Upgrade to Buy: Charting a New Flight Path

Research evidence excerpt

Upgrade to Buy: Charting a New Flight Path

onal funding beyond our forecasts

and there can be no assurance that these funds will be available, or at an acceptable cost.

Environmental Risk – Risks assessed include water and waste recycle rates, electricity and

energy from renewables, emissions and energy intensity, scope 1 & 2 & 3 emissions, greenhouse

emission targets, reclamation and tailings targets, environmental incident counts and

environmental certifications, and preventative practices and monitoring.

Social Risk – Both national and local community support are critical to successfully building

and operating a mine. Some of the key elements to assess include workplace safety metrics,

community investment, economic value generated and distributed, procurement from local

vendors, percentage of costs spent with local suppliers and good stewardship of the local

environment.

Risks To The Price Target

The key risks to our target price include silver, gold, lead, zinc, and energy price risk; foreign

exchange risk; financial risk; forecast risk, such as capital and operating cost risks, risks related

to deposit size, grade, and mineability, and risks to production levels; technical risks, including

risks associated with the use of multiple mining techniques and their individual feasibility and

risks to the process flowsheet that we envision; infrastructure risk, such as the availability of

power and its reliability; transportation risk; political risk, including the potential for resource

nationalization and changes to the legal and fiscal regimes; permitting risk; community social

relations risk; security risk; labour relations risk; illegal mining risk; environmental risk; title risk;

litigation risk; surface rights risk; and key personnel retention risk.