Extractive Insight

Rating scale

The measure, factors and review basis behind a Tenure Risk Rating.

What the rating measures

A graded assessment of how exposed one licence is to a change in the terms it depends on. In mining that is renewal, revision, reassessment or withdrawal. In petroleum it is extension of the exploration period, approval of a development plan, relinquishment obligations, consent to a change of control, and revision of cost recovery, profit-oil or state participation terms. We show the factors and the reasoning, so you can argue with it rather than take it on faith. We do not forecast political events and we do not grade governments. We tell you which licences carry the most exposure if the framework around them moves.

Grade bands

[GRADE BAND DEFINITIONS]

Factor sets

Mining

Renewal
Revision
Reassessment
Withdrawal

Petroleum

exploration-period extensions
Development-plan approval
Relinquishment obligations
Change-of-control consent
Cost recovery and profit oil
State participation

Review cadence

[REVIEW CADENCE]

Extractive Insight assesses licence-level exposure. Our outputs, including the Tenure Risk Rating, are assessments of exposure to changes in the terms on which a licence depends. They are not legal advice, not investment advice, not a credit rating, and not a recommendation to buy, sell or hold any security or interest. They are not a statement that any state, authority, holder or other party has acted or will act improperly. Each output rests on the sources identified within it and reflects the position as at its stated knowledge date.