Qualified Person

A Qualified Person (QP) is the mining and natural resources industry's designated expert, acting as a crucial gatekeeper of information for investors. Think of them as a highly specialized geological detective. This individual is a professional engineer or geoscientist with specific credentials and experience who is responsible for preparing, or supervising the preparation of, a company's technical reports on its mineral properties. These reports are not just internal documents; they are legally mandated public disclosures in many jurisdictions and form the primary basis for a company's statements about its assets. For a value investor, the QP's assessment is fundamental. It provides an independent, professional verification of the quantity and quality of a company's most critical assets—the minerals in the ground. Without the QP's stamp of approval, a company’s claims about possessing a world-class gold deposit are just that: claims. The QP's report provides the evidence.

Not just any geologist can be a QP. The title comes with stringent requirements defined by securities regulators to ensure competence and independence. While the specifics can vary slightly, a QP must generally meet several key criteria, which are outlined in regulations like Canada's National Instrument 43-101 (NI 43-101) and the United States' SEC S-K 1300. These typically include:

• Professional Standing: The individual must be a member in good standing of a recognized professional association (e.g., a professional engineering or geoscience body).
• Experience: They must have at least five years of experience in mineral exploration, mine development, or production, including relevant experience in the specific commodity and deposit type they are assessing.
• Independence: Crucially, the QP must be independent of the company, ensuring their conclusions are objective and free from corporate influence.
• Accountability: By signing off on a report, the QP takes personal professional responsibility for its contents.

For anyone investing in a mining or exploration company, understanding the role of the QP is non-negotiable. Their work is the bedrock of your investment thesis.

A mining company’s value is tied directly to the assets it claims to own, which are often buried miles underground. The QP is the independent professional who translates complex geological data into standardized, investor-friendly classifications of `mineral resource` and `mineral reserve`. These classifications are the building blocks of a mining company's valuation. A report from a reputable QP gives you confidence that the company's “proven” reserves are, in fact, proven according to rigorous industry standards. It separates credible projects from speculative promotions.

As a savvy investor, your due diligence shouldn't stop at simply confirming a technical report exists. You should ask, “Who is the Qualified Person?” A quick search on the QP's name and their consulting firm can reveal their reputation and track record.

• Is the QP a widely respected expert from a major independent engineering firm?
• Or do they have a history of signing off on projects that consistently fail to meet expectations?

The quality and reputation of the QP provide a powerful signal about the quality of the company and its assets.

If you are investing globally, you will encounter another title: the `Competent Person` (CP). Don't be confused; the roles are functionally identical. The difference is purely jurisdictional.

• Qualified Person (QP): This is the term used in North America, primarily under Canada's NI 43-101 and the US's S-K 1300 rules.
• Competent Person (CP): This is the term used in Europe, Australia, South Africa, and other jurisdictions that adhere to reporting standards like the Australasian JORC Code or the European PERC Reporting Standard.

Whether they are called a QP or a CP, their fundamental duty is the same: to protect investors by ensuring that public disclosures of mineral exploration results, resources, and reserves are reliable, transparent, and prepared by a qualified and accountable professional.