Climate Change Data

Gatos Silver, Inc.

Climate Impact & Sustainability Data (2020)

Reporting Period: 2020

Environmental Metrics

ESG Focus Areas

  • Environmental Protection
  • Socially Responsible Conduct
  • Corporate Governance Practices

Environmental Achievements

  • CLG mine was built to world-class environmental standards; ensured operation is not causing air pollution through enclosure of surface conveyors and ore storage areas; constructed tailings storage facility with a double liner and leak detection; practiced continual reclamation by replanting inactive disturbed areas with native species plants.

Social Achievements

  • Consistent reduction in lost-time injury frequency at CLG; annually funded purchase of educational materials for local schools and provided scholarships; built the first full-time medical clinic in the ejido of San Jose del Sitio; funded redevelopment of the community water system; proactive response to COVID-19, including access to molecular nasal testing, strong prevention protocols, and community aid; over 99% of employees reside in Mexico, with 24% from local communities and 60% residing in Chihuahua State; women comprise 20% of the workforce; CLG project recognized by the Mexican government as a socially responsible company for the third consecutive year.

Governance Achievements

  • Separated the Board Chair and Chief Executive Officer role; Board comprised of nine highly qualified Directors from various countries with extensive experience in the resource sector.

Climate Goals & Targets

Short-term Goals:
  • Extinguish the Los Gatos Working Capital Facility; Repurchase an 18.5% interest in the Los Gatos Joint Venture to increase ownership to 70.0%; Complete a feasibility study expanding the CLG production rate to 3,000 tpd; Further exploration of the Los Gatos District; Explore our wholly-owned Santa Valeria property.

Environmental Challenges

  • COVID-19 pandemic resulted in a 45-day temporary suspension of non-essential activities at the CLG site; high fluorine content in concentrates required additional cleaning stages.
Mitigation Strategies
  • Implemented health protocols, allowed remote work, reduced mining and milling, completed project enhancements, and finalized a mine plan; added additional flotation cells to the lead and zinc circuits to reduce fluorine content.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

  • Recognized by the Mexican government as a socially responsible company for the third consecutive year.