining company’s disclosure obligations include: how it conducts its exploration program; the presentation of technical information such as on the drilling program and assay results; the placing of pertinent information on SEDAR; and the issuance of a public press release.

Technical Reports regarding exploration activities are required to include: results of all surveys; details of exploration information and plans for future work; description of the geology, mineral occurrence, and nature of the mineralization found; mineral distribution and rock types used to establish sampling criteria; and true width of the assays, where known, amongst other criteria.

To truly understand all of the technical jargon and information provided by mining companies takes a P.Geo. accreditation. Much easier is to gain access to timely, insightful, comprehensive, and thoughtful research.

We at eResearch have built a powerful and deserved reputation for the quality, scope, and insight of our mining research reports. Visit us at our web-site, www.eresearch.ca and get the eResearch Advantage.

Bob Weir
Director of Research

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