MRIWA seeks research insight establishing the value attributed by the funding market (in the form of the ASX) to junior (SME) mineral exploration companies participating in minerals research.
Under Australian Stock Exchange (ASX) Listing Rule 3.1, a listed entity must disclose all information concerning itself of which it becomes aware – from any source and of any character – if a reasonable person would expect the information to have a material effect on the price or value of its securities. Conventional practice commonly sees mineral exploration companies include participation in and/or sponsorship of research projects among such information requiring disclosure, but MRIWA is not aware of any studies establishing the actual materiality of such activity.
Although widely perceived to be an important source of innovation in the WA mineral exploration sector, junior exploration companies are under-represented among those participating in formal research. If a discrete market value could be ascribed to research announcements, this could form the basis of a compelling value proposition supporting wider engagement of this key sub-group in formal research activities, helping drive innovation in the exploration sector.