Mining Reporting Survey 2016 - KPMG

2016 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG ... business environment has given rise to a number of reporting trends.
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Mining Reporting Survey 2016

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Estimates & judgments

Non-GAAP measures

Risks

Valuation

Other reporting

Companies surveyed The following companies were surveyed in compiling our Mining Reporting Survey 2016: IFRS Companies

US GAAP companies

–– Agnico Eagle

–– Gold Fields Limited

–– Freeport-McMoRan Inc.

–– Alamos Gold Inc.

–– Goldcorp Inc.

–– Newmont Mining Corporation

–– Anglo American plc

–– HudBay Minerals Inc.

–– AngloGold Ashanti Limited

–– IAMGOLD Corporation

–– Barrick Gold Corporation

–– Kinross Gold Corporation

–– BHP Billiton Limited

–– Lundin Mining Corporation

–– Cameco Corporation –– Centerra Gold Inc. –– Detour Gold Corporation –– Eldorado Gold Corporation –– First Quantum Minerals Ltd. –– Glencore plc

–– New Gold Inc. –– Rio Tinto plc –– Teck Resources Limited –– Vale S.A. –– Yamana Gold Inc.

Mining Reporting Survey 2016 © 2016 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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Home

Estimates & judgments

Non-GAAP measures

Risks

Valuation

Other reporting

Foreword KPMG’s Mining practice is pleased to present the Mining Reporting Survey 2016. This document publishes the results of a survey of reporting by 25 major mining companies from across the globe. The information presented builds on a quarter century of KPMG’s previous Mining Reporting Surveys. The mining industry has continued to face significant uncertainty, volatility and pressure for cost containment since our 2014 survey. This unpredictable business environment has given rise to a number of reporting trends geared towards providing stakeholders and users of the financial statements with a more transparent view of a company’s position.

Editorial team

This year’s survey focuses on five key sections: Estimates and Judgments, Non-GAAP Measures, Risks, Valuation and Other Reporting Trends. Disclosures in these areas are becoming increasingly prevalent, as companies try to provide stakeholders with supplemental information on various risks impacting their businesses, as well as disclosure of the critical judgments and estimates management is required to make in managing and mitigating those risks.

Daniel Ricica—Partner, Mining

One interesting trend that we have seen emerge in this year’s survey was the increase in alternative forms of financing, such as streaming. Since our 2014 survey we saw a five-fold increase in the number of companies which disclosed entering into streaming arrangements, as well as continued enhancement of those disclosures by the companies entering into them.

Lee Hodgkinson—National Industry Leader, Mining

Key contributors Michael Woeller Katherine Wetmore Justin Chartrand Hendra Beekman

While we hope this survey will be a useful guide, we encourage you to consult your local KPMG professional for guidance that is tailored to your circumstance. We look forward to discussing the results of this year’s survey with you.

Jessica Budd

Sincerely,

Krista Bennatti-Roberts

Daniel Ricica Partner, Mining

Laura Brand

Anh Hoang Laura Sokalsky

Roxanne Gagnon

Mining Reporting Survey 2016 © 2016 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. member firms affil