Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Contributions
• Environmental Contributions
• Social Contributions

Environmental Achievements

• Won the Best Mining Forest Contest: Metallic Category of the Presidential Mineral Industry Environmental Award (PMIEA) for two consecutive years (2018 and 2019).
• Reduced fuel consumption to a cumulative consumption of 12.24 L/T of ore and waste versus the target of 16.35 L/T of ore and waste.
• Significant decrease in the amount of both sulfur oxide and particulate matter in 2019.
• Established a vermicomposting facility, turning biodegradable waste into organic fertilizer.
• Rehabilitated an accumulated permanent area of 19.64 hectares.

Social Achievements

• Achieved 9.6 million safe man-hours without lost time injury or fatality.
• Allocated PHP 85 million in community programs over two years.
• Supported 722 jobs in 2018 and 708 jobs in 2019.
• Implemented the Pondong Pangkabuhayan Livelihood Program, benefiting over 2,000 people.
• Implemented the loom weaving project to revive and preserve the culture and tradition of the community, providing additional income to IP members.

Governance Achievements

• Compliance with all relevant local and international standards, including discharging of the Company’s RSI to comply with the project’s requirements.
• ISO 14001:2015 – Environmental Management Systems certification.
• Collective Bargaining Agreement between FCF Minerals and its labor union.

Climate Goals & Targets

Environmental Challenges

• Possibility of flood or drought brought about by climate change.
• Maintaining a safe work environment with a large contractor workforce.
• Addressing potential negative impacts on biodiversity.
• Managing waste and effluents in compliance with regulations.

Mitigation Strategies

• Incorporated contingencies for extreme weather events and seismic activities in operational design criteria.
• Close collaboration with contractors to ensure compliance with safety policies and programs.
• Implementation of a Biodiversity Management Program (BMP).
• Implementation of programs and initiatives to manage effluents and wastes, including vermicomposting and partnerships with recyclers.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Prioritization of products from Runruno; green procurement practices; inclusion of environmental criteria in public tenders.

Climate-Related Risks & Opportunities

Physical Risks

• Flood
• Drought

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 14001:2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 1
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 11
• Goal 12
• Goal 13
• Goal 15
• Goal 16
• Goal 17

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 2018 and 2019 Best Mining Forest Contest: Metallic Category

Environmental Metrics

ESG Focus Areas

• Safety
• Health
• Environmental performance
• Community development
• Responsible mining

Environmental Achievements

• Actively reduced potential environmental impacts and enhanced environmental performance in mined-out and disturbed areas through rehabilitation activities, re-greening, protection forests, and wildlife habitat provision.
• Planted millions of endemic and cash crop trees.

Social Achievements

• Runruno achieved over 13 million person-hours without a reportable injury.
• Implemented numerous protocols and measures to combat COVID-19.
• Adapted community support programs to provide food and relief supplies to communities affected by COVID-19 and extreme weather events.
• Successfully relocated the majority of illegal miners from Stages 3 and 4 mine plan areas.
• Over 98% of workforce is Filipino.

Governance Achievements

• Completed debt restructuring, resulting in a more stable and sustainable debt profile.
• Appointed new independent directors to the Board, improving corporate governance compliance.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting supply chains, travel restrictions, and increased health and safety expenditures.
• Power supply interruptions reducing process operation efficiency.
• Delays in removing illegal miners from Stages 3 and 4 affecting the mining schedule.
• Excessive rainfall causing pit-wall slippages.
• Political and country risk in the Philippines.

Mitigation Strategies

• Implemented stringent on-site testing and mine site access procedures for COVID-19.
• Developed new protocols to deliver consistently higher BIOX® oxidation rates.
• Completed debt restructuring for financial stability.
• Developed a new access road into Stages 3 and 4.
• Worked with local and provincial governments to ensure smooth relocation of illegal miners.
• Maintained strong partnerships with government agencies.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (Typhoons)

Awards & Recognition

• Safest Surface Mining Operation
• Safest Overall Mining Operation

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Health and safety
• Social/community development
• Responsible mining practices

Environmental Achievements

• Received the Presidential Mineral Industry Environmental Award (PMIEA) in the Surface Mining Category
• Rehabilitated 7.68 hectares (FY2021: 7.17 hectares)
• Planted over 2 million endemic and cash crop trees
• Achieved ISO 14001:2015 compliance

Social Achievements

• Invested US$3.6 million in community programs (FY2021: US$1.9 million)
• Successfully relocated illegal miners with community support
• Maintained strong partnerships with various national agencies and local governments
• Over 98% of the Group’s workforce is Philippine

Governance Achievements

• Adopted the Quoted Companies Alliance’s Corporate Governance Code for small and mid-size quoted companies
• Improved corporate governance by having only non-lender appointed, non-executive directors on the Audit and Remuneration Committees

Climate Goals & Targets

Environmental Challenges

• Power outages leading to production losses (March-August 2022)
• Delays in accessing key mining areas due to illegal miners
• Inclement weather conditions impacting RSI construction
• Insufficient resource definition drilling to issue an updated ore reserve statement

Mitigation Strategies

• Improving plant performance and operational reliability
• Relocating illegal miners in collaboration with local government
• Proactive maintenance to minimize unplanned downtime
• Addressing recommendations from RSI audit report
• Planning for 10 diamond drill holes and 14 reverse-circulation holes in FY2023 exploration program

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001:2015

Awards & Recognition

• Presidential Mineral Industry Environmental Award (PMIEA)
• Runner-up, Safest Surface Mining Operation Award
• 3rd Runner-up, Best Mining Forest Contest – Metallic Category

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Community Development
• Safety and Health
• Climate Change
• Responsible Mining Practices

Environmental Achievements

• Received the Presidential Mineral Industry Environmental Award (PMIEA) for the second year in a row in 2023.
• Received 3rd Runner-up for the Best Mining Forest Contest in the Metallic Category.
• Rehabilitated 5.21 hectares within the FTAA area.
• Planted over 2 million endemic and cash crop trees.
• Achieved overall gold recovery of 88.7%.

Social Achievements

• Total community programme expenditure for FY 2023 was US$1.4 million.
• No material safety and health incidents throughout the project site.
• Over 22.7 million man-hours with no lost time incidents.
• 98% of the Group’s workforce is Philippine.
• Approximately 28% of the workforce is female.

Governance Achievements

• Improved corporate governance with non-lender appointed, non-executive directors on the Audit and Remuneration Committees.
• Successful deleveraging of the balance sheet, becoming essentially debt-free.

Climate Goals & Targets

Environmental Challenges

• Dispute with lenders regarding the applicable interest rate on mezzanine debt.
• Unsuccessful resource extension drilling at Runruno mine.
• Remaining life of mine at Runruno project is approximately 3-4 years.
• Potential risks associated with tailings management.
• Climate-related risks such as earthquakes, floods, typhoons, and dam failures.

Mitigation Strategies

• Partial payment of disputed interest amount, ongoing negotiations with lenders.
• Exploration of new projects in the Philippines (Abra project acquisition).
• Construction of final in-rock spillway for RSI (expected completion Q1 2025).
• Emergency control plan (ECP) to address climate-related risks.
• Continuous monitoring of RSI integrity by independent engineers.

Climate-Related Risks & Opportunities

Physical Risks

• Earthquakes
• Floods
• Typhoons
• Dam failures

Transition Risks

• Potential risks to power sources from climate change.

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI) Standards, Task Force on Climate-related Financial Disclosures (TCFD)

Certifications: ISO 14001:2015

Awards & Recognition

• Presidential Mineral Industry Environmental Award (PMIEA)
• 3rd Runner-up, Best Mining Forest Contest – Metallic Category
• 1st Runner-up, ASEAN Mineral Awards (Sustainable Mineral Development)
• 2nd Runner-up, ASEAN Mineral Awards (Sustainable Mineral Processing)