Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Waste Management
• Water Use
• Community Relations
• Health and Safety
• Business Ethics and Transparency
• Biodiversity

Environmental Achievements

• Potential to be a zero-waste project with high-demand by-products including fertiliser, limited water use, and low-cost sustainable mining strategy focused on minimising CO2 emissions.
• Commencement of environmental baseline surveys for areas under consideration for the Project.

Social Achievements

• Revised plans for the Project include utilising existing infrastructure to minimise the potential impact of its operations on local communities.
• The Project is expected to generate more than 450 direct jobs in a brownfield historic mining region in the long term.
• The Group maintains a positive relationship with the local community and continuously engages with various local organisations and authorities.
• The Group has donated to several local associations and public institutions such as the local Kindergarten and the volunteer fire brigade.

Governance Achievements

• The Group adheres to the QCA Corporate Governance Code and has established a Sustainability Committee to ensure best practice with regard to ESG obligations.
• The Committee has established the Group’s core Sustainability philosophy and is working on refining and expanding on existing ESG Policies.

Climate Goals & Targets

Environmental Challenges

• Ongoing Funding requirements
• Commodity Price - market forces of supply and demand
• Geopolitical / Country Risk
• Competition in the Lithium Industry
• Change in Battery Technology
• Foreign currency exchange rates
• Mining, Exploration and Development Risks
• Further licences and permits required
• Personnel retention and recruitment
• Local Stakeholder Acceptance
• Environmental laws and regulations
• Supply Chains and Processes
• Health and Safety

Mitigation Strategies

• Engaging with potential investors, exploring debt, offtake investment, royalties, grants, or governmental funding.
• Applying a long-term LiOH price of $22,500 per tonne in its PEA, commissioning an independent price forecast report for the BFS.
• Zinnwald Project is ideally placed to support Germany’s and the EU’s future plans to develop its CRM supply.
• Focusing on quality of end product, consistent production, and cost per tonne; mitigating competition through strategic partnerships and resource optimization.
• Producing LiOH, the primary lithium product used by European car makers; adapting to alternative lithium-based chemistries if needed.
• Holding most cash reserves in Euros, taking appropriate hedging steps for fund-raising.
• PEA demonstrated robust economics; advancing technical plans to a BFS.
• Commencing the permitting approval process, engaging with permitting bodies.
• Increasing headcount in Germany, recruiting experienced personnel.
• Holding meetings with the local community, utilizing existing infrastructure, creating jobs, generating tax revenues, and working with accredited partners.
• Adhering to environmental regulations, designing a low-waste and environmentally sustainable project.
• Establishing policies to address environmental, social, and governance issues in supply chains.
• Complying with German laws and regulations, prioritizing safety, implementing policies and procedures to manage hazards.

Supply Chain Management

Responsible Procurement

• Working with internationally respected consultants for the development of its PEA and on towards BFS

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, UN SDGs, Equator Principles - EP4

Environmental Metrics

ESG Focus Areas

• Sustainability
• Environmental impact minimization
• Social license to operate
• Community engagement
• Employee well-being
• Corporate governance

Environmental Achievements

• Published an updated Mineral Resource Estimate showing the Zinnwald Lithium Project as the second largest hard rock lithium project in the EU and the third largest in Europe.
• Advanced testwork on Metso’s Alkaline Leach flowsheet to improve recoveries, reduce waste generation, and produce valuable by-products.
• Identified a new site location with better infrastructure and expansion potential.
• Commenced 12-month baseline flora and fauna studies at the new site location.

Social Achievements

• Engaging local communities in geological operations and support functions.
• Committed to preparing an ESIA and a suite of Environmental and Social Management Plans (ESMPs) to meet national and international standards.
• Appointed ERM International Group to complete the Scoping Study for the ESIA.
• Commenced scoping stage of its Environmental and Social Impact Assessment (ESIA) in accordance with the Equator Principles and international financing standards.
• Established an enhanced mechanism for interacting with retail shareholders via InvestorHub.

Governance Achievements

• Adherence to the Quoted Company Alliance’s (QCA) Corporate Governance Code.
• Established a Sustainability Committee.
• Regular Board meetings and committee meetings.
• Annual Board performance evaluation.
• Implementation of a Code of Conduct.

Climate Goals & Targets

Environmental Challenges

• Securing sufficient funding to execute the development programme for the Zinnwald Lithium Project.
• Pre-revenue stage and inherently speculative nature of the business.
• Competition in the lithium industry from established competitors and potential new entrants.
• Potential changes in battery technology.
• Obtaining necessary licenses and permits.
• Personnel retention and recruitment.
• Compliance with evolving environmental laws and regulations.
• Market perception of exploration and extraction companies.
• Fluctuations in foreign currency exchange rates.

Mitigation Strategies

• Issuance of equity and exploration of debt, offtake investment, royalties, grants, or governmental funding.
• Tight control on budgets and monthly review of spending.
• Focus on high-quality end-product, consistent and fast production, and competitive pricing.
• Long-term supply contracts with offtake partners.
• Proactive engagement with regulators and stakeholders.
• Implementation of a robust risk management process.
• Hedging strategies to mitigate foreign currency exchange rate risks.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: QCA Corporate Governance Code