Gone are the days where the economics of sustainability meant mining companies had to choose between what was best for their bottom line and what was best for the environment and the communities their mines affect, a BDO report, Impressions from PDAC 2019, released this week finds.
Among the reports key findings are that sustainability pressure turns into competitive advantage. After stakeholder pressure has made the cost of electric equipment aligned with traditional tools, stakeholders now demand that miners implement substantive sustainability measures into their corporate planning.
BDO predicts that ethically sourced metals and minerals offering a competitive advantage is a growing trend. Ethically sourced gold for example, may command a price premium of 3% to 5%.
Blockchain technology is now commonly used by key mining companies, including Goldcorp and Yamana Gold, to monitor and validate gold’s source. Metals and minerals shortages has become a reality, and the most prominent metal supply gap in the coming years is copper, BDO notes, with an estimated 27% increase in production needed to meet supply through to 2028, requiring an investment of $115B in mining investment to produce.
A recurrent theme throughout the PDAC conference was an acknowledgement that equity markets have fallen out of love with junior miners over the last couple of years with an understanding that investors have been lured away by other sectors, most notably into cannabis stocks. The result is equity funding for junior miners is draining in Canada, BDO finds.
Read the full report here.