Sarama Announces Change of Auditor: What It Means, Why It Matters, and What Investors Should Watch Next

Meta Description: Sarama Announces Change of Auditor in February 2026—here’s a detailed, plain-English breakdown of the auditor transition, timelines, governance steps, filings, and what it may signal for investors and stakeholders.

Sarama Resources Ltd. (“Sarama” or the “Company”), listed on the ASX and TSXV, has shared an important corporate update: it has appointed a new external auditor. The announcement states that Davidson & Company LLP (“Davidson & Co”) was appointed as the Company’s audit firm, effective 13 February 2026.

This kind of update may sound technical, but it can matter to investors, lenders, and partners because the external auditor plays a key role in reviewing financial reporting. In simple terms, the auditor helps provide confidence that financial statements are prepared fairly and in line with accounting standards.

Below is a detailed rewrite and expanded explanation of the news, including timelines, governance steps taken by Sarama’s board and audit committee, where official documents can be found, and practical points that readers can use to understand the change.

1) The Headline Update: What Sarama Announced

In its release dated Monday, 16 February 2026, Sarama confirmed it has appointed Davidson & Company LLP as the Company’s audit firm. The appointment is effective 13 February 2026.

The Company also disclosed that the appointment followed the resignation of HLB Mann Judd, which was effective 10 February 2026.

Just as importantly, Sarama described the internal oversight steps taken during the transition. According to the announcement, Sarama’s Audit Committee accepted the resignation and recommended appointing Davidson & Co. After that, Sarama’s Board of Directors, acting on the Audit Committee’s recommendation, appointed Davidson & Co as the new auditor until the Company’s next Annual General Meeting (AGM).

2) Timeline of Events: Key Dates and Sequence

Clear timelines help readers understand whether a change appears orderly and well-documented. Here is the sequence Sarama reported:

• 10 February 2026: HLB Mann Judd resignation effective date.
• 13 February 2026: Davidson & Company LLP appointment effective date.
• 16 February 2026: Public announcement released (dated and published by the newswire).

From a governance perspective, the short time between resignation and appointment can be seen as a sign the Company moved quickly to maintain continuity in financial oversight—while still following the board and committee process described in the announcement.

3) Why Companies Change Auditors (General Context)

Companies may change auditors for many ordinary reasons, and a change does not automatically imply a problem. Common reasons can include:

• Cost and efficiency: A company may seek a different fee structure or service model.
• Geographic fit: If a company operates across regions, it may prefer an auditor with deeper coverage in key markets.
• Capacity and timing: Audit scheduling can become challenging, especially when reporting deadlines are tight.
• Strategic alignment: Boards sometimes look for a firm that better matches their current stage of growth.

In this particular release, Sarama did not provide a long explanation of “why” beyond stating the resignation occurred and that a new firm was appointed. So, readers should stick to what is stated: a resignation was received and accepted, and a new auditor was appointed through the Audit Committee and Board process.

4) Governance Steps Sarama Reported: Audit Committee and Board Oversight

Sarama’s announcement highlights several steps meant to reassure stakeholders that the change was handled with formal oversight:

4.1 Audit Committee Review

According to the release, the Audit Committee of the Board of Directors accepted the resignation of HLB Mann Judd and recommended the appointment of Davidson & Co.

Audit committees typically focus on financial reporting quality, internal controls, and the independence and performance of the external auditor. When a change happens, the committee’s involvement signals that the process is not simply administrative—it is reviewed through the lens of governance and risk.

4.2 Board Appointment Until the Next AGM

The announcement states that Sarama’s Board of Directors, based on the Audit Committee’s recommendation, appointed Davidson & Co as the new auditor until the next Annual General Meeting.

This “until the next AGM” detail matters because shareholders often have a formal role in auditor appointment or ratification, depending on the jurisdiction and company rules. The board’s appointment can be a practical step to ensure there is an auditor in place for upcoming reporting and compliance needs, with the AGM serving as the next key checkpoint.

5) Regulatory Paperwork: Notice of Change of Auditor and Letters

Sarama reported that it sent a Notice of Change of Auditor (the “Notice”) to both the former auditor (HLB Mann Judd) and the new auditor (Davidson & Co).

It also stated that it received a letter from each firm—addressed to securities commissions in the jurisdictions where Sarama reports—confirming they agree with the information contained in the Notice.

Together, Sarama referred to these materials as the “Change of Auditor Package”, and the Company said the package was reviewed and approved by both the Audit Committee and the Board.

For investors, this is a practical signal that the Company is describing a standard disclosure process: notice, confirmations from both firms, and governance review.

6) Where Investors Can Find the Documents

Sarama stated that the Change of Auditor Package is available under Sarama’s SEDAR+ profile.

If you want to read the official filing materials rather than only a summary, you can check the SEDAR+ platform and search Sarama Resources Ltd. (This is especially useful for investors who want to see the Notice wording.)

External reference (official filing platform): SEDAR+ (sedarplus.ca)

7) Why the Auditor Role Matters in Plain English

An external auditor reviews a company’s financial statements and related disclosures. While management prepares the accounts, the auditor provides an independent review and issues an audit opinion (when an audit is required).

Here are a few reasons this role can matter to stakeholders:

• Credibility: Audited statements can be more trusted by investors, banks, and partners.
• Governance and risk: Auditor interactions can highlight process improvements or control gaps.
• Market confidence: Clear disclosure around changes can reduce uncertainty and rumors.

That said, it is also normal for companies to change auditors at times. The key is how the transition is handled and disclosed. In Sarama’s case, the release emphasizes formal steps: resignation date, appointment date, committee and board approvals, and the filing package with letters from both firms.

8) What This Update Does (and Does Not) Say

It’s easy to overread a short corporate release, so it helps to separate what is clearly stated from what is not.

8.1 What is clearly stated

• Davidson & Co was appointed as Sarama’s audit firm effective 13 February 2026.
• HLB Mann Judd resigned effective 10 February 2026.
• The Audit Committee accepted the resignation and recommended the new auditor.
• The Board appointed the new auditor until the next AGM.
• A Notice and letters from both audit firms were prepared, and the package was reviewed and approved.
• The package is available on SEDAR+.

8.2 What is not explained in detail

• The release does not provide a long narrative explanation for the resignation.
• It does not discuss audit fees, timing of audits, or accounting issues.
• It does not describe any disagreement between the Company and the former auditor.

Because the announcement is brief, the best next step for readers who want more detail is to consult the Change of Auditor Package referenced in the release.

9) Market Listings and Communication Notes

The announcement identifies Sarama Resources Ltd. as listed under ASX: SRR and TSXV: SWA.

It also includes a standard exchange disclaimer stating that the TSX Venture Exchange and its Regulation Services Provider do not accept responsibility for the adequacy or accuracy of the release.

This type of disclaimer is common in Canadian-listed company news releases and is typically included for regulatory and policy reasons.

10) Contact Details Provided by the Company

The release includes a point of contact for further information:

• Andrew Dinning, Sarama Resources Ltd.
• Telephone: +61 8 9363 7600
• Email: provided in the release

For general company context, Sarama’s website is also referenced on the release page. Sarama Resources Ltd. website

11) Practical Investor Checklist: What to Watch Next

If you are a shareholder or simply following the metals and mining sector, here are practical follow-up items that can help you stay grounded in facts:

• Read the filing package: Check the Notice of Change of Auditor and letters on SEDAR+.
• Watch upcoming reporting: Look at the next financial statements and related auditor references.
• Monitor AGM materials: Since the appointment is “until the next AGM,” watch for AGM documentation that addresses auditor ratification or related resolutions.
• Track governance updates: Any future governance, committee, or finance updates may offer additional context.

Most importantly, try to avoid jumping to conclusions based on headlines alone. Auditor changes can happen for routine reasons, and the best evidence is the formal disclosure package and the company’s ongoing reporting.

12) FAQs (Frequently Asked Questions)

Q1: What exactly did Sarama change?

Sarama changed its external audit firm by appointing Davidson & Company LLP as its auditor, effective 13 February 2026, after receiving the resignation of HLB Mann Judd, effective 10 February 2026.

Q2: Does an auditor change mean something is wrong?

Not necessarily. Companies change auditors for many normal reasons, such as service needs, timing, or strategic fit. In Sarama’s release, the company focuses on the process (resignation, appointment, and filings) rather than describing a specific issue.

Q3: Who approved the new auditor?

According to the release, Sarama’s Audit Committee accepted the resignation and recommended the new firm, and the Board of Directors appointed Davidson & Co on that recommendation.

Q4: How long will Davidson & Co serve as Sarama’s auditor?

The announcement states the appointment is in place until the next Annual General Meeting.

Q5: Where can I read the official “Notice of Change of Auditor” documents?

Sarama stated that the Notice and related letters (the “Change of Auditor Package”) are available under Sarama’s SEDAR+ profile.

Q6: What is the “Change of Auditor Package” mentioned in the release?

Sarama used that term to describe the Notice of Change of Auditor and the letters from both HLB Mann Judd and Davidson & Co agreeing with the Notice information, as referenced in the announcement.

Q7: When was this news released publicly?

The release is dated 16 February 2026 and was published through the newswire channel shown on the page.

13) Conclusion: A Straightforward Corporate Governance Update

In summary, Sarama Announces Change of Auditor as part of a formal transition from HLB Mann Judd to Davidson & Company LLP, with effective dates in February 2026 and oversight by both the Audit Committee and the Board.

For stakeholders, the key takeaway is that Sarama describes a structured process: resignation accepted, new firm appointed, required notices and letters prepared, and the complete package made available through SEDAR+. While the announcement itself is concise, the referenced filings provide the best place to confirm details and understand the documented record.

If you’d like, I can also create a shorter “investor summary” version (300–500 words) or a Thai translation while keeping the same facts and dates.

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