Integrated Approach to Environmental, Social, and Governance (“ESG”) Issues

Kopernik’s investment philosophy is built upon a long-term perspective. Investing for the long-term benefit of our shareholders is our principal objective. Making decisions based on potential short-term gains, at the expense of long-term returns, is contrary to what we do. We expect the same from the companies in which we invest.

As stewards of capital, we look to invest in companies that can deliver favorable risk-adjusted returns on a sustainable basis. Our investments must meet our stringent value-oriented investment guidelines. It is our belief that sound ESG practices are important in maintaining and growing the intrinsic value of the underlying business. Our philosophy on corporate sustainability and ESG practices is consistent with our overall investment approach, stemming from the conviction that the companies in which we invest should act ethically and in the best interest of all corporate stakeholders across the value chain, including the following: employees, customers, suppliers, community members, the government, and shareholders. More detailed information can be found by viewing our ESG Policy.

In 2018, Kopernik announced the decision to sign on to the United Nations-supported Principles for Responsible Investment (PRI), a leading global network for investors who are committed to integrating environmental, social and governance considerations into their investment practices and ownership policies. We believe in their goal of increasing transparency and specifically requesting that companies maintain publicly available reporting on ESG policies.

Proxy Voting and Corporate Actions

Kopernik uses the guidelines of, and generally votes in accordance with, the recommendations of Institutional Shareholder Services (“ISS”) with the following exceptions: 1) Kopernik will vote against any proposals for granting employees stock options; and 2) Kopernik will seek input from its internal investment staff on whether to vote for or against proposals related to mergers & acquisitions, rights offerings, share issuances and changes in authorized capital. Regarding executive compensation, we vote against all stock option grants and in favor of restricted stock grants, within reason.

Please refer to our Proxy Voting Policy for more details.