Could you provide an overview of SGS's global mining footprint and the importance of Québec?

SGS operates across the entire mining value chain, from exploration to production and recycling. We also provide independent third-party audits, including capital assurance services.

Currently, we are working with Exterra Carbon Solutions, a company engaged in mineral carbonization and focused on a unique project in Québec. They aim to extract magnesium oxide, nickel, and silica from asbestos tailings in Thedford mines and Val-Des-Sources, Québec. This project is particularly innovative due to its negative emissions technology, which combines carbon sequestration alongside economic value extraction. SGS partnered with them to develop this groundbreaking process, focusing on low carbon footprint methods and carbon credit generation, showcasing a forward-thinking approach to sustainability and supporting the clean energy transition in Québec. Why does Québec's approach to its mineral and battery sectors stand out, contributing to Canada's recent ranking as number one in Bloomberg's global supply chain ranking?

One of the things you hear from Québec policymakers and ministers is how they want to be leaders in responsible mineral extraction and accelerate projects across the battery supply chain. Secondly, Québec's approach differs from others due to its collaborative nature. The automotive sector is working closely with mining companies, the chemical industry, and academia, who are all part of the same ecosystem when it comes to the battery supply chain. This has made Québec known around the world.

Québec is also a hive of activity for mine, recycling, and cleantech development. We have also noted a considerable influx of projects transitioning from the exploration phase to feasibility studies between 2022 and 2023. The magnitude of this surpasses what we have observed in other regions during the same period. Can you detail any partnerships between SGS and academic institutions and the importance of getting involved early on with academia?

The academic partnerships in Québec are crucial for SGS. Québec’s collaborative approach has supercharged the province’s progress in the mining and battery sector. Québec recognizes the need for skilled professionals in new technical fields required for the next generation of skills across the battery supply chain. We actively engage with technical colleges and universities, in a wide range of projects fostering innovation and sustainability. These partnerships help SGS identify and recruit talent. At the same time, they also contribute to ensuring a pipeline of skilled professionals who can drive innovation and excellence in the mining industry in the province for years to come. How does SGS help mining firms achieve their sustainability goals?

SGS provides ESG and sustainability-related services across the full mining lifecycle from project development, during production, and into closure.

During the development phase, we help innovate the extraction processes for critical minerals and recycling projects, including evaluating low carbon footprint processes. We facilitate a collaborative project approach to assist clients in accessing public funds aimed at improving mining firms’ sustainable practices. By bringing together diverse teams, including smaller companies specializing in areas like eco-toxicology or patent law, we foster innovation within projects.

Supporting operations, we provide water treatment, biodiversity, and a wide range of analytical services such as geochemical, microbial monitoring, and environmental and soil testing. We also offer a portfolio of carbon solutions such as carbon quantification and greenhouse gas (GHG) inventory verification. Can you provide insights into how you forecast the upcoming months for SGS services, considering the fluctuating commodity markets?

In 2022 and 2023, we observed strength across various commodities, leading to good financing opportunities. However, in 2024, geopolitics—the Ukraine and the Middle East—have caused some caution among investors. There is currently a disconnect between commodity prices, with precious metals like gold remaining strong while others, like lithium and nickel are looking for direction in the short term. Nonetheless, the long-term prospects for the industry look strong and the fundamentals for battery and EV commodities remain robust. What are the key priorities for SGS in expanding its presence in Québec's mining sector in the coming months?

Québec has established itself as a global leader in critical minerals and gold. A key priority for SGS is to accelerate the development of the supply chain in alignment with Québec's commitments. By strengthening the ecosystem and contributing to its growth, SGS aims to play a significant role in Québec's mining sector.