Kady Seguin - PWYP-Canada Capacity Building ProjectFinding Publicly Available Information on...
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Transcript of 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.
SEDAR website: sedar.com
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
National Instrument (NI) 51-102
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)
National Instrument (NI) 43-101
Technical Report
Item 6 – Property Description and Location GItem 25 - Additional Requirements for Technical Reports on Development Properties and Production Properties
F
National Instrument (NI) 51-102
Annual Information Form
Item 5 – Describe the Business 5.4.1.C5.4.11
Contracts National Instrument 51-102
Annual Information Form
Item 5 – Describe the Business 5.1.1.J
National Instrument (NI) 43-101
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
National Instrument (NI) 43-101
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.
SEDAR website: sedar.com
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
SEDAR website: sedar.com
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