OSC Finds Small Mining Issuers’ MD&A Falls Short

The Ontario Securities Commission (OSC) has found that many small mining issuers fail to provide complete and meaningful disclosure in their management's discussion and analysis (MD&A). The OSC's findings are set out in OSC Staff Notice 51-722 Report on a Review of Mining Issuers' Management's Discussion and Analysis and Guidance (the OSC Staff Notice) released by the OSC on February 6, 2014. Mining issuers should carefully review the OSC's guidance when preparing their annual and quarterly MD&A.

The OSC recognizes that the challenging economic environment can limit available financial resources for small mining issuers, which in turn can make it difficult for such issuers to comply with their MD&A and other reporting requirements. Recognizing these challenges, the OSC undertook a review focussed on 100 Ontario based mining issuers with a market capitalization of less than $100 million. The sample set included venture and non-venture issuers across all stages of