Fortuna Silver Mines Inc. (FSM): PESTLE Analysis [Nov-2025 Updated]

You're looking at Fortuna Silver Mines Inc. and wondering if the gold upside is worth the jurisdictional headache. Honestly, the 2025 picture shows a tightrope walk: they're benefiting from a strong US Dollar and dual-commodity exposure, but they're also battling resource nationalism and high All-in Sustaining Costs (AISC) projected near $1,350 per gold equivalent ounce. We need to cut through the noise and see how political risks in Mexico and Peru, plus the constant need to maintain a social license to operate, truly impact their cash flow and long-term value. This PESTLE (Political, Economic, Sociological, Technological, Legal, and Environmental) breakdown will give you the defintely clear action map you need.

Fortuna Silver Mines Inc. (FSM) - PESTLE Analysis: Political factors

The political landscape for Fortuna Silver Mines Inc. (FSM) in 2025 is a mix of strategic de-risking and new fiscal challenges. You need to understand that Fortuna has successfully offloaded a major source of political and legal uncertainty in Mexico, but it now faces new, quantifiable tax hikes in its West African flagship operation and a mixed, volatile tax environment in South America.

Concession renewal risk in Mexico, specifically the San José mine

The political risk tied to the San José mine in Oaxaca, Mexico, is largely mitigated as of 2025. Fortuna completed the sale of its 100% interest in the mine on April 11, 2025, to JRC Ingenieria y Construccion S.A.C.. This sale eliminates the long-standing political and legal uncertainty surrounding the mine's concession renewal, which had been a significant drag on the stock.

The transaction generated up to $17 million in total consideration for Fortuna and, crucially, removes the company's exposure to extensive closure costs and environmental liabilities. The political risk is converted into a revenue stream: Fortuna retains a 1% Net Smelter Return (NSR) royalty on production from the concessions, payable after the first 119,000 gold equivalent ounces have been mined or extracted. That's a clean exit, defintely a smart move to focus on higher-margin assets.

Government stability and fiscal terms in Côte d'Ivoire impacting the Séguéla mine

Côte d'Ivoire presents a politically stable, high-growth operating environment, but the government is actively seeking a larger share of the profits. The country is consistently ranked as a leading gold mining jurisdiction in West Africa. The Ivorian government holds a direct 10% free-carried interest in the Séguéla mine, aligning their long-term interests with Fortuna's success.

However, the 2025 fiscal terms have tightened. To capitalize on high gold prices, the government included a two-point increase in the mining royalty tax on gold sales in its 2025 Finance Act. This means the ad valorem tax, which previously ranged from 3% to 6% of sales, is now subject to this increase. Plus, the mine is required to pay a 0.5% local community levy on its turnover to the Local Mining Development Fund.

Here's the quick math on the fiscal structure:

• Corporate Income Tax (CIT): 25%.
• State Participation: 10% free-carried interest.
• Mining Royalty (Ad Valorem): Variable, subject to a 2-point increase in the 2025 Finance Act.
• Local Community Levy: 0.5% of turnover.

Resource nationalism and potential royalty hikes in Peru and Argentina

In South America, Fortuna faces two very different political climates at its Lindero and Caylloma mines. Resource nationalism-the push by governments to exert greater control over natural resources-remains a persistent, underlying risk across the region.

In Peru, the Caylloma silver, lead, and zinc mine operates under the existing, progressive fiscal regime. This includes the Mining Royalty (MR) and the Special Mining Tax (SMT), which are calculated on operating income with marginal rates ranging from 1% to 12%. The minimum royalty is 1% of sales regardless of profitability. What this estimate hides is the political pressure from an estimated $12 billion in illegal gold mining exports in 2025, which creates a volatile environment for the legal sector and fuels debates in Congress over concession reforms that could impact large-scale operations.

In Argentina, the political shift under the new government has created a near-term opportunity for the Lindero gold mine, but with a key caveat. The government eliminated export duties on most mining products, effective August 8, 2025, via Decree 563/2025, which reduces operating costs and bureaucratic risk. But, the new policy maintains a 4.5% retention (export duty) on silver and lithium exports. While Lindero is a gold mine, the retention on silver highlights the selective nature of the new fiscal policy and the ongoing risk of policy reversal or new duties being imposed on gold.

Geopolitical tensions affecting global supply chains for mining consumables

Geopolitical tensions are a global headwind that directly impacts Fortuna's consolidated All-in Sustaining Costs (AISC), guided for 2025 at $1,670 to $1,765 per Gold Equivalent Ounce (GEO). The fragmentation of mineral supply chains due to major conflicts-like the Russia-Ukraine war and the Israel-Hamas war-is injecting both cost and complexity into the business.

This instability translates into higher costs for essential mining consumables and equipment. We're seeing elevated compliance burdens and shifting trade flows that erode efficiencies, especially for a multi-jurisdictional operator like Fortuna. Securing stable access to materials like cyanide, explosives, and heavy machinery now requires more complex, and thus more expensive, 'friendshoring' and stockpiling strategies.

Here is a summary of the political factors and their direct, quantifiable impact on Fortuna's 2025 business:

Fortuna Silver Mines Inc. (FSM) - PESTLE Analysis: Economic factors

The economic landscape for Fortuna Silver Mines Inc. (FSM) in 2025 is a study in managing volatility-a constant in the mining sector. You are seeing a powerful tailwind from metal prices, but this is being offset by stubborn, site-specific cost inflation and a complex currency environment. The company's core strength remains its dual-commodity focus, but the near-term challenge is keeping a lid on All-in Sustaining Costs (AISC) in a high-inflation, strong-local-currency world.

Dual exposure to gold and silver prices provides a natural hedge against single commodity volatility.

Fortuna Silver Mines has successfully transitioned from a pure silver player to a diversified precious metals producer, which is a smart move for hedging. While the company still produces silver, its revenue is now heavily skewed toward gold. For the full year 2024, approximately 85% of revenue came from gold, with silver contributing about 10%, plus a small component from lead and zinc. This gold focus has been a significant buffer against the volatility that often hits silver harder.

For 2025, the production guidance confirms this balance, projecting between 334,000 and 373,000 ounces of gold and 0.9 to 1.0 million ounces of silver. This mix means a sudden dip in one metal won't crater the whole business. That's defintely a more resilient model.

High All-in Sustaining Costs (AISC) are projected to be near $1,350 per gold equivalent ounce for 2025.

The consolidated All-in Sustaining Cost (AISC) per gold equivalent ounce (GEO) is the truest measure of a miner's health, and for FSM, this is a clear pressure point. The initial prompt's figure of $1,350 is optimistic for the consolidated business; the actual 2025 consolidated guidance is significantly higher, sitting in the range of $1,670 to $1,765 per GEO. This puts the midpoint at around $1,717 per GEO, which is a substantial hurdle to clear, even with higher gold prices.

Here's the quick math: the Q3 2025 actual AISC was already $1,570 per GEO, driven by lower costs and higher by-product credits, but the full-year guidance reflects known increases like stripping costs at Lindero and higher royalties. You need to watch the mine-by-mine figures to understand the full picture:

Strong US Dollar (USD) against local currencies reduces operating costs in Latin American mines.

This is where the general rule of thumb-a strong USD is good for USD-reporting miners with local costs-runs into the messy reality of global finance. In 2025, the USD has not been uniformly strong against FSM's key operating currencies, and where it has, the effect is complex.

In Peru, where the Caylloma Mine operates, the Peruvian Sol (PEN) has actually appreciated by 9.89% against the USD between October 2024 and October 2025, with the USD/PEN rate falling to around 3.3805 in November 2025. A stronger Sol means FSM needs more USD to cover its Sol-denominated labor and local procurement costs, which directly increases the USD-reported operating cost.

The situation in Argentina at Lindero is even more volatile, with the company reporting a $7.4 million foreign exchange loss in Q3 2025. Plus, the appreciation of the Argentine Peso was explicitly cited as a factor increasing cash costs at the Lindero Mine.

The West African CFA franc (XOF), used in Côte d'Ivoire (Séguéla Mine), is pegged to the Euro (€). The guidance assumption of 0.89 USD/EUR is a key factor, but the strengthening of the XOF to around 565.5000 XOF/USD in late 2025 also points to local cost pressures in USD terms.

Global inflation pressures increasing costs for energy, labor, and reagents.

Global inflation is a pervasive headwind, and it's hitting the mining industry hard by driving up input costs. You can see this most acutely in Argentina, where the 2025 guidance is built on an assumption of a massive 29 percent annual inflation rate. This isn't theoretical; it's a line-item risk that forces the company to constantly adjust its cost base.

Beyond hyperinflation in one country, the general risks of 'rising input and labor costs' and 'higher rates of inflation' are consistently flagged in FSM's reports. For example, higher stripping ratios at the Lindero Mine and lower head grades at the Séguéla Mine are effectively increasing the cost-per-ounce to produce the metal. These operational factors, combined with higher prices for reagents and energy, mean the AISC floor is rising across the board. The only way out is higher metal prices or continuous, aggressive operational efficiency.

Fortuna Silver Mines Inc. (FSM) - PESTLE Analysis: Social factors

Maintaining a 'social license to operate' is critical, especially in rural Latin American communities.

You're operating in jurisdictions where community trust, or the social license to operate (SLO), is a non-negotiable asset. Losing it can halt production overnight. The company's sale of the San José Mine in Mexico in Q2 2025 is a major shift, removing a long-standing source of community and regulatory friction, but it refocuses the SLO risk onto the Caylloma Mine in Peru and the Lindero Mine in Argentina, plus the newer West African assets.

Fortuna Mining Corp. (FSM) works to mitigate this risk through direct investment. In the 2024 fiscal year, the company allocated US$9.2 million to community development programs and funds across its operations. This is a significant figure that directly addresses local expectations for shared value. For 2024, the company reported zero significant community grievances, which is the gold standard for maintaining a stable SLO.

Here's the quick math: a single, prolonged operational disruption, like the 15-day illegal union blockade at San José in 2023, can cost millions in lost production and higher All-in Sustaining Costs (AISC), making the US$9.2 million investment a defintely necessary insurance policy.

Increased pressure from stakeholders for local employment and community development programs.

The pressure for local hiring is constant, and it's a primary metric for community acceptance. Stakeholders want to see the mine's economic benefit flow directly into their towns, not just to distant corporate centers. This is a clear opportunity to build long-term goodwill.

FSM has demonstrated a commitment to this, with 38.16% of its workforce coming from local communities as of Q1 2025. This is an improvement from the 35.50% reported for the full year 2024, showing a positive trend in local integration. Beyond just hiring, the company is also facing increasing scrutiny on workforce diversity, particularly the inclusion of women in a traditionally male-dominated industry.

• Local Employment (Q1 2025): 38.16% of total workforce.
• Women in the Labor Force (Q1 2025): 14.14%.
• Women in Management Positions (Q1 2025): 17.01%.

What this estimate hides is the operational variance; the local employment percentage will differ significantly between the established Caylloma Mine in Peru and the newer Séguéla Mine in Côte d'Ivoire, still ramping up its full local integration programs.

Labor relations and potential for strikes at the San José and Caylloma operations.

Labor stability is a central risk in Latin American mining. While the San José Mine (Mexico) was a site of a disruptive 15-day illegal union blockade in 2023 over profit-sharing entitlements, its divestiture in Q2 2025 significantly de-risks the company's near-term labor outlook in that specific country.

The Caylloma Mine in Peru remains the long-standing Latin American silver-lead-zinc operation and is subject to local union dynamics and national labor laws. While no major strikes have been reported in 2025 for Caylloma, the risk of labor disputes over wages, benefits, and profit-sharing remains a structural factor in the region. The company's Employee Relations Policy commits to respecting human and labor rights, but the political environment in Peru can quickly escalate local disagreements into national issues.

The focus has shifted to maintaining strong relations at the Lindero Mine (Argentina) and managing the integration of the West African workforces at Yaramoko and Séguéla, which present different cultural and regulatory challenges. A key action is proactive dialogue, not just reactive negotiation.

Focus on health and safety standards to meet international investor expectations.

For institutional investors, especially those focused on ESG (Environmental, Social, and Governance), health and safety performance is a core due diligence item. A poor safety record is a red flag for operational control and management quality. Fortuna's performance in this area has generally been strong, but the recent fatal accident at Séguéla Mine in February 2025 is a serious setback that requires immediate and transparent remediation.

Despite this tragic event, the company's overall safety metrics for 2024 were top-tier compared to industry peers, a signal of a strong underlying safety framework. The goal is zero harm, and the numbers show a trend of continuous improvement in injury rates, even with the increase in total hours worked.

The company is also aligning with international best practices, with the Caylloma Mine and the now-sold San José Mine certified to the ISO 45001 Occupational Health and Safety Management standard. The Lindero Mine and the Séguéla Mine are both expected to achieve this ISO 45001 certification in 2025, which will provide a unified, auditable standard across the entire portfolio.

Fortuna Silver Mines Inc. (FSM) - PESTLE Analysis: Technological factors

You're looking at Fortuna Silver Mines Inc. (FSM) to understand how technology is shaping its operational resilience and growth profile, and the answer is clear: the company is using targeted technology investments, especially in exploration and process optimization, to directly influence its 2025 cost structure and resource pipeline. This is not about flashy, company-wide automation, but a pragmatic, asset-by-asset approach to driving efficiency.

Adoption of automated drilling and loading systems to improve underground mine efficiency

While FSM has not announced a full-scale autonomous fleet deployment like some major miners, its focus on high-efficiency underground operations-specifically at the Caylloma Mine in Peru and the Sunbird underground project at the Séguéla Mine in Côte d'Ivoire-necessitates advanced mechanization. The industry standard for new underground developments in 2025 is to integrate automated drilling and loading systems (LHDs) to improve cycle times and, more critically, enhance worker safety. For a deep, narrow-vein operation like Caylloma, this technology is essential for maintaining a competitive All-in Sustaining Cost (AISC) guidance, which is projected to be between $21.7 and $24.7 per ounce of silver equivalent for 2025 at Caylloma. Automation minimizes the time personnel spend in high-risk areas. That's a defintely smart trade-off.

Use of data analytics for predictive maintenance to minimize equipment downtime

The core of FSM's operational efficiency push, which is reflected in its updated 2025 consolidated AISC guidance of $1,670-$1,765 per Gold Equivalent Ounce (GEO), lies in minimizing unplanned downtime. Data analytics for predictive maintenance is the tool to achieve this. Instead of costly reactive maintenance, which can halt production for days, sensor data from crushers, mills, and haul trucks is analyzed by machine learning models to predict component failure. The broader mining sector expects this approach to reduce unplanned downtime by up to 70% in 2025. FSM's commitment to process optimization is concrete: at the Lindero Mine in Argentina, the commissioning of a 14.5 MWh photovoltaic (solar) plant, a clear technological investment, reduced diesel consumption by 35% and helped drive a record throughput of 1,109 tonnes per hour in Q2 2025. You can't argue with those numbers.

Implementing digital mapping and geological modeling for precise resource extraction

Precision is paramount in mining, and FSM is leveraging digital geological modeling to extend mine life (brownfields exploration) and optimize extraction. The company's 2025 exploration strategy explicitly relies on these advanced techniques. For example, the brownfields exploration budget for the Lindero Mine in Argentina includes follow-up drilling based on 'recent reinterpretations driven by additional geochemical sampling, and alteration mapping completed in 2024.' This digital mapping allows geologists to build a high-resolution, three-dimensional model of the ore body, ensuring that the $21.6 million allocated for consolidated brownfields exploration in 2025 is spent on the highest-probability targets. This is how you turn data into reserves.

Exploration technology like remote sensing to identify new high-grade targets faster

The biggest technological opportunity for FSM is in exploration, where it has allocated a total budget of $41.0 million for 2025, with $19.3 million focused on greenfield (new) projects. Remote sensing technology-using satellite imagery, drones (UAVs), and hyperspectral sensors-is a game-changer here. These tools allow FSM to cover vast, remote territories like the 1,180 km$^2$ Tongon Nth prospect in Côte d'Ivoire much faster and cheaper than traditional ground-based methods. This technology identifies subtle geological and chemical signatures from space, pointing to potential high-grade targets. The goal is to accelerate the discovery cycle, turning exploration dollars into future production ounces, like the 2025 estimated production of 134,000-147,000 ounces of gold from Séguéla.

Here's the quick math on FSM's 2025 exploration focus:

What this estimate hides is the reliance on a skilled workforce to interpret the massive amounts of data generated by these systems. Training personnel to manage AI-driven analytics is a continuous, non-capital expense that impacts the success of the entire technology stack.

Next Step: Operations: Assess the feasibility and ROI of implementing predictive maintenance on the Caylloma underground fleet by Q1 2026.

Fortuna Silver Mines Inc. (FSM) - PESTLE Analysis: Legal factors

Uncertainty over the stability of mining tax regimes in Argentina and Peru.

You need to be acutely aware of the fiscal instability in key operating jurisdictions, particularly in South America. The legal framework around mining taxation in Argentina and Peru is dynamic, and political shifts can translate into immediate cost changes.

In Argentina, where the Lindero Mine operates, the 2025 cost guidance explicitly notes that it does not account for potential changes by the new government to national macroeconomic policies, the taxation system, or import/export duties. The industry, through the Argentine Chamber of Mining Entrepreneurs (CAEM), is pushing for the elimination of export duties and the removal of withholding taxes on gold and silver to restore investor confidence. This uncertainty is so high that new mining investment in the country has been effectively frozen ahead of the October 2025 midterm elections. One clean line: political risk is a tax risk in Buenos Aires.

In Peru, the Caylloma Mine faces a different kind of legal/fiscal pressure, specifically related to labor law compliance that impacts costs. For the second quarter of 2025, the all-in sustaining cash cost per ounce of payable silver equivalent increased to $21.73, up from $19.87 in the comparable 2024 period, partly due to higher workers' participation costs. This is a legally mandated employee profit-sharing mechanism, not a typical corporate tax, but it functions as a non-discretionary operational cost tied to local law.

Here's the quick math on the Caylloma cost shift:

Compliance with complex and varied labor laws across four different continents.

Managing a workforce of this size and geographic spread means navigating a patchwork of national labor codes, which is defintely a core legal risk. Fortuna Silver Mines (now Fortuna Mining Corp.) operates in Argentina, Peru, Côte d'Ivoire, and Mexico (exploration/divestiture), requiring strict compliance with four distinct legal systems, plus Canadian and US securities laws.

The complexity is magnified by the sheer scale and composition of the labor force. As of the end of 2023, the company managed 2,490 direct employees plus a substantial 2,695 indirect employees through contractors. This arrangement means the company must enforce its human rights policies and labor standards through third-party contracts, adding a layer of legal and reputational risk.

• Total Workforce (2023): 5,185 (Direct + Contracted).
• Explicit Risk: Compliance with the International Labor Organization (ILO) Convention 169 (Indigenous and Tribal Peoples), a key legal consideration for land use and community relations in Latin America.

Ongoing legal battles concerning environmental permits and land use rights in Mexico.

The most significant legal risk in Mexico, the long-running dispute over the San Jose Mine's Environmental Impact Authorization (EIA), has fundamentally changed in 2025. While the company's Mexican subsidiary, Minera Cuzcatlan, secured a major win in late 2023 when the Federal Administrative Court ruled to reinstate the 12-year EIA (granted in 2021) after multiple attempts by SEMARNAT (Mexico's environment ministry) to annul it, the direct operational risk for Fortuna is now over.

The company completed the sale of the non-core San Jose Mine in the second quarter of 2025. This divestiture shifts the future legal and operational liability for the mine, including any potential appeal by SEMARNAT against the 12-year EIA ruling, to the new owner. However, until the sale was completed, the company had to maintain a permanent injunction to continue operating under the terms of the EIA, demonstrating the high level of regulatory friction in the country.

Adherence to international anti-corruption and anti-money laundering standards.

Operating in jurisdictions with varying levels of perceived corruption risk, such as West Africa and Latin America, mandates a rigorous legal compliance program. Fortuna Silver Mines' adherence is governed by a comprehensive Anti-Corruption Policy, which includes annual ethics training for all directors and employees on anti-bribery, corruption, and anti-money laundering standards.

The company adheres to the Canadian Extractive Sector Transparency Measures Act (ESTMA), which requires public reporting of all payments made to all levels of government in its operating countries, including Peru, Mexico, Argentina, and Côte d'Ivoire. This transparency mechanism is a crucial legal defense against corruption allegations.

The complexity of international tax law, often intertwined with anti-money laundering compliance, was highlighted in the Q2 2025 financial results. The company's net income was impacted by the recognition of $17.5 million in withholding taxes related to the timing of an annual dividend approval in Côte d'Ivoire. This shows the constant legal and financial exposure from moving capital across continents, even when dealing with routine dividend payments.

Fortuna Silver Mines Inc. (FSM) - PESTLE Analysis: Environmental factors

Strict water management and tailings storage facility (TSF) regulations in arid regions like Peru.

You are operating in some of the world's most water-stressed regions, especially in Latin America, so water management isn't just a compliance issue; it's a core license-to-operate risk. In Peru, specifically at the Caylloma Mine, the pressure to maintain strict water balances is intense. Fortuna Silver Mines has been proactive, with 63% of the water used across all operations coming from recycling in 2023. The company is pushing this further, aiming to boost water recycling by 35% by 2026 at its Peruvian operations, using new filtration systems to reduce freshwater consumption intensity, which was already down to 0.20 cubic meters per tonne of processed ore in 2023.

On the tailings front, the regulatory environment is hardening globally, and the Global Industry Standard on Tailings Management (GISTM) is the new baseline. Fortuna Silver Mines has ten Tailings Storage Facilities (TSFs) under management, and their commitment is to meet the GISTM standards on a clear timeline.

• Achieve GISTM Topic III compliance (Design, Construction, Operation, Monitoring) for all company-owned TSFs by the end of 2025.
• Complete compliance for all other applicable GISTM requirements by the end of 2027.

This is a critical, high-stakes compliance deadline. What this estimate hides is the true cost of a sudden permit suspension, which could wipe out a quarter's cash flow. Your next step: Corporate Strategy: Model a 90-day shutdown at the largest cash-flowing mine by end of next week.

Pressure to reduce the carbon footprint and transition to renewable energy sources at mine sites.

The global push for decarbonization directly impacts your energy costs and investor perception. Fortuna Silver Mines has set a clear, quantifiable target: a 15% reduction in Scope 1 and Scope 2 Greenhouse Gas (GHG) emissions by 2030 compared to a business-as-usual forecast. This means holding 2030 emissions to at least 116,000 tonnes of carbon dioxide (tCO2), down from a forecasted 136,500 tCO2. The strategy is simple: swap diesel for renewables.

The company is making tangible progress in 2025, moving away from diesel power, which is a significant source of their current emissions. The Caylloma Mine already sources 100% of its electricity from renewable energy. The big near-term wins are in West Africa and Argentina.

• Lindero Mine (Argentina) solar power plant is 97% complete and expected to significantly reduce diesel consumption by Q3 2025.
• This Lindero solar project is projected to decrease annual GHG emissions by approximately 10,820 tCO2 per year.
• The Séguéla Mine (Côte d'Ivoire) solar power plant construction is also expected to be implemented by 2025, cutting emissions by about 3,700 tCO2 per year.

In 2023, 15% of total energy consumed was from renewable sources, a number that will defintely jump once the Lindero solar plant is fully operational in Q3 2025. This transition is a smart hedge against volatile diesel prices, plus it improves the company's industry-leading greenhouse gas emissions intensity per ounce of gold produced.

Biodiversity protection and reclamation obligations after mine closure.

Reclamation costs are a non-negotiable liability, and investors want to see them adequately provisioned. Fortuna Silver Mines integrates biodiversity protection into its mine closure plans from the start, which is the only way to manage this risk effectively. The financial provision for these future obligations is substantial, reflecting the long-term commitment to environmental stewardship.

The total legal financial provisions for mine closure (Accumulated Reclamation Obligation, or ARO) across the company's five operating mines stood at approximately US$75.32 million in 2024. This figure covers the estimated costs for final reclamation and remediation activities over the life of the mines, with the majority of expenditures incurred at the end of production.

Here's the quick math: The total provision jumped from US$65.8 million in 2023 to US$75.32 million in 2024, a clear signal of increased scrutiny and provisioning for end-of-life liabilities, which is a positive for long-term risk management.

Increased scrutiny on waste disposal and chemical usage by international bodies.

The scrutiny from international bodies like the Global Reporting Initiative (GRI) and the Task Force on Climate-related Financial Disclosures (TCFD) is not just about reporting; it's about operational discipline. Fortuna Silver Mines' operations, like all mining, generate chemical and metals depositions in the form of tailings, which are heavily regulated. The company has proactively aligned its reporting with the 2023 SASB Metals & Mining Standard, TCFD recommendations, and the newly released GRI 14: Mining Sector Standard (2024).

This commitment to transparency is a key risk mitigator. For example, the company reported no significant environmental fines and no incidents of non-compliance related to water permits, standards, and regulations throughout 2024. This zero-incident record for a full year is a strong data point that reduces the risk premium associated with environmental governance. Still, the regulatory landscape is always shifting, and maintaining ISO 14001 certification (which 60% of operating mines held in 2023) requires constant vigilance on waste disposal and hazardous materials management.