Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Emissions from the company’s operations are managed in strict compliance with Russian regulatory requirements. Monitoring data at all sites has identified no air or water quality impact. Kopy Goldfields utilizes electricity supplied from hydropower.

Social Achievements

• The company is a small employer in the area, but is focusing on creating interesting job opportunities in order to attract and retain the best possible employees. This strive includes offering competitive wages and personal development opportunities with training. During low season, the company supports education for employees.
• The company seeks to recruit staff from the nearby area. However, some of the company’s employees come from other regions and stay on-site in purpose-built accommodation during the time of their shift.
• All staff receives health and safety training as part of the initial introduction process. Job-specific training is then provided within each workplace. Health and safety monitoring as well as internal inspections of working environments are regularly undertaken to ensure compliance with Russian regulatory requirements. Regular medical reviews are organised in Bodaibo.

Governance Achievements

• The Board’s intention is to implement the Swedish Corporate Governance Code.

Climate Goals & Targets

Environmental Challenges

• Operating in Russia is subject to a number of political, legal and economic factors that may affect the Company’s operations and financial position.
• Volatility in gold price
• Fluctuations in the official exchange rate of the Russian ruble, Euro and US dollar affects directly and indirectly the value of assets and liabilities.
• The insurance industry is not yet developed in Russia and several forms of insurance protection common in more economically developed countries are not yet available in Russia at equivalent terms.
• Geological risk
• Technical risk
• Environmental risk
• License management
• Useful life of the deposits
• Suppliers
• Risks related to acquisitions
• Dependence on qualified personnel
• Accidents
• Reporting process
• Risks related to the parent company
• Currency risks
• Interest-rate risks
• Credit risk
• Liquidity risk and re-financing risk
• Need for additional capital

Mitigation Strategies

• The Company monitors the development of sanctions and conflicts in the Russian federal system.
• The Company is focusing on creating interesting job opportunities in order to attract and retain the best possible employees.
• All staff receives health and safety training.
• The Company will gradually apply the Swedish Corporate Governance Code to where it is deemed relevant for the Company and the shareholders.
• The Company limits credit risks by placing surplus cash funds with counterparties with high credit ratings.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: JORC, GKZ

Third-party Assurance: Ernst & Young AB

Environmental Metrics

ESG Focus Areas

• Environment
• Safety

Environmental Achievements

• Emissions from the company’s operations are managed in strict compliance with Russian regulatory requirements. Monitoring data at all sites has identified no air or water quality impact. Kopy Goldfields utilizes electricity supplied from hydropower.

Social Achievements

• The company is a small employer in the area, but is focusing on creating interesting job opportunities in order to attract and retain the best possible employees. This includes offering competitive wages and personal development opportunities with training. During low season, the company supports education for employees.
• All staff receives health and safety training as part of the initial introduction process. Job-specific training is then provided within each workplace. Health and safety monitoring as well as internal inspections of working environments are regularly undertaken to ensure compliance with Russian regulatory requirements. Regular medical reviews are organised in Bodaibo.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Operating in Russia subjects the Company to several political, legal and economic factors that may affect its operations and financial position.
• Geological risk Gold exploration is associated with high risk.
• Technical risk Technical risks can arise from the exploration of mineral deposits, which could lead to interruptions in exploration work and negatively affect the Company.
• Environmental risk If incorrect technical or chemical equipment is used in exploration and production, environmental risks may arise that may delay the Company’s operations and increase the cost of exploration, which may have a negative effect on the financial position of the Company.
• License management Delays may occur in the exploration work, with the result that the Company must renew the production licenses, which may lead to delays in the start of production and which may affect the Company’s financial position negatively.
• Useful life of the deposits The useful life and profitability of a deposit depends on several factors, such as metal prices, the size of the mineral resource, financing costs, etc.
• Suppliers Dependence on third parties and local suppliers and their services, access to equipment and construction assistance may be delayed.
• Acquisitions The acquisition of licenses is part of the Company’s strategy.
• Dependence on qualified personnel The Company’s development is highly dependent on the existing management and organization and their ability to recruit and retain experienced personnel for future operations.
• Accidents Mining and exploration are more accident-prone industries than many others.
• Reporting process The Company’s management processes and internal reporting controls may suffer if its subsidiaries do not follow established procedures for reporting to the Parent Company

Mitigation Strategies

• Not disclosed

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: JORC

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 Management
• Social Impact
• Governance

Environmental Achievements

• Implementation of dry stacking of process tailings, minimizing environmental impact at Perevalnoe.
• Water recycling system at Yubileyniy to minimize discharge to the local environment.

Social Achievements

• Financial and technical support to the administration of the Ayano-Maisky district.
• Settlement of grievances from the indigenous population in 2017.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not all Russian legislation requirements are currently fully satisfied (e.g., waste dump registration, sanitary protection zones, permits).
• Lack of Environmental Impact Assessment (OVOS) and ongoing environmental monitoring.
• Potential for pit wall instability at Perevalnoe and Malyutka due to aggressive design features.
• Project implementation risk due to long logistics chains and reliance on new projects.
• Uncertainty in exchange rate (RUB/USD).

Mitigation Strategies

• Suitable environmental management programs at mine sites and corporate level.
• Adopting more conservative design parameters for pits.
• Further metallurgical test-work, especially for Malyutka.
• Relocation of existing facilities to mitigate project implementation risk.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Preference given to Russian organizations and developments when engaging contractors and subcontractors.

Climate-Related Risks & Opportunities

Physical Risks

• Flooding

Transition Risks

• Regulatory changes

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: JORC Code (2012 Australasian Code)

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed