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The important business reason behind ESG - Triple Flag Precious Metals' Shaun Usmar

Kitco News

(Kitco News) - Despite environmental social governance (ESG) finding less favor with some due to the current energy crunch, good miners will continue to embrace the framework in order to maintain standing in the communities where they operate, said Triple Flags Precious Metals CEO Shaun Usmar.

Last month Usmar spoke to Kitco at the Gold Forum Americas show in Colorado Springs.

Triple Flag (TSE:TFPM) is a streaming and royalty company headquartered in Toronto. The company has 15 producing assets and 65 development-exploration assets predominantly located in Australia, North America and South America. The cornerstone stream is the company's Northparkes Mine in Australia, as well as Cerro Lindo, Fosterville and RBPlat. The company has roughly a $2 billion market cap. It is guiding between 88 to 92 koz gold equivalent ounces for 2022.

Environmental social and governance has fallen in favor with some attributing it to higher energy prices due to less investment in oil and gas. Usmar said ESG is partly about a company's ability to maintain its standing.

"For us what it's just good business. I think any serious miner...is focused on sustainability. You have to take care of your communities," said Usmar.

Mining requires a lot of energy and has traditionally relied on oil and gas, but Usmar is optimistic about technology being able to provide miners globally with renewable energy, and lower emissions.

"I do think with time you're going to see these technologies just naturally become more economically viable and then proliferate," said Usmar.

In August Triple Flag announced a financing for Nevada Copper. The mine has faced challenges, which Usmar said is not unique. Usmar said his due diligence shows a path to commercial production.

"You need to zoom out at the sector," said Usmar. "We've seen some of the best companies in the sector see deferrals, capital inflation. Big companies can withstand that. Single asset producers--that's pretty hard, so I don't think it's unique, but it does highlight the importance of having supportive investors."


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