DD,
Interesting you highlight one of my favorite portfolio positions. It has an interesting history and is doing very well:
If anyone else has followed and invested in Lundin Mining corp. over the years they may have seen this interview writeup from a couple of years back by Mark Sitter, Vice President of Sustainability.
A couple main topic threads ( it’s worth reading the link) discussed are excerpted below …
Why Mining Companies Should Care About ESG
Studies show that companies that do not focus on ESG are putting their long-term competitiveness at risk. What are the ways that the ESG proposition can create value for the companies?
- · Access to capital:
- · Access to resources:
- · Access to customers:
Some companies operating in the junior space may not have a dedicated ESG function. How can these companies start developing and implementing an ESG plan?
… Juniors generally don’t have the resources or activities to merit a large and complex ESG strategy. So start small. Remember: ESG planning is a journey that’s iterative and gets better over time. Here are some thoughts on what that process should consider:
Typically, Large Cap companies do better when it comes to the visibility of their programs in sustainability. What can Small Caps do to get noticed by the ESG ratings’ agencies or be included in ESG indices?
(Why Mining Companies Should Care About ESG - Lundin Foundation)
That same year (2021) another position I hold, Karora Resources, published its Inaugural ESG Report For 2021. "Karora’s ESG program is overseen by its Board of Directors with a clear objective of introducing and maintaining policies and systems that reflect the Company’s goal of being a leader among our peers in the ESG and climate space.
… The ESG materiality assessment identified and prioritized the ESG factors with the greatest potential to materially impact company value and our ability to achieve our strategic objectives over the short, medium, and long term." There are many other examples. Solar is not a sideshow distraction as ESG governance is very mainstream. Baldy going back to 2016 is highlighting the pivotal year for MDMN under new management before Dr. Sillitoe was invited to outline the best path forward for successful exploitation based on a geology review and tour of the property. As promising as the Caren Mine (Larissa Adit) is, the strategic value was clearly stated before prioritizing to the Fortuna: “This report is for internal purposes. It will provide Auryn’s team with a fuller understanding of the diverse geological structures found at the Altos de Lipangue and help place them within an historical regional context.” This was part of AURYN’s previously announced District-wide Analysis. The larger and more historically investigated region of the Fortuna Mine was more clearly defined as to its preexisting data. I’m sure the earlier work done at the Larissa Adit gave much insight on the difficulties of narrow vein exploitation and will be returned to later with great success. A better course for early exploitation was decided upon as seen by the progress made to date.
When Baldy used to habitually belittle those commenting here the standing joke was … “Now where did DOC hide that tank?” Time to take cover! It was just expected that Baldy would arise to the occasion with some kind of incoming flak. The pandemic kinda put an end to that kind of good natured joking around. Now that exploitation is slowly coming together, I expect a rigorous PR campaign will be initiated after a beneficiation process begins and direct shipment to ENAMI is embarked on. Folks that actually have an interest based on the reported incremental progress and have money invested want this company to succeed. There are exciting times ahead for AURYN. Management has adopted a vision for long-term achievement and diligently working toward a profitable future for all stakeholders. We still need to wait and see results, but let’s not give up on current accomplishments just because they are taking longer than expected. Constant negativity is a nuisance, but does not harm management’s determination to turn this company into a producing mine. The harm instilled from the previous management is primarily what Baldy’s post from 2016 was highlighting.
EZ