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Published on June 13, 2023 |
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SilverCrest Metals Inc. (the "Company" or "SilverCrest") is a Canadian precious metals producer headquartered in Vancouver, BC, that is focused on new exploration discoveries, value-added acquisitions and production assets in Mexico’s historic precious metal districts. The Company’s principal focus is its Las Chispas Operation (the "Las Chispas Operation"), in Sonora, Mexico. SilverCrest’s ongoing initiative is to increase its asset base by expanding current resources and reserves, acquiring, discovering and developing high value precious metals projects and ultimately operating multiple silver-gold mines in the Americas. The Company is led by a proven management team in all aspects of the precious metal mining sector, including taking projects through discovery, finance, on time and on budget construction, and production. |
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Disclaimer and Forward Looking Statements |
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Company Profile |
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Organizational Profile |
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Name |
SilverCrest Metals Inc. |
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Describe nature of activities, brands, products and services |
SilverCrest is a Canadian precious metals producer headquartered in Vancouver, BC, that is focused on new exploration discoveries, value-added acquisitions and production assets in Mexico’s historic precious metal districts. The Company’s principal focus is its Las Chispas Operation, in Sonora, Mexico. |
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Link to Corporate Website |
https://www.silvercrestmetals.com/ |
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Industry Classification |
NAICS: 212220 Gold and silver ore mining
ISIC: B0729 Mining of other non-ferrous metal ores |
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Market Capitalization |
$1 Billion USD up to $5 Billion USD |
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Type of Operations |
Primarily production oriented |
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Company Headquarters |
Vancouver, Canada |
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ESG Accountability |
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Role and Name of highest authority within company for Environment, Social and Governance strategy, programs and performance |
Board of Directors |
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ESG Reporting Period |
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Unless otherwise noted, all data contained in this report covers the following period |
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From |
2022-01-01 |
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To |
2022-12-31 |
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External Assurance |
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Describe its policy and practice for seeking external assurance, including whether and how the highest governance body and senior executives are involved |
For this report, the Company did not seek external assurance. A policy and practice for engaging external assurance will be considered for 2023.
The Board of Directors has delegated the oversight of the environmental, social capital, human capital, and other climate-related factors to the Safety, Environmental and Social Sustainability (“SESS”) Committee, which was established in May 2019. The purpose of the SESS Committee is to assist the Board of Directors in fulfilling its oversight responsibilities by reviewing and guiding the sustainability, social responsibility, environmental, and health & safety policies and work plans of the Company. The SESS Committee has adopted a written charter that sets out its mandate and responsibilities that is accessible on the Company’s website. The SESS Committee meets and reports to the Board of Directors at least biannually in each fiscal year, and at such other times during each year as it deems appropriate. In 2022, the SESS Committee met five times and plans to meet four times in 2023.
At the Management level, a new internal (ESG) structure was established in 2022, extending from corporate headquarters to the operational team in Mexico. This governance structure ensures that all ESG risks are tracked, understood, discussed, and addressed at all levels and geographies of the Company, including the Board. It also ensures that there is a clear chain of accountability that enables ESG-related information to be efficiently communicated up and down the organization. |
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Safety, Environmental and Social Sustainability Committee Charter |
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Has the report been externally assured |
No |
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Audit Status |
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Identify the degree to which any inputs of the report are third-party checked |
Self-Declared |
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Financial Reporting Period |
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Specify the frequency of sustainability reporting |
Annually |
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Whether Financial reporting period aligns with the period for its sustainability reporting |
Yes |
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This 2022 ESG Scorecard has the same reporting period as covered in the Company's financial reporting, January 1, 2022 to December 31, 2022. The Company's financial reporting was published earlier on March 13, 2023 with an effective date of March 10, 2023. |
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Specify the contact point for questions about the report or reported information |
Please contact sustainability@silvercrestmetals.com for questions regarding the 2022 ESG Scorecard or its content. |
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Products or Services |
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Report the quantity of products or services provided during the reporting period |
The Company's recovered metal totalled 17,770 ounces of gold and 1.74 million ounces of silver. Total metal sold during the reporting period was 11,400 ounces of gold and 1.12 million ounces of silver. |
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Explain any products or services that are banned in certain markets |
SilverCrest does not produce products or services banned in any markets. |
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Geographic Scope of Report |
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Unless otherwise noted, the data in this report covers ESG matters related to the following countries of operations |
• Canada • Mexico |
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SilverCrest is a Canadian precious metals producer headquartered in Vancouver, BC, with an ongoing initiative to increase its asset base by expanding current resources and reserves, acquiring, discovering and developing high value precious metals projects and ultimately operating multiple silver-gold mines in the Americas. The Company's principal focus is its Las Chispas Operation in Sonora, Mexico. As a result, the data in this 2022 ESG Scorecard covers ESG matters primarily for the Las Chispas Operation in Mexico. |
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Identify notable exclusions, and reference any existing or planned reports that do or will address these (e.g, assets recently divested or acquired, non-managed joint ventures, specific exploration activities, recently closed sites, etc.) |
The Company's 2022 ESG Scorecard covers ESG matters primarily for the Las Chispas Operation in Mexico.
The Company has other properties located in Mexico that are either in the exploration phase or inactive. Please refer to the Company's Annual Information Form for additional details on these properties. |
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SilverCrest 2022 Annual Information Form |
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Fragile and Conflict-Affected Situations |
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Identify all of the entity's countries of operations that align with the World Bank's list of "Fragile and Conflict-Affected Situations" |
None |
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Business Operations Scope of Report |
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Identify notable exclusions, and reference any existing or planned reports that do or will address these (e.g, assets recently divested or acquired, non-managed joint ventures, specific exploration activities, recently closed sites, etc.) |
The Company's 2022 ESG Scorecard covers ESG matters primarily for the Las Chispas Operation in Mexico.
The Company has other properties located in Mexico that are either in the exploration phase or inactive. Please refer to the Company's Annual Information Form for additional details on these properties. |
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Mineral Resource Types in Scope |
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Which of the following mineral resource types are covered by this report |
• Inferred • Indicated • Measured |
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Las Chispas Mineral Resource and Reserve Estimates |
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Mineral Reserve Types in Scope |
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Which of the following mineral reserve types are covered by this report |
• Proven • Probable |
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Las Chispas Mineral Resource and Reserve Estimates |
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Currency |
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Unless otherwise noted, all financial figures referenced in this report are in the following currency |
USD |
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Markets |
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Report the sector(s) in which it is active |
Primary metal |
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SilverCrest is a precious metal producer serving sectors requiring metallic production. |
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Markets served by the reporting organization, including |
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Geographic locations where products and services are offered |
USA |
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The Company started the processing plant at its Las Chispas Operation in late May 2022. Gold and silver doré produced at Las Chispas requires further refining by third-party refiners before being provided to the market as bullion. During 2022, the Company had a refinery agreement with a refiner in North America, and precious metals trading accounts with the refiner and two other North American bullion traders. |
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The demographic or other characteristics of the markets including |
Gold and silver doré can be readily sold on many markets throughout the world and the market price can be ascertained on demand. |
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Reporting Practice |
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Report significant changes from previous reporting periods in the list of material topics and topic Boundaries |
Does not apply |
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This 2022 ESG Scorecard is the Company's first ESG Scorecard. |
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Provide a list of all legal entities included in its sustainability reporting |
The Company's legal entities included in its sustainability reporting include SilverCrest Metals Inc., NorCrest Metals Inc., and Compañía Minera La Llamarada, S.A. de C.V. |
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If the organization has audited consolidated financial statements or financial information filed on public record, specify the differences between the list of entities included in its financial reporting and the list included in its sustainability reporting |
All entities in the Company's audited consolidated financial statements are also included in its sustainability reporting. |
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If the organization consists of multiple entities, explain the approach used for consolidating the information |
The Company’s principal subsidiary at December 31, 2022 was the wholly owned Compañía Minera La Llamarada, S.A. de C.V., located in Mexico, whose principal purpose is its Las Chispas Operation. Intercompany assets, liabilities, equity, income, expenses, and cash flows between the Company and its subsidiaries are eliminated on consolidation. |
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Does the approach involve adjustments to information for minority interests |
Does not apply. The Company does not have any minority interests. |
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How does the approach take into account mergers, acquisitions, and disposal of entities or parts of entities |
The Company includes this information in its sustainability reporting all entities that it controls as of December 31, 2022. |
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Explain whether and how the approach differs across the disclosures in this Standard and across material topics |
This approach does not differ across the disclosures in this Standard and across material topics. |
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Report the reasons for restatements, if any, from previous reporting periods |
Does not apply. The Company did not have any restatements from previous reporting periods. |
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Explain the effect of such restatements |
Does not apply. |
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Provide the contact point for questions regarding the report or its contents |
Please contact sustainability@silvercrestmetals.com for questions regarding the 2022 ESG Scorecard or its content. |
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Membership of Associations |
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List of the industry associations, other membership associations, and national or international advocacy organizations in which the organisation participates in a significant role |
CAMIMEX (Mexican Mining Chamber), Clúster Minero de Sonora (Sonoran Mining Cluster), Clúster Energía Sonora (Sonoran Energy Cluster), and AIMMGM (Association of Mining Engineers, Metallurgists and Geologists of Mexico). |
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The Company participates on these associations' conference calls and presentations about different topics (e.g. security, safety, social responsibility, etc.) |
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Raw Material Produced |
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Identify the total amount of each raw material produced |
54.759 |
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Metals |
54.759 |
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Gold (Au) (tonne) |
0.553 |
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During 2022, the Company recovered 17,770 ounces of gold at its Las Chispas Operation. |
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Silver (Ag) (tonne) |
54.206 |
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During 2022, the Company recovered 1.74 million ounces of silver at its Las Chispas Operation. |
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Finished Product for Sale |
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Identify the total amount of each finished product for sale |
49.961 |
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Metals |
49.961 |
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Gold (Au) (tonne) |
0.553 |
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During 2022, the Company recovered 17,770 ounces of gold at its Las Chispas Operation. |
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Silver (Ag) (tonne) |
49.408 |
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During 2022, the Company recovered 1.74 million ounces of silver at its Las Chispas Operation. |
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Net Sales |
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Report the following information ($Millions) |
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Report the net sales (for private sector organizations) ($Millions) |
44 |
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From the gold and silver doré produced at Las Chispas in 2022, the Company sold approximately 11,400 ounces of gold for $19.7 million (accounting for approximately 45% of the Company’s revenue in 2022) and 1.12 million ounces of silver for $23.8 million (accounting for approximately 55% of the Company's revenue in 2022). |
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Report the net sales (for public sector organizations)($Millions) |
0 |
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Does not apply. The Company is a publicly listed company on the TSX and NYSE American. |
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Organizational Profile |
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Provide a list of externally-developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes, or which it endorses, e.g., GRI, UN Global Compact |
SilverCrest Metals conducts its business operations and reports in alignment with the following principles:
- Global Reporting Initiative GRI, - Sustainability Accounting Standards Board SASB, - Task Force on Climate-related Financial Disclosures (TCFD), - International Council on Mining and Metals (ICMM) |
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Strategy |
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Provide a description of key impacts, risks, and opportunities, |
The major climate risk for SilverCrest was determined to be water scarcity in the region of operation. This was determined through a climate risk analysis conducted as part of SilverCrest's TCFD disclosure. The water risk identified did not pose a critical threat to SilverCrest as the Las Chispas Operation has a relatively low environmental impact and water- usage footprint. If managed correctly, there is not expected to be any operational disruption related to water shortage to occur throughout the life cycle of mine operations. However, it is expected that water scarcity and droughts will have a major impact on the surrounding communities that rely on water for their livelihoods and wellbeing. SilverCrest sees this as both a risk, but also an opportunity to add value to the local communities by supporting them through the expected water impacts. As such, SilverCrest has embarked on a five-year water stewardship plan (2022 to 2026) to revitalize the water infrastructure in the area. |
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SilverCrest 2022 TCFD Report
SilverCrest 2022 Water Stewardship Report |
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Provide a statement from the highest governance body or most senior executive of the organization (i.e., CEO, chair, or equivalent senior position) about the relevance of sustainable development to the organization and its strategy for for contributing to sustainable development. (CEO's message for this report) |
Please refer to pages 5 - 8 of the 2022 ESG Report. |
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Supply Chain |
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a. Report on significant changes to the organization’s size, structure, ownership, or supply chain, including |
During 2022, SilverCrest did not have any significant changes to its organization's size, structure or ownership. |
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Please refer to the Company's 2022 AIF for additional details on the Company's size, structure and ownership and below for changes to the Company's operations.
SilverCrest 2022 AIF |
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Changes in Locations and Operations |
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i. Changes in the location of, or changes in, operations, including facility openings, closings, and expansions |
In late May 2022, the Company completed construction at Las Chispas, ahead of schedule and under budget, and commenced commissioning. Since commissioning, the Las Chispas processing plant had performed in-line or ahead of the 2021 Feasibility Study expectations on operating metrics. The Company declared commercial production, effective November 1, 2022.
During 2022, approximately 188 kt of ore were processed at a grade of 3.05 gpt Au and 312 gpt Ag, or 577 gpt AgEq, compared to the 2021 Feasibility Study plan of 2.53 gpt Au and 254 gpt Ag, or 474 gpt AgEq. Metallurgical recoveries in 2022 were 96.5% for Au and 92.5% for Ag, or 94.4% AgEq. In 2022, recovered metal totaled 17.8 koz Au and 1.7 million oz Ag, or 3.3 million oz AgEq which compared to the 2021 Feasibility Study of 12.2 koz Au and 1.2 million oz Ag, or 2.3 million oz AgEq. |
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Changes in Capital Structure |
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ii. Changes in the share capital structure and other capital formation, maintenance, and alteration operations (for private sector organizations) |
During 2022, SilverCrest did not have a significant change to its share capital structure. As of December 31, 2022, the Company had 147,156,264 common shares and no preferred shares outstanding. |
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SilverCrest 2022 Financial Statements |
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Changes in Supply Chain |
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iii. Changes in the location of suppliers, the structure of the supply chain, or relationships with suppliers, including selection and termination |
Does not apply. The Company commenced commissioning of the Las Chispas processing plant in late May 2022. |
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Policy commitments |
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Provide a description of the organization’s policy commitments for responsible business conduct |
SilverCrest is committed to promoting a culture of ethical business conduct and conducting business in a socially and environmentally responsible manner, and meeting or surpassing regulatory requirements in all its exploration, development, mining and closure activities. The Company’s policies relevant to this commitment include the following:
- Advance Notice Policy - Anti-Bribery and Anti-Corruption Policy - Code of Business Conduct and Ethics - Community Policy - Disclosure Policy - Diversity Policy - Environmental Policy - Health and Safety Policy - Human Rights Policy - Incentive Compensation Clawback Policy - Majority Voting Policy for Election of Directors - Security Trading Policy - Supplier Code of Conduct - Water Management Policy
Furthermore, SilverCrest and its subsidiaries are committed to a culture of respect, honesty, integrity and accountability. The Company requires the highest standards of professional and ethical conduct from its employees, officers and directors. Employees may choose to remain anonymous in reporting any concerns they may have about accounting or financial irregularities, breaches in our Code of Business Conduct and Ethics, or offer ideas and suggestions that may improve the Company’s operations. For more information, please see the Company's:
- Grievance Mechanism - Whistleblower Policy |
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Code of Business Conduct and Ethics Policy (English)
Code of Business Conduct and Ethics Policy (Spanish)
Grievance Mechanism (English)
Grievance Mechanism (Spanish)
Whistleblower (English)
Whistleblower (Spanish) |
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What are (if any) the authoritative intergovernmental instruments that the commitments reference |
SilverCrest's policy commitments comply with all applicable laws and regulations, and/or best practices where the former is lacking.
The Company's multiple commitments for responsible business conduct reference intergovernmental instruments, including but not limited to:
-IFC 2012 Policy and Performance Standards -ILO -International Bill of Human Rights -TCFD -ICMM Water Stewardship Framework -ICMM Good practices for Grievance Management |
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Do the commitments stipulate conducting due diligence |
SilverCrest policy commitments require either due diligence, monitoring, regular reviews, and/or reporting on the policy commitments.
SilverCrest stakeholders additionally have access to the Company's Whistleblower and Grievance Mechanism. |
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Do the commitments stipulate applying the Precautionary Principle or Approach |
Yes |
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Do the commitments stipulate respecting human rights |
Yes |
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Describe the specific policy commitment to respect human rights |
Please refer to the links below for access to SilverCrest's Human Rights Policy commitments in English and Spanish. |
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Human Rights Policy (English)
Human Rights Policy (Spanish) |
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What are (if any) the internationally recognized human rights that the commitment covers |
SilverCrest considers “Human Rights” to be all internationally recognized human rights referred to in the International Bill of Human Rights and the International Labour Organization (ILO) Declaration of Fundamental Principles and Rights at Work. |
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What are the categories of stakeholders, including at-risk or vulnerable groups, that the organization gives particular attention to in the commitment |
SilverCrest's Human Rights Policy gives particular attention to the Company’s people and partners, including employees, shareholders, contractors, suppliers, local communities and any other Company stakeholder. The Policy also bans child and forced labour and requires respect for indigenous populations as at-risk or vulnerable populations. |
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Provide links to the policy commitments, if publicly available, or, if the policy commitments are not publicly available, explain the reason for this |
Please refer to the links below for access to the Company's publicly available policy commitments. |
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ESG Policies and Guidelines
Whistleblower and Grievance Mechanism |
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Report the level at which each policy commitment was approved within the organization, including whether this is the most senior level |
SilverCrest's corporate policies are approved by the Company's Board of Directors, which is the most senior level of the organization. |
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To what extent the policy commitments apply to the organization’s activities and to its business relationships |
Respect for Human Rights is consistent with SilverCrest’s values outlined in the Company’s Code of Business Conduct and Ethics, which are fundamental to the sustainability of the Company and the communities within which SilverCrest operates. A diverse and inclusive workplace is critical to SilverCrest’s success and all personnel have a responsibility, both individually and collectively, to operate in a way which respects Human Rights and fosters an inclusive culture.
SilverCrest is sensitive to Human Rights issues associated with mining activities. The Company seeks to prevent causing or contributing to adverse human rights impacts and will address, mitigate, and monitor any such impacts in a timely manner.
Company employees, officers, directors, agents, consultants, contractors, and other representatives are considered company personnel and are contractually obligated to adhere to the Company's policy commitments. |
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Describe how the policy commitments are communicated to workers, business partners, and other relevant parties |
SilverCrest has developed and implemented procedures, training and internal reporting structures to disseminate the Policy throughout the Company and into project exploration, short- and long-term planning, mine development, construction, operation and mine closure. |
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Embedding policy commitments |
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Describe how the organization embeds each of its policy commitments for responsible business conduct throughout its activities and business relationships |
Please refer to the information below for a description of the Company's implementation and enforcement of its policy commitments. |
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How are responsibilities allocated in order to implement the commitments across different levels within the organization |
Please refer to the attached file for a description of how ESG responsibilities are allocated across different levels within the Company. |
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ESG Governance Structure |
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How are the commitments integrated into organizational strategies, operational policies, and operational procedures |
Please refer to the document attached for a description of SIlverCrest's ESG strategy. |
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ESG Strategy |
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How does the organization implement its commitments with and through its business relationships |
SilverCrest's policy commitments extend to all third parties conducting business with the Company.
In addition, SilverCrest's Board of Directors has approved a Supplier Code of Conduct that requires suppliers adhere to the Company's policy commitments. |
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Ethics and Integrity |
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Describe the mechanisms for individuals to: seek advice on implementing the organization’s policies and practices for responsible business conduct |
SilverCrest's site-level management is directly responsible for identifying potential stakeholder concerns on the Company's responsible business conduct. Issues that are not resolved at the site level, or require increased oversight, are escalated to the executive team. All issues are subsequently reported to the Board of Directors. |
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Describe the mechanisms for individuals to: raise concerns about the organization’s business conduct |
In addition to shareholder meetings, where shareholders can raise concerns, SilverCrest offers stakeholders access to the Company's Whistleblower hotline and the Grievance Mechanism regarding the Company's business conduct. These mechanisms allow individuals to raise concerns anonymously if desired. |
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Supply Chain |
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Provide a description of the organization’s supply chain, including the types of suppliers (e.g., brokers, contractors, wholesalers, etc.) |
SilverCrest and its subsidiaries believe that success is best achieved by making ethical and responsible business decisions. The Company adopted a Supplier Code of Conduct, which outlines the expectations SilverCrest has of each of the Company’s suppliers, vendors, contractors, consultants, agents and any others who provide goods and services to SilverCrest.
For the Company's Las Chispas Operation, SilverCrest has entered into various agreements with suppliers and contractors, including but not limited to:
- underground mining; - drilling; - explosives; - power; - supply of consumables; - catering; - security; - personnel transportation; - refining; and etc. |
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Total estimated number of suppliers throughout its supply chain and in each tier (e.g., first tier, second tier); |
0 |
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This information is not available for the reporting period. Please see information above. |
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Estimated Total number of Business Entities in its downstream |
2 |
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Gold and silver doré produced at Las Chispas requires further refining by third-party refiners before being provided to the market as bullion. The Company currently has a refinery agreement with a refiner in North America, and precious metals trading accounts with the refiner and two other bullion traders. Gold and silver doré can be readily sold on many markets throughout the world and the market price can be ascertained on demand. From the gold and silver doré produced at Las Chispas in 2022, the Company sold approximately 11,400 ounces of gold for $19.7 million (accounting for approximately 45% of the Company’s revenue in 2022) and 1.12 million ounces of silver for $23.8 million (accounting for approximately 55% of the Company’s revenue in 2022) to two customers. |
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Geographic location of the downstream entities |
USA |
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Describe significant changes in the information reported about business activities, value chain and other business relationships compared to the previous reporting period |
The Company’s principal focus is its Las Chispas Operation in Sonora, Mexico. 2022 was a construction and ramp-up year at Las Chispas, with construction of the processing plant completed and commissioning undertaken in late May 2022. The Company declared commercial production for the Las Chispas Operation on November 1, 2022. Please refer to the Company's 2022 Annual Information Form for details of SilverCrest's three-year history. |
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SilverCrest 2022 Annual Information Form |
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Material Topics |
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Governance of Material Topics |
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Describe the process followed to determine the organization's material topics, including: |
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i. How has the organization identified actual and potential, negative and positive impacts on the economy, environment, and people, including impacts on their human rights, across its activities and business relationships; provide details |
• Environmental impact assessment • Social impact assessment |
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ii. How has the organization prioritized the impacts for reporting based on their significance |
SilverCrest underwent a materiality assessment in which stakeholders were asked to rank material ESG issues related to the Company. The findings from this survey and the subsequent materiality matrix produced were integral to informing SilverCrest's ESG strategy. Both the materiality matrix and ESG strategy are disclosed. In addition, a climate risk analysis was conducted as part of SilverCrest's TCFD reporting process and the findings from that analysis identified drought and water scarcity as the main physical climate risks. As a result of these findings, SilverCrest has invested into improving water infrastructure in the region which is described in more detail in the ICMM-aligned Water Stewardship Report published in 2022. |
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Specify the stakeholders and experts whose views have informed the process of determining its material topics and provide details |
• Business partners • Employees and other workers • Local communities |
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List the organization's material topics |
• Water • Occupational Health and Safety • Labor Practices • Local Communities • Other, please specify |
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Other material topics for SilverCrest include: Access to natural resources, Employee wellbeing and Social impact of infrastructure investments and services supported. |
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Report changes to the list of material topics compared to the previous reporting period |
No change |
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For the top 5 material topics, the reporting organization shall report the following information: |
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Topic #1 |
Water |
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An explanation of why the topic is material; describe the actual and potential, negative and positive impacts on the economy, environment, and people, including impacts on their human rights |
SilverCrest conducted a climate risk analysis as part of its TCFD reporting process. The analysis identified water scarcity and drought to be the key climate risks for the Company. Although the Company does not expect operational disruptions related to water shortage to occur throughout the life cycle of mine operations, it is expected that water scarcity and droughts will have a major impact on the surrounding communities that rely on water for their livelihoods and wellbeing. |
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Where the impacts occur |
At site and in the communities proximal to SilverCrest's Las Chispas Operation. |
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The organization’s involvement with the impacts. e.g., whether the organization has caused or contributed to the impacts, or is directly linked to the impacts through its business relationships |
SilverCrest has not caused the impacts directly, but does contribute to it on a small scale by using the same water for mining operations, although on a much lower scale than the nearby agricultural activities. |
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Report whether the organization is involved with the negative impacts through its activities or as a result of its business relationships, and describe the activities or business relationships |
Activities |
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Describe/provide a link to the corporate policies or commitments regarding the topic |
Water Stewardship Report and Water Management Policy |
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Water Stewardship Report
Water Management Policy |
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Explain how the organization manages the topic; describe actions taken and related impacts, including |
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Actions to prevent or mitigate potential negative impacts |
SilverCrest is investing in the local water infrastructure, such as agricultural aqueducts to improve water efficiency and reduce water loss while it is being diverted to fields. |
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Actions to address actual negative impacts, including actions to provide for or cooperate in their remediation |
This information is not available for the reporting period. |
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Actions to manage actual and potential positive impacts |
During this process of repairing local water infrastructure, SilverCrest has regularly engaged local stakeholders for feedback on the projects. Building these relationships with the local community, as well as with government agencies, reduced the risk of losing SilverCrest's social license to operate. |
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Report the following information about tracking the effectiveness of the actions taken |
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Processes used to track the effectiveness of the actions; |
• Impact assessments • Stakeholder feedback |
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Goals, targets, and indicators used to evaluate progress; |
SilverCrest is in the process of establishing KPIs and targets to monitor progress. |
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The effectiveness of the actions, including progress toward the goals and targets; any related adjustments |
This information is not available for the reporting period. |
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Lessons learned and how these have been incorporated into the organization’s operational policies and procedures |
This information is not available for the reporting period. |
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Describe how engagement with stakeholders has informed the actions taken and how it has informed whether the actions have been effective |
Engaging local stakeholders was integral in understanding the needs of the local communities and identifying the critical water infrastructure that should be prioritized in our water stewardship plan and investments. |
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Topic #2 |
Local Communities |
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An explanation of why the topic is material; describe the actual and potential, negative and positive impacts on the economy, environment, and people, including impacts on their human rights |
The Company's Las Chispas Operation is located near the town of Arizpe as well as several other small communities. Social license to operate has historically been a common issue in the mining industry due to the way local communities have been affected, the negative consequences of which can lead to operational delays. As such, maintaining positive relationships with the local communities is important for ensuring long-term business resilience. |
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Where the impacts occur |
Within the local communities and towns in which they live. |
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The organization’s involvement with the impacts. e.g., whether the organization has caused or contributed to the impacts, or is directly linked to the impacts through its business relationships |
SilverCrest regularly communicates and engages with local community associations and groups to understand their needs and how the Company can help. |
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Report whether the organization is involved with the negative impacts through its activities or as a result of its business relationships, and describe the activities or business relationships |
Both Activities and business relationships |
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Describe/provide a link to the corporate policies or commitments regarding the topic |
Community Policy |
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Community Policy |
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Explain how the organization manages the topic; describe actions taken and related impacts, including |
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Actions to prevent or mitigate potential negative impacts |
SilverCrest regularly communicates and engages with local community associations and groups to understand their needs and how the Company can help. |
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Actions to address actual negative impacts, including actions to provide for or cooperate in their remediation |
SilverCrest has committed to investing ~US$ 1.5M over a 5-year period to improve the water infrastructure for local communities. |
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Actions to manage actual and potential positive impacts |
SilverCrest regularly communicates and engages with local community associations and groups to understand their needs and how the Company can help. |
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Report the following information about tracking the effectiveness of the actions taken |
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Processes used to track the effectiveness of the actions |
Stakeholder feedback |
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Goals, targets, and indicators used to evaluate progress |
This information is not available for the reporting period. |
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The effectiveness of the actions, including progress toward the goals and targets; any related adjustments |
Currently, there have been no major issues raised from local communities that have resulted in operational delays. This is likely due to the strong relationships formed and managed by SilverCrest with these local communities. |
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Lessons learned and how these have been incorporated into the organization’s operational policies and procedures |
This information is not available for the reporting period. |
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Describe how engagement with stakeholders has informed the actions taken and how it has informed whether the actions have been effective |
The Company regularly engages community associations about any major activities they plan on taking that will have an impact on the local community. The stakeholder feedback from these meetings are integrated into the actions taken where appropriate. Since meetings with the community occur on a regular basis, constant feedback is provided on the effectiveness of actions taken. |
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A description of the grievance mechanism: if the management approach includes such mechanism, describe how the stakeholders who are the intended users of the grievance mechanisms are involved in the design, review, operation, and improvement of these mechanism(s) |
SilverCrest has a grievance mechanism to provide a formal process for receiving, registering, investigating and responding to questions, concerns, suggestions, or grievances from stakeholders. It is based on International Council on Mining & Metals’ (ICMM) good practices for effective grievance management.
Grievances are reported to delegated members of the Board. Any concerns over accounting, internal controls, auditing or other financial, securities or compliance matters can be reported directly to the Audit Committee Chair and/or to the Company's legal counsel.
Please refer to the Company's Grievance Mechanism and Whistleblower Policy for more information. |
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SilverCrest Grievance Mechanism and Whistleblower Policy |
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Grievance Mechanism: Ownership of the mechanism |
Please refer to the Company's Grievance Mechanism - Appendix 3 – Grievance Categories and Assignments. |
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Grievance Mechanism: The purpose of the mechanism and its relationship to other grievance mechanisms |
The purpose of this grievance mechanism is to provide a formal process for receiving, registering, investigating and responding to questions, concerns, suggestions, or grievances from community stakeholders. |
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Grievance Mechanism: The organization’s activities that are covered by the mechanism |
Questions, concerns, suggestions, or grievances from community stakeholders regarding:
1. Integrity of Financial Reporting, Accounting, and Operational Data 2. Violation of Laws, Regulations, Policies, and Procedures 3. Unethical Conduct and Conflict of Interest 4. Fraud and Theft 5. Data Security and Privacy 6. Harm to People, Environment, and Property 7. COVID-19 8. Organizational Issues 9. Whistleblower Protection 10. Suggestions for Improvement 11. Other sensitive reports
Please refer to the Company's Grievance Mechanism - Appendix 3 - Grievance Categories and Assignments. |
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Grievance Mechanism: The intended users of the mechanism |
Community stakeholders. |
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Grievance Mechanism: How the mechanism is managed |
Please refer to Appendix 2 of the Company's Grievance Mechanism - Grievance Resolution Process (Register, Review, Report and Resolve). |
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Grievance Mechanism: The process to address and resolve grievances, including how decisions are made |
Please refer to Appendix 2 of the Company's Grievance Mechanism - Grievance Resolution Process (Register, Review, Report and Resolve). |
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Grievance Mechanism: The effectiveness criteria used |
Not applicable. |
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The total number of grievances filed through the mechanism during the reporting period |
0 |
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The number of grievances that were addressed (or reviewed) during the reporting period |
0 |
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The number of grievances that were resolved during the reporting period |
0 |
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The number of grievances filed through the mechanism prior to the reporting period that were resolved during the reporting period |
0 |
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The number of grievances that were resolved by remediation |
0 |
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For the grievances that were resolved by remediation - how remedy was provided |
Not applicable. |
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Environment |
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General Disclosure |
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Compliance with laws and regulations |
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Report the total number of significant instances of non-compliance with laws and regulations during the reporting period, and a breakdown of this total by: |
0 |
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Number of instances for which fines were incurred |
0 |
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Number of instances for which non-monetary sanctions were incurred |
0 |
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Report the total number of fines for instances of non-compliance with laws and regulations that were paid during the reporting period |
0 |
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Report the monetary value of fines for instances of noncompliance with laws and regulations that were paid during the reporting period ($Million) |
0 |
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Total number of fines for instances of non-compliance with laws and regulations that occurred in the current reporting period |
0 |
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Total monetary value of fines for instances of non-compliance with laws and regulations that occurred in the current reporting period ($Million) |
0 |
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Total number of fines for instances of non-compliance with laws and regulations that occurred in previous reporting periods |
0 |
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Total monetary value of fines for instances of non-compliance with laws and regulations that occurred in previous reporting periods |
0 |
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Describe the significant instances of non-compliance |
There are no significant instances of noncompliance in this reporting period. |
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Describe how it has determined significant instances of non-compliance |
There are no significant instances of noncompliance in this reporting period. |
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Greenhouse Gas Emissions |
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Reduction of GHG emissions |
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GHG emissions reduced as a direct result of reduction initiatives (in metric tonnes of CO2 equivalent) |
8,216.000 |
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Gases included in the calculation |
CO2 |
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Base year or baseline, including the rationale for choosing it |
Base year |
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In which Scope the reduction took place |
Direct (Scope 1) |
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Standards, methodologies, assumptions, and/or calculation tools used |
Government of Mexico Emissions Calculator |
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Carbon Offset |
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Credits |
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How much CO₂ (metric tonnes) offset credits were purchased? |
0.000 |
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Emissions |
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Emissions Management |
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Disclose the management approach regarding Emissions |
SilverCrest has opted to change the power supply of diesel-powered electricity generating equipment to that provided by the national power grid. The consequent impact of this shift will be a reduction in emissions.
With respect to fugitive emissions, efforts are being made to maintain controls to mitigate suspended dust through the application of road irrigation and wetting of mine rock materials, and quarterly monitoring is implemented for the direct measurement of particulate matter in these emissions. |
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Air Emissions |
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Report emissions of air pollutants that are released into the atmosphere |
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Emissions of carbon monoxide, reported as CO (tonne) |
20.370 |
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Emissions of oxides of nitrogen (NOx), reported as NOx (tonne) |
94.220 |
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Emissions of oxides of sulphur (SOx), reported as SOx (tonne) |
6.260 |
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Emissions of Particulate Matter 10 micrometres or less in diameter (PM₁₀), reported as PM₁₀ (tonne) |
6.710 |
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Emissions of lead and lead compounds, reported as Pb (tonne) |
0.000 |
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Emissions of mercury and mercury compounds, reported as Hg (tonne) |
0.000 |
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Emissions of non-methane Volatile Organic Compounds (VOCs) (tonne) |
0.000 |
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Discuss the calculation methodology for emissions disclosure |
Other, please specify |
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The Las Chispas Operation has electric equipment for smelting with filtering controls that capture and convert potential air emissions resulting from the smelting process.
The data presented correspond to emissions from electricity generation using diesel as fuel during the construction stage of the mining unit, and were calculated using Emission Factors. This equipment is no longer used since the facility is powered by the national electricity distribution system at the start-up of the operation. |
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Ozone-Depleting Substances (ODS) |
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The reporting organization shall report the following information |
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Production, imports, and exports of Ozone Depleting Substances (ODS) in metric tonnes of CFC-11 (trichlorofluoromethane) equivalent: |
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Production of of ODS in metric tonnes of CFC-11 (trichlorofluoromethane) equivalent |
0 |
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SilverCrest does not produce, import, and/or export Ozone Depleting Substances (ODS). |
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Significant Air Emissions |
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The reporting organization shall report the following information |
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Significant air emissions, in kilograms or multiples, for each of the following |
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iii. Persistent Organic Pollutants (POPs) |
0.000 |
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iv. Volatile Organic Compounds (VOCs) |
0.000 |
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No VOCs calculation data available for 2022. |
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Very Volatile (gaseous) Organic Compounds (VVOCs) |
0.000 |
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Volatile organic compounds (VOCs) |
0.000 |
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Semi-Volatile Organic Compounds (SVOCs) |
0.000 |
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Mining Sector |
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vi. Total Particulate Matter (TPM): |
96,360.000 |
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mg/m3 per year |
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PM2.5 |
0.000 |
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No PM2.5 calculation data available for 2022 |
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PM10 |
96,360.000 |
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mg/m3 per year |
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Source of the emission factors used |
EPA Emission Factors |
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Standards, methodologies, assumptions, and/or calculation tools used |
Calculations were based on EPA standard criteria and hazardous air pollutants (HAP) for industrial and non-industrial processes. |
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Greenhouse Gas Emissions |
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Scope 1 |
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For your operations, disclose the gross global Scope1 greenhouse gas (GHG) emissions to the atmosphere of the seven GHGs covered under the Kyoto Protocol (tonne CO₂-e) |
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The total amount of gross global Scope 1 GHG emissions (CO₂-e) (tonne) |
11,137.300 |
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The percentage of its gross global Scope 1 GHG emissions that are covered under an emissions-limiting regulation or program that is intended to directly limit or reduce emissions, such as cap-and-trade schemes, carbon tax/fee systems, and other emissions control (e.g., command-and-control approach) and permit-based mechanisms |
0.0000% |
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In the 2022 reporting period, Mexico did not implement emissions-limiting regulations. SilverCrest Metals Inc. reports its GHG emissions on an annual basis as required by Mexican Federal law. |
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Discuss any change in its emissions from the previous reporting period, including whether the change was due to emissions reductions, divestment, acquisition, mergers, changes in output, and/or changes in calculation methodology |
This report does not contain any significant changes in the Company's emissions reporting as it is the first reporting period for GHG emissions. |
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In the case that current reporting of GHG emissions to the CDP or other entity (e.g., a national regulatory disclosure program) differs in terms of the scope and consolidation approach used, describe the differences and provide those reported emissions. |
The information SilverCrest discloses regarding its emissions may be used for reference or further disclosure by external entities. |
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The entity may discuss the calculation methodology for its emissions disclosure, such as if data are from continuous emissions monitoring systems (CEMS), engineering calculations, or mass balance calculations |
Calculations for emissions disclosures are based on annual data derived from consumption.
The data reported includes information from the Company's production facilities and equipment part of Las Chispas' operating mine. This disclosure does not include information derived from office and administrative facilities. |
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The entity may, where relevant, provide a breakdown of its emissions per mineral produced or business unit |
SilverCrest discloses for this phase of the mining project its GHG emissions as a business unit. |
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Discuss long-term and short-term strategy or plan to manage its Scope 1 greenhouse gas (GHG) emissions |
SilverCrest is currently establishing its GHG Scope 1 baseline. |
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Scope 1 GHG emissions in the base year (tonne CO₂-e) |
0.000 |
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Source of the emission factors and the global warming potential (GWP) rates used, or a reference to the GWP source |
GHG emissions calculations for this 2022 ESG report are based on EPA conversion factors. |
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What consolidation approach is used for emissions |
Not Applicable |
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Standards, methodologies, assumptions, and/or calculation tools used |
GHG emissions calculations for this report are based on EPA conversion factors. |
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Scope 2 |
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If company specific calculations are not available, disclose the gross location-based energy indirect (Scope 2) global greenhouse gas (GHG) emissions to the atmosphere (tonne CO₂-e): |
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Does the company purchase externally supplied energy (grid electricity) |
Yes |
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In what jurisdiction is the source of energy (utility) located |
Mexico |
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The total amount of gross global Scope 2 GHG emissions (CO₂-e) (tonne) |
8,097.600 |
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Source of the emission factors and the global warming potential (GWP) rates used, or a reference to the GWP source |
Source of the emission factors: Agreement published in the Official Journal of the Federation (SEMARNAT México), which establishes the technical particularities and formulas for the application of methodologies for the calculation of emissions of greenhouse gases or compounds.
The Emission Factor for the national electricity system is 0.423tCO2e/MWh.
(GWP) rates used: CO2 = 1 CH4= 28 N2O= 265 |
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Standards, methodologies, assumptions, and/or calculation tools used |
Electricity emission factor of the National Electricity System for the calculation of indirect greenhouse gas emissions due to electricity consumption.
Emissions Calculator for the National Emissions Registry, SEMARNAT, México. |
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Energy Management |
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Total energy consumed in aggregate, in gigajoules (GJ) (hydrocarbons and electricity) including the fuel types used (e.g., biomass, hydro-electric power or bioenergy) |
220,758.000 |
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During 2022, the Company consumed 69,112 GJ from grid electricity and 151,646 GJ from fossil fuel. |
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Percentage energy consumed that was supplied by grid electricity |
31.3067% |
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Percentage of energy consumed that is renewable energy |
0.0000% |
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Energy |
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Energy Consumption |
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c. Report the energy consumed in gigajoules for the following : |
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Electricity consumption (gigajoules, GJ) |
69,112.000 |
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Heating consumption (gigajoules, GJ) |
0.000 |
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Cooling consumption (gigajoules, GJ) |
0.000 |
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Steam consumption (gigajoules, GJ) |
0.000 |
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d. Report energy sold in gigajoules and report the totals for each |
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Electricity sold (gigajoules, GJ) |
0.000 |
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Heating sold (gigajoules, GJ) |
0.000 |
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Cooling sold (gigajoules, GJ) |
0.000 |
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Steam sold (gigajoules, GJ) |
0.000 |
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Report the standards, methodologies, assumptions, conversion factors and/or calculation tools used |
Direct metering equipment and consumption receipts provided by the electricity distribution network supplier. |
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Energy Intensity |
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The total energy consumption within the organization, in gigajoules |
220,758.000 |
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The organizations specific metric chosen to calculate the intensity. Note: when choosing a company specific metric, it must be used throughout all calculations |
207,289.000 |
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The metric chosen to calculate the intensity is tonnes of mineral processed in the reporting period. |
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Organization-specific metric to identify the denominator |
Production volume |
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Water |
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Water Management |
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Analyze and list all operations for water risks and identify activities that withdraw and consume water in locations with High (40–80%) or Extremely High (>80%) Baseline Water Stress as classified by the World Resources Institute’s (WRI) Water Risk Atlas tool, Aqueduct |
The Las Chispas Operation is located in a region of high baseline water stress according to the WRI's Aqueduct Water Risk Atlas and Mexico's National Water Commission (CONAGUA). |
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Disclose the amount of water that was consumed in its operations (in thousands of cubic meters) |
232.358 |
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Total water consumed in locations with high or extremely high baseline water stress (in thousands of cubic meters) |
232.358 |
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Was your organization subject to any fines, enforcement orders, and/or other penalties for water-related regulatory violations |
No |
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Total number of instances of non-compliance, including violations of a technology-based standard and exceedances of quality-based standards |
0 |
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Disclosure of incidents governed by national, state, and local statutory permits and regulations, including, but not limited to, the discharge of a hazardous substances, violation of pretreatment requirements, or total maximum daily load (TMDL) exceedances |
In this reporting period, SilverCrest did not suffer incidents of non-compliance that resulted in formal enforcement actions. |
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Dislcosure of violations, regardless of their measurement methodology or frequency |
During 2022, there were no violations to report. |
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Water and Effluents |
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Interactions with Water As A Shared Resource |
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Describe how the organization interacts with water, including how and where water is withdrawn, consumed, and discharged, and the water-related impacts caused or contributed to, or directly linked to the organization’s activities, products or services by a business relationship (e.g., impacts caused by runoff) |
The Company uses government-approved consumption sources. The company uses two underground wells concessioned by the federation for mining operations, which means that water is available in quantity and quality in the volumes that were authorized and does not compromise the availability of water for other uses. The volumes of water that are destined for operation and services are counted daily by area, in order to determine the use that is assigned to it. In the case of facilities in urban areas, water is supplied by the state distribution network.
During 2022, the Las Chispas Operation used 38% of the volume of water under its concession. |
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Describe the approach used to identify water-related impacts, including the scope of assessments, their timeframe, and any tools or methodologies used |
SilverCrest uses the following approaches to mitigate and manage water-related impacts:
i. maximize water reuse and/or recycling; ii. minimize wastewater discharge and control discharge quality; iii. manage withdrawal and any dewatering if applicable, to preserve water levels and flows needed to maintain the surrounding environment; iv. develop mitigation strategies for known past impacts and potential risks; v. leverage technological water solutions (improve quality, reduce use, etc.); vi. strive to follow best practices for potential implementation; and vii. consider potential climate change scenarios for long term planning for Company operations and local communities. |
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Describe how water-related impacts are addressed, including how the organization works with stakeholders to steward water as a shared resource, and how it engages with suppliers or customers with significant water-related impacts |
The Company has a strong commitment to use water responsibly so that it is used in the amount required and waste is avoided. The distribution of water in each of the operational and service areas is monitored daily, as well as water used by contractors. In its mining operation, the production process has a closed system design that is zero-discharge, thereby avoiding discharges to the environment. Grey water from sanitary services is treated and reused for dust suppression and watering of green areas. |
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Explain the process for setting any water-related goals and targets that are part of the organization’s management approach, and how they relate to public policy and the local context of each area with water stress |
The Company established a policy for the responsible use of water in all its operations, with the objective of aligning and complying with the requirements established by local, state and federal authorities, regarding the use assigned to this resource, creating awareness among its staff to establish a culture of care and rational use of available water. |
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Water Management Policy |
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Water Discharge-Related Impacts |
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Provide a description of any minimum standards set for the quality of effluent discharge, and how these minimum standards were determined, including: |
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i. How standards for facilities operating in locations with no local discharge requirements were determined |
The Las Chispas Operation is designed to be a zero-discharge facility. As such, the Las Chispas Operation does not have controlled discharges. During 2022, the Las Chispas Operation did not suffer any uncontrolled discharges from its operation. |
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ii. Water quality standards or guidelines developed internally |
The Las Chispas Operation does not have controlled discharges. As an operation in Mexico, any uncontrolled discharge must be reported and evaluated against the federal standard of the environmental authority (NOM-001-SEMARNAT/2021). |
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iii. Sector-specific standards considered |
The Las Chispas Operation is designed as a zero-discharge facility. The operation has water retention pond structures in place in case of an emergency.
As an operation in Mexico, any uncontrolled discharge must be reported and evaluated against the federal standard of the environmental authority (NOM-001- SEMARNAT/2021). |
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iv. Profile of the receiving waterbody considered |
The Las Chispas Operation is designed as a zero-discharge facility. The operation has water retention pond structures in place in case of an emergency. |
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Water Discharge |
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Report the total water discharge to all areas in megaliters |
0.000 |
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iii. Number of incidents of non-compliance with discharge limits |
0 |
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Report any contextual information necessary to understand how the data was compiled, including standards, methodologies, and assumptions |
There are regulatory standards for determining maximum permissible limits for contaminants in the quality of water discharge. In Mexico, the reference is NOM-001-SEMARNAT-2021. However, the Company does not discharge water into the natural environment. |
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Waste |
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Waste Generation and Significant Waste-Related Impacts |
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The reporting organization shall report the following information |
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i. Describe the inputs, activities, and outputs that lead or could lead to these impacts; |
The Las Chispas Operation requires the production of waste rock and tailings that are considered within the industry as significant waste-related impacts. |
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ii. Describe whether these impacts relate to waste generated in the organization’s own activities or to waste generated upstream or downstream in its value chain |
All impacts are related to the Company's own activities. |
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Report the total amounts generated of the following and associated risks (tonnes) |
500,761.000 |
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Overburden amount (tonnes) |
0.000 |
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Rock amount (tonnes) |
319,614.000 |
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Tailings amount (tonnes) |
181,147.000 |
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Sludges amount (tonnes) |
0.000 |
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Report actions, including circularity measures, taken to prevent waste generation in the organization’s own activities and upstream and downstream in its value chain, and to manage significant impacts from waste generated |
Tailings and waste rock are managed through the Las Chispas Operation, Maintenance and Oversight of Tailings Manual.
The management manual guidelines and procedure is based on the hierarchy of mitigation and the engineering designs of the facilities that mitigate potential impacts, such as the geo-membrane liner of the tailings facility. |
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If the waste generated by the organization in its own activities is managed by a third party, a description of the processes used to determine whether the third party manages the waste in line with contractual or legislative obligations |
The Las Chispas Operation has a Hazardous Waste Management Plan that is registered with the Mexican environmental authority (SEMARNAT). This plan complies with all applicable national requirements for hazardous waster management and disposal. The Company additionally requires evidence of proper disposal of hazardous material as per the monitoring and evaluation required by the management plan. |
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Describe the processes used to collect and monitor waste-related data |
SilverCrest's Las Chispas environmental department is tasked with collecting and monitoring waste-related data. This includes verification and production of the following:
1. Waste generation inventory 2. Waste storage inventory 3. Waste transportation and disposal tracking 4. Disposal as per local legislation 5. Waste-Management reports |
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Waste Generated |
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Report the total weight of waste generated (tonne) |
501,191.000 |
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Report the composition breakdown of the total waste (tonne) |
For the purposes of this report, the total weight of waste reported is comprised of hazardous and non-hazardous waste (municipal solid and recycling, waste rock and tailings). |
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Explain the relevance to the companies sector or activities, e.g., tailings for an organization in the mining sector, electronic waste for an organization in the consumer electronics sector, or food waste for an organization in the agriculture or in the hospitality sector |
The Las Chispas Operation requires the production of waste rock and tailings that are considered within the industry as significant waste-related impacts. |
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Materials that are present in the waste |
• Biomass • Metals • Non-metallic minerals |
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Report contextual information necessary to understand the data and how the data has been compiled |
Information on the Las Chispas Operation waste management was compiled for the 2022 reporting period based on the Company's bi- annual and annual waste management reports. |
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Waste Diverted from Disposal |
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Total weight of waste diverted from disposal (tonne) |
0 |
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Waste Directed to Disposal |
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Report the total weight of waste directed to disposal (tonne) |
356.15 |
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Total weight of hazardous waste directed to disposal (tonne), and a breakdown of this total by the following recovery operations |
170.63 |
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i. Incineration (with energy recovery), (tonne) |
0 |
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ii. Incineration (without energy recovery), (tonne) |
0 |
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iii. Landfilling (total, tonne) |
0 |
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iv. Other recovery operations (total, tonne) |
170.63 |
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Other recovery operations - Onsite |
170.63 |
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Report the total weight of non-hazardous waste diverted from disposal (tonnes), and a breakdown of this total by the following recovery operations |
185.52 |
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i. Incineration (with energy recovery), (tonne) |
0 |
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ii. Incineration (without energy recovery), (tonnes) |
0 |
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iii. Landfilling (total, tonne) |
185.52 |
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Landfilling - Offsite |
185.52 |
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iv. Other recovery operations (total, tonne) |
0 |
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Disclose contextual information necessary to understand the data and how the data has been compiled |
All waste-related disclosures for the 2022 reporting period are compiled from the Company's bi-annual and annual Waste Management Reports. |
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Effluents and Waste |
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Significant Spills |
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The reporting organization shall report the following information |
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a. Total number of recorded significant spills |
0 |
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Oil spills |
0 |
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Fuel spills |
0 |
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Spills of wastes |
0 |
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Spills of chemicals |
0 |
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Other, as specified by the organization |
0 |
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Transport of Hazardous Waste |
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The reporting organization shall report the following information |
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Total weight for each of the following |
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i. Hazardous waste transported (tonne) |
181.600 |
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Based on shipping, transportation and reception documents of hazardous waste sent for final disposal. |
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ii. Hazardous waste imported (tonne) |
0.000 |
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iii. Hazardous waste exported (tonne) |
0.000 |
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iv. Hazardous waste treated (tonne) |
0.000 |
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Percentage of hazardous waste shipped internationally |
0.0000% |
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Standards, methodologies, and assumptions used |
Data for this section is based on the net weight of hazardous waste declared in the shipping documents for final disposal as per the Company's bi-annual and annual Waste Management Reports. |
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Waste Management |
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Disclose the total amount of non-mineral waste generated (tonne) |
501,191.000 |
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Disclose the total weight of tailings produced (tonne) |
181,147.000 |
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Disclose the total amount of waste rock generated (tonne) |
319,614.000 |
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Disclose the total amount of overburden removed (tonne) |
0.000 |
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Disclose the total weight of waste generated that was hazardous (tonne) |
181.604 |
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Disclose the total weight of hazardous waste generated that was recycled (tonne) |
170.600 |
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Disclose the total number of significant incidents associated with handling, storage, transportation, or disposal of hazardous materials used in mineral processing activities and hazardous waste generated |
0 |
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Describe the policies and procedures that are set forth by the company's waste and hazardous materials management strategy |
SilverCrest's Environmental Policy states that operations must:
1. Ensure that the prevention of environmental accidents forms an integral part of the Company’s day-to-day operations by identifying measurable objectives and targets that will drive continuous improvement. 2. Internally, procedures are established for the management of hazardous waste and its correct final disposal. 3. Likewise, training is provided to the company's personnel and its contractors. |
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Environmental Policy |
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Describe how its policies and procedures compare with those required by local jurisdictions that apply to the entity |
The Company's Environmental Policy is aligned with requirements established by the laws, as well as regulations established by local, state and federal governments. |
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Describe its approach to waste management during the entire project life cycle |
As per SilverCrest's Environmental Policy, operations at Las Chispas' mine comply with the following:
1. Ensure that the prevention of environmental accidents forms an integral part of the Company’s day-to-day operations through identifying measurable objectives and targets that will drive continuous improvement. 2. Internally, procedures are established for the management of hazardous waste and its correct final disposal. 3. Likewise, training is provided to the company's personnel and its contractors. |
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Describe the approach to the management of hazardous materials used in processing |
As per the Company's Hazardous Waste Management Plan, all hazardous material follows the procedure described below:
1. Hazardous material is received by designated staff and catalogued as part of the company's inventory. 2. Inspections of facilities to house hazardous material are conducted weekly. 3. Hazardous material is logged out of facilities and inventoried as used material. 4. Hazardous waste is stored in specifically designated facilities that are properly identified. 5. Hazardous waste is transported and disposed of by a legally authorized third-party.
Access to hazardous material is limited to designated and especially trained Company staff. |
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Describe how waste and hazardous materials management efforts are coordinated among business partners (e.g., contractors and subcontractors) |
Waste and hazardous materials management is limited to specifically designated Company staff and contractors that specialize in waste management. Contractors that dispose of hazardous waste are monitored and evaluated for legal compliance of disposal. |
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Describe how the company ensures compliance and conformance with waste and hazardous material management policies and procedures |
The organization undertakes to submit periodic reports to the environmental authority in which compliance with the terms and conditions established in its environmental permits is demonstrated. These reports detail the management of hazardous waste generated. |
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Tailings Storage Facilities Management |
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Does your company manage Tailings Storage Facilities |
Yes |
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Provide an inventory of all talings storage facilities (TSFs) |
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TSF #1: (1) facility name |
Depósito Este Mina Las Chispas |
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TSF #1: (2) location |
Mexico |
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TSF #1: (3) ownership status |
Operator |
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TSF #1: (4) operational status |
Active |
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TSF #1: (5) construction method |
Upstream |
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TSF #1: (6) maximum permitted storage capacity |
1.250 |
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The tailings facility has a maximum permitted storage capacity of 1.25 million tonnes. |
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TSF #1: (7) current amount of tailings stored |
181,147.000 |
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The tailings facility has a current amount of stored tailings of 181,147 tonnes. |
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TSF #1: (8) consequence classification |
Low |
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TSF #1: (9) date of most recent independent technical review |
2022-04-01 |
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TSF #1: (10) material findings |
No |
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TSF #1: (11) mitigation measures |
The tailings facility has the following mitigation measures: Double geo-membrane, geo-textile, sub-drainage system, perimeter dike, contact water pool, perimeter diversion channel for non-contact water, and leak detector. |
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TSF #1: (12) site-specific EPRP |
Yes |
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Provide a summary of the tailings management systems used to monitor and maintain the structural integrity of tailings facilities and to minimize the risk of a catastrophic failure |
The Las Chispas Operation tailings storage facility is carried out in full compliance with the Operation, Maintenance and Surveillance Manual developed specifically for this facility by highly trained personnel and is based on engineering design to make the tailings storage process functional in a safe manner, minimizing the risk of failure, while indicating the contingency measures to be taken in the event of any eventuality that could jeopardize the safety of the storage facility. |
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Provide summary of tailings management systems and governance structure used to monitor and maintain the stability of tailings storage facilities |
The installation and operational process of the tailings deposit is authorized by the federal environmental authority in Mexico. SilverCrest's first-command, middle and supervisory operation personnel structure is aware of the Operation, Maintenance and Surveillance Manual and adheres to the specifications set forth herein to perform safe operations in stacking activities; Likewise, as part of this process, the density of the material is continuously monitored based on laboratory tests to ensure the stability of the deposit. Additionally, periodic surveillance monitoring is implemented to detect leaks. |
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Disclose the approach to the development of Emergency Preparedness and Response Plans (EPRPs) |
SilverCrest has an Emergency Preparedness and Response Plan (EPRP) in place to ensure adequate emergency preparedness and response to reduce the risk of loss of life and minimize damage in the event of a tailings impoundment failure. The Plan defines responsibilities and provides procedures to identify unusual situations and improbable conditions that could jeopardize the integrity of the tailings impoundment. |
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Disclose the company's approach to engagement concerning Emergency Preparedness and Response Plans (EPRPs) at tailings storage facilities, including the preparedness of local stakeholders |
It is the responsibility of all internal personnel and contractors who provide services in the area of the warehouses to know and comply with the EPRP, as well as to facilitate the dissemination, implementation and performance of drills derived from it. The plan considers the following alert levels.
Level 1 "low": this is an alert level, where the situation inside or outside the tailings management area can be controlled by internal personnel through minor maintenance activities and does not require the activation of an emergency. Level 2 "medium": is an emergency level, where the situation cannot be managed by the area's personnel, but does not exceed the site's resources to be controlled. It does not represent an immediate threat to the integrity of the repository. The scenarios it considers are as follows: - Seismic event. - Slope deformations or cracking - Extreme storm warning - High water table - Piping / internal erosion or seepage - Reduced freeboard
Level 3 "high": is an emergency level, where the incident exceeds the resources available in the emergency area and on site, requiring external assistance from government or private industry. |
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Innovation |
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Spending on Research, Development, and Technologies for waste management compliance and improvement |
0 |
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Biodiversity |
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Management Plan |
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Disclose the approach to biodiversity management |
The main project put into operation by the organization has an environmental impact authorization issued by the federal environmental authority in Mexico. The authorization refers to the “Las Chispas Mine Expansion” project. This authorization indicates the environmental impacts associated with exploration, exploitation, and mineral beneficiation activities, as well as impact mitigation and prevention measures. |
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Describe significant impacts of activities, products and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas |
SilverCrest does not operate in a protected area or in a watershed area of a protected area.
This disclosure includes all relevant categories and designations of provincial, national, and internationally recognized protected areas, including: the World Conservation Union (IUCN) designation I-IV, UNESCO Natural World Heritage Sites, UNESCO Man and the Biosphere Reserves, and wetlands designated under the Convention on Wetlands of International Importance (the Ramsar Convention). |
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List the environmental and biodiversity management plan(s) implemented at active sites |
SilverCrest's Las Chispas Operation established its environmental baseline in 2020 as part of the legally required environmental permitting process. As a result of this evaluation, the following programs were required:
1. Flora and Fauna Rescue and Protection Management Plan 2. Soils Conservation and Protection Management Plan 3. Rehabilitation and Restoration Plan |
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1.1 Mine lifecycle stages to which the plan(s) apply |
• Exploration and appraisal • Site development • Production • During closure |
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1.2 The topics addressed by the plan(s) |
• Ecological and biodiversity impacts • Waste generation • Natural resource consumption |
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1.3 The underlying references for its plan(s), including whether they are codes, guidelines, standards, or regulations; whether they were developed by the entity, an industry organization, a third-party organization (e.g., a non-governmental organization, a governmental agency, or some combination of these groups) |
The Biodiversity Management plans for the Las Chispas Operation were developed by an expert third-party in compliance with the evaluation of the project's potential impacts and risks. The resulting plans are aligned with legal requirements for mitigation. |
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Impacts of Policies and Procedures |
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Where relevant, describe specific policies and practices that apply to areas with protected conservation status and/or areas of critical habitat, which are defined by the International Finance Corporation (IFC) Performance Standard 6 |
Not applicable.
The environmental baseline for the Las Chispas Operation did not trigger the need for full compliance with IFC PS6, as the project is not located nor near a national or international protected area. The closest conservation area to the project is located 43 km from the site. |
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Impacts |
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Percentage of its mine sites (by annual production output from mines in tonnes) where acid-generating seepage into surrounding surface water and/or groundwater is: predicted to occur |
0.0000% |
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Percentage of mine sites (by annual production output from mines in tonnes) where acid-generating seepage into surrounding surface water and/or groundwater is: actively mitigated |
0.0000% |
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Percentage of mine sites (by annual production output from mines in metric tonnes) where acid-generating seepage into surrounding surface water and/or groundwater is: under treatment or remediation |
0.0000% |
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Provide a breakdown by business unit where acid rock drainage occur, is activelly mitigated and/or under treatment or remediation |
There is no evidence that the mined material could be a potential generator of acid drainage. A laboratory study is currently being developed to characterize the properties of the rock and analyze this assumption. |
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Does access to the site involve traversing a protected area |
No |
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Do any of the entities concessions share a watershed with a protected area |
No |
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Provide context and description of site access involving traversing protected areas, and/or watersheds shared with a protected area. Include reference to measures in place to assure access, any proactive programs to support the biodiversity of the protected area, and any formal complaints or compliance issues and related steps to resolve |
The settlement is not located within or adjacent to a protected area, as indicated in the Environmental Impact Assessment submitted to the Federal authority. |
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Percentage of proved reserves in sites with protected conservation status or in areas of endangered species habitat |
Does Not Apply |
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Grade (in percentage %) of proved reserves located in areas either with protected conservation status or in areas of endangered species habitat |
The settlement is not located within or adjacent to a protected area, as indicated in the Environmental Impact Assessment submitted to the Federal authority. |
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Percentage of probable reserves in sites with protected conservation status or in areas of endangered species habitat |
Does Not Apply |
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Amount of land (owned or leased, and managed for production activities or extractive use) disturbed or rehabilitated (hectares) |
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Total land disturbed and not yet rehabilitated (A: opening balance) |
29.47 |
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Total amount of land newly disturbed within the reporting period (B) |
4.13 |
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Total amount of land newly rehabilitated within the reporting period to the agreed end use (C) |
1.5 |
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Total land disturbed and not yet rehabilitated (D= A+B-C; closing balance) |
32.1 |
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Total cumulative land rehabilitated since the beginning of the operation (hectares) |
5.01 |
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The number and percentage of total sites identified as requiring biodiversity management plans (BMP) according to stated criteria, and the number (percentage) of those sites with plans in place |
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Identify the total number of sites |
1 |
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Report criteria for deciding that a BMP is required |
• Sensitivity of the area • Local community use of biodiversity • Ecosystems services provided by the local environment – e.g. wetlands (water purification, carbon sequestration), etc. • Protected status (or proximity to protected areas) • Iconic species or red listed species • Business case/risk aspects |
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Report the number of total sites that have been assessed under the criteria as in need of a BMP |
1 |
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Report the percentage of total sites that have been assessed under the criteria as in need of a BMP |
100.0000% |
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Of the number of sites in need of a BMP, report the number that have a BMP in place and operational |
0 |
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Of the number of sites in need of a BMP, report the percentage that have a BMP in place and operational |
0.0000% |
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Significant Impacts of Activities, Products and Services |
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Report the nature of significant direct and indirect impacts on biodiversity with reference to one or more of the following: |
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i. Construction or use of manufacturing plants, mines, and transport infrastructure |
• Construction (Startup or Expansion) • Extraction • Processing/Production |
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ii. Pollution (introduction of substances that do not naturally occur in the habitat from point and non-point sources) |
Yes |
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iii. Introduction of invasive species, pests, and pathogens |
Not Applicable |
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iv. Reduction of species |
No |
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v. Habitat conversion |
Yes |
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vi. Changes in ecological processes outside the natural range of variation (i.e., salinity or changes in groundwater level) |
Water cycle - where water is absorbed in the ground or soil cover, root mass, organic matter, aeration |
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Significant direct and indirect positive and negative impacts with reference to the following: |
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i. Species affected |
• Direct negative impact • Other, please specify |
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ii. Extent of areas impacted |
Direct negative impact |
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iii. Duration of impacts |
Indirect negative impact |
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Habitats Protected or Destroyed |
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The reporting organization shall report the following information: |
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Size and location of all habitat areas protected or restored, and whether the success of the restoration measure was or is approved by independent external professionals |
The Las Chispas Operation is outside of any national or international protected areas.
Restoration activities are being carried out within the area of operations, which are coordinated by a forestry expert, in compliance with the permit granted by the federal government to carry out operations. To date, approximately 5 hectares have been restored to compensate for the 33 hectares that have been affected. |
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Whether partnerships exist with third parties to protect or restore habitat areas distinct from where the organization has overseen and implemented restoration or protection measures |
There are no third-party groups or agencies involved in the restoration activities resulting from our operations. |
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Status of each area based on its condition at the close of the reporting period |
Related to a commitment to rescue and relocate 12,300 plants, the Company has a record of having reforested 12,420 plants native to the region at a ratio of 2,484 plants per hectare. This data is reported every four months to the federal authority. |
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Standards, methodologies, and assumptions used |
The terms and conditions established in the authorization for the change of land use granted in the resolution issued by the environmental authority for the development of the project and its operation. |
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IUCN Red List Species and National Conservation List Species |
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Report the total number of IUCN Red List species with habitats in areas affected by the operations of the organization, by level of extinction risk. Note to reader, as there are 37,400 species on the IUCN Red List that are classified in nine categories, you may choose from the nine categories |
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i. Not Evaluated |
No IUCN-listed species are present. |
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ii. Data Deficient |
No IUCN-listed species are present. |
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iii. Least Concern |
No IUCN-listed species are present. |
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iv. Near threatened |
No IUCN-listed species are present. |
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v. Vulnerable |
No IUCN-listed species are present. |
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vi. Endangered |
No IUCN-listed species are present. |
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vii. Critically Endangered |
No IUCN-listed species are present. |
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Social |
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Scale of the Organization |
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Describe how the organisation defines its "Operation" |
For the purpose of this reporting period, the operation includes SilverCrest's corporate activities in Canada and its Las Chispas Operation in Sonora, Mexico, and its exploration activities at its El Picacho property.
The Company's principal focus is its Las Chispas Operation. As a result, the data in this 2022 ESG Scorecard covers ESG matters primarily for the Las Chispas Operation in Mexico.
Where requested, information is provided about the Board of Directors of SilverCrest Metals.
For information about Executive compensation, consult the Management Information Circular at the link below. |
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Management Information Circular |
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Report the total number of operations |
1 |
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Employment |
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Scale of the Organization |
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Report the total number of direct employees worldwide (exclude contractors) |
339 |
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For the purposes of this report, we report on the number of the employees (headcount) at Compañía Minera La Llamarada, S.A. de C.V. at its operations in Mexico including unionized and non-unionized workers. For the purposes of reportedgender distribution, we will use the same population of employees. Where Executives and Board of Directors members are mentioned, these are SilverCrest Executives and Board of Directors members.
In this report - Senior Management refers to General Manager and Senior Managers, Heads of Areas and Operation Superintendent levels - Salaried (excluding Senior Management) includes Administrative Superintendents, Department Managers - Technical Employees (skilled hourly) includes the remaining non-unionized employees such as Coordinators, General Supervisors, Operational Supervisors, Maintenance Supervisors and Department-level Assistants - For Production Employees (unskilled hourly), we have included unionized employees - Contract Employees are those that work the full fiscal year for SilverCrest in multi-year contracts, and their employees work full time at the Las Chispas Operation for whom we have headcount information but not comparable compensation information
The latter two are, in fact, not hourly employees but rather are paid on a salary basis, as indicated by Mexican labour law and the Mexican Institute of Social Security. |
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Report the total number of male direct employees worldwide (exclude contractors) |
278 |
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Report the total number of female direct employees worldwide (exclude contractors) |
61 |
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Report the total number of contract employees worldwide |
583 |
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Total number of employees worldwide (include contractors) |
922 |
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Total number of female employees and contractors worldwide |
111 |
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Female employees and contractors as percentage of total employees and contractors |
12.0390% |
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Total number of male employees and contractors worldwide |
811 |
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Male employees and contractors as percentage of total employees and contractors |
87.9610% |
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Total number of non-binary employees and contractors worldwide |
0 |
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Non-binary employees and contractors as percentage of total employees and contractors |
0.0000% |
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Total number of employees and contractors with gender not disclosed |
0 |
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Employees and contractors with gender not disclosed as percentage of total employees and contractors |
0.0000% |
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Contractors as percentage of total employed workforce worldwide |
63.2321% |
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Employee Information |
|
|
Report the total number of direct employees by employment type (permanent and temporary), by gender |
339 |
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Total number of permanent employees |
339 |
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Total number of permanent employees - female |
61 |
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Total number of permanent employees - male |
278 |
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Total number of permanent employees - Non-binary |
0 |
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Total number of permanent employees - Gender not disclosed |
0 |
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Total number of temporary employees |
0 |
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Total number of temporary employees - female |
0 |
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Total number of temporary employees - male |
0 |
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Total number of temporary employees - Non-binary |
0 |
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Total number of temporary employees - Gender not disclosed |
0 |
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Report the total number of non-guaranteed hours employees by gender |
0 |
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Total number of non-guaranteed hours employees - female |
0 |
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Total number of non-guaranteed hours employees - male |
0 |
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Total number of non-guaranteed hours employees - Non-binary |
0 |
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Report the total number of employees by employment type (full-time and part-time), by gender |
339 |
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Report the total number of full-time employees |
339 |
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Report the total number of part-time employees |
0 |
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Total number of full-time employees - female |
61 |
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Total number of part-time employees - female |
0 |
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Total number of full-time employees - male |
278 |
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Total number of part-time employees - male |
0 |
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Total number of full-time employees - Non-binary |
0 |
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Total number of part-time employees - Non-binary |
0 |
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Total number of full-time employees - Gender not disclosed |
0 |
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Total number of part-time employees - Gender not disclosed |
0 |
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Describe the methodologies and assumptions used to compile the data |
Payroll records and month-end reports were used to compile the headcount and location data. |
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Are the numbers reported in head count, full-time equivalent (FTE), or using another methodology |
FTE |
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Are the numbers reported at the end of the reporting period, as an average across the reporting period, or using another methodology |
They are month-end figures, and for year-end figures, the last month's end data was used. |
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Provide contextual information necessary to understand the employment information provided |
An employee headcount and KPIs report is compiled monthly. |
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Describe significant fluctuations, if any, in the number of employees during the reporting period and between reporting periods |
There was an increase in 2022 due to the ramp- up period in plant operations and plant maintenance. |
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Workers who are not employees |
|
|
Report the total number of workers who are not employees and whose work is controlled by the organization |
583 |
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Describe the most common types of worker and their contractual relationship with the organization |
Mine: Heavy equipment operators (jumbo, low- profile truck, scooptram, drilling operators, tractor operators), cooks and housekeeping staff. These are all hired by third-party companies and contracted to work at our site. |
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The type of work they perform |
- Mine development - Drilling - Earth moving - Food and lodging |
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Report the total number of contractors by employment type (permanent and temporary), by gender |
583 |
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Total number of permanent contractors |
583 |
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Total number of permanent contractors - female |
50 |
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Total number of permanent contractors - male |
533 |
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Total number of permanent contractors - Non-binary |
0 |
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Total number of permanent contractors - Gender not disclosed |
0 |
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Total number of temporary contractors |
0 |
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Total number of temporary contractors - female |
0 |
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Total number of temporary contractors - male |
0 |
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Total number of temporary contractors - Non-binary |
0 |
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Total number of temporary contractors - Gender not disclosed |
0 |
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|
|
Report the total number of contractors by employment type (full-time and part-time), by gender |
583 |
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Total number of full-time contractors - female |
50 |
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Total number of part-time contractors - female |
0 |
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|
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|
|
|
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|
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Total number of full-time contractors - male |
533 |
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Total number of part-time contractors - male |
0 |
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Total number of full-time contractors - Non-binary |
0 |
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Total number of part-time contractors - Non-binary |
0 |
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Total number of full-time contractors - Gender not disclosed |
0 |
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|
Total number of part-time contractors - Gender not disclosed |
0 |
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Describe the methodologies and assumptions used to compile the information about workers who are not employees. |
Information compiled from month-end reports of hours worked by third-party hires at site. |
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Is the number of workers who are not employees reported in head count, full-time equivalent (FTE), or using another methodology |
All workers hired by third parties operating at site are FTE as per the month-end report. |
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Is the number of workers who are not employees reported at the end of the reporting period, as an average across the reporting period, or using another methodology |
Third-party hires are reported based on the last month-end report before the close of the annual period. |
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Describe significant fluctuations, if any, in the number of workers who are not employees during the reporting period and between reporting periods |
Non-employee workers are tracked through daily attendance logs and information is reported through monthly reports. |
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Full-time Employee Benefits |
|
|
Report the benefits which are standard for full-time employees of the organization but are not provided to temporary or part-time employees, by significant locations of operation |
Not Applicable |
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In this reporting period, SilverCrest Metals provided the same benefits to FTE as well as temporary or part-time employees. Please note, SilverCrest Metals' Mexican subsidiary, Compañía Minera La Llamarada S.A. de C.V. did not hire temporary or part-time employees for its Mexican operations. |
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Provide the definition used for ‘significant locations of operation’ |
Not applicable. Please refer to the answer above. |
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Diversity and Equal Opportunity |
|
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Report the percentage of employees per employee category in each of the following diversity categories |
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Board of Directors |
|
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Total Board of Directors |
7 |
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Percent Male |
57.1429% |
|
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Percent Female |
42.8571% |
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Percent Non-Binary |
0.0000% |
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Percent under 30 years of age |
0.0000% |
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Percent between 30 and 50 years of age |
16.6667% |
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Percent over 50 years of age |
85.7143% |
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Senior Management |
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Total Senior Managers |
11 |
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For the purpose of this report, only Senior Management at the Company's Mexico subsidiary are disclosed. For more details on diversity related to the executive officers of the Company, please see page 23-24 of SilverCrest's Management Information Circular dated April 28, 2023. |
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|
|
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|
|
|
|
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|
|
Percent Male |
90.9091% |
|
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|
|
|
|
|
|
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|
|
|
|
|
|
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Percent Female |
9.0909% |
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|
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|
|
Percent Non-Binary |
0.0000% |
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|
|
|
|
|
|
|
|
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|
|
|
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|
Percent under 30 years of age |
0.0000% |
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|
|
|
|
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|
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|
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|
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|
|
Percent between 30 and 50 years of age |
54.5455% |
|
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|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
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|
|
Percent over 50 years of age |
45.4545% |
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|
|
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|
|
Salaried (excluding Senior Management) |
|
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|
Total Salaried (excluding Senior Management) |
25 |
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|
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|
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|
|
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|
|
For the purpose of this report, only Salaried employees at the Company's Mexico subsidiary are disclosed. |
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|
|
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|
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|
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|
|
|
|
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|
|
Percent Male |
80.0000% |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
Percent Female |
20.0000% |
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
Percent Non-Binary |
0.0000% |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent under 30 years of age |
12.0000% |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent between 30 and 50 years of age |
72.0000% |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent over 50 years of age |
16.0000% |
|
|
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|
|
|
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|
|
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|
|
|
|
|
|
|
|
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|
|
Technical Employees (skilled hourly) |
|
|
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|
|
|
|
|
|
|
|
|
Total Technical Employees |
166 |
|
|
|
|
|
|
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|
|
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|
|
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|
|
|
|
|
|
|
|
|
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|
|
For the purpose of this report, only Technical Employees at the Company's Mexico subsidiary are disclosed. |
|
|
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|
|
|
|
|
|
|
|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent Male |
74.0964% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent Female |
25.9036% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent Non-Binary |
0.0000% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent under 30 years of age |
40.9639% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent between 30 and 50 years of age |
52.4096% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent over 50 years of age |
6.6265% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production Employees (unskilled hourly) |
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Production Employees |
137 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
For the purpose of this report, only Production Employees at the Company's Mexico subsidiary are disclosed. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent Male |
91.2409% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent Female |
8.7591% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent Non-Binary |
0.0000% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent under 30 years of age |
48.1752% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent between 30 and 50 years of age |
45.2555% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent over 50 years of age |
6.5693% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
Contractors: |
|
|
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|
|
|
|
|
|
|
|
|
|
Total Contractors |
583 |
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the purpose of this report, only Contractors of the Company's Mexico subsidiary are disclosed. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent Male |
91.4237% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent Female |
8.5763% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent Non-Binary |
0.0000% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent under 30 years of age |
32.9331% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent between 30 and 50 years of age |
54.8885% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent over 50 years of age |
12.1784% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Discrimination |
|
|
Incidents and Corrective Action |
|
|
Total number of incidents of discrimination during the reporting period |
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Race |
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Colour |
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gender |
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Religion |
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Political Opinion |
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
National Extraction (place of birth) |
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Social Origin (social class /social caste) |
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Age |
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Disability |
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Migrant Status (foreign birth, foreign citizenship, moving temporarily into a new country) |
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HIV/AIDS |
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sexual Orientation (LGBTQQIP2SAA stands for lesbian, gay, bisexual, transgender, questioning, queer, intersex, pansexual, two-spirit (2S), androgynous and asexual. Two-spirit is term used by some indigenous North Americans to describe those who fulfil a traditional third-gender ceremonial role). |
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Genetic Predisposition (an increased likelihood of developing a particular disease based on a person's genetic makeup) |
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lifestyle (healthy diet, not smoking, minimizing alcohol use) |
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Report the status of the incidents and actions taken with reference to the following |
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
i. Incident reviewed by the organization |
During 2022, there were no incidents of discrimination reported. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
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ii. Remediation plans being implemented |
Not applicable. |
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iii. Remediation plans that have been implemented, with results reviewed through routine internal management review processes |
Not applicable. |
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iv. Incident no longer subject to action |
Not applicable. |
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Labour Relations |
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Collective Bargaining Agreements |
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Percentage of total direct employees covered by collective bargaining agreements |
40.4130% |
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The Company has a collective bargaining agreement that is in full compliance with Mexico's 2019 labor law reform. Moreover, all contractors working for the Las Chispas Operation are required to meet Mexican standards and certification for specialized labor. |
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For employees not covered by collective bargaining agreements, report whether the organization determines their working conditions and terms of employment based on collective bargaining agreements that cover its other employees or based on collective bargaining agreements from other organizations |
The employees not governed by the collective bargaining agreements are governed by prevailing labour laws in the jurisdiction. |
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Notice Periods |
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Minimum number of weeks’ notice typically provided to employees and their representatives prior to the implementation of significant operational changes that could substantially affect them |
One month of notice where possible. |
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If your organization is subject to collective bargaining agreements, is the notice period and provisions for consultation and negotiation specified in those agreements |
Yes |
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Collective Bargaining Agreements - US & Foreign Workforce |
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Report the percentage of U.S. employees in the active workforce that are covered under collective bargaining agreements |
Does Not Apply |
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Report the percentage of foreign employees in the active workforce that are covered under collective bargaining agreements |
Does Not Apply |
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Disclose the number of work stoppages of work stoppages involving 1,000 or more workers lasting one full shift or longer |
0 |
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Disclose the total duration, in worker days idle, of work stoppages involving 1,000 or more workers lasting one full shift or longer |
0 |
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Report total number of strikes and lock-outs exceeding one week's duration |
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Number of lock-outs exceeding one week's duration |
0 |
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Number of strikes exceeding one week's duration |
0 |
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Employment |
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Parental leave |
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Report the total number of employees that were entitled to parental leave, by gender: |
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Male |
278 |
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Female |
61 |
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Non-binary |
0 |
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Report the total number of employees that took parental leave, by gender |
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Male |
4 |
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Female |
3 |
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Non-binary |
0 |
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Report the total number of employees that returned to work in the reporting period after parental leave ended, by gender: |
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Male |
4 |
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Female |
3 |
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Non-binary |
0 |
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Report the total number of employees that returned to work after parental leave ended that were still employed 12 months after their return to work, by gender: |
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Male |
4 |
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Female |
3 |
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Non-binary |
0 |
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Occupational Health and Safety |
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Health & Safety Management System |
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For employees and for workers who are not employees, but whose work and/or workplace is controlled by the organization, report the following: |
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A statement of whether an occupational health and safety management system has been implemented |
Yes |
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i. The system has been implemented because of legal requirements and, if so, a list of the requirements |
Identification of the standards. Evaluation of the standards. Regulatory compliance security program. Evaluation of the health and safety management system. Security program of the safety and health management system. Inspections program. Audit program. |
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ii. The system has been implemented based on recognized risk management and/or management system standards/guidelines and, if so, a list of the standards/guidelines |
NOM-002 Fire prevention and protection NOM-004 Safety systems and devices in machinery NOM-005 Handling, transport and storage of Hazardous substances NOM-006 Handling and storage of materials NOM-009 Work at height NOM-020 Pressure vessels and boilers NOM-022 Static electricity NOM-027 Welding and cutting NOM-029 Maintenance of electrical installations NOM-033 Work in confined spaces NOM-010 Contaminants by chemical substances NOM-011 Noise NOM-012 Ionizing radiation NOM-024 Vibrations NOM-025 Lighting NOM-035 Psychosocial Risk Factors NOM-036 Ergonomic risk factors. Part 1: Management loading manual. NOM-017 Personal protective equipment NOM-018 Identification of hazards and risks by substances chemical NOM-019 Safety and hygiene commissions NOM-026 Colors and safety signs NOM-030 Preventive health and safety services NOM-023 Work in underground and open pit mines |
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Hazard Identification, Risk Assessment, and Incident Investigation |
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For employees and for workers who are not employees, but whose work and/or workplace is controlled by the organization, report the following: |
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A description of the processes used to identify work-related hazards and assess risks on a routine and non-routine basis, and to apply the hierarchy of controls in order to eliminate hazards and minimize risks, including |
The Company's health and safety procedures include:
1. Risk analysis by activity and by job position. 2. High-risk work permits. IPERC (Identification of Dangers, Evaluation, Risk Control) 3. PRC (Dangers, Risk Control) |
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i. How the organization ensures the quality of these processes, including the competency of persons who carry them out |
SilverCrest ensures the quality of processes, including the competency of persons who carry them out through the following activities:
1. Continuous training attendance lists 2. Applied exams for each training 3. Certificates of training (DC3) |
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ii. How the results of these processes are used to evaluate and continually improve the occupational health and safety management system |
The results of these processes are used to evaluate the occupational health and safety management system through the document control system which requires that each document issued be reviewed every year. |
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A description of the processes for workers to report work-related hazards and hazardous situations, and an explanation of how workers are protected against reprisals |
The Las Chispas Operation has a health and safety inbox for anonymous complaints and suggestions. The Company has an email account specifically to receive reports. SilverCrest has the near misses tracking system through ITRAK. |
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A description of the policies and processes for workers to remove themselves from work situations that they believe could cause injury or ill health, and an explanation of how workers are protected against reprisals |
SilverCrest has a safety and health policy in which it is freely expressed not to put itself at risk. We have the golden regals of safety where the recommendation of not doing something that is not safe, to stop and correct and notify the supervisor, comes explicitly |
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A description of the processes used to investigate work-related incidents, including the processes to identify hazards and assess risks relating to the incidents, to determine corrective actions using the hierarchy of controls, and to determine improvements needed in the occupational health and safety management system |
The Company uses a digital platform called ITRAK. |
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Health Services |
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The reporting organization shall report the following information for employees and for workers who are not employees, but whose work and/or workplace is controlled by the organization: |
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A description of the occupational health services’ functions that contribute to the identification and elimination of hazards and minimization of risks, and an explanation of how the organization ensures the quality of these services and facilitates workers’ access to them |
Control the medical records of all personnel entering the site, evaluate occupationally exposed personnel, and carry out controls on occupationally personnel. Employees are advised, through the medical report, of each work area that has been exposed to any physical or chemical agent and through personalized interviews to inform each worker about the results of their entry or periodic medical studies as well as the results of the environmental hygiene studies where their activities are carried out. |
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Worker Participation and Communication on Health & Safety |
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The reporting organization shall report the following information for employees and for workers who are not employees, but whose work and/or workplace is controlled by the organization |
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A description of the processes for worker participation and consultation in the development, implementation, and evaluation of the occupational health and safety management system, and for providing access to and communicating relevant information on occupational health and safety to workers |
The process begins with dissemination through the annual training program in which the results and modifications of the system are included. The Health and Safety Committee is provided secured information and the members of the Committee review and then consultations, between Committee members and workers, take place where needed. |
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Where formal joint management–worker health and safety committees exist, a description of their responsibilities, meeting frequency, decision-making authority, and whether and, if so, why any workers are not represented by these committees |
There is a Health and Safety Committee and it is responsible for carrying out inspections to identify any unsafe conditions in the workplace as well as to participate in accident investigation. Meetings are held once a month and this includes joint participation of these inspections. |
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Health & Safety Training |
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A description of any occupational health and safety training provided to workers, including generic training as well as training on specific work-related hazards, hazardous activities, or hazardous situations |
Training is provided on the general emergency plan that aims to know how to act correctly in emergency situations, explaining the risks and dangers of each probable situation that may arise at the mine. |
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Promotion of Worker Health |
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The reporting organization shall report the following information for employees and for workers who are not employees but whose work and/or workplace is controlled by the organization |
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An explanation of how the organization facilitates workers’ access to non-occupational medical and healthcare services, and the scope of access provided |
We have a 24-hour pre-hospital care clinic with two doctors and three paramedics, care and medication is free, everyone is free to attend the medical service for consultation as well as to report an accident |
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A description of any voluntary health promotion services and programs offered to workers to address major non-work-related health risks, including the specific health risks addressed, and how the organization facilitates workers’ access to these services and programs |
The health service offers vaccination campaigns, according to the annual vaccination program of the Mexican Secretary of Health. Offers campaigns on diabetes control, cholesterol, triglycerides, obesity, and sexually transmitted diseases. |
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Prevention and Mitigation of Health & Safety Impacts |
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The reporting organization shall report the following information: |
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A description of the organization’s approach to preventing or mitigating significant negative occupational health and safety impacts that are directly linked to its operations, products or services by its business relationships, and the related hazards and risks |
The Company has a zero-accident approach, we are convinced that the way to be a successful operation is through safe work, the prevention and identification of hazards and risks, as well as the controls implemented will help us to have an organization free of accidents and occupational diseases. |
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Workers Covered by H&S Management System |
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The reporting organization shall report the following information |
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If the organization has implemented an occupational health and safety management system based on legal requirements and/or recognized standards/guidelines: |
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i. The number all workers who are not employees, but whose work and/or workplace is controlled by the organization, who are covered by such H&S system |
583 |
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i. Percentage of all employees and workers who are not employees, but whose work and/or workplace is controlled by the organization, who are covered by such H&S system; |
100.0000% |
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ii. The number of all employees, who are covered by such H&S system that has been internally audited |
339 |
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ii. Percentage of all employees and workers who are not employees, but whose work and/or workplace is controlled by the organization, who are covered by such H&S system that has been internally audited; |
100.0000% |
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iii. The number of all employees, who are covered by such H&S system that has been externally audited |
339 |
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iii. Percentage of all employees and workers who are not employees, but whose work and/or workplace is controlled by the organization, who are covered by such H&S system that has been externally audited; |
100.0000% |
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Any contextual information necessary to understand how the data have been compiled, i.e., any standards, methodologies, and assumptions used |
All contractors are under an internal audit program, the company is under a monthly external audit program under the control of an independent third-party. |
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Work-related Injuries |
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Injuries - For all employees |
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i. Number of fatalities as a result of work-related injury |
0 |
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i. Rate of fatalities resulting from work-related injury. Note: calculating per 200,000 hours worked |
0.000 |
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ii. Number of high-consequence work-related injuries (excluding fatalities) |
0 |
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Injuries - workers who are not employees but whose work and/or workplace is controlled by the organization |
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i. Number of fatalities as a result of work-related injury |
0 |
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i. Rate of fatalities resulting from work-related injury. Note: calculating per 200,000 hours |
0.000 |
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ii. Number of high-consequence work-related injuries (excluding fatalities) |
5 |
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Work-related Ill-health |
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The reporting organization shall report the following information |
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For all employees: |
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i. The number of fatalities as a result of work-related ill health |
0 |
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ii. The number of cases of recordable work-related ill health |
0 |
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iii. The main types of work-related ill health |
Not Applicable |
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For all workers who are not employees, but whose work and/or workplace is controlled by the organization: |
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i. The number of fatalities as a result of work-related ill health |
0 |
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Workforce Health and Safety |
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For U.S.-based workforce (full-time employees and contract employees), the entity shall disclose |
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Fatality rate for full-time employees |
0 |
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Fatality rate for contract employees |
0 |
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For non-U.S.-based workforce (full-time employees and contract employees), the entity shall disclose |
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Fatality rate for full-time employees |
0 |
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Fatality rate for contract employees |
0 |
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Occupational Health and Safety |
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Safety Training |
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Disclose the average number of training hours provided to its workforce for health, safety, and emergency management training |
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Average hours of health, safety, and emergency response training for (a) full-time/direct employees |
18.2 |
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Average hours of health, safety, and emergency response training for (b) contract employees |
24.36 |
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Training and Education |
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Skills Upgrading Programs |
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Report the type and scope of programs implemented and assistance provided to upgrade employee skills |
SilverCrest's employee skills upgrade program is for all personnel operating at mine sites. Improvements focus on soft skills, tasks of the operating position, machinery and equipment operation, environmental stewardship, as well as health and safety. |
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Report on transition assistance programs provided to facilitate continued employability and the management of career endings resulting from retirement or termination of employment |
The Company offers a training program focused on improving employees' knowledge, skills and attitudes, which directly impact the employees' life and career plans. It also incorporates certification of work skills, recognition and diplomas, generating an increase in the employee's curricular value. |
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Child Labour |
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Operations and Suppliers At Risk |
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The reporting organization shall report the following information |
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Disclose operations and suppliers considered to have significant risk for incidents of: |
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i.Child labour |
SilverCrest does not hire underage workers. The Company has a procedure in place to ensure the age of every worker is documented and verified before hiring. |
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ii. Young workers exposed to hazardous work |
SilverCrest does not hire underage workers. The Company has a procedure in place to ensure the age of every worker is documented and verified before hiring. |
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Human Rights Policy |
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Disclose operations and suppliers considered to have significant risk for incidents of child labour either in terms of: |
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i. Type of operation (i.e., manufacturing plant) and supplier |
SilverCrest's Las Chispas Operation is located in Mexico. SilverCrest does not hire underage workers and its suppliers are also prohibited from employing underage labour at its facilities. |
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ii. Countries or geographic areas with operations and suppliers considered at risk |
Mexico |
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Report measures taken by the organization in the reporting period intended to contribute to the effective abolition of child labour |
Please refer to the Company's Human Rights Policy below. |
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Human Rights Policy |
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Forced or Compulsory Labour |
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Operations and Suppliers At Risk |
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The reporting organization shall report the following information |
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Disclose operations and suppliers considered to have significant risk for incidents of forced or compulsory labor either in terms of |
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i. Type of operation (i.e., manufacturing plant) and supplier |
SilverCrest has committed to rejecting any form of forced or compulsory labor. As part of this commitment, the Company provides individual contracts to each of its workers and refrains from practices that could result in forced or bonded labour, including advance payments and restrictions on movement. |
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ii. Countries or geographic areas with operations and suppliers considered at risk |
Mexico |
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Report measures taken by the organization in the reporting period intended to contribute to the elimination of all forms of forced or compulsory labour |
Please refer to the Company's Human Rights Policy below. |
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Human Rights Policy |
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Security, Human Rights and Rights of Indigenous People |
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Identify the countries of operations within the World Bank's list of “Fragile and Conflict-Affected Situations” |
None |
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Describe the nature of any social risks, for all operating countries, that could have a material risk to operations |
Possible social risks in our country of operation that can result in material risks are:
(i) any incident or impact on the environmental system; (ii) labour issues that involve unionized employees; (iii) security conditions in Mexico; (iv) any impact to stakeholders, (positive or negative) due to lack of supervision or management, or not previously negotiated with stakeholder groups. |
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Percentage of proved reserves that are located in or near areas of active conflict |
Does Not Apply |
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The Company's reserves are not located in areas of conflict as per SASB EM-MM-210a. 1.1. 80% of the Las Chispas Operation's reserves are on private property owned by SilverCrest, and 20% are in an Ejido (collectively-owned land). SilverCrest negotiated a land lease contract with the Ejido. |
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Percentage of probable reserves that are located in or near areas of active conflict |
Does Not Apply |
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The Company's reserves are not located in an area of conflict as per SASB EM-MM-210a.1.1. 80% of Las Chispas Operation's reserves are on private property owned by SilverCrest, and 20% are in an Ejido (collectively-owned land). SilverCrest negotiated a land lease contract with the Ejido. |
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Percentage of inferred, indicated and measured resources that are located in or near areas of active conflict |
Does Not Apply |
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Percentage of proved reserves that are located in or near areas that are considered to be indigenous peoples’ land |
Does Not Apply |
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Not applicable. SilverCrest Metals does not carry out any operations near areas considered indigenous people's land. |
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Percentage of probable reserves that are located in or near areas that are considered to be indigenous peoples’ land |
Does Not Apply |
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Not applicable. Our reserves are not near areas that are considered to be indigenous people's land. |
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Describe due diligence practices and procedures with respect to indigenous rights of communities in which it operates or intends to operate |
The Company does not hold reserves on indigenous land or in conflict areas. 80% of reserves are on private property owned by SilverCrest , and 20% are in an Ejido that is not indigenous. This 20% is under contract through a land lease agreement. |
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Describe its due diligence practices and procedures with respect to human rights |
In relation to the Company's human rights practices:
(i) SilverCrest promotes the free association of workers and collective bargaining agreements; (ii) SilverCrest does not engage in forced labour practices nor the hiring of minors, as per Mexican law; (iii) SilverCrest also respects fair wages, providing salaries to employees above the professional minimums established by law in Mexico; (iv) SilverCrest's Human Rights policy prohibits discrimination and has procedures for reporting and compliance. |
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Environmental, Social & Governance (ESG) Policies and Guidelines |
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Human Rights |
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Indigenous Rights |
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The reporting entity shall disclose |
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Report the number of sites on or adjacent to indigenous territories |
0 |
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Not applicable. Our reserves are not on or near areas that are considered to be indigenous people's land. |
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Report the number of sites covered by formal benefit agreements or community development plans with indigenous communities |
0 |
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Our reserves are not on or near areas that are considered to be indigenous people´s land. |
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Report the percentage of sites covered by formal benefit agreements or community development plans with indigenous communities |
0.000 |
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Our reserves are not on or near areas that are considered to be indigenous people´s land. |
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Rights of Indigenous Peoples |
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Incidents of Violations |
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Report the total number of identified incidents of violations involving the rights of indigenous peoples during the reporting period |
0 |
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Not Applicable. SilverCrest does not operate on or near areas that are considered to be indigenous peoples' land. |
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Security, Human Rights and Rights of Indigenous People |
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Discuss practices and list procedures while operating in areas of conflict |
Not applicable.
Our operations and reserves are not in areas of conflict as defined by SASB 210a. In addition, the Company has not identified any preexisting conflict in our area of interest. |
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Local Communities |
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Operations with Local Community |
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Has (Have) the operation(s) included the use of the following |
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Significant disputes relating to land use, customary rights of local communities and indigenous peoples |
We do not have any disputes over property held and/or operated by SilverCrest. |
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Number of significant disputes relating to land use, customary rights of local communities and indigenous peoples |
0 |
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The extent to which grievance mechanisms were used to resolve disputes relating to land use, customary rights of local communities and indigenous peoples, and the outcomes |
Not applicable. SilverCrest has not had disputes relating to land use and therefore it has not been necessary to implement the Company's Whistleblower or Grievance mechanism for the resolution of land disputes. |
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Community Relations |
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Artisanal and Small-Scale Mining |
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Number of company operating sites where artisanal and small-scale mining (ASM) takes place on, or adjacent to, the site (not controlled by company/unauthorized) |
0 |
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ASM has not been identified in the project area. |
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Percentage of company operating sites where artisanal and small-scale mining (ASM) takes place on, or adjacent to, the site |
0.0000% |
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Report the associated risks and the actions taken to manage and mitigate these risks |
Not applicable. SilverCrest does not operate in sites where artisanal and small-scale mining takes place. |
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Discuss the processes, procedures, and practices to manage risks and opportunities associated with the rights and interests of communities in areas where it conducts business |
SilverCrest's Las Chispas Operation has an established grievance mechanism that is utilized by communities to address any potential grievances derived from its operations.
Las Chispas also has a community relations department and a community office to facilitate stakeholder access to the Company's representatives. |
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As part of its processes and practices to manage risks and opportunities, Las Chispas has developed a stakeholder management and communication plan that includes communities, landowners and government officials. In 2022, Las Chispas held a total of 118 meetings with its community stakeholders.
The Company has also designed strategies for the long term. We work with the Federal, State and Local Governments, and with all the local stakeholders to design and implement development projects for the community.
See the 2022 TCFD Report and 2022 Water Stewardship Report at the links below.
Community Policy
2022 TCFD Report
2022 Water Stewardship Report |
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Risks |
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The entity shall discuss its processes, procedures, and practices to manage risks and opportunities associated with the rights and interests of communities in areas where it conducts business, where community rights and interests include |
SilverCrest and its subsidiaries are committed to being positive social and economic contributors in the communities within the areas of influence of the Company’s operations. The Company believes in building long term relationships that respect and promote local cultures and sustainable development that benefits communities.
Please refer to the Company's Community Policy |
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Community Policy |
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Economic rights and interests, including, but not limited to, employment, fair wages, payment transparency, national resource governance, and respect of infrastructure and agricultural land |
SilverCrest's Las Chispas Operation has not identified any negative economic impacts derived from its operations. The Company did not physically or economically displace communities. |
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Community Policy |
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Human Rights Policy |
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Environmental Policy |
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Environmental rights and interests, including, but not limited to clean local air and water, as well as safe discharge and disposal of waste |
SilverCrest's Las Chispas Operation is located 10 kilometres from the federal road and 12 linear kilometres from the nearest town. The Las Chispas Operation is a zero-discharge, filtered-tailings project. Tailings are non-acid generating, and the TSF has a liner for additional environmental protection. |
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Additionally, as part of its risk management program, and in compliance with legal regulations, Las Chispas has an established environmental monitoring system to alert the Company to any potential risks to the environment. There are minimal risks to communities due to the distance between the project and communities (12 kilometres in a straight line). |
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Environmental policy |
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Social rights and interests, including, but not limited to adequate health care, education, and housing |
SilverCrest's Las Chispas Operation will not generate risks to community or stakeholder health, education and/or housing. |
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The Company has built a workers' camp to house its employees. The workers' camp has its own staffed medical clinic.
Engagement is ongoing with stakeholders to evaluate whether the Company will maintain housing people in camp as local communities are interested in greater economic opportunities that could be derived from an increased presence of Company workers in their communities. |
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Human Rights Policy |
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Community Policy |
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Cultural rights and interests, including, but not limited to protection of places of cultural significance (e.g., sacred sites or burial sites) |
Cultural rights and interests are recognized in our human rights and diversity policy. Regarding the care and protection of places of cultural or sacred importance, in Mexico, these are protected and regulated by the National Institute of Anthropology and History and are included in the national catalog of historical monuments. |
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Regarding sacred places, in the region of influence of our project, no place or site that is sacred or important to an indigenous group has been identified. |
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Diversity Policy |
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Community Policy |
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Human Rights policy |
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The entity shall disclose the following, where relevant |
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Lifecycle stages to which its practices apply |
• Pre-bid (when the entity is considering acquisition of a site) • Exploration and appraisal • Site development • Mineral production • During closure • Decommissioning and restoration |
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Risks associated with community relations include: |
• Access to land • Availability and access to adequate infrastructure • Non-technical delays |
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Risks and Opportunities |
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Disclose the degree to which its policies and practices are aligned with the International Finance Corporation’s (IFC) Performance Standards on Environmental and Social Sustainability, January 1, 2012, including specifically: |
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The discussion shall include how practices apply to business partners, i.e., contractors, sub-contractors, suppliers, and joint venture partners |
SilverCrest's Community Policy applies to all of the Company's business partners including contractors, subcontractors and suppliers. |
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Describe efforts to eliminate or mitigate community risks and/or address community concerns: |
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The use of Social Impact Assessment (SIA) that evaluates, manages, and mitigates risks |
The Company conducted a social baseline study in 2019 for its Las Chispas Operation and a social impact assessment (SIA) in 2021. These studies helped identify interested stakeholders and map their concerns. The Company's engagement and five-year social investment plan resulted from these studies. |
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Water Stewardship Report |
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Efforts to engage with stakeholders, build consensus, and collaborate with communities |
SilverCrest's Las Chipas Operation engages with communities and the three levels of government as well as community groups with specific interests (i.e. education, health, etc.) through stakeholder information and feedback meetings as well as projects that are implemented jointly with stakeholders.
In addition, and when required, stakeholders can communicate with the Company through its grievance mechanism. |
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See the grievance mechanism here https://www.silvercrestmetals. com/sustainability/whistleblower-and- grievance-mec/ |
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“Shared” or “blended” value projects that provide quantifiable benefits to the community and the entity |
SilverCrest's Las Chispas Operation developed a five-year investment plan through the development of its SIA. Through community participation and input, Las Chispas establishes action plans to implement the program primarily focused on water stewardship. |
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Water Stewardship Report |
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Disclose the total number of site shutdowns or project delays due to non-technical factors |
0 |
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Disclose the total aggregate duration (in days) of site shutdowns or project delays due to non-technical factors |
0 |
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Resettlement |
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Have there been community resettlements in order to accommodate business activities and if so, please provide details about the specific sites |
No |
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Economic Performance |
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Government Financial Assistance |
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Total monetary value of financial assistance received by the organization from any government during the reporting period, including ($ Millions) |
0 |
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During 2022, the Company did not receive any financial assistance from any government. |
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i. Tax relief and tax credits |
0 |
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ii. Subsidies |
0 |
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iii. Investment grants, research and development grants, and other relevant types of grant |
0 |
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iv. Awards; |
0 |
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v. Royalty holidays |
0 |
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vi. Financial assistance from Export Credit Agencies (ECAs) |
0 |
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vii. Financial incentives |
0 |
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viii. Other financial benefits received or receivable from any government for any operation |
0 |
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Whether, and the extent to which, any government is present in the shareholding structure |
There is no government present in the Company's shareholding structure. |
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Market Presence |
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Management Representation |
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The reporting organization shall report the following information |
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Percentage of senior management at significant locations of operation that are hired from the local community |
9.0909% |
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The definition used for ‘senior management’ |
General Manager and Senior Managers, Heads of Areas and Operation, Superintendent levels |
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The organization’s geographical definition of ‘local’ |
The Sonora River Valley region |
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The definition used for ‘significant locations of operation’ |
Las Chispas |
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In significant locations of operation, report proportion (percentage) of the facility’s total workforce from the local community |
30.6785% |
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Governance |
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Climate Change |
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Oversight |
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Is there board-level oversight of climate-related issues within your organization |
Yes |
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Responsibility |
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Provide the highest management-level position(s) or committee(s) with responsibility for climate-related issues |
Other, please specify |
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The Safety, Environmental and Social Sustainability Committee is responsible for climate-related issues. |
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Nature of primary responsibility |
Other, please specify |
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The Safety, Environmental and Social Sustainability Committee of SilverCrest Metals has been delegated the oversight of corporate performance relating to climate change and social sustainability matters. The Committee’s purpose is to assess the effectiveness of the Company’s policies and practices, monitor compliance with laws, rules and regulations, assess potential operational and financial risks and opportunities that stem from climate- related issues. |
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Reporting |
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Frequency of reporting to the board on climate-related issues |
Annually |
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The Company's 2022 TCFD report is available on its website: https://www.silvercrestmetals. com/_resources/reports/SilverCrest-Metals- TCFD-report-Final.pdf?v=0.961 |
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Incentives |
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Do you provide incentives for the management of climate-related issues, including the attainment of targets |
Yes |
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Risk and Opportunity Management |
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Does your organization have a process for identifying, assessing, and responding to climate-related risks and opportunities |
Yes |
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Risk Assessments |
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Have you identified any inherent climate-related risks with the potential to have a substantive financial or strategic impact on your business |
No - risks exist, but none with potential to have a substantive financial or strategic impact on business |
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Opportunity Assessments |
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Have you identified any climate-related opportunities with the potential to have a substantive financial or strategic impact on your business |
Yes, we have identified opportunities but are unable to realize them |
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Strategy |
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Have climate-related risks and opportunities influenced your organization’s strategy and/or financial planning |
Yes |
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Water Management |
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Quality and Quantity Dependency |
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Rate the importance (current and future) of freshwater quality and quantity to the success of your business |
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Direct use importance rating |
Vital |
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Indirect use importance rating |
Vital |
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Rate the importance (current and future) of sufficient quantity of recycled, brackish and/or produced water for the success of your business |
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Direct use importance rating |
Vital |
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Indirect use importance rating |
Vital |
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Risk Assessments |
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Does your organization undertake a water-related risk assessment |
Yes, water-related risks are assessed |
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Select the options that best describe your procedures for identifying and assessing water-related risks |
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i. Coverage |
Full |
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ii. Risk Assessment Procedure |
Water risks are assessed as part of other company-wide risk assessment system |
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iii. Frequency of Risk Assessment |
Annually |
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iv. How far into the future are risks considered |
More than 6 years |
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Have you identified any inherent water-related risks with the potential to have a substantive financial or strategic impact on operations |
Yes, both in direct operations and the rest of our value chain |
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Provide details of identified risks in your direct operations with the potential to have a substantive financial or strategic impact on your business, and your response to those risks |
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Risk 1 |
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Type of risk |
Reputation and markets |
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Primary risk driver |
Reputation and Makets - Increased stakeholder concern or negative stakeholder feedback |
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Primary potential impact |
Loss of license to operate |
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Risk timeframe |
Current up to one year |
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Magnitude of potential impact |
High |
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Likelihood of potential impact |
Unlikely |
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Potential impact financial figure and explanation |
We have not been able to quantify this risk financially yet.
The mining industry has historically had a poor reputation when managing the impacts of their operations on local communities. Even though SilverCrest's Las Chispas Operation has a very low water footprint compared to the agricultural activities of the local communities, if water scarcity becomes a serious issue impacting crop yields then it is possible that there could be protests and a loss of social licence to operate. |
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Primary response |
Improve maintenance of infrastructure |
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Cost of response and description of response |
SilverCrest has started to implement it's 5-Year Water Stewardship Plan in which US$1.5M has been set aside to repair agricultural aqueducts, river intake valves and sewage systems for the surrounding local communities. |
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Risk 2 |
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Type of risk |
Physical |
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Primary risk driver |
Physical – Drought |
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Primary potential impact |
Reduction or disruption in production capacity |
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Risk timeframe |
1-3 years |
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Magnitude of potential impact |
Medium-low |
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Likelihood of potential impact |
Virtually certain |
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Potential impact financial figure and explanation |
We have not been able to quantify this risk financially yet. |
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Primary response |
Adopt water efficiency, water reuse, recycling and conservation practices |
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Cost of response and description of response |
We have not been able to quantify this risk financially yet. |
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Opportunity Assessments |
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Have you identified any water-related opportunities with the potential to have a substantive financial or strategic impact on your business |
Yes, we have identified opportunities, and some or all are being realized |
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Opportunity 1 |
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Type of opportunity |
Markets: Strengthened social license to operate |
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Opportunity timeframe |
Current up to one year |
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Magnitude of potential impact |
High |
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Potential impact financial figure and explanation |
We have not been able to quantify this opportunity financially yet.
Protecting the best interests of and working closely with the local community to address their concerns around water scarcity presents a major opportunity to strengthen SIL's social licence to operate. |
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Opportunity 2 |
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Type of opportunity |
Markets: Improved community relations |
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Opportunity timeframe |
Current up to one year |
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Magnitude of potential impact |
Medium-high |
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Potential impact financial figure and explanation |
We have not been able to quantify this opportunity financially yet.
Protecting the best interests of and working closely with the local community to address their concerns around water scarcity through investments presents a major opportunity to incorporate the community into SIL's operations and reduce the risk of striking. |
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Opportunity 3 |
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Type of opportunity |
Resilience to future regulatory changes |
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Opportunity timeframe |
1-3 years |
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Magnitude of potential impact |
Medium |
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Potential impact financial figure and explanation |
We have not been able to quantify this opportunity financially yet. |
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Responsibility |
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Provide the highest management-level position(s) or committee(s) with responsibility for water-related issues |
Other Committee, please specify |
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It is the responsibility of the Company’s personnel and executives to ensure the application of SilverCrest's Water Policy. The Board of Directors is responsible for overseeing this policy and related programs. |
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Policy |
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Does your organization have a documented water policy |
Yes, we have a documented water policy that is publicly available |
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Select the options that best describe the scope and content of your organizations' water policy |
• Description of business impact on water • Description of water-related performance standards for direct operations • Commitment to align with public policy initiatives, such as the Sustainable Development Goals (SDGs) • Commitments beyond regulatory compliance • Commitment to stakeholder awareness and education • Commitment to water stewardship and/or collective action • Commitment to safely managed Water, Sanitation and Hygiene (WASH) in local communities • Acknowledgement of the human right to water and sanitation • Recognition of environmental linkages, for example, due to climate change |
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Reporting |
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Frequency of reporting to the board on water-related issues |
Annually |
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Incentives |
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Do you provide incentives to C-suite employees or board members for the management of water-related issues |
Yes |
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Strategy |
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Are water-related issues integrated into any aspects of your long-term strategic business plan |
Other, please specify |
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SilverCrest has identified the frameworks necessary to measure, and report on, operational water use. At the Las Chispas Operation, SilverCrest currently measures the total water consumption. SilverCrest intends to continue collecting relevant data in 2022 and 2023 in order to establish a robust baseline for measuring and disclosing our water management performance in the coming years. |
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General Disclosure |
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Governance structure and composition |
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Describe its governance structure, including committees of the highest governance body; e.g., the Board of Directors, the Executives, the Board Environment Committee, Board Safety Committee, the Advisory Committee, etc. |
SilverCrest's Board of Directors is composed of 7 members, including an independent chair. The Board discharges its responsibilities both directly and through its committees, including the Audit Committee, the Corporate Governance and Nominating Committee, the Compensation Committee ,and the Safety, Environmental and Social Sustainability Committee. The Board may also appoint ad-hoc committees periodically to address issues of a more short-term nature. |
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List the committees of the highest governance body that are responsible for decision making on and overseeing the management of the organization’s impacts on the economy, environment, and people; e.g., the Board of Directors, the Executives, the Board Environment Committee, Board Safety Committee, the Advisory Committee, etc |
The SESS Committee of the Board of Directors charged with the oversight of corporate performance relating to safety (including occupational health), environmental (including climate change) and social sustainability matters. The Committee’s purpose is to assess the effectiveness of the Company’s policies and practices, monitor compliance with laws, rules and regulations, assess potential operational, human resource and financial risks and opportunities that stem from environmental, geopolitical or social factors and report periodically to the Board of Directors. |
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Delegation of responsibility for managing impacts |
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Describe whether the highest governance body has appointed any senior executives with responsibility for the management of organization’s impacts on the economy, environment, and people e.g., is it part of the Governance structure of the company, the CFO or internal audit reporting to the Board |
The Company's President, CEO, COO and CFO have been appointed with with all issues related to Company's ESG matters. Please refer to the ESG Governance Chart. |
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Describe whether the highest governance body has delegated responsibility for the management of impacts to other employees; |
SIlverCrest's Board of Directors has delegated responsibility of workforce matters to the Company's Chief Operating Officer, Mr. Pierre Beaudoin. |
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Consultation Process |
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Report the processes for consultations between stakeholders and the highest governance body on economic, environmental and social topics, e.g., for most mining companies it would be the executives and operations and not the Board, and if delegated, explain how |
SilverCrest executives and operations report to the SESS Committee of the Board of Directors on a biannual basis or as important matters arise.
The Chair of the SESS Committee develops and sets the Committee’s agenda in consultation with other members of the Committee and Company management, as necessary. The agenda and any supporting material is communicated to members in advance to the extent practical to permit meaningful review. The SESS Committee maintains minutes of meetings and reports to the Board on significant matters arising at committee meetings at the next scheduled meeting of the Board. |
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Governance structure and composition |
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Describe the composition of the highest governance body and its committees by |
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Number of executive members |
1 |
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Number of non-executive members |
6 |
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Number of independent members |
6 |
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Less than 3 years of tenure of members on the governance body |
2 |
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3-6 years of tenure of members on the governance body |
1 |
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6-9 years of tenure of members on the governance body |
3 |
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More than 10 years of tenure of members on the governance body |
0 |
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Number of other significant positions and commitments held by each member, and the nature of the commitments |
Please refer to the link below for a description of the Company's Board of Director's executive biographies. |
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https://www.silvercrestmetals.com/about- us/management/
Management and Directors |
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Number of Male governance body members |
4 |
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Number of Female governance body members |
3 |
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Number of members from under-represented social groups |
3 |
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Description of competencies relating to economic, environmental, and social topics |
Please refer to the link below for a description of the Company's Board of Director's biographies. |
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https://www.silvercrestmetals.com/about- us/management/
Management and Directors |
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Description of stakeholder representation |
As a public company engaged in mineral production, SilverCrest Metals' primary stakeholder groups include its shareholders, employees and the residents of the communities affected by its operations. The Company uses various means to communicate and consult with its stakeholder groups and provides them with opportunities and mechanisms to provide feedback to the Company.
SilverCrest Metals discloses all material developments to the public by news release. The Company publishes information on its stock price, share structure, financials and MD&A, AGM and ESTMA information on its website. Shareholders and the public may opt in from the Company's website to receive the Company's news releases directly and the Company's contact information is provided.
Feedback received from shareholders, and interested stakeholders is directed to the CEO and if warranted, to the Board of Directors. Senior executives meet regularly with investors, via telephone, web conferencing, conference call or webcast and in person. Likewise, the Company's community relations team meet and consult on a daily or near daily basis with individuals, organizations and leadership of the communities affected by the Company's operations.
Please refer to the link below for access to SilverCrest Metal's disclosure policy. |
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https://www.silvercrestmetals. com/sustainability/policies-and-guidelines/ |
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Board Diversity |
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Do you have a diversity policy and if so, provide details, link to the policy or attach the file |
Yes. Please refer to the link below to access SilverCrest Metals' publicly disclosed diversity policy. |
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https://www.silvercrestmetals. com/sustainability/policies-and-guidelines/
Diversity Policy |
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Chair of the highest governance body |
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Is the chair of the highest governance body is also a senior executive in the organization |
No |
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Conflicts of Interest |
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Describe the processes for the highest governance body to ensure that conflicts of interest are prevented and mitigated |
SilverCrest's Code of Business Conduct and Ethics prohibits activities that could give rise to conflicts of interests. Where a conflict involves a Board member (i.e. where a Board member has an interest in a material contract or material transaction involving the Company), the Board member involved will be required to disclose his or her interest to the Board and refrain from voting at the Board meeting of the Company considering such contract or transaction in accordance with applicable law.
Any potential conflicts of interest are reported immediately to a member of senior management who is independent of the potential conflict and who assesses the issue with, if necessary, the advice of legal counsel. For unresolved potential conflicts involving any employee or where a member of senior management or a Board member is involved in a potential conflict, the issue should be referred to the Board (assisted by the Audit Committee and legal counsel as necessary).
SilverCrest also has a Supplier Code of Conduct that addresses potential conflicts of interest and a Grievance Mechanism and Whistleblower hotline for reporting possible violations to the Company's policies. |
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https://www.silvercrestmetals. com/sustainability/policies-and-guidelines/ https://www.silvercrestmetals. com/sustainability/whistleblower-and- grievance-mec/
Code of Business Conduct and Ethics
Supplier Code of Conduct
Grievance Mechanism and Whistleblower Policy |
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Report whether conflicts of interest are disclosed to stakeholders, including, as a minimum, conflicts of interest relating to |
Yes |
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Cross-board membership |
Yes |
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Cross-shareholding with suppliers and other stakeholders |
Yes |
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Existence of controlling shareholder |
Yes |
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Related parties, their relationships, transactions, and outstanding balances |
Yes |
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Collective knowledge of highest governance body |
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Report measures taken to advance the collective knowledge, skills, and experience of the highest governance body on sustainable development., e.g., board training |
The Board is responsible for ensuring that measures are taken to orient new directors regarding the role of the Board, its committees and its directors and the nature and operation of the Company’s business. The Board is also responsible for ensuring that measures are taken to provide continuing education for its directors to ensure that they maintain the skill and knowledge necessary to meet their obligations as directors. |
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Board Mandate |
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Evaluation of Highest Governance Body |
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Describe actions taken in response to the evaluations, including changes to the composition of the highest governance body and organizational practices |
The Board annually reviews the performance of the Board and its committees against their respective charters and mandates and disclose the process in public documents, as applicable. It also annually evaluate the performance of individual directors, the performance of the Chair and the performance of the lead director. The Board is also responsible for managing its own affairs which include reviewing the skills and experience represented on the Board in light of the Company’s strategic direction. |
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Transparency |
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Describe the role of the highest governance body and of senior executives in developing, approving, and updating the organization’s purpose, value or mission statements, strategies, policies, and goals related to sustainable development |
The Board is responsible for approving and monitoring compliance with all significant policies and procedures by which the Company is operated and approving policies and procedures designed to ensure that the Company operates at all times within Applicable Laws and regulations and to the highest ethical and moral standards. |
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Board Mandate |
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Describe the role of the highest governance body in overseeing the organization’s due diligence and other processes to identify and manage the organization’s impacts on the economy, environment, and people |
The Board is responsible for the identification of the principal risks of the Company’s business and ensuring the implementation of appropriate systems to effectively monitor and manage those risks with a view to the long- term viability of the Company and achieving a proper balance between the risks incurred and the potential return to the Company’s shareholders.
This includes responsibility for conducting periodic reviews of human, technological and capital resources required to implement the Company’s objectives and the regulatory, cultural or governmental constraints on the business. |
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Describe whether and how the highest governance body engages with stakeholders to support these processes |
In adherence to the Company's Disclosure Policy, the Board is responsible for ensuring that the Company has in place effective communication processes with shareholders, employees, financial analysts, governments and regulatory authorities, the media and the communities in which the business of the Company is conducted. |
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Describe how the highest governance body considers the outcomes of these processes |
The Board has oversight responsibility to participate directly, and through its committees, in reviewing, questioning and approving the goals and objectives of the Company. The Board also monitors and reviews the CEO’s performance, appoints and discharges senior officers based on their performance. |
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Ethics |
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Describe the management system and due diligence procedures for assessing and managing corruption and bribery risks internally and associated with business partners in its value chain |
SilverCrest is committed to a culture of respect, honesty, integrity, and accountability. The Company requires the highest standards of professional and ethical conduct from its employees, officers and directors. The Board adopted a code of business conduct and ethics (“Code”), which is applicable to the entire workforce of SilverCrest including employees, officers and members of the Board of Directors, at all times and everywhere the Company does business. Employees, officers and the Board of Directors are required to be familiar with and adhere to this Code. This Code has been adopted pursuant to U.S. and Canadian securities laws and stock exchange rules, including Item 406 of Regulation S-K and Section 807 of the NYSE American LLC Company Guide.
SilverCrest's Board of Directors also has an Anti-Bribery and Anti-Corruption Policy that applies to all of the Company’s employees, officers, directors, agents, consultants, contractors, and other representatives (Company Personnel). All Company Personnel, in discharging their duties on the Company’s behalf, are required to comply with all applicable Anti-Bribery Laws and in particular to comply with this Policy.
The policy provides guidance on “red flags” or potential transaction that may present some degree of corruption risk. Company Personnel that uncover red flags are expected to ask questions, and if commercially reasonable explanations are not provided, they must take appropriate steps to consider ending the relationship with the relevant third party.
Any reports of solicitation to engage in prohibited acts or possible violations of this Policy are reported to the CEO and the Chairman of the Audit Committee for investigation.
The Company's Supplier Code of Conduct explicitly requires suppliers comply with SilverCrest’s Anti-Bribery and Anti-Corruption Policy and applicable Mexican laws regarding anti-corruption practices in their business dealings with Federal, State and Municipal government officials. The Company's Anti- Bribery and Anti-Corruption Policy is contractually binding. |
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Code of Business Conduct and Ethics
Anti-Bribery and Anti-Corruption Policy
Supplier Code of Conduct |
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Report net production from activities located in the countries with the 20 lowest rankings in Transparency International’s Corruption Perception Index (CPI) (Saleable tonne) |
0 |
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If applicable, discuss operations that are located in countries with low rankings in the index but present low business ethics risks; the entity may provide similar discussion for operations located in countries that do not have one of the 20 lowest rankings in the index but that present unique or high business ethics risks |
Not applicable. SilverCrest does not conduct operations in countries with low rankings in Transparency International’s Corruption Perception Index. |
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Anti-Corruption |
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Communication and Training |
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i. Total number of governance body members that the organization´s anti-corruption policies and procedures have been communicated to |
7 |
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During the onboarding process and on an annual basis, SilverCrest's governance body members (i.e. Board of Directors) review and acknowledge the Company's Code of Business Conduct and Ethics and Anti-Bribery and Anti- Corruption Policy. |
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ii. Total percentage of governance body members that have been communicated to on anti-corruption |
100.0000% |
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Total number and percentage of employees that have been communicated to on anti-corruption |
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1a. Total number of employees that have been communicated to on anti-corruption |
339 |
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During the onboarding process and on an annual basis, SilverCrest's employees review and acknowledge the Company's Code of Business Conduct and Ethics and Anti-Bribery and Anti-Corruption Policy. |
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1b. Total percentage of employees that have been communicated to on anti-corruption |
100.0000% |
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i) Total number of governance body members that have received training on anti-corruption, broken down by region |
0 |
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During the onboarding process and on an annual basis, SilverCrest's governance body members (e.g. Board of Directors) review and acknowledge the Company's Code of Business Conduct and Ethics and Anti-Bribery and Anti- Corruption Policy.
Anti-Bribery and Anti-Corruption Policy
Code of Business Conduct and Ethics |
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Total number and percentage of employees that have received training on anti-corruption, broken down by employee category and region |
0 |
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During the onboarding process and on an annual basis, SilverCrest's employees review and acknowledge the Company's Code of Business Conduct and Ethics and Anti-Bribery and Anti-Corruption Policy. |
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General Disclosure |
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Delegation of responsibility for managing impacts |
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Describe the process and frequency for senior executives or other employees to report back to the highest governance body on the management of the organization’s impacts on the economy, environment, and people. |
The Safety, Environmental and Social Sustainability Charter reports to the Board at least biannually on the Company's compliance with related corporate policies, any risks and opportunities identified and relevant current developments. |
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Safety, Environmental and Social Sustainability Committee Charter |
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Highest Governance Body |
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Describe the nomination and selection processes for the highest governance body and its committees |
SilverCrest Metals' Corporate Governance and Nominating Committee provides assistance to the Board in fulfilling its responsibility to the shareholders, potential shareholders and the investment community by identifying and recommending qualified individuals for nomination to the Board and arranging for evaluations of the Board.
In consultation with the Chair of the Board and the Chief Executive Officer, the Committee identifies, screens, selects, and nominates directors for the annual meetings of shareholders.
Each director of the Company is elected by the vote of a majority of the shares, represented in person or by proxy, at any meeting for the election of directors. |
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Corporate Governance and Nominating Committee
Majority Voting Policy for Election of Directors |
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Report the criteria used for nominating and selecting highest governance body members |
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Discuss whether and how: Views of the stakeholders (including shareholders) are involved |
Nominations of persons for election to the Board may be made at any annual meeting of shareholders of the Company, or at any special meeting of shareholders of the Company if one of the purposes for which the special meeting is called is the election of directors.
Please refer to the Advance Notice Policy for further information. |
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Advance Notice Policy |
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Discuss whether and how: Diversity is considered |
In discharging its nominating duties, the Committee recognizes that consideration of diversity along with consideration of the necessary competencies, experience, skills and backgrounds required to achieve strategic objectives enhance the quality of the Board’s performance. The Committee considers diversity from a broad perspective, including but not limited to diversity of skills, business experience, education, geography, age, gender, ability, ethnicity and aboriginal status, and length of service. When assessing Board composition or identifying suitable candidates for appointment or re- election to the Board, the Committee considers candidates on merit against objective criteria to ensure the Board has the skills, expertise, experience, and backgrounds necessary to provide effective oversight for the achievement of the Company’s strategic objectives, having due regard to the benefits of diversity and the needs of the Board. |
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Discuss whether and how: Independence is considered |
The Corporate Governance and Nominating Committee recommends procedures to ensure that the Board and the committees function independently of management. |
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Discuss whether and how: Competencies relevant to the impacts of the organization are considered |
In making its recommendations to the Board regarding director nominees, the Committee considers:
(a) the appropriate size of the Board; (b) the Board succession and refreshment policies and procedures; (c) the competencies and skills that the Board considers to be necessary for the Board, as a whole, to possess; (d) the competencies and skills that the Board considers each existing director to possess; (e) the competencies and skills each new nominee will bring to the Board; and (f) whether or not each new nominee can devote sufficient time and resources to the nominee’s duties as a director of the Company. |
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Evaluation of Highest Governance Body |
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Describe the processes for evaluating the performance of the highest governance body in overseeing the management of the organization’s impacts on the economy, environment, and people |
The Corporate Governance and Nominating Committee in consultation with the Chair ensures that an appropriate system is in place to evaluate the effectiveness of the Board as a whole, as well as the committees of the Board, with a view to ensuring that they are fulfilling their respective responsibilities and duties. In connection with these evaluations, each director is requested to provide his or her assessment of the effectiveness of the Board and each committee as well as the performance of the individual directors. These evaluations take into account the competencies and skills each director is expected to bring to his or her particular role on the Board or on a committee, as well as any other relevant facts.
The Committee reviews compliance with issues arising from, and consider and approve any changes to, the Company’s governance policies, including without limitation, the Anti-Bribery and Anti-Corruption Policy, the Clawback Policy, the Code of Business Conduct and Ethics, the Disclosure Policy, the Diversity Policy, the Securities Trading Policy and the Supplier Code of Conduct for recommendation to, and approval by, the Board. |
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Report whether such evaluation is independent or not, and its frequency |
Independent Annually |
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Risk Management |
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Describe the role of the highest governance body in reviewing the effectiveness of the organization’s processes to manage and identify impacts on economy, environment, and people, and report the frequency of this review |
The Safety, Environmental and Social Sustainability Charter reports to the Board at least biannually on the Company's compliance with related corporate policies, any risks and opportunities identified and relevant current developments. |
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Highest Review Position |
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Report whether the highest governance body is responsible for reviewing and approving the reported information, including the organization’s material topics, and if so, describe the process for reviewing and approving the information |
Yes |
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Subject to the responsibility of the Corporate Governance and Nominating Committee to review and recommend for approval to the Board all corporate governance policies and significant amendments, the Board is responsible for reviewing and approving significant new corporate policies or material amendments to existing policies (including policies regarding business conduct, conflict of interest and the environment). |
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If the highest governance body is not responsible for reviewing and approving the reported information, including the organization’s material topics, explain the reason for this |
Not Applicable. |
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Communication of critical concerns |
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Describe whether and how critical concerns are communicated to the highest governance body |
SilverCrest has a grievance mechanism to provide a formal process for receiving, registering, investigating and responding to questions, concerns, suggestions, or grievances from community stakeholders. It is based on International Council on Mining & Metals’ (ICMM) good practices for effective grievance management. Grievances are reported delegated members of the Board.
Any concerns over accounting, internal controls, auditing or other financial, securities or compliance matters can be reported directly to the Audit Committee Chair and/or to the Company's legal counsel.
Please refer to the Company's Grievance Mechanism and Whistleblower Policy for more Information. |
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SilverCrest Grievance Mechanism
SilverCrest Whistleblower Policy |
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Report the number of critical concerns that were communicated to the highest governance body during the reporting period |
0 |
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Report the nature of critical concerns that were communicated to the highest governance body during the reporting period |
Not applicable for the reporting period as there were no critical concerns reported. |
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Remuneration |
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Report which of the following remuneration policies apply to the highest governance body and senior executives: |
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Fixed pay |
Yes |
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Fixed pay applied to both the Company's independent Board members and senior executives. |
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Variable pay |
Yes |
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Variable pay applied to only the Company's senior executives. |
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Performance-based pay |
Yes |
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Performance-based pay applied to only the Company's senior executives. |
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Equity-based pay |
Yes |
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Equity-based pay applied to only the Company's senior executives. |
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Bonuses |
Yes |
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Bonuses applied to only the Company's senior executives. |
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Deferred and vested shares |
Yes |
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Deferred share units applied to only the Company's independent Board members. |
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Sign-on bonuses |
No |
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Sign-on bonuses policy was not applicable for the reporting period. |
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Recruitment incentive payments |
No |
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Recruitment incentive payments policy was not applicable for the reporting period. |
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Termination payments |
Yes |
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Termination payments policy applied to the Company's senior executives. |
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Clawbacks |
Yes |
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The Company's Clawback Policy applied to the Company's senior executives. |
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Retirement benefits, including the difference between benefit schemes and contribution rates for the highest governance body, senior executives, and all other employees |
No |
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Retirement benefits policy was not applicable in the reporting period. |
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Describe how the remuneration policies for members of the highest governance body and senior executives relate to their objectives and performance in relation to the management of the organization’s impacts on the economy, environment, and people |
SilverCrest's Compensation Committee is composed of independent members of the Board responsible for considering the corporate and personal goals and objectives relevant to compensation for all Executive Officers, evaluating the performance and compensation of each Executive Officer at least annually in light of those corporate and personal goals and objectives, and making recommendations to the Board with respect to the level of compensation for the Executive Officers based on this evaluation. These include performance on the management of the organization's economy, environment and people. |
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Describe the process for designing its remuneration policies and for determining remuneration |
SilverCrest uses an agency specialized in executive compensation for the mining industry to provide recommendations to the Compensation Committee regarding compensation, benefits and performance targets for Executives and Board Members. Additionally, third-party salary reports are consulted and taken into account in the annual reviews.
Operational and sustainability key performance indicators are reviewed/scored and updated annually. For further details on these key performance indicators for the 2022 year please see the Company's Information Circular (www.silvercrestmetals. com/_resources/agm/2023-Information- Circular.pdf?v=0.606). |
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Are independent members of the highest governance body or an independent remuneration committee overseeing the remuneration process |
Yes |
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How the views of stakeholders (including shareholders) regarding remuneration are sought and taken into consideration |
Executives and Board Members participate with Human Resources and outside advisors in peer and external source benchmarking and discussion about pay recommendations. |
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Describe whether remuneration consultants are involved in determining remuneration and, if so, whether they are independent of the organization, its highest governance body and senior executives |
Independent Consultants |
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Report the results of votes of stakeholders (including shareholders) on remuneration policies and proposals, if applicable |
To date, there is no voting process. |
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Stakeholder Engagement |
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Provide a list of stakeholder groups engaged by the organization |
• Permanent or Full-time Employees • Investors • Financial Institution • Local communities • Customers • Local government bodies • National government bodies • Regulatory authorities • Suppliers and contractors • Consultants (professional services) |
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Report the basis for identifying and selecting stakeholders with whom to engage |
Stakeholders are individuals or organizations that benefit from or are affected by the Company's operations, products and market value. |
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Report the purpose of the stakeholder engagement |
Stakeholders hold considerable value for the Company and are regularly consulted for their input and feedback on the Company's impact on them. |
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Report the organization’s approach to stakeholder engagement, including frequency of engagement by type |
SilverCrest regularly consults with employees, local interest groups, communities, contractors, suppliers and customers. The Company has regular communication with them through representatives of different departments of the company (HR, Community Relations, Purchasing, Construction, Environment). The Company has monthly communication with local government through Community Relations. As well, the Company is in regular contact with the federal government and regulatory authorities such as The National Water Commission (CONAGUA), The Ministry of National Resources and Environment) SEMARNAT, (Ministry of National Defense) SEDENA and the Ministry of Labour (STPS). There is constant communication throughout the year with these agencies, ensuring the Company meets the requirements of the permits acquired and social licence. The Company's Environmental departments, Health and Safety and HR deliver monthly, quarterly, semi-annual or annual information to the Community Relations departments and interested stakeholders. |
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Anti-Corruption |
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Corruption Risks to Operations |
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i. Total number of operations assessed for corruption risks |
1 |
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iii. Percentage of operations assessed for corruption risks |
100.0000% |
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Report any significant corruption risks identified |
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Risk 1 |
Vendor kickbacks |
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Risk 2 |
Government official bribery |
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Confirmed Incidents and Response |
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Total number and nature of confirmed incidents of corruption |
0 |
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i) Total number of Bribery cases |
0 |
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ii) Total number of Lobbying cases |
0 |
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iii) Total number of Extortion cases |
0 |
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iv) Total number of Cronyism cases |
0 |
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v) Total number of Nepotism cases |
0 |
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vi) Total number of Parochialism cases |
0 |
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vii) Total number of Patronage cases |
0 |
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viii) Total number of Influence peddling cases |
0 |
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ix) Total number of Graft cases |
0 |
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x) Total number of Embezzlement cases |
0 |
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Total number of confirmed incidents in which employees were dismissed or disciplined for corruption |
0 |
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Total number of contracts terminated or not renewed with business partners due to corruption related violations |
0 |
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Public legal cases brought against the organization or its employees during the reporting period related to corrupton and the outcomes of such cases |
0 |
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Anti-Competitive Behaviour |
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Legal Actions |
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Total number of legal actions pending or completed during the reporting period regarding anti-competitive behaviour and violations of anti-trust and monopoly legislation in which the organization has been identified as a participant: |
0 |
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Number of legal actions pending during the reporting period regarding anti-competitive behaviour |
0 |
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Number of legal actions completed during the reporting period regarding anti-trust behaviour |
0 |
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Main outcomes of completed legal actions, including any decisions or judgments |
SilverCrest did not have any legal action regarding anti-competitive behaviour, not for violations of anti-trust and monopoly. |
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Tax |
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Provide a description of the approach to tax, including: |
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i. Does the organization have a tax strategy |
No |
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The Company does not have a formalized tax strategy. Management liaise with third-party tax consultants to ensure the Company complies with existing tax regulations and changes in all jurisdictions, and discuss tax risks and opportunities scenarios for the current and future years. |
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ii. The governance body or the executive level position within the organization that formally reviews and approves the tax strategy |
SilverCrest's Chief Financial Officer formally reviews and approves of any tax strategy. |
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ii. The frequency of formal review and approval of the tax strategy by the governance body or executive-level position within the organization |
Annually |
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iii. The approach to regulatory compliance |
SilverCrest remits all tax filings to the respective government bodies in Canada and Mexico and responds to subsequent inquiries or requests within the established timelines. SilverCrest liaises with its third party tax advisors where necessary to ensure compliance and accuracy of its filings. |
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Tax governance, control, and risk management |
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Provide a description of the tax governance and control framework, including: |
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i. The governance body or executive-level position within the organization accountable for compliance with the tax strategy |
SilverCrest's Chief Financial Officer is accountable for compliance with any tax strategy. |
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Provide a description of the mechanisms for reporting concerns about unethical or unlawful behaviour and the organization’s integrity in relation to tax |
SilverCrest offers stakeholders access to the Company's Whistleblower hotline and the Grievance Mechanism regarding the Company's business conduct. These mechanisms allow individuals to raise concerns anonymously if desired. |
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SilverCrest Whistleblower and Grievance Mechanism |
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Describe the approach to stakeholder engagement and management of stakeholder concerns related to tax, including: |
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i. The approach to engagement with tax authorities |
SilverCrest remits all tax filings to the respective government bodies in Canada and Mexico and responds to subsequent inquiries or requests within the established timelines. SilverCrest liaises with its third party tax advisors where necessary to ensure compliance and accuracy of its filings. |
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ii. The approach to public policy advocacy on tax |
SilverCrest does not directly engage in public policy advocacy on taxes. |
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iii. The processes for collecting and considering the views and concerns of stakeholders, including external stakeholders |
SilverCrest consults with its third party tax advisors in Canada and Mexico annually, and more frequently if required, on changes and developments on views and concerns of stakeholders. |
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Country-by-Country Reporting |
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Report all tax jurisdictions where the entities included are resident for tax purposes, in the organization’s audited consolidated financial statements, or in the financial information filed on public record |
The tax jurisdictions for SilverCrest and its subsidiaries included are resident for tax purposes are Mexico and Canada. |
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For each tax jurisdiction reported in Disclosure (GRI 207-4-a), report the: |
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i. Names of the resident entities |
Canada: SilverCrest Metals Inc. and NorCrest Metals Inc.
Mexico: Compañía Minera La Llamarada, S.A. de C.V; Tinto Roca Exploración, S.A. de C.V.; Altadore Energía, S.A. de C.V; Babicanora Agrícola del Noroeste, S.A. de C.V.; and SilverCrest Metals de México, S.A. de C.V. |
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ii. Primary activities of the organization |
Gold and silver ore mining |
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Report the time period covered by the information reported in Disclosure (GRI 207-4-a) |
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From |
2022-01-01 |
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To |
2022-12-31 |
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Public Policy |
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Political Contributions |
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Total monetary value of financial and in-kind political contributions made directly and indirectly by the organization by country and recipient/beneficiary |
0 |
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Country 1 |
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Total direct financial contribution |
0 |
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Total indirect financial contribution |
0 |
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Total direct in-kind contribution |
0 |
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Total indirect in-kind contribution |
0 |
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This document was prepared using |
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, Planet Earth's complete ESG reporting solution. |
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