Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Health
• Safety

Environmental Achievements

• Zero emissions in excess of regulatory limits reported at mining and processing operations
• Independent audit of cyanide management practice completed
• Development of environmental action plans for Pokrovskiy, Pioneer, and Malomir mines
• Implementation of KPI reporting system for environmental performance

Social Achievements

• Holding of the first Group environmental, Health and Safety Management Conference in Moscow
• Commencement of pioneer mine operations successfully permitted
• Continued implementation of International Finance Corporation (“IFC”) performance Standards
• Launched technical college at Pokrovskiy, training 48 specialists
• Provided financial support for local schools, including books, equipment, and computer hardware
• 25 employees and their children studying at universities on Group scholarships
• Donated over 40m roubles to social programs in the Amur Region
• Provided support to 12 day-care centers in the Magdagachinskiy Region
• Equipped a village school in Chilcha with computers
• Sponsored cultural events and centers

Governance Achievements

• Establishment of a Sustainability Committee at Board level
• Regular meetings of the Sustainability Committee reporting to the Board
• Implementation of a new performance monitoring and reporting system for EHS issues
• Zero cases of non-compliance identified by Russian regulatory authorities

Climate Goals & Targets

Environmental Challenges

• Operating in remote, sparsely populated areas presents unique challenges
• Minimising health and safety related issues
• Reducing the number of reported environmental incidents

Mitigation Strategies

• Implementation of KPI system to identify priority areas for improvement
• Focus on maximising economic performance while minimising environmental impact
• Comprehensive educational and training program for workforce
• Contracts with main regional hospitals for employee referrals
• 24-hour ambulance service at Pokrovskiy mine
• Financial support to local hospitals and clinics

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: GRI G3

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

• Safety
• Environmental Management
• Community Relations
• Workforce Engagement
• Human Rights

Environmental Achievements

• Zero reported licence violations in 2018
• No serious or moderate incidents of air pollution, soil or groundwater contamination
• Implementation of zero-discharge and recycled water supply systems
• Significant reduction in consumption of clean natural resources and minimization of wastewater discharge
• Release of eighty thousand carp hatchlings into the Zeya River

Social Achievements

• Celebrated the tenth anniversary of the Pokrovskiy Mining College with over 10,500 graduates
• Production of a documentary about the history of the Amur region, distributed to all schools
• Support for an annual festival of theatre and cinema and children's sports activities
• Good safety record in mining operations with a 19% decrease in LTIFR compared to 2017 (excluding one fatality)

Governance Achievements

• Successful commissioning of the POX Hub
• Refinancing of the IRC loan on more favorable terms
• Rebuilding of the Board and management team with the appointment of three new Independent Directors

Climate Goals & Targets

Environmental Challenges

• Severe weather conditions impacting operations
• Delays in equipment delivery
• High stripping ratios
• Unexpected geotechnical and hydrogeological conditions at Pioneer
• Floodwater issues at Albyn
• One fatality in 2018 (road traffic accident)
• Mechanical or metallurgical failure of the POX Hub
• Failure to reach expected recovery rates at POX Hub
• High levels of preg-robbing at POX Hub
• Liquidity risk
• Gold price volatility
• Exchange rate fluctuations
• Guarantee of IRC's debt
• Potential environmental incidents
• Loss of key personnel

Mitigation Strategies

• Preventative maintenance procedures
• Maintaining several months of essential supplies at each site
• Contingency plans for service disruptions
• Addressing water inflow issues at Pioneer
• Implementation of stringent safety standards
• Extensive employee training on POX operation and underground mining
• Forward gold sales funding
• Hedging policy
• Gold forward contracts
• Refinancing of IRC debt with Gazprombank
• Certified environmental management system
• Secure storage of hazardous substances
• Succession planning
• Appropriate remuneration

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather conditions

Reporting Standards

Frameworks Used: Companies Act 2006

Certifications: GOST R ISO 14001-2016