1820 development phases. The value drivers indicated below are important to consider in the construction of the value proposal to ensure the robustness of the business case: • Metal price: the price of metals in a commodity market is not controlled by the company; however, it is necessary to have an adequate projection of these costs in the life horizon of the projects to manage uncertainty and assess investment risk. • Minable mineral resources: the proven existence of mineral resources and the feasibility of extracting them is key to justifying the investment and the financial success of the project. The exploration strategy for the conversion of resources to reserves and the search for new resources must be focused on gaining certainty throughout the project study phases, based on reliable standards. The mine's production plan is based on the geological model that defines the reserves and resources, and its reliability is essential to achieve benefits during the operation phase, reducing uncertainty and mitigating investment risk. • Metallurgical recovery: a robust model to predict the geometallurgy of the ore body based on robust research and testing plans must be carried out as necessary to provide reliability to the selected process flowsheet and production plans supporting the business case. Acceptable certainty and risk assessment for metallurgical recovery, contaminants, product grades and environmental impacts shall be performed. • Capital investment: an adequate estimate of the capital costs of the project is very important to assess the benefit of the investment opportunities. The capital costs estimate have a level of precision that improves as the project advances through the different development phases and gains greater definition. Engineering definition and project configuration are key to refining the estimate of the initial investment of a project. This must also consider an adequate contingency reserve and the necessary provisions to manage uncertainties, and internal and external risks to the project. • Operational costs must be built on reliable estimates. This is one of the most common problems why a project fails to deliver the value. The certainty and precision of the estimate of the operating cost will support the correct evaluation of the project’s value. Appropriate estimation methods should be used depending on the level of definition of the project, from a simple benchmark for screening studies to specific and deterministic estimates for the approval of project execution funds. The operating costs of the mine, processing plant, support infrastructure and services will be included, as well as administrative costs and other expenses such as the cost of sustainability and reduction of the carbon footprint. • Mine Closure Cost: the design of the project facilities must consider closure requirements to ensure an economic, responsible and sustainable condition for the environment and people long after the mine operation has been closed. The mine closure cost must consider a comprehensive vision that includes the technical part, sustainability requirements and the business closure to ensure a positive legacy. • Responsible operation: it incorporates an adequate approach to the Environmental, Social and Governance (ESG) requirements in the process of the investment evaluation to ensure the application of the best practices of the mining industry. It includes transparent community engagement plans, and sound environmental management systems to build trust during the whole project cycle, exploration, planning, construction, operation, and closure. Understanding these drivers and how we can address the challenges and risks in each case will define the project configuration and the minimum viable mine design that supports an acceptable business case. 3.3.2 Company´s Sustainability Strategy in project scope MINSUR´s sustainability strategy is based on 4 elements: safety and health of people; environmental care, reducing the impacts to the minimum and reasonably possible; responsible governance, being ethical and transparent in our decisions; and shared value, economic and social development of our people, suppliers and community.
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