Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Impact Assessments
• Community Development
• Formalization of Artisanal and Small-Scale Mining (ASSM)
• Safety Regulations
• Gender Equality
• Sustainable Development

Environmental Achievements

• Development of Environmental Impact Assessment (EIA) guidelines for mineral and petroleum operations
• Environmental Management Guidelines for Artisanal Mining

Social Achievements

• ASSM National Strategy to formalize artisanal mining, promote responsible operations, and contribute to sustainable development
• Focus on women's participation in ASSM
• Community development fund established for projects benefiting communities affected by mining activities

Governance Achievements

• Mining sector reforms including improved policy framework, legal framework review, institutional capacity building, human resource development, and enhanced facilitation through information technology
• Paperless e-portal for mining license applications
• Citizen Charter outlining MoMP's service delivery obligations

Climate Goals & Targets

Environmental Challenges

• Informal artisanal mining activities
• Low royalty collection from artisanal miners
• Illegal mineral trade
• Depletion of placer gold resources
• Lack of formal support and regulation for ASSM

Mitigation Strategies

• ASSM National Strategy
• Development of centralized formal market centers
• Improved sector oversight
• Skills development programs for ASSM miners
• Incentives for artisanal miners supplying to licensed buyers

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Sustainable Development Goals (SDGs), African Union's Agenda 2063, Continental Free Trade Area (CFTA), Africa Mining Vision, IGAD, COMESA

Environmental Metrics

ESG Focus Areas

• Environmental footprint minimization
• Employee well-being
• Community development
• Corporate governance
• HSE and environmental initiatives
• Environmental and Social Impact Assessment

Environmental Achievements

• Engaged Sazani Associates to review ESG risks and develop an ESG program
• Imminent start of an Environmental and Social Impact Assessment for Segele Mine development

Social Achievements

• Successful recruitment of community engagement team to build strong connections with community partners
• Program of employee training & development
• Focus on up-to-date safety equipment and systems at site

Governance Achievements

• Commitment to highest standards of corporate governance and best practice as defined by Scandinavian corporate governance procedures
• Conformance to stringent ethical and anti-corruption standards with transparent reporting audited by international firms
• Recognition by the Ethiopian Ministry of Mines and Petroleum for commitment to the law
• Development of Corporate Governance framework in line with the Norwegian Code of Practice

Climate Goals & Targets

Environmental Challenges

• Political and economic risks and uncertainties in Ethiopia (government policies, interventions, instability)
• Potentially hazardous operating conditions
• Need to convert exploration license to mining license before November 2023
• Currency exposure (SEK, NOK, USD, Ethiopian Birr; exchange controls)
• Liquidity and financial risk (need for additional financing)
• Foreign exchange risk and repatriation of capital
• COVID-19 restrictions
• Complex political situation in Ethiopia

Mitigation Strategies

• Continuous monitoring of the political situation in Ethiopia
• Adherence to applicable health and safety regulations
• Exploration activities and application for mining license before November 2023
• Seeking additional financing as needed
• Using currency futures to hedge against exchange rate risk
• Increased vaccine distribution allowing for normal operations

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Implementation of Sustainable Natural Resources Management Plan (SNRMP)
• Submission of Environmental and Social Impact Assessment (ESIA) to the Ethiopian government
• Establishment of a community indigenous tree nursery
• Addressing unlicensed artisanal mining activity within the Segele Mining Licence area

Social Achievements

• Multi-Stakeholder Dialogue workshop in Dima town to engage with local communities
• Collaboration with Dima Polytechnic to improve local access to technical and vocational training
• Agreement to cease all artisanal activity in the mining concession and compensate miners
• Initiatives to provide employment and skills development opportunities for local youths

Governance Achievements

• Hiring of Dr Cathryn McCallum as head of ESG strategy
• Securing a USD 5 million convertible loan and a USD 8.5 million gold loan
• Shortlisted for Mines and Money ESG Award and won the Mining Indaba ESG Nature Award

Climate Goals & Targets

Environmental Challenges

• Delays in setting up operations due to shortages of cement and spare parts, lack of access to heavy machinery, difficulties with access to containers for shipping, and rolling blackouts in South Africa
• Unlicensed artisanal mining activity within the Segele Mining Licence area

Mitigation Strategies

• Ordered an ultra-small-scale processing plant for early 2023 to start production on schedule
• Reached an agreement with unlicensed artisanal gold miners for a principled negotiated settlement to compensate them

Supply Chain Management

Responsible Procurement

• Contracting with Solo Resources for processing plant and IW Mining for underground mining services

Climate-Related Risks & Opportunities

Awards & Recognition

• Mining Indaba ESG Nature Award

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Successful initiation of an environmental baseline study
• Improved biodiversity and community engagement projects

Social Achievements

• Excellent relationships with local communities and national authorities
• Planned industry-leading shared value program

Governance Achievements

• Awarded the prestigious ESG Nature Award at Mining Indaba

Climate Goals & Targets

Environmental Challenges

• Political and economic risks in Ethiopia
• Pandemic risks
• Gold price fluctuations
• Highly speculative nature of mineral exploration and development
• Attracting, retaining, and training personnel
• Potential operational problems in a developing country
• Risk of corruption in Ethiopia
• Increased risk of criminal activity in Ethiopia
• Operations in potentially hazardous conditions
• Historical civil unrest
• Currency risk and capital repatriation restrictions
• Need for further financing
• Currency risk related to unfavorable exchange rate fluctuations
• Risks related to capital and operating expenditures
• Dependence on maintaining sufficient liquidity
• Risks related to the proposed transaction
• Debt arrangements with security for key assets
• Lack of guarantee for an active trading market for shares
• Share price fluctuations
• Restrictions on dividends
• Risk of dilution
• Securities laws in the US and other jurisdictions
• Norwegian depository receipts

Mitigation Strategies

• Continuous interaction and dialogue with relevant stakeholders
• Careful monitoring of gold prices and market conditions
• Addressing logistical, regulatory, and infrastructural challenges
• Securing convertible loans
• Targeted share issue to resolve a convertible loan
• Restructuring loan with Monetary Metals
• Capital raising of NOK 55 million
• Converting external debt to equity
• Extended loan maturity to end of 2025
• 30% interest rate on restructured loan
• Cash sweep mechanism for loan repayment
• 1% restructuring fee on sold gold until end of 2025
• Addressing operational challenges to complete processing plant

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: JORC Code, 2012

Awards & Recognition

• ESG Nature Award at Mining Indaba

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Secured approval from the Environmental Protection Authority (EPA) for the construction of a Temporary Tailing Storage Facility (TTSF)
• Initiated reporting on GHG emissions from operations
• Hired a consultant to prepare a pre-operational baseline for emission reduction targets for SBTi registration
• Regular environmental monitoring activities continued, focusing on air quality, noise levels, surface and ground water quality
• Annual report to the EPA was prepared, submitted and approved

Social Achievements

• Continued stakeholder engagement through formal and informal meetings, logged in a bespoke data platform
• Monitoring of complaints and suggestion boxes, grievance mechanisms posted in Amharic and Annuak
• Implementation of the Sustainable Natural Resource Management Plan (SNRMP) focusing on Green Gold, Artisanal Miners, Market Systems Approaches, and Healthy and Sustainable Schools (HSSP)

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Extreme rainfall tested the mine’s water management systems
• Fuel and customs restrictions impacted supply chain
• Political and economic risks and uncertainties in Ethiopia
• Potential health, safety, and security risks in a remote operating environment
• Currency exposure and repatriation of capital risks
• Need for additional financing

Mitigation Strategies

• Strategic hiring and modifications to supply chain systems
• Implementation of a new mining team leading to reduced costs and increased productivity
• Enhanced water management strategies implemented to mitigate the impact of heavy rainfall
• Developed a new expeditor and procurement system
• Established collaborations with Leeder Industrial and Airland Logistics
• Completed comprehensive financial restructuring, including refinancing debt and securing equity

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Collaborations with Leeder Industrial and Airland Logistics

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Not disclosed

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

• Environment
• Health
• Safety
• Social Impact
• Governance

Environmental Achievements

• Regular sampling and testing of wastewater
• Noise and air quality monitoring with mitigation strategies implemented
• Ongoing compliance with environmental regulations
• Transitioning water wells to provide potable water for the mine and camp to reduce reliance on bottled water

Social Achievements

• Strengthened on-site health facilities
• Ongoing evaluations of safety practices with mitigation measures
• Recruitment of more trained safety professionals
• Developing a trauma and emergency center on-site
• Establishing referral linkages with Mizan Aman Teaching Hospital and Jimma University Teaching Hospital

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Operational challenges inherent in any early-stage mining operation
• Noise levels generated by the plant and generators above national standards
• Potential risks related to hazardous conditions, remote environment, heavy machinery, and extreme weather

Mitigation Strategies

• Implementing mitigation strategies for noise levels
• Dust suppression measures around the processing plant
• Ongoing safety assessments and mitigation measures
• Recruitment of more trained safety professionals
• Developing a trauma and emergency center and establishing referral linkages with hospitals

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: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed