Climate Change Data

Environmental Metrics

ESG Focus Areas

• Health and safety
• Environmental protection

Social Achievements

• Implemented precautionary health and safety measures across its operations based on recommendations from public health authorities and governments.
• Implemented multiple initiatives to reduce costs and manage its liquidity position without impacting its ability to ramp up its business.
• Management and Directors agreed to a temporary 15% reduction in remuneration.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on operations, particularly in Chile.
• Shortage of experienced drillers in Canada, leading to increased labor costs and impacting productivity.
• Higher material costs due to temporary supply chain issues related to the pandemic.

Mitigation Strategies

• Applied for government grants and subsidies.
• Reworked cost structure and postponed non-essential expenses.
• Made arrangements with Export Development Canada (EDC) to temporarily suspend loan payments.
• Made arrangements with National Bank of Canada to modify covenants in its senior credit facility.
• Implemented driller training program and leveraged computerized drill technology to accelerate the learning process.
• Expected to offset cost increases with higher contract pricing.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions, natural disasters

Transition Risks

• Regulatory changes relating to emission levels

Environmental Metrics

ESG Focus Areas

• Health and safety
• Environmental protection
• Employee training and retention

Environmental Achievements

• Not disclosed

Social Achievements

• Implemented Employee Share Purchase Plan (ESPP) in December 2021 to encourage employee share ownership.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Increased driller training costs
• Decline in productivity due to higher proportion of less experienced drillers
• Adverse weather conditions
• Higher wage and project ramp-up costs in Canada
• Significant mobilization costs related to new long-term contracts in Guinea and Chile
• Supply chain disruptions and cost inflation for materials and fuel
• Omicron-related work interruptions
• Shortage of experienced drillers in Canada

Mitigation Strategies

• Driller training program
• Increased wages
• Computerized drilling technology
• Price increases on drilling contracts

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions, natural disasters

Transition Risks

• Regulatory changes relating to emission levels

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

• Health and safety
• Environmental protection

Social Achievements

• Maintains a high level of health and safety standards in the workplace and promotes protection of the environment.

Climate Goals & Targets

Environmental Challenges

• Temporary reduction in drilling activity in Canada during Q4 2023 due to extensive forest fires and customer decisions to temporarily suspend or reduce drilling activity.
• Significant additional investment required to generate an acceptable return on investment in Burkina Faso, combined with ongoing security concerns.
• Shortage of experienced drillers in Canada resulting in increased wage costs.
• Global inflation in costs for supplies and materials.

Mitigation Strategies

• Began ramping up suspended projects in early July, expecting full resumption by January 2024.
• Decided to exit Burkina Faso and complete the drilling program there by Q2 2024.
• Addressing the driller shortage through training programs, increased wages, and computerized drilling technology.
• Implemented price increases on drilling contracts to offset increased wage and material costs.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions, natural disasters including forest fires

Transition Risks

• Regulatory changes relating to emission levels

Environmental Metrics

ESG Focus Areas

• Safety
• Environmental Protection
• Employee Training and Development
• Team-Oriented Leadership

Environmental Achievements

• Not disclosed

Social Achievements

• Launched a hands-free automated drilling rod handling system that enhances driller efficiency and safety.
• Shifted business culture towards a more team-oriented leadership structure that fosters collaboration and personal accountability.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Low levels of gold drilling activity for junior exploration companies in Canada.
• Challenging financing conditions for junior exploration companies.
• Unprofitable operations in West Africa (Burkina Faso and Guinea).
• Increased wage costs for experienced drillers in Canada.
• Global inflation in costs for supplies and materials.

Mitigation Strategies

• Primarily focusing on Canadian gold drilling operations and prioritizing longer-term, specialized drilling contracts with senior and intermediate customers.
• Exiting the West African market.
• Renewing large, specialized drilling contracts in Canada and Chile.
• Investing in driller training and computerized drilling technology.
• Adjusting pricing on several drilling contracts to offset increased costs.
• Focusing on operations in Canada and Chile.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions, natural disasters including forest fires

Transition Risks

• Regulatory changes relating to emission levels

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: IFRS

Certifications: Null

Third-party Assurance: KPMG LLP

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Computerized monitoring and control drilling technology

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Health & Safety
• Environmental Practices
• Driller Training

Environmental Achievements

• UL 2724 ECOLOGO® Certified for suppliers of the mineral exploration industry

Social Achievements

• Strong health & safety and driller training programs
• Team-oriented leadership structure / foster collaboration and personal accountability

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Temporary reduction of drilling activity in Canada during H1 2024
• Exit from West Africa (largely unprofitable operations)

Mitigation Strategies

• Prioritize longer-term, specialized drilling contracts with major and intermediate customers
• Opportunistic international contracts with high degree of cost and margin certainty
• Continued investment in driller training / computerized drilling technology

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: UL 2724 ECOLOGO®

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed