Risk management

The mining sector is a capital-intensive and complex industry influenced by various geological, regulatory, environmental, economic, and market risk factors.
Our goal is to provide investors with a transparent overview of potential risks and describe strategies to mitigate them, ensuring long-term sustainability and stable returns.

Key Mining-Related Risks and Their Mitigation

1. Geological and Resource Availability Risks

Risk:

• The actual mineral content and mineability may differ from initial estimates.
• Subsurface conditions may hinder efficient mining operations.

How do we mitigate this risk?

• Advanced geological surveys and 3D modeling – We utilize drones, artificial intelligence, and geophysical scanning to conduct thorough studies that precisely determine the size and quality of deposits.
• Diversified mineral portfolio – We invest in multiple deposits to reduce dependency on a single region’s geological conditions.
• Pilot projects before full-scale mining – We conduct test mining and sample processing before making large investments to refine expected yields.

2. Regulatory and Legal Risks

Risk:

• Mining operations are highly regulated and may face changes in permits, taxation, or local laws.
• Political instability in Africa may impact operations.

How do we mitigate this risk?

• Strong legal department and partnerships with local authorities – We ensure compliance with licenses and permits and adhere to international standards (e.g., IFC Performance Standards, ESG).
• Monitoring regulatory environment – We work closely with legal experts and government agencies to stay ahead of legal changes.
• Investing in stable regions – We select operating locations with investment-friendly economies and robust legal frameworks.

3. Environmental Risks and Sustainability

Risk:

• Mining can cause soil erosion, water pollution, and biodiversity loss.
• Environmental regulations are becoming increasingly stringent.

How do we mitigate this risk?

• Sustainable mining techniques – We use water recycling technologies and biodegradable chemicals to minimize environmental impact.
• Rehabilitation programs – After mining operations, we implement soil restoration and reforestation projects to restore natural habitats.
• Certified environmental compliance – We aim to operate in accordance with ISO 14001 environmental management standards and adhere to ESG principles.

4. Market Risk and Commodity Price Fluctuations

Risk:

• Mineral prices fluctuate based on global demand and economic trends.
• Global crises (e.g., pandemics, wars) may reduce mining profitability.

How do we mitigate this risk?

• Hedging instruments – We use futures contracts for gold, silver, and other metals to reduce market volatility risks.
• Strategic flexibility – We monitor global trends and adjust production volumes according to market conditions.

5. Operational and Technical Risks

Risk:

• Production delays, labor shortages, or equipment failures may disrupt operations.

How do we mitigate this risk?

• Autonomous machinery and AI-driven planning – We reduce human factor risks and optimize production with digital control systems.
• Emergency planning and backup equipment – Mines are equipped with reserve technology to prevent production stoppages.
• Qualified workforce and continuous training – Our employees undergo regular technical and safety training to minimize work disruptions.

6. Social and Community Risks

Risk:

• Local communities may oppose mining if they see no economic benefits or if it negatively impacts their environment.
• Worker strikes and unrest may disrupt mining operations.

How do we mitigate this risk?

• Community engagement and social investments – We support local projects such as building schools and hospitals to improve living conditions.
• Ethical employment policy – We ensure fair wages, safe working conditions, and prioritize local workforce employment.
• Open communication – We maintain regular dialogue with local communities and governments to prevent conflicts and build mutually beneficial relationships.

Conclusion: How Do Investors Benefit from Our Risk Management?

• Comprehensive risk analysis and preventive measures reduce financial risks and ensure long-term investment growth.
• Regulatory and environmental awareness ensures compliance with international standards and stability even in tightening conditions.
• Technological innovation and workforce development improve efficiency and reduce operational risks.
• Strong investor relations and transparent communication create a reliable and trustworthy investment environment.
• Our goal is to provide investors with maximum confidence that our mining projects are economically sustainable and professionally managed against risks.