Torex Gold Resources
Climate Impact & Sustainability Data (2019, 2020, 2021, 2022, 2023)
Reporting Period: 2019
Environmental Metrics
ESG Focus Areas
- Environmental
- Social
- Governance
Environmental Achievements
- Filtered tailings (dry stacked), best practice for tailings management
- El Limón Guajes is effectively a ‘zero discharge’ site
- RopeCon improves safety, reduces fossil fuel consumption, and produces power
- Developing Muckahi, a low-carbon underground mining technology
Social Achievements
- Very low lost time injury frequency (LTIF) of 0.63 per million hours (trailing 12 months) as of year end
- Surpassed 5 million hours lost time injury free in February 2020
- ~44% of mine-site employees from local communities; ~99% from Mexico
- Community led decision making on allocating the Company’s budget for community investment projects
- Multiple initiatives to foster local economic development
Governance Achievements
- Executive Team with +200 years of industry experience; 33% female
- Experienced Board of Directors with a broad range of skills and backgrounds
- A Board Committee dedicated to focusing on Environment & Community
Climate Goals & Targets
Medium-term Goals:
- De-risking and advancing Media Luna project towards construction
- Proving the potential of our Muckahi Mining System
- Extending ore grade mineralization at Sub-Sill and ELD underground deposits
- Strengthening the balance sheet and enhancing financial flexibility
- Targeting initial production at Media Luna (early 2024)
Short-term Goals:
- Gold production guidance of 420,000 to 480,000 ounces
- Total cash cost guidance of $640 to $670 per ounce gold sold
- All-in sustaining cost guidance of $900 to $960 per ounce gold sold
- Sustaining capital expenditures of $85 million including $51 million related to capitalized waste mined
- Non-sustaining capital expenditures of $82 million
- Carry-out a $13 million infill drill program (approximately 100 holes) at Media Luna with results to be incorporated into the upcoming feasibility study
Environmental Challenges
- Experimental nature of Muckahi Mining System and lack of testing in an operating mine
- Many aspects of the Muckahi system are conceptual, and proof of concept has not been demonstrated
Mitigation Strategies
- Completed development and first phase of testing the concept for mine development and production activities
- Moving to optimization in 2020 to further verify the viability of Muckahi
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Period: 2020
Environmental Metrics
Total Carbon Emissions:191,142.20 tCO2e/year
Scope 1 Emissions:84,402.38 tCO2e/year
Scope 2 Emissions:106,739.82 tCO2e/year
Scope 3 Emissions:Not disclosed
Renewable Energy Share:0%
Total Energy Consumption:2,216,073 MWh/year
Water Consumption:1,719 ML/year
Waste Generated:4,161,722 tons/year (tailings)
Carbon Intensity:0.444 tCO2e per oz gold produced
ESG Focus Areas
- Environmental
- Social
- Governance
Environmental Achievements
- Zero reportable environmental incidents or spills
Social Achievements
- 10 million hours achieved lost time injury (LTI) free with no lives lost or changed
- Continued implementation of Community Development Agreements (CODECOPs) in partnership with 11 local communities, with more than $4M directly invested in community projects
- Signing of a comprehensive two-year labour agreement with our unionized employees represented by the CTM Union in Mexico
- Signing an agreement for the construction of an 8.5 megawatt (MW) solar power plant
Governance Achievements
- Achieving an overall ESG score of “A” from MSCI
- Selected by the Globe and Mail Report on Business as a “Women Lead Here” honouree for the second consecutive year
- Became a member of the World Gold Council
Climate Goals & Targets
Long-term Goals:
- Full conformance with the RGMPs by the end of 2023
Medium-term Goals:
- Conduct gap analysis against new Global Industry Standard on Tailings Management
- Become signatory to the International Cyanide Management Code and continue progress toward implementation
- Conduct annual monitoring of human rights performance aiming for zero authenticated complaints
- Continue implementation of Human Rights Management System in alignment with requirements of the Responsible Gold Mining Principles
Short-term Goals:
- Zero fatalities
- Lost Time Injury Frequency (LTI) <1.0
- 100% compliance with commitments from Community Development Agreements (CODECOPs)
- Zero reportable spills of 1,000 litres or more that report to a natural water body
- 100% compliance with environmental quality standards
- Implement 2021 plan for safety and leadership excellence
Environmental Challenges
- COVID-19 pandemic temporarily suspended mining operations in Mexico in the second quarter
Mitigation Strategies
- Implemented robust and multi-layered controls to protect the health and safety of our people, ensure business continuity, and mitigate the spread of COVID-19 both within our operations and our host communities
- Resumed full production in June
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Local procurement procedure; 89% of procurement spend in Mexico in 2020
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Not disclosed
Opportunities
- Development of energy-efficient products (e.g., Muckahi Mining System); solar power plant
Reporting Standards
Frameworks Used: GRI Standards “Core” option, SASB Metals and Mining Sustainability Accounting Standard (Version 2018-10), TCFD
Certifications: Null
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- RopeCon, Muckahi Mining System
Awards & Recognition
- MSCI ESG rating of “A”; Globe and Mail “Women Lead Here” honouree; Women in Mining UK Top 100 Global Inspirational Women in Mining
Reporting Period: 2021
Environmental Metrics
Total Carbon Emissions:196,704.41 tCO2e/year
Scope 1 Emissions:99,248.89 tCO2e/year
Scope 2 Emissions:97,455.52 tCO2e/year
Renewable Energy Share:0%
Total Energy Consumption:2230,391 MWh/year (electricity purchased) + 31,082,700 L/year (diesel)
Water Consumption:3,500 m3/year
Waste Generated:34,923 tons/year (waste rock) + 4,512 tons/year (tailings) + 87,216 tons/year (domestic waste)
Carbon Intensity:0.420 tCO2e per oz gold produced (2021)
ESG Focus Areas
- Environmental
- Social
- Governance
Environmental Achievements
- Zero reportable environmental spills
- Received environmental permits for early works construction activities for the Media Luna Project
- Formally adopted the Global Industry Standard on Tailings Management
- 100% compliance with environmental regulations
- Became a signatory to the International Cyanide Management Code (ICMC)
Social Achievements
- Achieved industry-leading safety performance: 0.14 lost-time injury frequency per million hours worked
- 90% of procurement spend in Mexico
- Received 2021 Safety Award from Mining Magazine
- Awarded ESR® 2022 Distinction from the Mexican Center for Philanthropy (CEMEFI) and the Alliance for Corporate Social Responsibility in Mexico (AliaRSE) for the fourth year in a row
- Successfully negotiated Community Development Agreements (CODECOPs) with 11 local communities
- $4.1M in direct community investment
- 44% of employees from local communities
- Spent $74.7M in procurement within Guerrero State
Governance Achievements
- Achieved highest governance quality score ranking (1) from ISS for the Company’s corporate governance practices
- Earned honouree status in The Globe and Mail’s 2022 Report on Business “WOMEN LEAD HERE” list for the third consecutive year
- Revised guidelines to enhance share ownership by Executive Team and Board
- Achieved 44% female representation on Board of Directors
- Achieved 43% female representation on Executive Team
Climate Goals & Targets
Long-term Goals:
- Net zero emissions by 2050
Medium-term Goals:
- Achieve full conformance with GISTM by 2025
- Achieve full certification with ICMC by 2024
- Achieve full conformance with RGMPs by end-2024
Short-term Goals:
- Maintain zero fatalities and lost time injuries
- Continue development of overall climate change and energy management strategy and publicly release short, medium, and long-term energy and greenhouse gas (GHG) emissions targets with the ultimate goal of net zero emissions
Environmental Challenges
- COVID-19 pandemic
- High risk for potential corruption in Mexico
- Water scarcity in the region
- Dust emissions
- Managing tailings
Mitigation Strategies
- Robust and multi-layered controls to protect the health and safety of our people and our local communities
- Partnering with local health authorities to facilitate transportation of employees, contractors, and community members to a local vaccination clinic
- Implementing a mandatory vaccination policy in Canada and Mexico
- Variety of measures to control corruption risk and promote transparency
- Comprehensive water management plan
- Regular watering of haul and access roads
- Use of specialized dust suppressant
- World-class filtered tailings storage facility
- Adoption of the Global Industry Standard on Tailings Management (GISTM)
Supply Chain Management
Responsible Procurement
- Social Responsibility Policy for Contractors
- Verification of tax and social security payments by contractors
- Requirement for contractors to have HSE&Q Policy and Program
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
Transition Risks
- Increased carbon pricing by governments
Opportunities
- Clean energy sources
- Resource efficiency
Reporting Standards
Frameworks Used: GRI Standards “Core” option, SASB Metals and Mining Sustainability Accounting Standard (Version 2018-10), TCFD
Third-party Assurance: KPMG (for RGMPs Progress Report); Third-party review of water data
Awards & Recognition
- 2021 Mining Magazine Safety Award
- ESR® 2022 Distinction from CEMEFI and AliaRSE
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:203,515 tCO2e/year
Scope 1 Emissions:100,032 tCO2e/year
Scope 2 Emissions:103,484 tCO2e/year
Scope 3 Emissions:Not disclosed
Renewable Energy Share:0%
Total Energy Consumption:1,237,893 MWh/year (electricity purchased) + 31,022,893 L diesel
Water Consumption:4,389 ML/year
Waste Generated:4,599 kt tailings + 36,785 kt waste rock + 89,566 L domestic waste
Carbon Intensity:0.429 tonnes CO2e per oz gold produced
ESG Focus Areas
- Governance
- Social
- Environmental
Environmental Achievements
- 100% compliance with water quality and air quality statutory monitoring plan and standards requirements.
Social Achievements
- 0 strikes or lockouts; 100% of employees covered by safety management system; $4.6 million invested in community projects.
Governance Achievements
- 0 corruption incidents; 100% attestation to anti-corruption policies; 89% of directors independent.
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- Not disclosed
Short-term Goals:
- Not disclosed
Environmental Challenges
- Scope 3 emissions not currently measured; Non-technical delays caused by community-related issues (0 in 2022).
Mitigation Strategies
- Plans to measure Scope 3 emissions as part of ongoing energy and climate change strategy; Active community engagement to address grievances (16 in 2022, 12 resolved).
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- 92% of total spend on Mexican companies in 2022
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Not disclosed
Opportunities
- Not disclosed
Reporting Standards
Frameworks Used: GRI Standards, SASB Standards
Certifications: Null
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- Not disclosed
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:223,305 tCO2e/year
Scope 1 Emissions:112,078 tCO2e/year
Scope 2 Emissions:111,227 tCO2e/year
Scope 3 Emissions:Not measured
Renewable Energy Share:0%
Total Energy Consumption:2,295,628 GJ/year
Water Consumption:2,108 ML/year (withdrawn)
Waste Generated:42,342,890 tons/year (mineral waste)
Carbon Intensity:0.492 tCO2e/oz gold produced
ESG Focus Areas
- Governance
- Safety
- Community Relations
- Environmental Compliance
- Human Rights
- Local Procurement
- Diversity & Inclusion
Environmental Achievements
- Water recycled (as a percentage of total mine site consumption) 66%
- 100% compliance to statutory monitoring plan and standards requirements for water and air quality
Social Achievements
- Zero incidents of discrimination
- Zero incidents of child labor
- Zero incidents of forced or compulsory labor
- Total community investment of $3.1 million
- 100% of employees covered by safety management system
- Significant increase in training hours for employees and contractors
Governance Achievements
- 89% of Directors are Independent
- 100% Committee Independence across all committees
- Zero corruption incidents
- 100% attestation to anti-corruption policies
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- Not disclosed
Short-term Goals:
- Not disclosed
Environmental Challenges
- Data limitations and exclusions noted in the report
- Scope 3 emissions not currently measured
Mitigation Strategies
- Ongoing energy and climate change strategy includes plans to measure Scope 3 emissions
- Refined reporting methodologies to improve data accuracy and transparency
Supply Chain Management
Supplier Audits: 758 suppliers in 2023
Responsible Procurement
- 90% of total spend on Mexican companies in 2023
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Not disclosed
Opportunities
- Not disclosed
Reporting Standards
Frameworks Used: GRI, SASB
Certifications: Null
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- Not disclosed