Kady Seguin - PWYP-Canada Capacity Building ProjectFinding Publicly Available Information on...

PWYP-Canada Capacity Building ProjectFinding Publicly Available Information on Extractive

Companies

Presented by Kady Seguin Programme Analyst

Publish What You Pay Canada

Workshop Objectives

1. Present the components of the PWYP-Canada Capacity Building Project in greater detail

2. Receive feedback on the project, which will assure that the final outcomes of the project are based on the needs of the PWYP coalition members

3. Identify ways in which the outcomes of the PWYP-Canada Capacity Building Project can feed into advocacy and research

Background

• 2009 – Lifting the Veil: Exploring the Transparency of Canadian Companies

• Conclusions:• Disclosure requirements for Canadian companies are

relatively high (note*: report released prior to Dodd-Frank law in US)

• Information disclosed by Canadian companies is underutilized by civil society organizations, both in Canada and abroad

• Feedback:• Civil society organizations in Africa and elsewhere

want to know more about accessing information on Canadian companies

PWYP-Canada Capacity Building Project

Sponsored by Open Society Institute, Revenue Watch Institute and Partnership Africa Canada

•Two Components:

1. Create 25 portfolios on public mining companies listed on a Canadian stock exchange, and operating in Africa (with a few exceptions)

2. Create a Manual for finding and using information disclosed by mining companies listed on Canadian stock exchanges

Company Portfolios

• The company portfolios will contain a summary of the relevant information that is disclosed by the company.

• The portfolios may include information on:

• Payments to host governments• Contracts and licensing agreements• Mineral resources and reserves• Environmental, social and governance factors

*Note that the information in each portfolio will vary depending on what is made available by the company, the stage of development (e.g.. exploration, mine development, production), the country of operation, etc.

Example: Banro Corporation & Twangiza Mine

Source: Revised Technical Report Twangiza Gold prepared by SENET for Banro Corporation: March 24th, 2011, page 181

Project Life Cash Flow Summary

This table shows the estimated cash flow for the Twangiza mine, which is set to begin production at the end of 2011. Of particular interest are the total estimated royalty payments and tax payments, along with the estimated net cash flow for the project for a 10 year period. The relevant information from this table is summarized below.

Item Total

Net Smelter Return Royalty US$ 12 058 000

Royalty on Operating Profit (4%) US$ 32 482 000

Net Cash Flow (after tax & capital expenditures) US$ 692 301 000

Source: Revised Technical Report Twangiza Gold prepared by SENET for Banro Corporation: March 24th, 2011, page 184

Example: Barrick Gold

Manual• Intended to guide civil society organizations in both locating

public information disclosed by mining companies and to use this information in their advocacy.

• Creating the manual is a collaborative process which will incorporate feedback from other civil society organizations and stakeholders

• Important to expand this information to other civil society organizations, citizens and communities impacted by mining operations

• The following slides demonstrate some of the content proposed for the manual

• Feedback is appreciated and essential for ensuring that the final manual is a useful tool

Sources of Information on Canadian Companies

Main Source:

1.System for Electronic Document Analysis and Retrieval (SEDAR)

Additional Sources:

1.Company Websites

2.Filings from listings in other jurisdiction

3.Export Credit Agencies and International Financing Institutions

SEDAR website: sedar.com

The System for Electronic Document Analysis and Retrieval (SEDAR) is the online filing service for Canadian public companies. This site provides public access to securities documents and other information filed by public companies.


1) SEDAR

What information can be found on SEDAR?

Information Instrument Location of Information

Item # Section(s)

Environmental, Social & Governance (ESG) Information

National Instrument (NI) 43-101

Technical Report Item 5 – Reliance on Experts Item 6 – Property Description and Location H

Item 7 – Accessibility, Climate, Local Resources, Infrastructure and Physiography

All sections

Item 19 – Mineral Resource and Mineral Reserve Estimates

G

Item 25 - Additional Requirements for Technical Reports on Development Properties and Production Properties

E


Management’s Discussion and Analysis (MD&A)

Item 1.2 – Overall Performance

Item 1.4 – Results of Operation D, G

Annual Information Form

Item 5 – Describe the Business 5.1.1.K5.1.45.25.45.4.1.D5.4.2.D

Payments to Governments (Royalty + Tax Information)


Technical Report

Item 6 – Property Description and Location GItem 25 - Additional Requirements for Technical Reports on Development Properties and Production Properties

F



Item 5 – Describe the Business 5.4.1.C5.4.11

Contracts National Instrument 51-102


Item 5 – Describe the Business 5.1.1.J


Technical Report Item 6 - Property Description and Location C, DItem 25 - Additional Requirements for Technical Reports on Development Properties and Production Properties

D

Resource and Reserve Data


Technical Report Item 19 – Mineral Resource and Mineral Reserve Estimates

B, G, M

Item 25 – Additional Requirements for Technical Reports on Development Properties and Production Properties

A, H, G

Information Instrument Location of Information

Item # Section(s)

How do I use SEDAR?Approach One: Under this approach your search will return only the document types selected.

•Step 1: www.sedar.com•Step 2: Choose a Language•Step 3: Select Search Database•Step 4: Select Public Company Documents•Step 5: Select an industry type•Step 6: Enter a company name•Step 7: Select a document type.

•NOTE: If you choose not to select a document type than all documents filed on SEDAR by that company will be shown.


How do I use SEDAR?Approach Two: Under this approach all documents filed on SEDAR by one company will be returned.

•Step 1: www.sedar.com

•Step 2: Choose a Language

•Step 3: Select Company Profiles

•Step 4: Select the first letter of the company’s name

•Step 5: Choose the company of interest

•Step 6: View all documents filed by that company on SEDAR


2) Company Websites• Additional Information• Corporate Social Responsibility Reports

Some companies have begun producing site specific CSR reports, although they may not be produced as frequently as company-wide CSR Reports.

Ex. Barrick Gold CSR Report for Bulyanhulu and Tulawaka

3) Filings from Other Listings• US Listings (New York Stock Exchange, AMEX, OTC)• Electronic Data Gathering, Analysis and Retrieval System

• EDGAR.com

Filings from Other Listings• UK Listings (London Stock Exchange)• National Storage Mechanism

• http://www.hemscott.com/nsm.do

4) Export Credit Agencies & International Financial Institutions

• Export Development Canada• http://www.edc.ca/english/disclosure_9238.htm

• International Finance Corporation• Ifc.org/projects (English only)

Export Credit Agencies & International Financial Institutions

Using Publicly Available Information on Canadian Companies

• Monitoring of Company Commitments and Policies

• Reports and Publications

• Comparative Analysis• Compare Information with EITI reports• Compare tax rates and royalty rates across company operations,

or between companies operating in one country

• Shareholder Advocacy• Social Investment Organization

• http://www.socialinvestment.ca/sio-members.htm

• Grievance Mechanisms1. The Office of the Extractive Sector Corporate Social Responsibility (CSR)

Counsellor - Review Process2. The Canadian National Contact Point (OECD Guidelines)3. Export Development Canada’s Compliance Officer

Objectives reiterated Present the components of the PWYP-Canada Capacity Building Project in

greater detail

Receive feedback on the project, which will assure that the final outcomes of the project are based on the needs of the PWYP coalition members

Identify ways in which the outcomes of the PWYP-Canada Capacity Building Project can feed into advocacy and research

Questions for Discussion

How do you see the PWYP-Canada Capacity Building relating to your own advocacy and research work? What are some ideas for incorporating the information found through sources like SEDAR into advocacy and research activities?

Contact information:Kady SeguinE-mail: [email protected] number: 1-613-237-6768 extension 8

Kady Seguin - PWYP-Canada Capacity Building ProjectFinding Publicly Available Information on...

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