Lobo Tiggre January 2022 V2
Environmental, social and governance (ESG) factors aren’t new in mining, but there’s a paradigm shift going on that Lobo Tiggre of IndependentSpeculator.com thinks investors should know about.
Speaking to the Investing News Network in an ESG-focused conversation, Tiggre said lip service is no longer enough. Mining companies actually need to make a real effort to enact ESG principles.
“Don’t panic, it’s not like all of a sudden the mining business is going to be impossible — but you really have to make sure you do these things. You have to not just talk the talk, you have to walk the walk,” he said.
“You have to hire accordingly; you have to be sensitive. And if you don’t, it will cost you more in some cases.”
Tiggre, who is the founder and CEO of IndependentSpeculator.com, encouraged market participants to set aside their feelings about whether they think ESG is a worthwhile endeavor and accept that it is here to stay.
“If I’m an old curmudgeon and I think ESG is just the latest load of dingo’s kidneys, and I just tune out every time I see that, then I’m not going to see important guidance on how to invest — for profit — based on the changing trends in ESG in the world,” he explained during the interview.
An important issue that Tiggre brought up was potential changes in the Fraser Institute’s attractiveness rankings for mining jurisdictions. For example, right now areas like Canada and various US states are considered desirable, but these are the types of places where more stringent ESG rules may eventually be put in place.
“One of the key ideas I’m trying to posit is that in the so-called ‘First World,’ the developed nations, you may see more onerous higher levels of ESG risk than in the developing world, and that could become so extreme in some cases … that rising differentials could invert your priorities,” he explained. “It could actually be worth the risk of confronting Ebola in some place in Africa as long as they don’t regulate you out of business with ESG mandates.”
While that may sound concerning, Tiggre’s overall message about ESG was positive — he emphasized that the mining industry has been doing ESG work for a long time, and pointed out that in many cases it is good for business.
“Watch for this — I think there’s potentially really big gains and losses to be had from getting this right or wrong,” he said. Check out the interview above for Tiggre’s full thoughts on ESG and mining.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.