Climate Change Data

Environmental Metrics

Social Achievements

• Maintained tight onsite protocol to ensure smooth operations, restricting entry and exit from the site without a proper medical affidavit and quarantine period if needed. The mine continues to use thermal body cameras as a way to detect early COVID-19 symptoms to limit any possible spread. More than 90% of the employees and contractors have already received the first vaccination dose. Minera Don Nicolas targets 100% of the employees and contractors to be fully vaccinated by the end of the 2nd quarter 2022.

Climate Goals & Targets

Environmental Challenges

• Various COVID-19 restrictions and a government-mandated shutdown resulted in the loss of 10 operating days in January 2021. Waste deficits caused by previous restrictions required additional stripping to return the mine operations to normal.
• Uncertainty of Resource Estimates: Mineral Resource Estimates are based on limited information and there's no assurance that anticipated tonnages and grades will be achieved.
• Foreign Currency Risks: Argentina's economic and political environment, including inflation and foreign currency controls, poses risks.
• Competition and Agreements with Other Parties: The mining industry is competitive, and the company faces competition for resources, technical capacity, and financial resources.
• Regulatory: Extensive controls and regulations imposed by various levels of government may be amended from time to time. Failure to comply may result in enforcement actions.
• Environmental: All phases of the mining business present environmental risks and hazards and are subject to environmental regulation.
• Permits and Licenses: Obtaining and maintaining necessary permits and licenses is complex and time-consuming.
• Substantial Capital Requirements & Liquidity: The company may have to make substantial capital expenditures, and there's no assurance that such capital will be available.
• COVID-19 and Other Health Crisis: The COVID-19 pandemic could adversely impact global economic conditions and the company's operations.

Mitigation Strategies

• Implemented tight onsite COVID-19 protocols, including thermal body cameras and vaccination programs.
• Engaged internal and expert independent technical consultants for advice on Mineral Resources, geotechnical, metallurgy, and project engineering.
• Monitors developments and policies in the jurisdictions in which it operates.
• Maintains insurance to protect against certain risks.
• Took steps to verify title to mining interests.
• Working closely with national and local authorities to ensure safe operation of its sites.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Poor weather conditions, wet feed impacting throughput, lower than expected head grade values at Las Calandrias heap leach project, delaying full production by approximately two months.
• Freezing conditions reducing initial irrigation rates at Las Calandrias heap leach project.
• Uncertain and unpredictable political and economic environment in Argentina, including inflation and currency controls.
• New local procurement law in Santa Cruz, Argentina, requiring 50% of goods and services from local providers.

Mitigation Strategies

• Addressing freezing conditions impacting irrigation rates at Las Calandrias.
• Completion of crushing plant at Las Calandrias to improve feed consistency.
• Actively working to term out the maturity of short-term debt and roll obligations in Argentina.
• Monitoring developments and policies in Argentina and Brazil and assessing potential impact on operations.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Significant financial policy changes in Argentina post the federal election and a lack of liquidity in the market to fund junior mining companies.
• Higher production costs due to higher labor costs.
• Fiscal policy changes in Argentina imposed a significant financial burden on the Minera Don Nicolás operation.
• Disruption to supplies to the mine due to the new fiscal regime in Argentina and associated hyperinflation.
• Lack of liquidity in 2023 reduced exploration expenditures, limiting available high-grade resources.

Mitigation Strategies

• Seeking alternative funding arrangements (sale of Monte Do Carmo project).
• Received US$15m from Hochschild via a signing loan to address immediate working capital requirements.
• Initiated debt reduction in Argentina and improving the overall balance sheet position.
• Maintaining production rates in Argentina and reviewing the merits of repositioning the mine to solely a heap leach operation for the short term.
• Targeting to release an NI 43-101 Resource Update and a Preliminary Economic Assessment for the revised near-term mine plan at MDN in early Q3 of 2024.
• Doubling the current heap leach capacity to sustain production.
• Targeting exploration programs to grow existing high-grade ore resources.

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: 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