Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Completed electrification project of the existing underground mine at El Cubo, enabling the use of electricity from the power grid, resulting in cost savings of up to $80,000 per month and reduced air pollution.
• Completed construction to increase the permitted height and footprint of the tailings dam at Topia.

Social Achievements

• Improved safety conditions in San Ignacio mine following a fatal accident, implementing new policies and procedures in collaboration with Mexican government authorities.
• Reduction of truck haulage at VMC due to the rehabilitation of the Cata Shaft, positively impacting the relationship with surrounding communities.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Material uncertainties about the Company’s ability to continue as a going concern due to mine operating loss, net loss, negative cash flows, accumulated deficit, and current liabilities exceeding current assets.
• Lower tonnes mined at El Cubo due to lack of available stopes, resulting in lower production.
• Higher extraction costs at Topia due to narrow vein structures.
• Suspension of operations at San Ignacio for 15 days due to a fatal accident.

Mitigation Strategies

• Extending payment terms with suppliers, settling liabilities through share issuance, discussions with lenders for debt amendment or new financing, and considering equity financing.
• De-watering lower levels of Villalpando mine to access higher-grade material.
• Shifting to local mine contractors for mineralized material extraction at Topia and reducing staff by 10%.
• Implementing new policies and procedures to improve safety conditions at San Ignacio mine.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (drought, storms, flooding, wildfires), impacting operations and transportation.

Transition Risks

• Increased costs due to stricter climate change legislation and treaties.

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: IFRS

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Completed electrification project of the underground mine at El Cubo, reducing reliance on diesel generators and improving air quality.
• Established a central workshop to reduce maintenance costs by 25-30%.

Social Achievements

• Reactivation of the Cata Shaft at VMC, reducing haulage costs and improving community relations.
• Hiring of approximately 100 employees to replace mining contractors.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Regulatory inspection by the Secretaria del Trabajo (Ministry of Labour) at the Villalpando and Santa Cecelia mines and reduced availability of mining equipment led to lower mined tonnage at El Cubo.
• Higher energy costs and peso appreciation impacted production costs.
• Ramping up production at VMC and higher production costs at Topia contributed to higher average production cost per tonne.
• Uncertainty surrounding Great Panther bankruptcy and ability to collect receivables.

Mitigation Strategies

• Increased mill throughput with higher-grade mineralized material at El Cubo.
• Rehabilitation of the Cata Shaft at VMC to improve efficiency and reduce costs.
• Modernization and expansion of Topia plant capacity.
• Took an allowance of $1,300,000 against the $2,416,318 amount receivable due to the uncertainty surrounding the Great Panther bankruptcy.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (drought, storms, flooding, wildfires)
• Water access for operations

Transition Risks

• Climate change legislation and treaties (emission levels, energy efficiency)

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Completed electrification project of the existing underground mine at El Cubo, enabling the use of electricity from the power grid, resulting in cost savings of up to $95,000 per month and reduced air pollution.
• Increased the permitted height and footprint of the tailings dam at Topia, increasing capacity from two years to four years.

Social Achievements

• Improved relationships with surrounding communities due to reduced truck haulage at Valenciana.
• Initiated operation of a central maintenance shop at El Cubo, enhancing operational efficiency and safety.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Material uncertainties that may cast significant doubt about the Company’s ability to continue as a going concern due to accumulated deficit and current liabilities exceeding current assets.
• Supply chain disruptions due to extreme weather events and global economic volatility.
• High extraction costs at Topia due to narrow vein structures.

Mitigation Strategies

• Extending payment terms with suppliers and settling certain liabilities through the issuance of common shares.
• Considering new debt financing and raising additional equity financing.
• Shifting to local mine contractors for mineralized material extraction at Topia to reduce costs and improve profitability.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (drought, storms, flooding, wildfires)
• Water access for operations

Transition Risks

• Increased costs due to stricter climate change legislation and regulations

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed