We conduct due diligence and apply sound investment management practices to mitigate risks and maximize opportunities. We incorporate ESG factors into our investment decision-making process and strive to continually evaluate the effectiveness of our approach to meet or exceed industry-leading practices and the expectations of our stakeholders.

 

Due Diligence Process for New Investments

As a capital provider, Osisko does not have direct control over the operation or sustainability activities of its mining partners operations. However, we recognize that by supporting responsible operators, we can promote sustainable development through our investments. We take a comprehensive approach to due diligence by reviewing and assessing performance in a range of areas, including ESG, to identify, assess, and mitigate any potential risks before investing in an asset. The Board, particularly the Environmental and Sustainability Committee, regularly monitors potential sustainability issues, staying informed of emerging risks through regular updates from the Senior Executive Team.

Our due diligence process is carried out by our internal team members, who have the necessary skills and expertise to identify and evaluate technical, financial, legal, political, and ESG risks and opportunities.

The distinctive characteristics and material issues associated with each asset require a unique approach to Osisko’s due diligence process, and assessments are tailored to the specific context of each individual investment. We may also engage the expertise of a third-party consultant, when necessary, to enhance understanding of a particular topic.

As part of the due diligence process, we review technical, financial, and legal information and evaluate ESG criteria for potential investments. Engaging with the mining partner’s leadership, conducting site visits, and interacting with local community leaders, as well as regional or federal government authorities and other crucial stakeholders, are integral aspects of our evaluation process.

Our Approach:

1	Identify and evaluate investment opportunities	Review and assess risks and opportunities, including ESG factors Site visits, where warranted Prepare internal risk dashboard and report
2	Assess investment criteria	Review risk report and proposed mitigations Investment structuring considerations Preliminary investment decision Preliminary commercial discussions
3	Structure and sign agreement	Finalize investment structuring Drafting of definitive agreements, including operating and ESG focused provisions Final investment decision Board approval process
4	Monitor and evaluate assets through the lifetime of the investment	Review and monitor mining partner performance Engage with mining partners to support continual ESG improvement Potential collaboration on ESG initiatives