Archipelago Resources plc   
Annual Report 2011
Archipelago Resources plc  Annual Report 2011
A platform for growth
Registered office: 
22 Melton Street 
London NW1 2BW 
United Kingdom 
 
Administration: 
9 Raffles Place,
#29-02 Republic Plaza
Singapore   048619
 
Phone: +65 6535 3419
Fax: +65 6532 2620
Email: investor@arplc.com.sg
Website: http://www.archipelagoresources.co.uk/ Designed and produced by Emperor Design Consultants Ltd
Telephone +44 (0)20 7729 9090  www.emperordesign.co.uk
Archipelago Resources plc is a gold 
producer listed on the Alternative 
Investment Market of the London 
Stock Exchange (AIM: AR). 
The vision of Archipelago 
Resources plc (“Archipelago”  
or “the Company”) is to grow 
into a respected and regionally 
dominant mid-cap gold 
producer, managing a portfolio 
of gold mines and delivering 
significant value and returns for 
our shareholders. Archipelago’s 
principal activities are gold 
mining and exploration in 
Indonesia (as the 95% owner  
of the producing Toka Tindung 
Gold Mine in North Sulawesi, 
Indonesia). Archipelago is also 
advancing exploration initiatives 
in Vietnam and the Philippines. 
In 2012, Archipelago expects  
to produce between 135,000 
and 145,000 gold equivalent 
ounces at a cash cost of 
between US$540 and  
US$590 per ounce. 01 Archipelago Resources plc  
Annual Report 2011
Business review Governance Financial statements
Highlights
 > Successful commissioning of the Toka Tindung Gold 
Mine in North Sulawesi, Indonesia, with first gold 
pour occurring on 1 April 2011;
 > Successful completion of construction and ramp up 
with nameplate production being achieved in 
November 2011;
 > Raised project finance of US$70 million to complete 
funding of the construction of the mine;
 > Acquired an additional 10% in the Toka Tindung 
project, increasing Archipelago’s ownership to 95%;
 > Production of 61,191 Au Eq oz (2010: Nil); 
 > Group net profit before tax of US$25.9 million (2010: 
loss of US$12.4 million);
 > Closing cash of US$22.3 million as at 31 December 
2011 (2010: US$24.1 million); and
 > Subsequent to year end, the publication of a revised 
JORC compliant resource and reserve statement, 
supporting an increase in the life of mine to nine 
years and seven years of stockpiles. 
Business review
01 Highlights
02 Asset overview
04 Chairman’s statement
06 Achievements
08 Chief Executive’s review
14 Principal risks and uncertainties
16 Resource and reserve
18 Corporate social responsibility 
Governance
22 Board of Directors
23 Experienced management team
24 Directors’ report
27 Corporate governance
Financial statements
28 Independent auditors’ report 
29  Statement of Directors’ 
responsibilities in respect of the 
financial statements
30  Group statement of 
comprehensive income
31 Statements of financial position
32 Statements of changes in equity
33 Statements of cash flow
34 Notes to the financial statements
59 Directors and Advisers
60 Glossary of Terms
60 Competent Person Statement
We will achieve our vision by 
adhering to the following values: 
leadership, integrity , teamwork, 
corporate citizenship and 
maximising shareholder value.
Marcus Engelbrecht
Chief Executive Archipelago Resources plc  
Annual Report 2011
02
Asset overview
Following the successful commissioning of  
T oka Tindung, Archipelago has created a significant  
value proposition for investors: a quality, low cost  
South East Asian gold producer with excellent  
growth potential.
Regional summary
Archipelago’s principal gold mining 
project is at Toka Tindung in North 
Sulawesi, Indonesia. It is located about 
34km north-east of the provincial 
capital Manado. Sulawesi has a 
population in excess of 17 million and 
is the 11th largest island in the world. 
Market opportunity
Having completed the production 
ramp up at Toka Tindung, Archipelago 
now has optionality to grow through 
resource expansion, ongoing 
exploration and leverage to 
consolidation opportunities.
Asset summary
The Toka Tindung Gold Mine is  
the Company’s principal asset and 
comprises a system of epithermal 
veins containing a resource of  
2.69 million gold equivalent ounces.
Title to the Toka Tindung Gold Mine  
is via two Contracts of Work 
arrangements and exploration permits 
covering 400km² of well mineralised 
and only partially explored ground  
in addition to the defined resource. 
The Company holds a 95% interest  
in the project. 
First gold pour occurred in April 2011. 
Production for 2011 was 61,191 Au  
Eq oz. For the next six years, the 
Company forecasts annual 
production of circa 160,000 Au Eq oz 
at a head grade of 2.89 g/t Au.
Other Projects
The Company maintains an 
exploration team in Hanoi, Vietnam, 
which is responsible for pursuing and 
reviewing opportunities in Vietnam 
and across Indo-China. Team 
members have strong and effective 
relationships with Government and 
business leaders across the region.
Archipelago also has the right to 
acquire not less than an 80% interest 
in the Corplex projects, including  
in the gold-copper rich Surigao 
peninsula of North East Mindanao, 
Philippines, host to the high-grade 
Boyongan copper-gold porphyry. 03 Archipelago Resources plc  
Annual Report 2011
Vietnam
Exploration; Indo-China focus
Singapore
Corporate Office
Toka Tindung Gold Project,  
Sulawesi, Indonesia
>  Location: North Sulawesi, 
Indonesia; 34km to 
Manado (population 1m) 
– infrastructure in place
>  Ownership: 95% - 
Archipelago; 5% - Rajawali 
Corporation
>  Tenement: 400km
2
, fully 
permitted & valid mining 
concession
>  Resource: 2.69 Moz  
Au Eq/grade of 1.53 g/t
>  Reserve: 1.54 Moz Au Eq/
grade of 1.7 g/t
>  Current mine plan: five 
pits to mine for nine 
years; then stockpiles  
for seven years (including 
circa 160 Koz Au Eq at 
head grade of 2.89g/t Au  
for next six years)
>  Nameplate production 
capacity: 1.7mtpa
>  Workforce: 70% local 
community; 25% broader 
Indonesia; 5% expatriate
>  Health & Safety: 3 LTIs  
in 2011
Philippines
Exploration; Mindanao focus
Business review Governance Financial statements Archipelago Resources plc  
Annual Report 2011
04
The Archipelago Board of Directors
Chairman’s statement
Stephen K Sulistyo
Non-Executive Chairman
26 April 2012
Overview
T o our shareholders, 2011 was an 
exciting year for Archipelago, as the 
Company successfully transitioned 
from developer to full production 
status. There are few other companies 
in the region which have achieved 
such a move in recent times and, on 
behalf of my fellow Directors, I am 
pleased to provide shareholders with 
this update.
Progressing into 2012, Archipelago 
remains fully funded and is set to 
become a strong cash generator.  
Our robust production profile, 
comparatively low cost base and 
strong social licence are core 
strengths for the Company.
Archipelago continues to increase  
its operational scale and output; 
supporting growth initiatives 
organically and by leveraging off our 
high quality T oka Tindung asset base. 
This foundation mine, a strong balance 
sheet and exploration upside, support 
Archipelago’s growing profile in the 
region and more broadly. With South 
East Asian collaboration being of 
particular interest, Archipelago is well 
placed to take a leading role in gold 
sector consolidation.
Moving forward, Archipelago is also 
committed to expanding our 
exploration and near site drilling 
programme, with potential reserve 
increases providing the impetus to 
examine throughput expansion 
options. In this regard, Archipelago  
is setting the foundation to 
exponentially grow our production 
base at Toka Tindung. Conceptually, 
greater reserves and incremental 
infrastructure changes are likely to 
provide a basis for material increases 
in low cost ounce production.
We are now building a team that can 
leverage the quality of the T oka Tindung 
asset, to grow the business and create 
significant shareholder returns. 05 Archipelago Resources plc  
Annual Report 2011
Business review Governance Financial statements
The Indonesian economy is the 
largest in South East Asia. Since 2004, 
it has enjoyed a significant rise in 
economic growth resulting in the 
credit rating agencies upgrading 
Indonesia’s sovereign debt. In this 
regard, the strength of the Indonesia 
economy provides a robust local 
business environment; which is to the 
benefit of Archipelago. I am also 
pleased to report that during the year 
our work within the communities 
around the mine continued and the 
Company maintains its excellent 
relations with the local community 
leaders and the regional government. 
With 11 villages and over 11,000 
people surrounding the operations, it 
is worth remembering the significant 
contribution that the Company makes 
to local communities from an 
employment, procurement, 
investment and cultural perspective. 
During the year, the Company 
continued to invest in schools, 
infrastructure, medical services and 
treatments, as well as community 
centres and fresh water supply 
systems. Archipelago also continues 
to adhere to the highest 
environmental standards.
Archipelago closely observes policy 
and legislative developments in 
Indonesia. For example, the 
Government recently issued a law 
requiring foreign owned IUP* holders 
to divest some of their interests in 
Indonesian mineral projects after five 
years of commercial production. The 
new divestment regime will not apply 
to Archipelago’s mining concessions, 
which are based on two binding and 
pre-existing Contract of Work 
arrangements. Notwithstanding, 
Archipelago continues to monitor 
political and regulatory changes in 
Indonesia.
On behalf of the Board of Directors,  
I would like to thank our shareholders 
for their ongoing support and we look 
forward to further growth and 
progress throughout 2012.
* IUP refers to “Izin Usaha Pertambangan” which 
translates as mining business licence.
160,000 oz
  Circa 160,000 Au Eq oz pa  
for next six years at a 
competitive cash cost 
compared to peers (head 
grade of 2.89g/t Au)
Our core strengths
 > Fully funded 
 > Strong cash generator 
 > Resource and reserve 
expansion 
 > Robust production 
profile 
 > Comparatively low  
cash costs 
 > Strong social licence  
 > Collaborative major 
shareholder 
 > Strong management 
team
Expanding  
our resources Archipelago Resources plc  
Annual Report 2011
06
Achievements
March
US$15 million Working 
Capital Loan Facility
Archipelago secured a  
US$15 million subordinated loan 
facility with Standard Bank to 
provide corporate working 
capital.
January
Provision of a US$55 
million loan facility 
Archipelago secured a  
US$55 million loan facility  
from Permata, a prominent 
Indonesian bank. The funds were 
used to complete construction 
of the Toka Tindung Gold Mine.
April
First production
Archipelago poured its first gold 
at the Toka Tindung Gold Mine. 
Establishing the growth 
platform 07 Archipelago Resources plc  
Annual Report 2011
2011 Achievements 
Funding 
Project completion
First gold pour
New CEO
Nameplate production
Resource and reserve increase
November
Full production at Toka 
Tindung Gold Mine
The Company achieved nameplate 
processing throughput criteria of 
1.7 Mtpa, fulfilling an important 
milestone for Archipelago. 
Nameplate throughput has  
been maintained.
August
CEO Appointment
Marcus Engelbrecht was 
appointed CEO. Marcus provides 
vision and leadership to grow the 
Company, as it moves into the 
production phase.
December
Increase in resources
Archipelago announced a 
significant increase in mineral 
resource estimates for two  
of its five deposits: Toka and 
Kopra. Further upgrades were 
announced in January 2012.
Business review Governance Financial statements Archipelago Resources plc  
Annual Report 2011
08
I am pleased to present my first report 
as Chief Executive Officer of 
Archipelago and articulate our 
strategy for the further successful 
development of the Company. Our 
strategy is a simple one:
 > settle our existing production 
programme and maximise 
efficiencies at Toka Tindung;
 > continue exploration to grow the 
Toka Tindung asset, allowing us to 
also consider options to expand 
our production profile; and
 > develop our corporate presence, 
enabling us to leverage off our 
regional strength in South East Asia. 
The decision to join Archipelago and 
relocate to Singapore in August 2011 
was an easy one for me, given my 
belief in the strength of the 
Company’s assets, the strong support 
of its shareholders and the exciting 
phase that the Company had reached, 
having moved from an explorer and 
mine developer into a gold producer. 
The evolution from developer to 
producer can be a difficult one for 
many companies, with the skills 
required to manage construction 
being somewhat different to those 
required to efficiently and cost 
effectively run a producing mine. This 
transition has meant that the 
Company has had to build not only a 
mine, but also a capable management 
team and a corporate presence to 
enable us to continue to grow.  
I am pleased that the Company 
successfully managed this transition, 
positioning us to take advantage of 
other opportunities as they arise  
both regionally and wider afield. 
Chief Executive’s review
Marcus Engelbrecht
Chief Executive
26 April 2012
Achieving full production 09 Archipelago Resources plc  
Annual Report 2011
2011 was a year focused on the 
construction of the mine and the 
ramp up to full production, but we 
also applied significant effort to 
restarting our exploration programme. 
This resulted in our announcement of 
material resource increases last 
December, followed by a significant 
uplift in reserves as published in 
January 2012 (discussed below in 
further detail). This focus will be 
maintained into the future, as we aim 
to grow the Toka Tindung asset and 
consequentially increase our 
production profile. 
Gold price outlook
Archipelago operates in a highly 
prospective pricing industry. The rise 
and strength in the price of gold 
continues to be a talking point in 
many economies and I foresee this 
robust trend continuing over the 
medium term. With high levels of both 
personal and public debt and the 
need for some of the world’s largest 
economies to continue with their 
quantitative easing programmes, the 
investment in physical gold, along 
with its hedge against economic, 
political and social crises, will continue 
to support the gold “currency” for 
some years to come. 
Business Review
Located on the northern tip of the 
island of Sulawesi, Indonesia and 
approximately 34km northeast of the 
regional capital of Manado, our 
flagship operation is the Toka 
Tindung Gold Mine which poured 
first gold in April 2011. Covering an 
area of 400km
2
 (inclusive of 
exploration permitted ground), the 
Toka Tindung Gold Mine comprises 
two mining licences and will 
encompass five open pits – the main 
Toka Tindung pit, along with four 
satellite pits to the south: Araren, 
Pajajaran, Kopra and Blambangan 
pits. We are currently drawing ore 
and blending from three of these pits 
– Toka, Pajajaran and Araren, with 
mined ore being processed using a 
conventional carbon-in-leach 
process.
Our strategy
Settle our existing 
production programme  
and maximise efficiencies  
at Toka Tindung
Continue exploration to 
grow the Toka Tindung 
asset, allowing us to 
also consider options to 
expand our production 
profile
Develop our corporate 
presence, enabling us to 
leverage off our regional 
strength in South East Asia
Since the beginning of April, when first  
gold was poured, operations have ramped 
up smoothly.
Business review Governance Financial statements Archipelago Resources plc  
Annual Report 2011
10
Archipelago operates in a highly prospective 
pricing industry. The rise and strength in the price 
of gold continues to be a talking point in many 
economies and I foresee this robust trend 
continuing over the medium term.
For the 2011 year, Toka Tindung Gold 
Mine production statistics are as 
follows: 
 Year Ended
 31 December 2011
Ore mined (k/tonnes) 1,263
Waste mined (k/tonnes) 13,766
Total mined (k/tonnes) 15,029
Ore processed (k/tonnes) 877
Average head grade (g/t) 2.54
Process recovery rate 92%
Gold produced (Au Eq oz) 61,191
Since the beginning of April, when 
first gold was poured, operations 
have ramped up smoothly and for 
the nine months up to the end of 
December we produced 61,191  
gold equivalent ounces at a cash  
cost of US$579 per oz. 
We have an average strip ration of 5:1 
and have maintained operational 
throughput during the wet season 
(from December to March). This is  
a significant challenge, but one  
that we overcame by successfully 
implementing a number of strategies 
in anticipation of rain events. 
Ore from the three open pits currently 
in production is blended, allowing  
us to control head grade and already 
we are achieving above plan gold 
recoveries of circa 92%, and we 
anticipate these to remain consistent 
throughout 2012. Operationally, our 
aim in the calendar year 2012 is to 
produce between 135,000 and 
145,000 Au Eq oz at a cash cost of 
between US$540 and US$590 per oz. 
Chief Executive’s review continued 11 Archipelago Resources plc  
Annual Report 2011
I can report there have been no 
material difficulties in commissioning 
the processing plant. Given the nature 
of the mined material, it was 
necessary to replace the rubber mill 
liners with steel liners during 2011. 
This caused some temporary 
processing delays and was a relatively 
minor issue. This has since been 
rectified and production has 
continued to increase, with the focus 
now on improving efficiencies and 
cost control. Since November, I am 
pleased to report that we have been 
running at the nameplate processing 
capacity of 1.7Mtpa. 
Costs remain a key issue within the 
industry. As has been reported by a 
number of our peers previously, 
mining companies are experiencing 
cost inflation over a wide range of 
inputs, no matter where they are 
geographically located. Archipelago is 
no different and we will be focusing 
on continuous improvement initiatives 
aimed at increasing productivity and 
controlling costs. 
Archipelago is a major employer in  
the local region, employing over 1,500 
people with more than 70% of staff 
coming from the near mine region, 
and 95% from Indonesia. The mining 
industry as a whole is experiencing  
a significant shortage in technical 
mining and processing personnel, 
exactly the sort of qualified people 
that Archipelago requires, and with 
this unbalanced supply/demand 
model there is of course the 
associated wage inflation. 
Notwithstanding this, Archipelago  
has been able to retain the majority  
of its key staff in the transition from 
developer to producer. The Company 
will also continue investing the 
necessary resources on training to 
ensure that Archipelago has 
appropriate skills in place for all  
its key functions.
Financial performance
Strong cash flow 
generator
Sulawesi,  
Indonesia
Toka Tindung Gold Project
9+7years
Current life of mine is  
nine years plus seven years 
of stockpiles. Ore is provided 
for five pits
Business review Governance Financial statements
 31 December 2011 31 December 2010
 US$’000 US$’000
Revenue 93,259 –
Gross profit 44,833 –
EBIT 30,989 (12,411)
Profit/(loss) before income tax 25,944 (12,416)
Profit/(loss) attributable to owners of  
 the parent company 12,692 (11,600)
Cash inflow/(outflows) from operating activities 18,498 (5,811)
Net (decrease)/increase in cash and  
 cash equivalents (1,833) 11,628
Net gearing 31.4% (1.4%)
Debt/equity ratio 41.2% – Archipelago Resources plc  
Annual Report 2011
12
Revenue
Revenue from gold sales for the year 
was US$93 million with 60,367 
ounces sold at an average price of 
US$1,675 per ounce.
Gross Profit 
Gross profit in 2011 was US$45 million 
driven by a higher than expected 
realised gold price.
Earnings before Interest and Tax
EBIT was US$31 million before 
accounting for US$5 million, primarily 
associated with financing costs.
 
Profit before Tax
The Company reported a profit before 
tax of US$25.9 million in the year 
ended 31 December 2011, compared 
with a loss of US$12.4 million in the 
year ended 31 December 2010. 2011 
was our first year of production.
Taxation
The Company’s taxation charge 
amounted to US$13.2 million in  
2011, analysed as follows:
 Year ended 31 December   2011 2010
  US$’000 US$’000
Indonesia  
 Current year 5,757 –
 Deferred 7,489 (849)
Total 13,246 (849)
Exploration
As noted above, Archipelago is 
committed to exploration and regards 
this as a key value driver for the 
Company. Our mining licences sit 
within a much larger region and there 
are a number of prospective targets 
which have intercepts near to surface. 
Our current JORC compliant ore 
bodies are also open at depth and 
along strike.
The prospective nature of 
Archipelago’s resource base was 
highlighted subsequent to the end of 
the financial period with a reported 
material increase in our reserve and 
resource, resulting from near mine, 
brown-fields exploration, initially 
focused around the Toka and Kopra 
pits. Key outcomes announced in 
January 2012 (subsequent to year 
end) included the following:
 > the resource increased to 52.6Mt  
@ 1.53 g/t Au for 2.58M contained 
oz Au (and 3.7 g/t Ag for 6.14M 
contained oz Ag) from 15Mt @ 
3.4g/t Au for 1.7M contained oz  
Au (and 8 g/t Ag for 4M  
contained oz Ag);
 > the proven and probable ore 
reserve increased to 27.6Mt @ 1.7g/t 
Au for 1.47M contained oz Au (and 
4.3 g/t Ag for 3.79M contained oz 
Ag) from 7.62Mt @ 3.7g/t Au for 
920k contained oz Au (and 8.9 g/t 
Ag for 2.18M contained oz Ag);
 > excluding silver as gold equivalent 
ounces, contained gold resources 
increased by 52%, with ore reserves 
increasing by 60%; and
 > the increase in ore reserves 
supported extending the mining life 
from six to nine years (with 
additional stockpile processing 
extended from two to seven years).
Archipelago is committed to exploration  
and regards this as a key value driver  
for the Company.
Chief Executive’s review continued
US$93m
  Revenue
US$45m
 Gross Profit 13 Archipelago Resources plc  
Annual Report 2011
It should be noted that this drilling 
focused primarily on the Toka and 
Kopra pits (comprising 55% and 10% 
respectively of the current Toka 
Tindung mineral reserve). Drilling 
continues at these deposits and also 
at Pajajaran, Araren and Blambangan. 
The announcement of our updated 
reserve and resource estimates was 
welcomed by the market and 
confirms my belief that the Toka 
Tindung mine has significant life of 
mine upside. 
During 2012, we are continuing our 
exploration development programme 
with the objective of further increasing 
our resource and reserve estimates 
during the year. 
Summary & Outlook
Our focus is to grow into a respected 
and regionally dominant mid-cap 
gold producer, managing a portfolio 
of gold mines and delivering 
significant value and returns for our 
shareholders. With the management 
team that we now have in place, we 
are able to achieve this vision and I 
look forward to updating you on our 
progress. In this regard, I am confident 
that Archipelago will continue to grow 
and prosper throughout 2012. 
Finally, I take this opportunity to 
thank all of our stakeholders and in 
particular, PT Rajawali Corporation, 
for their help and support in what  
has been a transformational year  
for Archipelago.
Business review Governance Financial statements Archipelago Resources plc  
Annual Report 2011
14
Principal risks and uncertainties
The Board regularly reviews the key risks facing the 
business and establishes appropriate management 
controls. The principal risks and uncertainties facing  
the Company are:
Volatility of gold and other commodity prices
The Company’s business is impacted by the general risks 
associated with the gold market. In this regard, profitability 
is affected by factors beyond the Company’s control, such 
as a fall in the market price of gold. Historically, commodity 
prices (including in particular the price of gold) have 
fluctuated and are affected by numerous factors beyond 
the Company’s control, including global demand and 
supply, international economic trends, currency exchange 
fluctuations, expectations for inflation, speculative activity, 
consumption patterns and global or regional political 
events. The aggregate impact of these factors is impossible 
to predict. Fluctuations in commodity prices, over the long 
term, may also adversely impact the returns of the 
Company’s exploration projects. A significant reduction in 
global demand for gold, leading to a fall in gold prices 
could lead to a significant fall in the cash flow of the 
Company and/or a delay in exploration and production or 
even abandonment of a project should it prove 
uneconomical to develop, which may have a material 
adverse impact on the operating results and financial 
condition of the Company over the longer term. 
Currency fluctuations may affect the Company’s 
costs and margins
Gold and silver is sold throughout the world based on  
US$. The Company pays for goods and services in US$  
and other currencies. Adverse fluctuations in these other 
currencies relative to the US$ could materially and 
adversely affect the Company’s operating results, 
profitability and financial position. 
Global financial conditions are volatile  
and this may impact on the Company’s  
ability to source debt facilities
The Company is potentially exposed to an adverse 
borrowing environment that may increase the financial risk 
inherent in its business and could have a material adverse 
impact on profitability and cash flow. The Company, in the 
ordinary course of operations, is required to provide and 
to issue financial assurances and undertakings. The 
Company’s ability to provide such assurances and 
undertakings is subject to external financial and credit 
market assessments and its own financial position.
 
Political, economic and regulatory regime
The Company’s extraction and processing activities are 
subject to the grant and continuation of appropriate 
licences, leases, permits and planning permissions. The 
licences and operations of the Company are in jurisdictions 
outside the United Kingdom and accordingly, there will be 
a number of risks which the Company will be unable to 
control. Whilst the Company will make every effort to 
ensure it has robust commercial agreements covering its 
activities, there is a risk that the Company’s activities will be 
adversely affected by economic and political factors such 
as the imposition of additional taxes and charges, 
cancellation or suspension of licences and changes to the 
laws governing mineral exploration and operations. There 
can be no assurance that applicable mining concessions 
will be granted or renewed or if so, on what terms. There is 
also the risk that the terms of any licence may be changed 
or other than as represented or expected. Indonesia, the 
current focus of the Company’s activity, supports foreign 
investment. The country has a well-developed exploration 
and mining code, stable currency and proactive support for 
foreign companies (notwithstanding recent announced 
regulations concerning divestment requirements for 
mining concessions granted under the New Mining Law, 
which do not otherwise apply to the Company). 15 Archipelago Resources plc  
Annual Report 2011
Business review Governance Financial statements
Reserve and resource estimates
The estimation of mineral resources and reserves is a 
subjective process and the accuracy of any such estimates 
is a function of the quality of available data and of 
engineering and geological interpretation and judgement. 
Assurances cannot be given that the volume and grade of 
reserves recovered and rates of production achieved will be 
at the level anticipated. The Company’s future reported 
reserves and resources are estimates. Notwithstanding sign 
off by competent persons and adherence to the JORC 
standard, no assurance can be given that the estimated 
reserves and resources will be recovered or that they will be 
recovered at the rates estimated. Mineral and metal reserve 
and resource estimates are based on limited sampling and, 
consequently, are uncertain because the samples may not 
be representative. Mineral and metal reserve and resource 
estimates may require revision (either up or down) based on 
actual production experience. Furthermore, a decline in the 
market price for natural resources that the Company may 
discover or invest in could render reserves containing 
relatively lower grades of these resources uneconomic  
to recover.
Environmental
The Company’s exploration, development and mining 
activities are subject to extensive laws and regulations 
governing environmental protection. Although the 
Company closely follows, and is operating in compliance 
with all applicable environmental regulations, there can be 
no assurance that all future requirements will be achievable 
on reasonable terms. Failure to comply may result in 
enforcement actions causing operations to cease or be 
curtailed and may include corrective measures requiring 
significant capital expenditures.
Dependence on key personnel
The Company is dependent upon its executive 
management team and various technical consultants. 
Whilst it has entered into contractual agreements with the 
aim of securing the services of these personnel, the 
retention of their services cannot be guaranteed. The 
development and success of the Company depends on its 
ability to recruit and retain high quality and experienced 
staff. The loss of the service of key personnel or the inability 
to attract additional qualified personnel as the Company 
grows could have an adverse effect on future business and 
financial conditions.
Weather
The occurrence of high rainfall events may impact access, 
mining and processing of ore at the Company’s Toka 
Tindung Gold Mine.
Geology
Geological factors might influence the ability of the 
Company to extract gold from the Toka Tindung deposits. 
These include the physical and metallurgical characteristics 
of waste; and ore and the geotechnical stability of pit walls, 
particularly during seismic events.
Uninsured risk
The Company, as a participant in exploration and 
development programmes, may become subject to liability 
for hazards that cannot be insured against or third party 
claims that exceed the insurance cover. Archipelago Resources plc  
Annual Report 2011
16
Resource and reserve
The increase in T oka Tindung’s resource and reserve, 
and the extension of ‘life of mine’ , are considerable achievements 
for Archipelago. As of 31 December 2011, the Company’s JORC compliant 
resource and reserve statement is as follows:
Toka Tindung Project Resources Inclusive of Ore Reserves as of 31 December 2011
Grade Contained oz 
Deposit Category
Tonnes
‘000
Au
g/t
Ag
g/t
Au
oz M
Ag
oz M
Au Eq
oz M
Toka Tindung Measured 18,900 1.38 3.1 0.84 1.87 0.88
Indicated 20,000 0.93 1.9 0.60 1.24 0.62
Inferred 4,600 0.98 1.3 0.14 0.20 0.15
Total 43,500 1.13 2.4 1.59 3.30 1.65
Kopra Extended Measured
Indicated 1,800 3.51 8.0 0.20 0.44 0.21
Inferred 2,100 3.20 9.0 0.21 0.59 0.22
Total 3,900 3.34 8.5 0.41 1.03 0.43
Pajajaran Measured
Indicated 1,300 4.40 18.0 0.19 0.76 0.20
Inferred 200 3.70 12.0 0.02 0.07 0.02
Total 1,500 4.40 17.0 0.21 0.82 0.23
Blambangan Measured 600 3.70 13.0 0.07 0.23 0.07
Indicated 1,200 3.60 14.0 0.13 0.52 0.14
Inferred 200 2.90 9.0 0.02 0.05 0.02
Total 1,900 3.60 13.0 0.22 0.78 0.23
Araren Measured
Indicated 1,300 2.90 3.0 0.13 0.13 0.13
Inferred 400 2.80 3.0 0.03 0.04 0.03
Total 1,700 2.80 3.0 0.16 0.17 0.16
Stockpiles Subtotal 200 1.10 2.7 0.01 0.02 0.01
All Deposits Measured 19,500 1.45 3.4 0.91 2.10 0.94
Indicated 25,600 1.51 3.8 1.24 3.08 1.30
Inferred 7,400 1.81 4.0 0.43 0.95 0.44
Total 52,600 1.53 3.7 2.58 6.14 2.69 17 Archipelago Resources plc  
Annual Report 2011
Business review Governance Financial statements
Toka Tindung Project Ore Reserves as of 31 December 2011
Grade Contained Oz
Deposit Category
Tonnes
1000 Au Ag
Au
oz M 
Ag
oz M 
Au Eq
oz M
Toka Tindung Proved 16,300 1.4 3.3 0.74 1.70 0.77
Probable 7,100 1.0 2.4 0.23 0.56 0.24
Total 23,400 1.3 3.0 0.97 2.26 1.01
Pajajaren Proved 0 0.0 0.0 0.00 0.00 0
Probable 1,000 4.7 20.6 0.15 0.66 0.16
Total 1,000 4.7 20.6 0.15 0.66 0.16
Araren Proved 0 0.0 0.0 0.00 0.00 0
Probable 800 3.2 2.6 0.08 0.06 0.08
Total 800 3.2 2.6 0.08 0.06 0.08
Blambangan Proved 500 3.3 11.9 0.06 0.21 0.06
Probable 1,000 3.3 13.0 0.10 0.40 0.11
Total 1,500 3.3 12.6 0.16 0.61 0.17
Kopra Proved 0 0.0 0.0 0.00 0.00 0
Extended Probable 800 4.1 7.1 0.11 0.19 0.11
Total 800 4.1 7.1 0.11 0.19 0.11
Stockpiles Subtotal 200 1.1 2.7 0.01 0.02 0.01
All Deposits Proved 16,800 1.5 3.5 0.79 1.91 0.83
Probable 10,700 1.9 5.4 0.67 1.86 0.7
Total 27,700 1.7 4.3 1.47 3.79 1.54
Notes 
The Company owns 95% of the Toka Tindung Mine (and therefore 95% of the deposit identified above). Some rounding of figures may cause numbers not to add correctly. Cut-off 
grade used for mineral resources were as follows – Toka Tindung: 0.5g/t Au; Kopra: 1.0g/t Au; Pajajara: 1.0g/t Au; Blambangan: 1.0g/t Au; Araren: 1.0g/t Au. Toka Tindung: The mineral 
resource estimate is based on 2.296 drill holes (124,212m) of which 204 (17,594m) are diamond drill holes and 2,092 (106,618m) are RC drill holes. Cube Consulting Pty Ltd conducted 
a review of the methodologies used in previous resource estimates, which included a site visit during the course of the exploration and grade control drilling programs. The Batupangah 
project consists of Kopra, Pajajaran, Blambangan, and Araren deposits. The mineral resource estimate for Kopra is based on 444 drill holes (41,255m) of which 219 (19,469m) are 
diamond drill holes and 225 (21,786m) and RC drill holes. The mineral resource estimate for Pajajaran is based on 192 drill holes (17,323m) of which 87 (7,194m) are diamond drill holes 
and 105 (10,129m) are RC drill holes. The mineral resource estimate for Blambangan is based on 232 drill holes (21,751m) of which 63 (6,47m) are diamond drill holes and 169 (6,308m) 
are RC drill holes. The mineral resource for estimate of Araren is based on 170 drill holes (13,707m) of which 93 (7,399m) are diamond drill holes and 77 (6,308m) are RC drill holes. 
Mining Associates Pty Ltd conducted a review of the methodologies used in previous resource estimates, which included a site visit during the course of the exploration and grade 
control drilling programmes. The different cut-off grades are due to the additional ore haulage cost associated with the increased distance to the central processing plant site from the 
southern satellite Batupangah ore bodies. Gold equivalent ounces are calculated using the following factors: Au oz + (Ag oz x (Ag price/Au price) x (projected average Ag recovery/projected 
average Au recovery)). The latter currently equate to: US$25/US$1150 and 78%/93% respectively. Reserve optimisation is based on a gold price of US$1150 per ounce and silver price 
of US$25 per ounce. The ore reserve incorporates depletion from mining prior to 31 December 2011. This statement has been prepared in accordance with the guidelines defined in the 
2004 edition of JORC.  Archipelago Resources plc  
Annual Report 2011
18
Community 
Baseline
11 villages in proximity  
to mine
Circa 11,000 people/ 
2,500 families
Other industries: farming/
fishing
Corporate social responsibility
Governance
The Directors provide overall 
guidance and supervision of all 
aspects of corporate social 
responsibility by way of the 
Environment, Health and Safety  
and Community Committee.
Principal areas of CSR areas of focus
The Company has identified six areas 
of focus for its corporate social 
responsibility programme: 
environment, health and safety, 
human rights, employees, business 
conduct and local communities. The 
Company has developed policies and 
is implementing strategies for these 
focus areas. Further details on each 
area are set out below.
Management plans are prepared for 
each area. Currently, documented 
plans include the following:
 > human resources and development 
services and standards 
commitment;
 > community relations and 
development management plan;
 > culture and heritage management 
plan;
 > corporate social responsibility 
management plan;
 > supply management plan;
 > Voluntary principles on security and 
human rights management plan; 
and
 > a detailed mine closure plan to be 
implemented when the project is 
completed.
Environment
The Company recognises sound 
environmental management as a 
priority. The following principles are 
highlights of the policy statements 
that guide the operations of our 
business units. The Company will:
 > develop and maintain an 
environmentally responsible culture 
throughout all of its operations;
 > consult and communicate with its 
stakeholders concerning its 
environmental approach;
 > meet or exceed all relevant 
statutory requirements, industry 
standards and codes of practice;
 > rehabilitate and decommission sites 
and surrounding areas to the 
agreed end of use condition which 
will be safe and stable;
 > minimise waste and emissions, 
promote more efficient use of 
production inputs and minimise its 
environmental impacts; and
 > conduct regular audits to measure 
the effectiveness of the 
environmental management 
system and the implementation of 
this policy.
The Company adheres to high 
environmental standards. Amongst 
other projects, significant investment 
has been made in water management 
systems at the Toka Tindung Gold 
Mine. The Company also maintains a 
comprehensive water system 
compliance regime, erosion, 
sediment, and waste disposal controls, 
and conservation and rehabilitation 
programmes.
The Company is committed to maintaining 
a strong social licence and is proud of its 
achievements in North Sulawesi. 19 Archipelago Resources plc  
Annual Report 2011
Business review Governance Financial statements
Health and safety
The Company operates a 
comprehensive health and safety 
programme to ensure the wellness 
and security of its employees. To meet 
this objective, the following standards 
are adhered to:
 > compliance with Indonesian health 
and safety standards and others to 
which the Company subscribes;
 > achievement and maintenance 
certification of the safety 
management system to OHSAS 
18001;
 > provision of continual improvement 
of health and safety standards 
applying workforce consultation, 
knowledge sharing and training; 
and
 > development of major hazard plans 
for the management of all activities 
identified as high risk.
The control and eventual elimination 
of all work related hazards requires a 
dedicated team effort involving the 
active participation of all staff. A 
comprehensive health and safety 
programme is the primary means for 
delivering best practice in health and 
safety management. This is regularly 
updated to incorporate employee 
suggestions, lessons learned from 
past incidents and new guidelines 
relating to new projects, with the aim 
of identifying areas for further 
improvement of health and safety 
management. 
Human rights
The Company recognises that its 
human rights conduct must be 
exemplary and deploys the necessary 
resources to ensure that it works to 
protect human rights within its sphere 
of activity. It commits to maintaining 
collaborative working relationships 
with its stakeholders (particularly 
governments) to ensure that this 
policy is maintained.
Employees
The Company is committed to 
conducting its employee relationships 
in a manner that is characterised by 
unity of purpose, mutual 
collaboration, transparency and a 
sense of responsibility to the local 
community.
Business conduct
The Company is committed to 
conducting its business in a 
responsible manner and has produced 
a Code of Business Conduct which all 
of its employees must adhere to. In 
this regard, the Company will:
 > comply with laws and rules;
 > conduct its business fairly and 
honestly with its counterparties;
 > be independent of political activity; 
and
 > ensure employees maintain 
confidentiality of business related 
information. Archipelago Resources plc  
Annual Report 2011
20
Community policy
The Company is committed to 
producing economic wealth for all of 
its stakeholders and to optimise the 
consequential benefits for its local 
communities. The Company will:
 > recognise and treat the community 
as an important stakeholder;
 > develop and operate with a culture 
of mutual respect between the 
Company, the local community 
and its employees;
 > ensure fairness in its dealings with 
its local communities;
 > undertake community programmes 
that develop and improve 
community livelihoods and are 
sustainable after mine closure;
 > identify and promote business 
development opportunities for 
neighbouring communities;
 > develop and implement 
employment policies which give 
preference to local communities; 
and
 > measure, independently audit and 
report the outcomes of community 
programmes.
Corporate social responsibility continued
The following are 2011 highlights of 
the Company’s involvement in its 
local communities:
 > maintained meetings with all local 
village, community leaders and 
local government organisations  
on a regular basis; 
 > conducted visits and inspections in 
the mine area for all local senior 
high schools and teachers; 
 > provided school support materials 
for all elementary students;  
developed plans for a mobile library 
and a scholarship scheme;
 > developed micro-credit facilities to 
support a local women’s farming 
group and a national women’s 
co-operative group;
 > developed local public toilet and 
washing amenities; 
 > provided free medicines and 
anti-malaria schemes;
 > built a new local bridge and 
improved access roads; and 
 > supported development of new 
business opportunities in production 
of Vetvier grass. 21 Archipelago Resources plc  
Annual Report 2011
Social licence:  
3 components
2-way interface: schooling 
and health
Infrastructure and services
Development:  
co-operatives and local 
lending
Business review Governance Financial statements Archipelago Resources plc  
Annual Report 2011
22
Board of Directors
Stephen K Sulistyo
Non-Executive Chairman
Mr Sulistyo (Age 47) is a nominee  
of major shareholder PT Rajawali 
Corporation. Mr Sulistyo is currently 
Managing Director Business 
Development and Investment,  
PT Rajawali Corporation. 
He started his career in 1988 and has 
since served as a Director and 
Commissioner in various industries 
including finance, capital markets, 
banking, media, industrial, 
transportation, communication, 
mining and plantation. His leadership 
has brought exceptional growth and 
innovations within various companies.
Eddy P Porwanto
Deputy CEO and President  
Director of Indonesian operating 
subsidiaries PT Meares Soputan 
Mining and PT Tambang Tondano 
Nusajaya
Mr Porwanto (Age 43) has vast 
experience in various industries and 
knowledge about Indonesia market. 
Previously Mr Porwanto was the 
Chief Financial Officer of Garuda 
Indonesia Airlines, Chief Financial 
Officer of General Motors Indonesia 
and Chief Financial Officer of Reckitt 
Benckiser Indonesia. He was awarded 
The Best Future CEO in 2009 and 
The Best Chief Financial Officer in 
2010 by a prominent business 
magazine in Indonesia.
Marcus Engelbrecht
Chief Executive Officer and
Managing Director
Mr Engelbrecht (Age 51) was 
appointed Managing Director  
and Chief Executive Officer of 
Archipelago in August 2011. He is  
a mining executive who has had 
considerable experience in the 
resources industry. Prior to joining 
Archipelago, Mr Engelbrecht was  
the Chief Financial Officer of 
OceanaGold Corporation, an 
Australian based mid-tier gold miner. 
Previously, he had over 20 years’ 
experience with BHPBilliton, where 
he held the position of Chief 
Financial Officer of their Diamonds 
and Specialty Products group, based 
in Melbourne, Australia.
Graeme R Duncan
Non-Executive Director
Mr Duncan (Age 56) is a consultant 
mining engineer and Executive 
Director of Tasman Mining Pty 
Limited, an Australian based group 
with extensive experience in 
international and South East Asian 
coal and resource operations. 
Graeme has significant experience 
working with financial institutions for 
project finance and independent 
valuations and the preparation of 
Competent Persons Reports for 
public companies.
Jeremy W Ayre
Non-Executive Director
Mr Ayre (Age 46) is a mining engineer 
with more than 25 years’ experience 
in both technical and financial 
aspects of the industry. In 2000, he 
co-founded AWR Lloyd, a specialist 
corporate finance firm providing 
advisory services to the energy, 
mining and metals sectors in the 
Asia-Pacific region. More recently,  
he worked with Baker Steel and Rock 
Capital to launch and develop a 
private equity mining fund which led 
to the listing of Baker Steel Resources 
Trust in mid-2010. Mr Ayre is also a 
non-executive director of Genus 
Gold Fund, Genus Natural Resources 
Fund and Baker Steel Capital 
Managers Limited. 23 Archipelago Resources plc  
Annual Report 2011
Governance Business review Financial statements
Experienced management team
The Company’s management and control is overseen by Mr Engelbrecht as 
CEO and Managing Director. He chairs, and is supported by, an Executive 
Management Committee, comprising executives responsible for a range of 
corporate and operational areas. 
In addition to Board responsibilities, Messrs Engelbrecht and Porwanto are 
members of the Executive Committee (and their backgrounds are detailed at 
page 22 of this Report). 
Other members of the Executive Management Committee are as follows:
Colin Sutherland
(Chief Financial Officer)
Mr Sutherland has executive 
responsibility for the Company’s 
financial, treasury and risk 
management functions. Mr Sutherland 
has extensive experience across all 
aspects of financial management. 
Prior to joining Archipelago, Mr 
Sutherland was Chief Financial Officer 
for Timmins Gold Corporation. 
Previously, he acted as Chief Financial 
Officer for Aurico Gold Inc and 
Mexgold Resources Inc. In addition to 
financial management roles, Mr 
Sutherland acted as President and 
CEO for Nayarit Gold Inc. and then 
Capital Gold Corporation between 
2007 and 2011. He has also held 
senior roles with Royal Bank of 
Canada, Pricewaterhouse Coopers 
and Deloitte & Touche. He is a 
Chartered Accountant and holds a 
Bachelor of Business Administration.
Steven Dudka 
(Country President – Vietnam)
Mr Dudka has overall executive 
responsibility for all activities in 
Vietnam. 
Dave Morrison 
(Chief Operating Officer – Toka 
Tindung Gold Project)
Mr Morrison has overall operational 
responsibility for the Toka Tindung 
Gold Mine. Mr Morrison graduated 
with a Bachelor of Engineering from 
the Royal Melbourne Institute of 
Technology and has 18 years of 
broad-based experience principally in 
the South East Asian gold mining 
industry. Mr Morrison was previously 
the Process Manager at the Chatree 
Gold Mine, Thailand, Operations 
Manager and Director of Aurora Mt 
Muro Gold Mine in Indonesia and 
Chief Metallurgist at the Porgera Gold 
Mine in Papua New Guinea. In 
addition to operations, Mr Morrison’s 
experience also includes numerous 
construction and plant 
commissioning activities on both new 
projects and expansions.
Matthew Salthouse
(Company Secretary; Vice President 
– Investor Relations & Corporate 
Affairs)
Mr Salthouse has executive 
responsibility for the Company’s 
investor relations, human resources, 
legal and company secretarial/
governance functions. Mr Salthouse 
has 19 years’ experience in 
governance, corporate finance and 
resources. Prior to joining Archipelago, 
Mr Salthouse was Company Secretary 
and General Counsel for OceanaGold 
Corporation where he also acted as 
Country President of OceanaGold’s 
Philippines operations. In addition to 
OceanaGold, Mr Salthouse has also 
held senior positions at lawyer Herbert 
Smith, Corrs Chambers Westgarth  
and an Australian listed industrial 
conglomerate, ION Limited. He holds a 
Bachelor of Economics and a Bachelor 
of Laws from Monash University.
Mr Dudka graduated with a degree in 
Geology from Dalhousie University 
(Nova Scotia, Canada) in 1987. He 
worked in mineral exploration in 
various parts of Canada for the 
subsequent 10 years including Nova 
Scotia, Newfoundland/Labrador, 
British Columbia and Yukon. Since 
early 1997, Mr Dudka has worked 
continuously in Vietnam on several 
large mineral deposits, including  
the Nui Phao tungsten polymetallic 
deposit (1997 – 2005); Ban Phuc 
Nickel-copper deposit (2005 – 2006).  
In mid-2006, Mr Dudka began  
work for Archipelago as Chief 
Representative and Country Managing 
Director (overseeing all in-country 
initiatives, including gold exploration 
in the Pac Lang area, Bac Kan 
province, feasibility and project 
development of the Co Dinh chromite 
deposit, Thanh Hoa province, and 
active pursuit of other gold 
exploration and development 
opportunities). 24 Archipelago Resources plc   
Annual Report 2011
Directors’ report
The Directors present their annual report on the affairs of the Company, together with the financial statements and 
audit report for the year ended 31 December 2011.
The Company’s business activities, together with the factors likely to affect future development, performance and 
position are set out in the Business Review on pages 8 to 13. The financial performance, position and cash flows of 
the Company and Group are set out on pages 30 to 33.
The Directors have a reasonable expectation that the Group has adequate resources to continue operations for the 
foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the audited 
financial statements.
Principal activity and review of the business
The Company’s principal activity is to acquire, explore, develop and mine gold and other precious metal deposits  
in South East Asia. In this regard, the Company’s primary focus is the Toka Tindung Gold Mine, in which it holds  
a 95% interest. 
The Company also holds exploration licences (and applications for additional exploration licences) in Vietnam and 
has the right to acquire not less than an 80% interest in Corplex Resources Inc, a Philippine registered company with 
exploration applications in north east Mindanao.
A further review of the business activity has been included in the Chief Executive Officer’s review, contained 
elsewhere in this report. 
Financial reporting
A statement about the Directors’ responsibilities for the Group’s financial statements appears on page 29.
Insofar as the Directors are aware:
 — there is no relevant audit information of which the Company’s auditor is unaware; and
 — the Directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit 
information and to establish that the auditor is aware of that information.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included 
on the Company’s website. Legislation in the United Kingdom governing the preparation and dissemination of 
financial statements may differ from legislation in other jurisdictions.
The Board is ultimately responsible for the Group’s system of internal control and for reviewing its effectiveness. 
However, such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives 
and can provide only reasonable and not absolute assurance against material misstatement or loss.
Results and Dividend
The consolidated profit/(loss) for the year after taxation and minority interests amounted to US$12.7 million (2010 
loss: US$11.6 million). No dividends have been paid or are proposed.
Going concern
After making enquiries, the Directors have formed a judgement at the time of approving the financial statements, 
that there is a reasonable expectation that the Company and the Group as a whole have adequate resources to 
continue in operational existence for the foreseeable future. For this reason the Directors have adopted the going 
concern basis in preparing the financial statements. 
Events since balance date
On 30 January 2012, the Company announced a material increase in mineral resource and ore reserve estimates at 
Toka Tindung Mine in North Sulawesi, Indonesia. The resource has increased to 52.6 million tonnes from 15 million 
tonnes and the proven and probable ore reserve has increased to 27.6 million tonnes from 7.62 million tonnes.
Excluding silver as gold equivalent ounces, contained gold resources have increased by 52%, with ore reserves 
increasing by 60%.
The increase in ore reserves supports extending the mine of life from six to nine years, which will impact the 
estimates of recoverable ounces used in 2011. 25 Archipelago Resources plc   
Annual Report 2011
Business review Financial statments Governance
Political and charitable contributions
During the year, the Company made no European Union political or charitable donations.
Creditor payment policy
It is the Group’s normal practice to agree terms of transactions, including payment terms, with suppliers and 
provided suppliers perform in accordance with the agreed terms it is the Company’s policy that payment is made 
accordingly. The average credit period taken on trade creditors is 42 days.
Share capital and share options
Details of changes in share capital and details of share options are given in notes 16 and 18 to the financial 
statements.
Since the balance sheet date, the Board has adopted a new unapproved share option scheme (the “New Scheme”)  
to replace the Group’s share option scheme of 2002 (the “Old Scheme”). The New Scheme has been incorporated 
on similar terms to that of the previous scheme. Options which have been granted under the Old Scheme and are 
still outstanding remain in force in accordance with the terms of the Old Scheme.
Substantial shareholdings
The Company had been notified as at 23 March 2012, the last practicable date prior to the publication of these 
accounts, of the following interests of 3% or more in its issued share capital.
Ordinary shares of 1p each Number Percentage
PT Rajawali Corporation 300,052,362 52.4%
Columbia Wanger Asset Management LLC 50,686,683 8.8%
Baker Steel Capital Managers LLP 40,909,713 7.1%
BlackRock Investment Management (UK) Limited 25,625,380 4.5%
Asia Image 20,961,250 3.7%
Directors and their interests
As at 31 December 2011 and the date of this report, the Directors held the following interests:
Ordinary shares of 1p each 2011 2010
Graeme Duncan 80,000 80,000
Jeremy Ayre 600,000 600,000
Share Options
Name of Director
Number of
Options
Exercise 
Price £ Granted Exercised Expiry Date
Colin Loosemore
1
 900,000 0.039 – 900,000 31/12/2012
Eddy Porwanto 700,000 0.385 – – 31/12/2013
Jeremy Ayre 600,000 0.258 – – 31/12/2012
Graeme Duncan 400,000 0.385 – – 31/12/2013
Stephen Sulisyto 400,000 0.385 – – 31/12/2013
Total Director Options 3,000,000 – 900,000
1. Director resigned with effect from 3 August 2011.
Inclusive of all employees and office holders during the year 7,055,000 options vested as a result of satisfaction of 
the vesting condition on 16 November 2011; subsequent to these options vesting a total of 2,700,000 options were 
exercised and ordinary shares issued. 26 Archipelago Resources plc   
Annual Report 2011
Directors’ remuneration
All matters concerning the remuneration of Executive Directors are considered by the Remuneration & Nomination 
Committee and the Board. Directors do not participate when their own individual salary or compensation is being 
discussed. Further particulars on the Remuneration & Nomination Committee are set out in the Corporate 
Governance section of this report.
Directors’ Emoluments
Name of Director
Fees/Basic
Salary
US$
Other
Benefits
US$
Share
Options
US$
Year ended
31 December
2011
US$
Year ended
31 December
2010
US$
Number of Directors 5 5
Executive
Marcus Engelbrecht
1
 250,000 60,870 – 310,870 –
Colin Loosemore
2
 306,282  955,044 – 1,261,326 404,349
Eddy Porwanto 403,593  392,476 – 796,069 11,369
Non-executive
Jeremy Ayre 63,431 20,000 – 83,431 47,966
Graeme Duncan 63,431 20,000 – 83,431 132,919
Stephen Sulisyto 63,106 20,000 – 83,106 132,926
Total Directors’ remuneration 1,149,843  1,468,390 – 2,618,233 729,529
1 Director appointed with effect from 3 August 2011
2 Director resigned with effect from 3 August 2011
By Order of the Board
Marcus Engelbrecht
Chief Executive and Managing Director
26 April 2012
Directors’ report continued 27 Archipelago Resources plc   
Annual Report 2011
Business review Financial statments Governance
Corporate governance
Companies listed on AIM are not required to make an 
annual statement to shareholders regarding compliance 
with The Combined Code – Principles of Good 
Governance and Code of Best Practice (“The Combined 
Code”). However the Board endeavours to comply with 
The Combined Code principles and code, in so far as it 
is appropriate and practical for a company the size of 
Archipelago to do so. 
Board of Directors
The Board currently has five Directors, comprising two 
executive directors and three non-executive Directors 
(including the Company’s Chairman) with relevant 
sector experience to complement the two executive 
Directors and to provide an independent view to the 
Board. Further details on each of the Directors appears 
elsewhere in this Report. The Board met formally on 11 
occasions during the year ended 31 December 2011. 
In advance of Board meetings, an agenda is typically 
circulated together with applicable supporting 
documentation. All Directors bring independent 
judgement to bear on issues affecting the Company and 
all have full access to information necessary to enable 
them to discharge their duties. The roles of the 
Chairman and Chief Executive Officer are not combined 
and there is a division of responsibilities between them.
Non-executive Directors are not appointed for specific 
terms, rather each non-executive Director comes up for 
re-election every three years and each new Director is 
subject to election at the next Annual General Meeting 
following the date of appointment. The Board 
recognises that it may in due course be beneficial to 
appoint additional independent non-executive 
Directors. The Remuneration & Nomination Committee 
will generally consider appointments of a Director and 
thereafter make formal recommendations to the Board. 
The Company has the following committees  
to assist the Board:
 — Audit Committee;
 — Risk Management Committee;
 — Remuneration & Nomination Committee; and
 — Environment, Health & Safety and Community 
Committee.
Accountability and audit
Specific details on financial reporting are set out 
elsewhere in this Annual Report. Overall Board 
governance of the financial controls framework is 
overseen by the Audit Committee, who (where 
appropriate) consults with the Auditor. 
The Audit Committee comprises Mr Sulistyo (Chairman) 
and Mr Ayre. The Audit Committee met during the year 
to approve the 2010 accounts and the half year 
accounts for 2011. Because of the size of the Board, it is 
not possible to comply with the Combined Code 
requirement that the Audit Committee should be 
composed of at least three non-executive Directors. 
Notwithstanding this, the Board will review the structure 
and composition of the Audit Committee as the 
Company develops. The Board also proposes to 
implement a separate internal audit function.
The responsibilities of the Company’s auditor appear in 
the Auditor’s Report on page 28.
Remuneration policy
It is the policy of the Remuneration & Nomination 
Committee that Directors’ remuneration should be 
commensurate with services provided by them to the 
Company. The remuneration of all Directors is 
determined by the Committee. The Committee also 
establishes remuneration and compensation policies for 
executive employees. Where appropriate, these policies 
are adopted for other employees of the Company and 
Group entities. 
In respect of non-executive Directors and save for a 
one-off bonus paid in 2011 on achievement of certain 
milestones, there are no formal bonus arrangements in 
place or other long-term incentive schemes other than 
share options issued from time to time to Directors and 
employees under the company’s unapproved share 
option scheme. The share options are awarded to 
provide an incentive, which is related to the market 
performance of the Company. 
Internal controls
The Board recognises the importance of both financial 
and non-financial controls and has reviewed the 
Company’s control environment and any related 
shortfalls during the year. The Directors are satisfied 
that, given the current size and activities of the 
Company, adequate internal controls have been 
implemented, (but will continue to review systems).
Relations with shareholders
It is the policy of the Company that the Chief Executive 
Officer meets with institutional investors on a regular 
basis. Shareholders are also encouraged to participate in 
annual meetings of the Company. The Company issues 
performance updates from time to time, which are 
available for review on the Company’s website. 28 Archipelago Resources plc   
Annual Report 2011
Independent auditors’ report
T o the members of Archipelago Resources plc
For the year ended 31 December 2011
We have audited the financial statements of Archipelago 
Resources plc for the year ended 31 December 2011 which 
comprise the group and parent company statements of 
financial position, the consolidated statement of 
comprehensive income, the group and company 
statements of changes in equity, the group and parent 
company statements of cash flow and the related notes. 
The financial reporting framework that has been applied in 
their preparation is applicable law and International 
Financial Reporting Standards (IFRSs) as adopted by the 
European Union, and as regards the parent company 
financial statements, as applied in accordance with the 
provisions of the Companies Act 2006.
The report is made solely to the company’s members, 
as a body, in accordance with Chapter 3 of Part 16 of the 
Companies Act 2006. Our audit work has been 
undertaken so that we might state to the company’s 
members those matters we are required to state to them 
in a Report of the Auditor and for no other purpose. To 
the fullest extent permitted by law, we do not accept or 
assume responsibility to anyone other than the 
company and the company’s members as a body, for 
our audit work, for this report, or for the opinions we 
have formed.
Respective responsibilities of directors and auditor
As explained more fully in the Statement of Directors’ 
Responsibilities, the directors are responsible for the 
preparation of the financial statements and for being 
satisfied that they give a true and fair view. Our 
responsibility is to audit and express an opinion on the 
financial statements in accordance with applicable law 
and International Standards of Auditing (UK and Ireland). 
Those standards require us to comply with the Auditing 
Practices Board’s Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts 
and disclosures in the financial statements sufficient to 
give reasonable assurance that the financial statements 
are free from material misstatement, whether caused by 
fraud or error. This includes an assessment of: whether 
the accounting policies are appropriate to the group’s 
and the parent company’s circumstances and have been 
consistently applied and adequately disclosed; the 
reasonableness of significant accounting estimates 
made by the directors; and the overall presentation of 
the financial statements. In addition, we read all the 
financial and non-financial information in the annual 
report including the directors’ report, the chairman’s 
statement and the chief executive officers report to 
identify material inconsistencies with the audited 
financial statements. If we become aware of any 
apparent material misstatements or inconsistencies we 
consider the implications for our report.
Opinion on financial statements
In our opinion:
 — the financial statements give a true and fair view of 
the state of the group’s and the parent company’s 
affairs as at 31 December 2011 and of the group’s 
profits for the year then ended;
 — the group financial statements have been properly 
prepared in accordance with IFRSs as adopted by the 
European Union;
 — the parent company financial statements have been 
properly prepared in accordance with IFRSs as 
adopted for use in the European Union and as applied 
in accordance with the provisions of the Companies 
Act 2006; and
 — the financial statements have been prepared in 
accordance with the requirements of the Companies 
Act 2006.
Opinion on other matters prescribed by the 
Companies Act 2006
In our opinion the information given in the directors’ 
report, the chairman’s statement and the chief executive 
officers report for the financial year for which the 
financial statements are prepared is consistent with the 
financial statements.
Matters on which we are required to report by 
exception
We have nothing to report in respect of the following 
matters where the Companies Act 2006 requires us to 
report to you if, in our opinion:
 — adequate accounting records have not been kept by 
the parent company, or returns adequate for our 
audit have not been received from branches not 
visited by us; or
 — the parent company financial statements are not in 
agreement with the accounting records and returns; 
or
 — certain disclosures of directors’ remuneration 
specified by law are not made; or
 — we have not received all the information and 
explanations we required for our audit.
Gareth Jones  
(Senior Statutory Auditor)
for and on behalf of Chantrey Vellacott DFK LLP
Chartered Accountants and Statutory Auditor
Russell Square House
10-12 Russell Square
London
WC1B 5LF
26 April 2012 Governance Business review Financial statements
29 Archipelago Resources plc   
Annual Report 2011
Statement of Directors’ responsibilities in respect  
of the financial statements
Company law requires the Directors to prepare financial statements for each financial year which give a true and  
fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that year.  
In preparing those financial statements, the Directors are required to:
 — select suitable accounting policies and then apply them consistently;
 — make judgements and estimates that are reasonable and prudent;
 — state whether applicable International Financial Reporting Standards (“IFRS”) as adopted by the European Union 
have been followed, subject to any material departures disclosed and explained in the financial statements; and
 — prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 
Company and the Group will continue in business.
The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at  
any time the financial position of the Company and the Group to enable them to ensure that the financial statements 
comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the 
Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 30 Archipelago Resources plc   
Annual Report 2011
Group statement of comprehensive income
For the year ended 31 December 2011
Notes
Year ended
31 December
2011
US$000
Year ended
31 December
2010
US$000
Revenue 2 93,259 –
Cost of sales (48,426) – 
Gross profit 44,833 –
Other income 154 280
Administrative expenses (11,598) (10,072)
Other expenses (2,400) (2,619)
Operating profit/(loss) 3 30,989 (12,411)
Finance costs 3 (5,045) (5)
Profit/(loss) before income tax 25,944 (12,416)
Taxation 6 (13,246) 847
Profit/(loss) for the year 12,698 (11,569)
Other comprehensive income
Employee benefit – (48)
Total comprehensive income/(expense) for the year 12,698 (11,617)
Attributable to:
Owners of the parent 12,692 (11,600)
Non-controlling interests 6 (17)
12,698 (11,617)
Earnings/(loss) per share (cents per share)
Basic 7 0.022 (0.024)
Diluted 7 0.022 (0.023)
There were no recognised gains or losses other than those shown above. All the Group’s activities consist of 
continuing operations. 
 
The accompanying accounting policies and notes should be read in conjunction with these financial statements as 
detailed on pages 34 to 58. Governance Business review Financial statements
31 Archipelago Resources plc   
Annual Report 2011
Statements of financial position
At 31 December 2011
 
 
Notes
Group Company
31 December
2011
US$000
31 December
2010
US$000
31 December
2011
US$000
31 December
2010
US$000
Non-current assets
Deferred tax asset 6 – 849 – –
Property, plant and equipment 8 140,772 117,877 – –
Development, exploration and evaluation 9 106,666 53,847 – –
Deferred stripping 10 5,112 – – –
Investments 11 952 939 1,202 1,189
Other receivables 12 16,328 – 190,372 179,746
269,830 173,512 191,574 180,935
Current assets
Inventories 13 23,979 4,253 – –
Trade and other receivables 14 3,777 7,403 591 1,621
Cash and cash equivalents 15 22,351 24,184 3,133 17,041
50,107 35,840 3,724 18,662
Total assets 319,937 209,352 195,298 199,597
Equity and liabilities
Share capital 16 9,416 9,373 9,416 9,373
Share premium account 208,500 208,333 208,500 208,333
Other reserves 17 5,467 10,045 5,016 10,030
Retained earnings (26,119) (39,734) (28,236) (29,854)
Equity attributable to owners of the parent 197,264 188,017 194,696 197,882
Non-controlling interest – (17) – –
Total equity 197,264 188,000 194,696 197,882
Non-current liabilities
Trade and other payables 19 – – – 1,387
Other financial liabilities 20 70,173 – – –
Deferred tax liability 6 6,640 – – –
Provisions 21 12,229 8,152 – –
89,042 8,152 – 1,387
Current liabilities
Trade and other payables 19 17,241 13,200 602 328
Interest-bearing loans and borrowings 20 11,040 – – –
Income taxes payable 5,350 – – –
33,631 13,200 602 328
Total equity and liabilities 319,937 209,352 195,298 199,597
These financial statements on pages 30 to 58 were approved by the Board of Directors and authorised for issue on 
26 April 2012, and signed on its behalf by:
Marcus Engelbrecht
Chief Executive and Managing Director      32 Archipelago Resources plc   
Annual Report 2011
Statements of changes in equity
For the year ended 31 December 2011
Share  
capital 
US$000
Share 
premium 
US$000
Other 
reserves 
US$000
Retained 
earnings 
US$000
Total 
US$000
Non-
controlling 
interest 
US$000
 Total  
Equity 
US$000
Group
As at 1 January 2010 6,577 118,693 3,825 (28,134) 100,961 – 100,961
Changes in equity for 2010
Total comprehensive income – – – (11,600) (11,600) (17) (11,617)
Shares issued 2,796 90,753 – – 93,549 – 93,549
Share issue costs – (1,113) – – (1,113) – (1,113)
Share-based payments – – 6,220 – 6,220 – 6,220
Balance at 31 December 2010 9,373 208,333 10,045 (39,734) 188,017 (17) 188,000
Changes in equity for 2011
Total comprehensive income – – – 12,692 12,692 6 12,698
Options exercised 43 167 (5,652) 5,467 25 – 25
Share-based payments – – 1,074 – 1,074 – 1,074
Purchase of minority interest – – – (4,544) (4,544) 11 (4,533)
Balance at 31 December 2011 9,416 208,500 5,467 (26,119) 197,264 – 197,264
Company
As at 1 January 2010 6,577 118,693 4,029 (116,317) 12,982 – 12,982
Changes in equity for 2010
Total comprehensive income – – – 86,463 86,463 – 86,463
Shares issued 2,796 90,753 – – 93,549 – 93,549
Share issue costs – (1,113) – – (1,113) – (1,113)
Share-based payments – – 6,001 – 6,001 – 6,001
Balance at 31 December 2010 9,373 208,333 10,030 (29,854) 197,882 – 197,882
Changes in equity for 2011
Total comprehensive income – – – (3,761) (3,761) – (3,761)
Options exercised 43 167 (5,379) 5,379 210 – 210
Share-based payments – – 365 – 365 – 365
Balance at 31 December 2011 9,416 208,500 5,016 (28,236) 194,696 – 194,696
The accompanying accounting policies and notes should be read in conjunction with these financial statements as 
detailed on pages 34 to 58. Governance Business review Financial statements
33 Archipelago Resources plc   
Annual Report 2011
Statements of cash flow
For the year ended 31 December 2011
Group Company
Notes
31 December 
2011  
US$000
31 December 
2010  
US$000
31 December 
2011  
US$000
31 December 
2010  
US$000
Cash inflow/(outflows) from operating activities 22 18,498 (5,811) (2,082) (2,377)
Cash flows from investing activities
Payments to acquire property, plant and equipment (45,972) (52,079) – –
Proceeds from sale of investment – 167 – 167
Proceeds from sale of asset 95 – – –
Payments for development, exploration and evaluation expenditure (37,010) (21,421) – (1,028)
Purchase of minority interest (4,533) – – –
Payment to acquire additional shares in Archipelago Metals Ltd (13) (591) (13) (591)
Net cash used in investing activities (87,433) (73,924) (13) (1,452)
Cash flows from financing activities
Proceeds from borrowings 70,000 – – –
Lease payments (1,182) – – –
Issue of ordinary share capital 210 93,549 210 93,549
Capital raising costs – (1,113) – (1,113)
Interest paid (1,926) – – –
Prepaid borrowing costs – (506) – (427)
Loans to subsidiaries – – (12,023) (81,759)
Net cash generated from/(used by) financing activities 67,102 91,930 (11,813) 10,250
Effect of change in exchange rates on cash and cash equivalents – (567) – (749)
Net (decrease)/increase  in cash and cash equivalents (1,833) 11,628 (13,908) 5,672
Cash and cash equivalents at start of year 24,184 12,556 17,041 11,369
Cash and cash equivalents at end of year 22,351 24,184 3,133 17,041
The accompanying accounting policies and notes should be read in conjunction with these financial statements as 
detailed on pages 34 to 58. 34 Archipelago Resources plc   
Annual Report 2011
1. Accounting policies
Basis of preparation
The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) 
as adopted by the European Union at 31 December 2011 and therefore the group financial statements comply with 
Article 4 of the EU IAS regulation and comply with the Companies Act 2006.
The financial statements are prepared under the historical cost convention except for share-based payments that 
are included at fair valued at the date of grant and other financial assets and liabilities that are measured at fair value. 
The financial statements are presented in US dollars which is the group functional currency and all values are 
rounded to the nearest thousand ($000), except when otherwise indicated. The company is incorporated in the 
United Kingdom and the principal places of business are Singapore and Indonesia.
Basis of consolidation
The consolidated financial statements comprise the financial statements of the Group as at 31 December 2011.
Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group obtains control, 
and continue to be consolidated until the date when control ceases. 
The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using 
consistent accounting policies. 
All intra-group balances and transactions are eliminated in full.
Where the ownership of a subsidiary is less than 100%, and therefore a non-controlling interest (NCI) exists, any 
losses of that subsidiary are attributed to the NCI even if that results in a deficit balance. 
A change in the ownership interest of a subsidiary, without loss of control, is accounted for as an equity transaction. 
Going Concern
The Financial Statements are prepared on a going concern basis supported by the current year and future cash flow 
forecasts. The Directors believe that the Group has sufficient funds and adequate resources to undertake its 
operating activities, meet its commitments and to continue in operational existence for the foreseeable future. Thus 
they continue to adopt the going concern basis of accounting in preparing the annual financial statements.
Significant accounting judgements, estimates and assumptions 
The preparation of the financial statements in conformity with IFRS requires the use of estimates and assumptions that 
affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of 
revenues and expenses during the reporting period. Although these estimates are based on management’s best 
knowledge of the amounts, events or actions, actual results ultimately may differ from those estimates.
Significant areas of estimation uncertainty considered by management in preparing the consolidated financial 
statements include the following:
Mine closure provision 
The Group assesses its mine closure provision annually. Significant estimates and assumptions are made in 
determining the provision for mine rehabilitation as there are numerous factors that will affect the ultimate liability 
payable. These factors include estimates of the extent and costs of closure activities, technological changes, 
regulatory changes, cost increases and changes in discount rates. These uncertainties may result in future 
expenditure differing from the amounts currently provided. The provision at reporting date represents 
management’s best estimate of the present value of the future rehabilitation costs required.
Ore reserve and resource estimates
Ore reserves are estimates of the amount of ore that can be economically and legally extracted from the Group’s 
mining properties. The Group estimates its ore reserves and mineral resources based on information compiled by 
appropriately qualified persons. The estimation of recoverable reserves is based upon factors such as commodity 
prices, future capital requirements and production costs along with geological assumptions and judgements made 
in estimating the size and grade of the ore body. Changes in reserve estimates may impact upon the carrying value 
of exploration and evaluation assets, mine properties, property, plant and equipment, goodwill, provision for 
rehabilitation and depreciation and amortisation charges.
Notes to the financial statements
For the year ended 31 December 2011 Governance Business review Financial statements
35 Archipelago Resources plc   
Annual Report 2011
Exploration and evaluation expenditure
The application of the Group’s accounting policy for exploration and evaluation expenditure requires judgement in 
determining whether it is likely that future economic benefits are likely either from future exploitation or sale or 
where mining activities have not reached a stage which permits a reasonable assessment of the existence of 
reserves.
Impairment of assets
The Group assesses each cash generating unit annually to determine whether any indication of impairment exists. 
Where an indicator exists, a formal estimate of the recoverable amount is made, which is considered to the higher of 
the fair value less costs to sell and value in use. These assessments require the use of estimates and assumptions 
such as long-term commodity prices, discount rates, future capital requirements, exploration potential and 
operating performance. Fair value for mineral assets is generally determined as the present value of estimated future 
cash flows arising from the continued use of the asset. Cash flows are discounted to their present value using a 
pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to 
the asset. 
Deferred stripping expenditure
The Group defers advanced stripping costs incurred during the production stage of its operations. This calculation 
requires the use of judgements and estimates such as estimates of tonnes of waste to be removed over the life of 
the mining area and economically recoverable reserves extracted as a result. Changes in a mine’s life and design will 
usually result in changes to the expected stripping ratio. 
Production start date
The Group assesses the stage of each mine under construction to determine when a mine moves into the 
production stage being when the mine is substantially complete and ready for its intended use. The Group considers 
various relevant criteria to assess when the production phase is considered to commence. When a mine 
development moves into the production stage, the capitalisation of certain mine development costs ceases and 
costs are either regarded as forming part of the cost of inventory or expensed, except costs that qualify for 
capitalisation relating to mining asset additions or improvements, underground mine development or mineable 
reserve development. It is also at this point that depreciation commences.
New and amended standards and interpretations
The accounting policies adopted are consistent with those of the previous financial year, except for the following 
new and amended IFRS and IFRIC interpretations effective as of 1 January 2011:
 — IAS 24 Related Party Disclosures (amendment) effective 1 January 2011
 — IAS 32 Financial Instruments: Presentation (amendment) effective 1 February 2010
 — Improvements to IFRSs (May 2010)
The adoption of the standards or interpretations is described below:
IAS 24 Related Party Disclosures (amendment)
The IASB issued an amendment to IAS 24 that clarifies the definitions of a related party. The new definitions 
emphasise a symmetrical view of related party relationships and clarifies the circumstances in which persons and 
key management personnel affect related party relationships of an entity. In addition, the amendment introduces an 
exemption from the general related party disclosure requirements for transactions with government and entities that 
are controlled, jointly controlled or significantly influenced by the same government as the reporting entity. The 
adoption of the amendment did not have any impact on the financial position or performance of the Group.
IAS 32 Financial Instruments: Presentation (amendment)
The IASB issued an amendment that alters the definition of a financial liability in IAS 32 to enable entities to 
classify rights issues and certain options or warrants as equity instruments. The amendment is applicable if the rights 
are given pro rata to all of the existing owners of the same class of an entity’s non-derivative equity instruments, to 
acquire a fixed number of the entity’s own equity instruments for a fixed amount in any currency. The amendment 
has had no effect on the financial position or performance of the Group because the Group does not have these 
types of instruments. 36 Archipelago Resources plc   
Annual Report 2011
1. Accounting policies continued
Improvements to IFRSs
In May 2010, the IASB issued amendments to its standards, primarily with a view to removing inconsistencies and 
clarifying wording. There are separate transitional provisions for each standard. The adoption of the following 
amendments resulted in changes to accounting policies, but no impact on the financial position or performance of 
the Group.
 — IFRS 3 Business Combinations: The measurement options available for NCI were amended. Only components of 
NCI that constitute a present ownership interest that entitles their holders to a proportionate share of the entity’s 
net assets in the event of liquidation should be measured at either fair value or at the present ownership 
instruments’ proportionate share of the acquiree’s identifiable net assets. All other components are to be 
measured at their acquisition date fair value.
 — IFRS 7 Financial Instruments – Disclosures: The amendment was intended to simplify the disclosures provided by 
reducing the volume of disclosures around collateral held and improving disclosures by requiring qualitative 
information to put the quantitative information in context. The Group reflects the revised disclosure requirements 
in Note 25.
 — IAS 1 Presentation of Financial Statements: The amendment clarifies that an entity may present an analysis of 
each component of other comprehensive income either in the statement of changes in equity or in the notes to 
the financial statements. The Group provides this analysis in the statement of changes in equity.
Other amendments resulting from improvements to IFRSs to the following standards did not have any impact on the 
accounting policies, financial position or performance of the Group:
 — IFRS 3 Business Combinations (Contingent consideration arising from the business combination prior to adoption 
of IFRS 3 (as revised in 2008)
 — IFRS 3 Business Combinations (Un-replaced and voluntarily replaced share-based payment awards)
 — IAS 27 Consolidated and Separate Financial Statements
 — IAS 34 Interim Financial Statements
The following interpretation and amendments to interpretations did not have any impact on the account policies, 
financial position or performance of the Group:
 — IFRIC 13 Customer Loyalty Programmes (determining the fair value of award credits)
 — IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments
Foreign currency translation
The functional currency of the entities within the Group is the US dollar, as this is the currency which most affects 
each company’s revenue, costs and financing. The Group’s reporting currency is also US dollar.
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the 
dates of the transactions.
Foreign exchange gains and losses resulting from the settlement of such transactions, and from the translation at 
reporting period end exchange rates of monetary assets and liabilities denominated in foreign currencies, are 
recognised in the income statement. On consolidation, exchange differences arising from the translation of the net 
investment in foreign entities are charged/credited to other comprehensive income and recognised within other 
reserves in equity.
Property, plant and equipment
Upon completion of mine construction, the assets are transferred into property, plant and equipment. Items  
of property, plant and equipment are stated at cost less accumulated depreciation and any accumulated  
impairment losses. 
The initial cost of an asset comprises its purchase price or construction cost, any costs directly attributable to 
bringing the asset into operation, the initial estimate of the rehabilitation obligation, and for qualifying assets, 
borrowing costs. The purchase price or construction cost is the aggregate amount paid and the fair value of any 
other consideration given to acquire the asset. The capitalised value of a finance lease is also included within 
property, plant and equipment.
Notes to the financial statements continued
For the year ended 31 December 2011 Governance Business review Financial statements
37 Archipelago Resources plc   
Annual Report 2011
When a mine moves into the production stage, the capitalisation of certain mine construction costs ceases and 
costs are either regarded as part of the cost of inventory or expensed, except for costs which qualify for 
capitalisation relating to mining asset additions or improvements or mineable reserve development.
Depreciation
The cost of mine plant and equipment is depreciated using the unit-of-production method based on total  
estimated recoverable proven and probable gold reserves. Other property, plant and equipment are depreciated on 
a straight-line basis over their expected economic lives or, where appropriate the estimated life of the mine which  
is currently nine years, whichever is the shorter period. Expected useful life has due regard to both the assets own 
physical limitations and to assessments of economically recoverable resources of the mine property and to possible 
future variations in those assessments.
Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual 
value, which is reviewed at each financial year end, based on prices prevailing at the date of acquisition of each asset 
evenly over its expected useful life as follows:
Land and mine buildings – unit-of-production basis.
Mine plant and equipment – unit-of-production basis.
Office plant and equipment – 3 – 7 years, depending on the nature of the asset.
Motor vehicles – 4 years.
  
The asset’s residual values, useful lives and methods of depreciation are reviewed, and adjusted prospectively if 
appropriate, at each financial year end.
 
Exploration and evaluation
Exploration and evaluation costs (including the acquisition cost of exploration properties) which relate to “an area of 
interest” are carried forward on the balance sheet where the rights to tenure are current and:
 — the area of interest has commercially recoverable reserves; or
 — the exploration and/or evaluation activities of the area of interest have not yet reached a stage that permits a 
reasonable assessment of the existence or otherwise of commercially recoverable reserves.
The Group performs impairment testing when facts and circumstances suggest the carrying amount has been 
impaired. If it is determined that the asset has been impaired it is immediately written off in the income statement.
Once a development decision has been taken, all past and future exploration and evaluation expenditure in respect 
of the area of interest is aggregated with the cost of development.
Any expenditure not meeting the above criteria is charged to the income statement.
Development
Development expenditure incurred by or on behalf of the Group is accumulated separately for each area of interest 
in which economically recoverable reserves have been identified to the satisfaction of the Directors. Such 
expenditure comprises net direct costs and an appropriate portion of related overhead expenditure having a specific 
nexus with the development property.
All development expenditure incurred prior to commencement of commercial levels of production from each 
development property, is carried forward to the extent to which recoupment out of revenue to be derived from the 
sale of production from the relevant development property, or from the sale of that property, is reasonably assured.
Deferred stripping
Stripping costs incurred in the development of a mine before production commences are capitalised as part of the 
cost of constructing the mine and subsequently amortised over the life of the mine on a units-of-production basis.
Stripping costs incurred subsequently during the production phase are deferred. The amount of stripping costs 
deferred is based on the strip ratio obtained by dividing the tonnage of waste mined by the quantity of ore mined. 
Stripping costs incurred in the period are deferred to the extent that the current period ratio exceeds the life of mine 
strip ratio. Such deferred costs are then charged to the profit and loss to the extent that, in subsequent periods, the 
current period ratio falls short of the mine ratio. The life of mine ratio is based on economically recoverable reserves 
of the mine.  38 Archipelago Resources plc   
Annual Report 2011
1. Accounting policies continued
Mine Closure Asset
On recognition of a mine closure provision, an addition is made to property, plant and equipment of the same 
amount; this addition is then charged against profits on a unit-of-production basis over the life of the mine. 
Closure provisions are updated annually for changes in cost estimates as well as for changes to life of mine reserves, 
with the resulting adjustments made to both the provision balance and the net book value of the associated non-
current asset.
Impairment of assets and property, plant and equipment
The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any 
indication exists, the Group estimates the asset’s recoverable amount. The recoverable amount of an asset is the 
higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are 
discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time 
value of money and the risks specific to the asset.
For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the 
cash-generating unit to which the asset belongs, unless the asset’s value in use can be estimated to be close to its 
fair value. 
An impairment exists when the carrying value of an asset or cash-generating units exceeds its estimated recoverable 
amount. Impairments in asset values, if any, are recognised as a loss in the current year’s statement of income.
An impairment loss is reversed if there has been a change in the estimate used to determine the recoverable amount 
of an asset. An impairment loss is only reversed to the extent that the asset’s carrying amount does not exceed the 
carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had 
been recognised.
Investments
Investments include shares and interests in other entities not held for sale, these assets are carried at historical cost 
less any impairment.
Inventories
Inventories comprise consumables, work in progress and finished goods. Consumables are valued at average cost. 
Consumables and finished goods are held at the lower of cost less a provision for obsolescence, and net realisable 
value. Work in progress consists of ore in stockpiles and heap leach pads that are valued at the lower of average 
production cost and net realisable value. Net realisable value is the estimated selling price less any applicable selling 
expenses.
Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and that 
revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is 
recognised:
Sales:
Sales revenue comprises sales to third parties at invoiced amounts and excludes sales tax and discount. Revenue 
from sales of gold and silver is recognised when there has been a passing of the significant risks and rewards of 
ownership, which means the following:
The product is in a form suitable for delivery and no further processing is required by the Group; 
 — the quantity and quality (grade) of the product can be determined with reasonable accuracy; 
 — the product has been delivered to the refinery and is no longer under the physical control of the Group; 
 — the selling price and associated costs in respect of the sale are determinable or can be reasonably estimated.
Interest income
Interest income is recognised on a time proportion basis using the effective interest method.
Notes to the financial statements continued
For the year ended 31 December 2011 Governance Business review Financial statements
39 Archipelago Resources plc   
Annual Report 2011
Deferred taxation
Deferred tax assets and liabilities are recognised for temporary timing differences at the tax rates expected to apply 
when the assets are recovered or liabilities are settled, based on those tax rates which are enacted or substantively 
enacted for each jurisdiction.
The relevant tax rates are applied to the cumulative amounts of deductible and taxable temporary timing differences 
to measure the deferred tax asset or liability. An exception is made for certain temporary timing differences arising 
from the initial recognition of an asset or a liability. No deferred tax asset or liability is recognised in relation to these 
temporary differences if they arose in a transaction, other than a business combination, that at the time of the 
transaction did not affect either accounting profit or taxable profit or loss.
Deferred tax assets are recognised for deductible temporary timing differences and unused tax losses only if it is 
probable that future taxable amounts will be available to utilise those temporary timing differences and losses.
Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax 
bases of investments in controlled entities where the parent entity is able to control the timing of the reversal of the 
temporary timing differences and it is probable that the differences will not reverse in the foreseeable future.
Current and deferred tax attributable to amounts recognised directly in equity are also recognised directly in equity.
Leases
The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement 
at inception date: whether fulfilment of the arrangement is dependent on the use of a specific asset or assets and 
the arrangement conveys a right to use the asset, even if that right is not explicitly specified in an arrangement. 
Finance leases are recognised as those leases that transfer substantially all the risks and rewards of ownership. Assets 
held under finance leases are capitalised and the outstanding future lease obligations are shown in liabilities at the 
fair value of the lease, or if lower at the present value of the lease payments. They are depreciated over the term of 
the lease or their useful economic lives, whichever is the shorter. The interest element (finance charge) of lease 
payments is charged to the income statement on a constant basis over the period of the lease.
All other leases are regarded as operating leases and the payments made under them are charged to the income 
statement in the period on a straight line basis. The Group does not act as a lessor.
Borrowing costs
Borrowing costs that are incurred in respect of the construction of a qualifying asset are capitalised where the 
construction of an asset takes a substantial period of time to be prepared for use. Other borrowing costs are 
expensed in the period in which they are incurred and reported in finance costs.
Provisions
General
Provisions are recognised when the Group has present obligations arising from legal or constructive commitment, 
resulting from past events which will probably lead to an outflow of economic resources from the Group which can 
be estimated reliably. Provisions are measured at the present value of the estimated expenditure required to settle 
the present obligation, based on the most reliable evidence available at the balance sheet date. All provisions are 
reviewed at each balance sheet date and adjusted to reflect the current best estimates.
Mine closure
An obligation to incur restoration, rehabilitation and environmental costs arises when environmental disturbance is 
caused by the development or ongoing production of a mining property. Such costs arising from the 
decommissioning of plant and other site preparation work, discounted to their net present values, are provided for in 
full as soon as the obligation to incur such costs arises and can be quantified. On recognition of a full provision, an 
addition is made to property, plant and equipment of the same amount; this addition is then charged against profits 
on a unit-of-production basis over the life of the mine. Closure provisions are updated annually for changes 
in cost estimates as well as for changes to life of mine reserves, with the resulting adjustments made to both the 
provision balance and the net book value of the associated non-current asset.
The periodic unwinding of the discount is recognised in the profit and loss as a finance cost. Additional disturbances 
or changes in rehabilitation costs will be recognised as additions or charges to the corresponding assets and liability 
when they occur.  40 Archipelago Resources plc   
Annual Report 2011
1. Accounting policies continued
Long-term service benefit
The only employee benefit within the Group relates to Toka Tindung employees. The liability recognised in the 
balance sheet is the present value of the defined project benefit obligation at the balance sheet date adjusted for 
unrecognised actuarial gains or losses and past service costs. The obligation is calculated annually by independent 
actuaries using the projected unit credit method or an accepted equivalent, and independent assumptions. The 
present value of the obligations is determined by discounting the estimated future obligation.
Financial instruments
Financial assets and liabilities are recognised when the Group becomes party to the contracts that give rise to them 
and are classified as loans and borrowings, receivables, payables, financial instruments fair valued through profit and 
loss, or available for sale financial assets as appropriate. The Group determines the classification of its financial 
assets and liabilities at initial recognition and, where allowed and appropriate, re-evaluates this designation at each 
financial year-end. 
All financial assets and liabilities are recognised initially at fair value, plus, in the case of financial assets not at fair 
value through profit or loss and loans and receivables, directly attributable transaction costs. 
The Group’s financial assets include cash and short-term deposits, trade and other receivables, loans and other 
receivables and un-quoted financial instruments. The Group’s financial liabilities include trade and other payables 
and loans and borrowings.
The subsequent measurement of financial assets depends on their classification, as follows:
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in 
an active market, do not qualify as trading assets and have not been designated as either fair value through profit 
and loss or available-for-sale.
Such assets are carried at amortised cost using the effective interest method if the time value of money is significant. 
Gains and losses are recognised in the income statement when the loans and receivables are derecognised or 
impaired, as well as through the amortisation process.
Available-for-sale financial assets
Available-for-sale financial assets are those non-derivative financial assets that are designated as such or are not 
classified as loans and receivables, held-to-maturity investments or financial assets at fair value through profit and 
loss. After initial recognition, available-for-sale financial assets are measured at fair value with unrealised gains or 
losses being recognised as a separate component of equity until the investment is derecognised or until the 
investment is determined to be impaired at which time the cumulative gain or loss previously reported in equity is 
included in the income statement. The options discussed in note 11 are accounted for at cost as they relate to equity 
instruments that do not have a quoted market price and whose fair value cannot be reliably measured.
Interest–bearing loans and borrowings
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using 
the effective interest rate method. Gains and losses are recognised in income statement when the liabilities are 
derecognised, as well as through the amortisation process. 
Fair values
The fair value of quoted investments is determined by reference to quoted market prices without any deduction for 
transaction costs. Where there is no active market, fair value is determined using valuation techniques. These 
include using recent arm’s-length market transactions; reference to the current market value of another instrument 
which is substantially the same.
Impairment of financial assets
The Group assesses at each reporting date whether there is objective evidence that a financial asset is impaired. A 
financial asset is deemed to be impaired if there is objective evidence of impairment as a result of one or more 
events that has occurred after the initial recognition of the asset and that loss event has an impact on the estimated 
future cash flows of the financial asset that can be reliably measured. 
Notes to the financial statements continued
For the year ended 31 December 2011 Governance Business review Financial statements
41 Archipelago Resources plc   
Annual Report 2011
Financial assets carried at amortised cost
If there is objective evidence that an impairment loss on an unquoted equity instrument that is not carried at fair 
value because its fair value cannot be reliably measured, or on a derivative asset that is linked to and must be settled 
by delivery of such an unquoted equity instrument, has been incurred, the amount of the loss is measured as the 
difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at 
the current market rate of return for a similar financial asset.
Cash and cash equivalents
Cash and cash equivalents are defined as cash on hand, demand deposits and short-term highly liquid investments 
and are measured at cost, which is deemed to be fair value as they have short-term maturities.
Finance income and costs
Finance income and costs comprise interest expense on borrowings, the accumulation of interest on provisions, 
interest income on funds invested and gains and losses on the disposal of available-for-sale investments.
Interest income is recognised as it accrues, taking into account the effective yield on the asset.
Share-based payments
In prior years services were provided to the Group in exchange for share options. In addition certain employees of 
the Group receive remuneration in the form of share-based payments, whereby employees render services as 
consideration for equity instruments of the Company, the Group’s ultimate parent company. Shares granted are 
measured by reference to the fair value of the shares at the date at which they are granted. 
The fair value is determined by using the Black-Scholes simulation methodology. The fair value of the shares granted 
is recognised as an employee benefits expense, the cost of which during the development of the Group’s plant 
facilities, is recorded as a component of deferred mine exploration and development cost and subsequently as 
employee compensation expense. 
The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date reflects 
the extent to which the vesting period has expired and the Group’s best estimate of the number of equity 
instruments that will ultimately vest. No adjustment is made for the likelihood of market performance conditions 
being met as the effect of these conditions is included in the determination of fair value at grant date. 
Non-market vesting conditions are included in assumptions about the number of options that are expected to 
become exercisable and the number of shares that the employee will ultimately receive. Proceeds received on 
exercise of options, net of any directly attributable transaction costs, are credited to equity.
Standards issued but not yet effective
Standards issued but not yet effective up to the date of issuance of the Group’s financial statements are listed below. 
This listing of standards and interpretations are those that the Group reasonably expects to have an impact on 
disclosures, financial position or performance when applied at a future date. The Group intends to adopt these 
standards when they become effective. 
 — IAS 1 Financial Statement Presentation – Presentation of Items of Other Comprehensive Income – effective for 
annual periods beginning on or after 1 July 2012
 — IAS 19 Employee Benefits (Amendment) – effective for annual periods beginning on or after 1 January 2013
 — IAS 27 Separate Financial Statements (as revised in 2011) – effective for annual periods beginning on or after  
1 January 2013
 — IFRS 9 Financial Instruments: Classification and Measurement – effective for annual periods beginning on or after 
1 January 2013
 — IFRS 10 Consolidated Financial Statements – effective for annual periods beginning on or after 1 January 2013
 — IFRS 11 Joint Arrangements – effective for annual periods beginning on or after 1 January 2013
 — IFRS 12 Disclosure of Involvement with Other Entities – effective for annual periods beginning on or after 1 
January 2013
 — IFRS 13 Fair Value Measurement – effective for annual periods beginning on or after 1 January 2013.  42 Archipelago Resources plc   
Annual Report 2011
2. Segment information 
The Group operates in one principal area of activity, that of exploration, development and mining of gold 
tenements. It also operates within five geographical markets: United Kingdom, Australia, Indonesia, Singapore and 
South East Asia. The segmental analysis of where these revenue and costs were incurred is consistent with the 
Group’s internal reporting for performance measurement and resources allocation at Board level.
Group profit/(loss) before income tax and net assets are all within one activity, that of exploration, development and 
mining of precious and non-precious metals.
Segment information on a geographical basis is set out below. 
 
31 December 2011
UK
US$000
Australia
US$000
Indonesia
US$000
Singapore
US$000
South East
Asia
US$000
Total*
US$000
Revenue – Sale of Goods – – 87,681 – – 93,259
Cost of sales
Cash production costs
 – Mining – – (16,206) – – (16,206)
 – Processing – – (16,149) – – (16,149)
 – Selling – – (1,710) – – (1,710)
 – Overheads – – (7,552) – – (7,552)
– – (41,617) – – (41,617)
Changes in inventory – – 11,562 – – 8,919
Depreciation and amortisation – – (14,068) – – (14,068)
Administration and other costs (3,092) (629) (5,101) (5,176) (1,650) (15,648)
Interest income 93 5 56 – – 154
Profit/(Loss) from operations 2,999 (624) 38,513 (5,176) (1,650) 30,989
Finance expense – – (4,153) (891) – (5,045)
Profit/(Loss) before tax (2,999) (624) 34,360 (6,067) (1,650) 25,944
Tax expense – – (12,238) – – (13,246)
Net Profit/(Loss) after tax (2,999) (624) 22,122 (6,067) (1,650) 12,698
Attributable to:
Equity shareholders of parent company (2,999) (624) 22,116 (6,067) (1,650) 12,692
Non controlling interest – – 6 – – 6
Profit/(Loss) for year (2,999) (624) 22,122 (6,067) (1,650) 12,698
* Includes an adjustment arising as a result of a difference in accounting policy between jurisdictions, resulting in higher revenue of $5.6 million, lower 
inventory adjustment of $2.7 million and related tax expense of $1 million.
Sales revenue of goods are made to a single customer under a sales agreement at an agreed market price.
Notes to the financial statements continued
For the year ended 31 December 2011 Governance Business review Financial statements
43 Archipelago Resources plc   
Annual Report 2011
31 December 2011
UK
US$000
Australia
US$000
Indonesia
US$000
Singapore
US$000
South East
Asia
US$000
Total*
US$000
Inventories – – 21,279 – – 23,979
Trade and other receivables 6 20 4,039 312 – 3,777
Cash and cash equivalents 3,131 67 14,378 4,773 2 22,351
Non current assets 952 389 268,299 190 – 269,830
Total assets 4,089 476 307,995 5,275 2 319,937
Current liabilities 602 105 27,134 790 – 33,631
Non current liabilities – – 75,042 15,000 – 89,042
Total liabilities 602 105 102,176 15,790 – 122,673
Net assets 3,487 371 205,819 (10,515) 2 197,264
Capital expenditure – 2 50,258 266 – 50,525
* Includes an adjustment arising as a result of a difference in accounting policy between jurisdictions, resulting in lower inventory of $2.7 million, higher 
debtors of $0.6 and deferred tax of $1 million and reduced current liabilities $5 million.
31 December 2010
UK
US$000
Australia
US$000
Indonesia
US$000
Singapore
US$000
South East
Asia
US$000
Total
US$000
Revenue – – – – – –
Administration and other costs (8,517) (1,637) (966) (591) (1,028) (12,739)
(Loss) from operations (8,517) (1,637) (966) (591) (1,028) (12,739)
Other income 273 – 7 – – 280
Finance expense (5) – – – – (5)
(Loss) before tax (8,249) (1,637) (959) (591) (1,028) (12,464)
Tax expense – – 847 – – 847
Net (Loss) after tax (8,249) (1,637) (112) (591) (1,028) (11,617)
Attributable to:
Equity shareholders of parent company (8,249) (1,637) (95) (591) (1,028) (11,600)
Non controlling interest – – (17) – – (17)
(Loss) for year (8,249) (1,637) (112) (591) (1,028) (11,617)
Inventories – – 4,253 – – 4,253
Trade and other receivables 1,621 1,618 4,104 59 – 7,403
Cash and cash equivalents 17,016 309 5,703 1,131 25 24,184
Non current assets 939 412 172,157 5 – 173,513
Total assets 19,576 2,339 186,217 1,195 25 209,353
Current liabilities (328) (221) (12,467) (184) – (13,200)
Non current liabilities – – (8,153) – – (8,153)
Total liabilities (328) (221) (20,620) (184) – (21,353)
Net assets 19,248 2,118 165,597 1,011 25 188,000
Capital expenditure – 30 62,909 – – 62,939 44 Archipelago Resources plc   
Annual Report 2011
3. Operating profit/(loss)
 
Year ended
31 December
2011
US$000
Year ended
31 December
2010
US$000
Operating Profit/(Loss) has been arrived at after charging/(crediting):
Inventory adjustments to cost of sales (included in work in progress) (8,910) –
Depreciation of property, plant and equipment 9,090 6
Amortisation of pre-operating expenses and mine development 3,791 –
Bank interest 3,001 5
Finance lease expense 2,044 –
Audit services:
–  Fees payable to the parent company’s auditor for the audit of the Company  
and Group accounts 66 66
– Fees payable to auditors for the audit of subsidiary accounts 91 94
Exploration and evaluation costs written off 1,650 2,149
Borrowing costs written off 539 702
Net foreign Exchange (gains)/losses (72) 836
Gain on available for sale asset – (51)
4. Remuneration of key management personnel
Year ended
31 December
2011
US$000
Year ended
31 December
2010
US$000
Wages and salaries 3,726 900
Share-Based Payments 605 334
Other employee costs 179 75
Total remuneration 4,510 1,309
Highest paid Director 1,261 404
The share-based payments are in relation to share options issued to directors and key management personnel. The 
Share-based payments reflect the fair value of the share options granted under the ‘Stock Appreciation Rights Plan’ 
taking into account the terms and conditions upon which the options were granted.
5. Total employee remuneration (including key management personnel)
 
Year ended
31 December
2011
US$000
Year ended
31 December
2010
US$000
Wages and salaries (includes executive directors) 9,467 1,273
Share-Based Payments 708 216
Other employee costs 2,313 48
Total remuneration 12,488 1,537
The share-based payments are in relation to share options issued to all employees including key management 
personnel. The share-based payments reflect the fair value of the share options granted under the ‘Stock 
Appreciation Rights Plan’ taking into account the terms and conditions upon which the options were granted. 
In the year ended 31 December 2010 all remuneration costs relating to employees on the Toka Tindung project 
were capitalised as construction costs.
The Group capitalised the following staff expenses. These are not included in the figures above:
Notes to the financial statements continued
For the year ended 31 December 2011 Governance Business review Financial statements
45 Archipelago Resources plc   
Annual Report 2011
Year ended
31 December
2011
US$000
Year ended
31 December
2010
US$000
Wages and salaries relating to exploration and development 1,602 12,296
The Group had the following employees:
2011
Average No.
2010
Average No.
Directors 2 2
Management and administration 64 22
Development, mining, processing and exploration staff 469 331
Total employees 535 355
6. Taxation
 
Year ended
31 December
2011
US$000
Year ended
31 December
2010
US$000
Current tax charge
Current tax 5,757 –
Deferred tax 7,489 (849)
13,246 (849)
Reconciliation of current tax charge
Profit/(Loss) on ordinary activities 25,944 (12,416)
Tax calculated at a rate of 17% (2010: 25%) 4,411 (3,104)
Effects of:
– Different tax rates in other countries 6,202 (315)
– Expenses not deductible for tax purposes 1,676 1,843
– Income not assessable for tax purposes (6) (2)
– Prior year losses recognised – (1,092)
– Deferred tax asset not recognised 963 1,821
Tax expense recognised in accounts 13,246 (849)
The tax rate for 2011 has been changed 17% to reflect the current corporate tax rate of Singapore, the Company’s 
principal place of business.
The detailed calculation of the deferred tax asset (liability) as of December 31, 2011 and 2010 are as follows:
Year ended 31 December 2011
Beginning
Balance
US$000
Deferred 
Income 
Tax Benefit 
US$000
Ending 
Balance
US$000
Utilised tax loss 849 (499) 350
Provisions – 474 474
Depreciation and amortisation – (4,344) (4,344)
Stripping costs – (1,706) (1,706)
Leasing costs – (408) (408)
Revenue not assessable – (1,006) (1,006)
849 (7,489) (6,640) 46 Archipelago Resources plc   
Annual Report 2011
6. Taxation continued
Year ended 31 December 2010
Beginning
Balance
US$000
Deferred 
Income 
Tax Benefit 
US$000
Ending 
Balance
US$000
Utilised tax loss – 849 849
– 849 849
Factors affecting future tax charge and deferred taxation 
The Group has taxable losses to carry forward and offset against future profits of approximately US$6.8 million 
(2010: US$11.4 million). Of the deferred tax asset of US$1.3 million (2010: US$35.8 million) relating to those losses, 
only US$0.3 million has been recognised. Recovery of the remaining amount cannot be reasonably foreseen based 
on the Group’s current activities.
7. Earnings/(loss) per share
 
Year ended
31 December
2011
Shares
Year ended
31 December
2010
Shares
Weighted average number of shares in issue for the year
– Number of shares with voting rights 569,249,238 484,191,183
– Effect of share options in issue 11,448,301 7,178,301
Total used in calculation of diluted earnings per share 580,697,539 491,369,484
US$000 US$000
Earnings per share
Net profit/(loss) attributable to equity shareholders of the parent 12,692 (11,600)
Earnings/(Loss) per share (cents per share)
– basic 0.022 (0.024)
– diluted 0.022 (0.023)
The calculation of basic earnings per share is calculated by dividing profit/(loss) for the year attributable to equity 
shareholders of the Company by the weighted average number of ordinary shares on issue during the year by 
ordinary shares.
The Company has a total of 11,448,301 options on issue which could potentially dilute ordinary shares. The dilutive 
earnings associated with these options would result is a profit/(loss) of US$13 (2010: US$12) for the year attributable 
to equity shareholders of the Company.
Notes to the financial statements continued
For the year ended 31 December 2011 Governance Business review Financial statements
47 Archipelago Resources plc   
Annual Report 2011
8. Property, plant and equipment
Year ended 31 December 2011
Land and 
mine 
buildings 
US$000
Mine 
plant and 
equipment 
US$000
Motor 
vehicles 
US$000
Construction 
in progress 
US$000
Mine  
Closure  
Asset 
US$000
Office 
plant and 
equipment 
US$000
Total  
US$000
Cost
At 1 January 2011 4,865 1,367 373 105,268 7,712 350 119,935
Additions 3,681 18,414 3,992 24,237 3,204 202 53,730
Disposals – – – – – (78) (78)
Reclassification 2,485 106,723 (1,795) (107,708) – 295 –
Transfer to mine development (note 9) – – – (21,434) – – (21,434)
Transfer from (to) restoration asset 179 – – – – – 179
At 31 December 2011 11,210 126,504 2,570 363 10,916 769 152,332
Depreciation
At 1 January 2011 (995) (394) (373) – – (296) (2,058)
Charge for the year:
Capitalised depreciation – (384) (62) – – (24) (470)
Depreciation (441) (7,081) (934) – (505) (129) (9,090)
Disposals – – – – – 58 58
Reclassification – (932) 851 – – 81 –
At 31 December 2011 (1,436) (8,791) (518) – (505) (310) (11,560)
Net book value 
At 31 December 2011 9,774 117,713 2,052 363 10,411 459 140,772
at 1 January 2011 3,870 973 – 105,268 7,712 54 117,877
Year ended 31 December 2010
Land and 
mine 
buildings 
US$000
Mine 
plant and 
equipment 
US$000
Motor 
vehicles 
US$000
Construction 
in progress 
US$000
Mine  
Closure  
Asset 
US$000
Office 
plant and 
equipment 
US$000 Total US$000
Cost
At 1 January 2010 4,040 860 373 51,428 – 290 56,991
Additions 825 507 – 53,840 – 60 55,232
Closure Provisions – – – – 7,712 – 7,712
At 31 December 2010 4,865 1,367 373 105,268 7,712 350 119,935
Depreciation
At 1 January 2010 (784) (311) (360) – – (266) (1,721)
Charge for the year:
Capitalised depreciation (211) (83) (13) – – (24) (331)
Depreciation – – – – – (6) (6)
At 31 December 2010 (995) (394) (373) – – (296) (2,058)
Net book value
at 31 December 2010 3,870 973 – 105,268 7,712 54 117,877
At 1 January 2010 3,256 549 13 51,428 – 24 55,270
The carrying value of plant and equipment held under finance leases at 31 December 2011 was US$6,470,224 (2010: 
nil). Depreciation expense on the lease plant and equipment was $1,231 in 2011 (2010:Nil). 48 Archipelago Resources plc   
Annual Report 2011
8. Property, plant and equipment continued
The additions for the mine closure asset reflect the increase during the year of the anticipated closure liabilities of 
the Toka Tindung Project. On recognition of a closure provision (see note 21) an addition is made to the restoration 
asset of the same amount. The cost of this asset is changed to the income statement on a units of production basis 
of the life of mine. The total charge for the year was US$505 (2010: Nil)
9. Development, exploration and evaluation 
Development
US$000
Exploration 
and
evaluation
US$000
Total
US$000
Year ended 31 December 2011
Net book value
At 1 January 2011 53,847 – 53,847
Expenditure during the year 12,890 23,936 36,826
Write off – (1,650) (1,650)
Transferred 11,865 (11,865) –
Reclassification from PPE 21,434 – 21,434
Amortisation (3,791) – (3,791)
At 31 December 2011 96,245 10,421 106,666
Year ended 31 December 2010
Net book value
At 1 January 2010 33,356 – 33,356
Expenditure during the year 20,491 3,270 23,761
Disposal to Archipelago Metals Ltd – (1,121) (1,121)
Write off – (2,149) (2,149)
At 31 December 2010 53,847 – 53,847
All costs and revenues at Toka Tindung between 1 January and 30 June 2011 related to the testing and development 
phase, prior to the commencement of commercial operations were capitalised as part of development expenditure. 
From 1 July 2011 all revenues and operating expenses in respect of mining operations at Toka Tindung have been 
recognised in the income statement.
Included in mine development costs capitalised during the year are all borrowing costs in relation to qualifying 
assets totalling $2,044, prior commencement of the commercial production.
10. Deferred stripping costs 
31 December
2011
US$000
31 December
2010
US$000
Balance of costs at beginning of period – –
Additions 5,269 –
Redemptions (157) –
5,112 –
Costs associated with stripping activities have been capitalised during the year as a result of the stripping ratio 
exceeding the expected average stripping ratio over the life of a mine. These amounts are expected to be redeemed 
over the life of mine. 
Notes to the financial statements continued
For the year ended 31 December 2011 Governance Business review Financial statements
49 Archipelago Resources plc   
Annual Report 2011
11. Investments
Group
Other fixed 
asset 
investments
US$000
Total
 
US$000
At 1 January 2011 939 939
Additions 13 13
At 31 December 2011 952 952
At 1 January 2010 364 364
Additions 575 575
At 31 December 2010 939 939
Company
Shares in 
subsidiary 
undertakings
US$000
Other fixed 
asset 
investments
US$000
Total
 
US$000
At 1 January 2011 250 939 1,189
Additions – 13 13
At 31 December 2011 250 952 1,202
At 1 January 2010 262 364 626
Additions – 575 575
Fair value adjustment (12) – (12)
At 31 December 2010 250 939 1,189
Other financial asset represents investments in Archipelago Metals Ltd US$651 (2010: US$638) and Corplex US$302 
(2010: US$302).
Pursuant to an option agreement dated 22 June 2002, Lando Pty Ltd, a company controlled by J C Loosemore, 
granted the Company the option to acquire all of its interest in Corplex. The option can be exercised at any time 
prior to 31 December 2012. Upon exercise of the option the Company must pay US$10 to Lando Pty Ltd. This option 
had not been exercised as at 31 December 2011.
 
On 26 August 2002, the Company entered into option agreements with a number of third parties which provided 
the Company with the option to acquire all of the third parties’ interests in Corplex. These options can be exercised 
at any time prior to 31 December 2012. Upon exercise of each option the Company must pay US$10. These options 
had not been exercised as at 31 December 2011.
 
Fair value information has not been disclosed for these investments as fair value cannot be measured reliably. 50 Archipelago Resources plc   
Annual Report 2011
11. Investments continued
Subsidiary undertakings
Archipelago Resources Plc owns 100% of the voting rights in the following subsidiary undertakings as at  
31 December 2011:
Name of Subsidiary
Country of
Incorporation
Nature of
Holding Business
Archipelago Resources Pty Limited Australia Ordinary shares
Gold exploration  
& development
Archipelago Resources Vietnam Pty Limited Australia Ordinary shares Dormant
Archipelago Resources Pte Ltd Singapore Ordinary shares
Gold exploration  
& development
Archipelago Resources Holdings Pte Ltd Singapore Ordinary shares Dormant
Archipelago Resources Vietnam Pte Ltd Singapore Ordinary shares Dormant
Archipelago Resources Pty Limited owns 100% of the voting rights in the following subsidiary undertakings as at  
31 December 2011:
Name of Subsidiary
Country of
Incorporation
Nature of
Holding Business
Meares Soputan Offshore Pty Ltd Australia Ordinary shares Dormant
Tondano Offshore Pty Ltd Australia Ordinary shares Dormant
    
Archipelago Resources Pte Limited owned 95% of the voting rights in the following subsidiary undertakings as at  
31 December 2011:
Name of Subsidiary
Country of
Incorporation
Nature of
Holding Business
PT Meares Soputan Mining Indonesia Ordinary shares
Gold exploration  
& development
PT Tambang Tondano Nusajaya Indonesia Ordinary shares
Gold exploration  
& development
    
During the year the Group acquired an additional 10% interest in the subsidiaries for $4,533.
As a condition of a finance facility there is a restriction over the transfer of the interests in the above Indonesian 
companies.
12. Other non-current receivables
Group Company
31 December
2011
US$000
31 December
2010
US$000
31 December
2011
US$000
31 December
2010
US$000
Amounts receivable from subsidiaries – – 190,372 179,746
Tax recoverable 16,328
16,328 – 190,372 179,746
The receivables from subsidiaries are unsecured, subject to interest at LIBOR plus 3% per annum from the draw 
down date(s) and repayable on demand following the commencement of gold production and subject to the 
subsidiaries generating sufficient cash to fund the payment of interest after repayment of all bank debt, creation of 
prudent and reasonable reserves and provisions and making provisions for payment of the subsidiaries operating, 
exploration and capital expenditure.
Tax recoverable consist primarily of VAT recoverable from operations at Toka Tindung that can be recovered in 
future years.
Notes to the financial statements continued
For the year ended 31 December 2011 Governance Business review Financial statements
51 Archipelago Resources plc   
Annual Report 2011
13. Inventories
Group
 
31 December
2011
US$000
31 December
2010
US$000
Consumables 15,069 4,253
Work in progress 8,910 –
23,979 4,253
Consumables includes stocks of mining supplies, reagents, lubricants and spare parts held on site.
Work in progress reflects the cost of gold contained in stockpiles and in circuit.
14. Trade and other receivables
Group Company
 
31 December
2011
US$000
31 December
2010
US$000
31 December
2011
US$000
31 December
2010
US$000
Trade receivables 600 – – –
Prepaid expenses 1,247 – – –
Other receivables 1,930 7,403 591 1,621
3,777 7,403 591 1,621
Trade receivables are non-interest bearing.
The amounts presented in the financial statements are net of allowances for doubtful receivables, estimated by the 
Group’s management based on prior experience and their assessment of the current economic environment. The 
Directors consider that the carrying amount of trade and other receivables approximates to their fair value.
15. Cash and cash equivalents
Group Company
 
31 December
2011
US$000
31 December
2010
US$000
31 December
2011
US$000
31 December
2010
US$000
Cash at bank and in hand 19,992 24,184 3,133 17,041
Deposits at call (restricted cash) 2,359 – – –
22,351 24,184 3,133 17,041
The credit risk on liquid funds is limited because the counterparties are banks with high credit ratings assigned by 
international credit-rating agencies.
Restricted cash includes funds on deposit in a separate bank account as a condition of the finance facility. 52 Archipelago Resources plc   
Annual Report 2011
16. Share capital
2011
Shares
2010
Shares
2011
US$
2010
US$
Authorised
Ordinary shares of 1 pence each 700,000,000 570,019,334 10,819 10,331
Allotted, called up and fully paid
Opening balance 569,197,635 391,019,334 9,373 6,577
Issued during the year 2,700,000 178,178,301 43 2,796
Closing balance 571,897,635 569,197,635 9,416 9,373
1) On 29 September 2011, 800,000 and 115,000 ordinary shares were issued at an exercise price under the employee share option plan at 6 cents (3.90 
pence) and 44 cents (27 pence) per share respectively to raise US$63,850 (GBP 39,150).
2) On 21 December 2011, 1,685,000 ordinary shares were issued at an exercise price under the employee share option plan at 6 cents (3.90 pence) per share 
to raise US$101,569 (GBP 65,715).
3) On 29 December 2011, 100,000 ordinary shares were issued at an exercise price under the employee share option plan at 6 cents (3.90 pence) per share 
to raise US$6,028 (GBP 3,900).
The related premium on these options issued has been included in the share premium reserve.
17. Other reserves
Group 
Option 
reserve
US$000
Foreign 
exchange
US$000
Total
US$000
At 1 January 2011 8,896 1,149 10,045
Movement in the year (4,578) – (4,578)
At 31 December 2011 4,318 1,149 5,467 
At 1 January 2010 2,676 1,149 3,825
Movement in the year 6,220 – 6,220
At 31 December 2010 8,896 1,149 10,045
   
Company 
Option 
reserve
US$000
Foreign 
exchange
US$000
Total
US$000
At 1 January 2011 8,354 1,676 10,030
Movement in the year (5,014) – (5,014)
At 31 December 2011 3,340 1,676 5,016
At 1 January 2010 2,353 1,676 4,029
Movement in the year 6,001 – 6,001
At 31 December 2010 8,354 1,676 10,030
The options reserve arose as a result of the cost associated with options issued to directors and employees in prior 
years which will be reversed as and when these options are exercised or lapse.
Foreign exchange reserves arose as a result of a change in functional currency in a prior year.
Notes to the financial statements continued
For the year ended 31 December 2011 Governance Business review Financial statements
53 Archipelago Resources plc   
Annual Report 2011
18. Share options
Details of the number of share options and the weighted average exercise price (WAEP) outstanding during the year 
are as follows:
2011 2010
Number
Shares
WAEP
US$
Number 
Shares
WAEP
US$
Outstanding at the beginning of the year 14,458,301 0.23 19,300,000 0.23
Granted – – 15,016,602 0.27
Exercised (2,700,000) 0.08 (6,178,301) 0.19
Lapsed (310,000) 0.56 (13,680,000) 0.37
Outstanding at the year end 11,448,301 0.27 14,458,301 0.23
Exercisable at the year end 11,448,301 0.27 7,178,301 0.18
The fair value of the share options granted under the “Stock Appreciation Rights Plan” is estimated as at the date of 
grant using the Black-Scholes Model taking into account the terms and conditions upon which the options were 
granted. 
The options outstanding at year end have an average remaining term of approximately 10 months.
The following table lists the inputs to the models used for the options granted:
Option
Expiry 
Date 
Dividend 
yield 
(%)
Expected 
volatility 
(%)
Risk-free
interest 
rate 
(%)
Expected 
life of 
options
 (years)
Option
exercise 
price 
(£)
Weighted 
average 
share price at
measurement 
date
(£)
Model  
Used 
31–Aug–12 0.00 60.00 0.01 1.84 0.125 0.407 Black-Scholes
31–Dec–12 0.00 60.00 6.34 5.07 0.211  0.215 Black-Scholes
31 Dec–12 0.00 60.00 2.34 3.91 0.039  0.035 Black-Scholes
31–Dec–13 0.00 60.00 0.01 3.22 0.385 0.370 Black-Scholes
31–Dec–13 0.00 60.00 2.34 4.91 0.039  0.035 Black-Scholes
The effects of early exercise have not been incorporated into the calculations. The expected volatility was 
determined using an industry average for small capitalisation mining companies.
19. Trade and other payables
Group Company
 
31 December
2011
US$000
31 December
2010
US$000
31 December
2011
US$000
31 December
2010
US$000
Non-current liabilities
Others payable – – – 1,387
– – – 1,387
Current liabilities
Trade payables and accruals 15,997 4,346 193 286
Other payables 1,244 8,854 409 42
17,241 13,200 602 328
Trade payables and accruals principally comprise amounts outstanding for trade purchases and ongoing costs. The 
average credit period taken for trade payables is 42 days (2010: 22 days).
The Directors consider that the carrying amount of trade and other payables approximates to their fair value. 54 Archipelago Resources plc   
Annual Report 2011
20. Other financial liabilities
Group Company
 
31 December
2011
US$000
31 December
2010
US$000
31 December
2011
US$000
31 December
2010
US$000
Non-current liabilities
Bank loans 64,500 – – –
Finance lease 5,673 – – –
70,173 – – –
Current liabilities
Bank loans 9,567 – – –
Finance lease 1,473 – – –
11,040 – – –
The bank loans are secured by:
 — share pledges restricting sale or transfer of the interests in the Indonesian companies; and
 — assignment of inter company receivables due from the Indonesian companies, respectively.
21. Provisions
Group Company
 
31 December
2011
US$000
31 December
2010
US$000
31 December
2011
US$000
31 December
2010
US$000
Non-current liabilities – –
Employee benefit 759 440 – –
Mine closure 11,470 7,712 – –
12,229 8,152 – –
Employee 
Benefits
US$000
Mine 
Closure
US$000
Total
US$000
At 1 January 2011 400 7,712 8,112
Expense 364 3,229 3,593
Benefits paid (5) – (5)
Unwind of discount – 529 529
At 31 December 2011 759 11,470 12,229
Employee Benefits
The provision for employee benefits includes provisions for Indonesian employee termination benefits.
The provisions for employee termination benefits recognised as at 31 December 2011 are based on actuarial 
valuation reports dated 2 February 2012, of PT Towers Watson Purbajaga, an independent actuary. The calculation 
of employee service entitlements is based on the following assumptions:
Discount rate 7.5 % 
Salary increase 8.0 % per annum 
Normal retirement age 55 years 
Mortality Table Mortalita Indonesia (TMI ’99) 
Notes to the financial statements continued
For the year ended 31 December 2011 Governance Business review Financial statements
55 Archipelago Resources plc   
Annual Report 2011
The provision for employee service entitlements as of 31 December 2011 is as follows:     
US$000
Projected benefit obligation 1,741
Unfunded obligation 1,741
Unrecognised actuarial (loss) (982)
759
The components of the employee service entitlements expense are as follows:
31 December 
2011
US$000
31 December 
2010
US$000
Service cost 282 80
Interest cost 50 24
Other cost 32 –
364 104
Mine closure
The provision for mine closure is an estimate of the present value of the aggregate obligations in relation to 
remediation. To calculate the fair value of these obligations an estimated discount rate of 7.5% on the basis of 
long-term government bonds and discounted the current best estimate projected cash flows relating to the  
closure of the mine which is forecast to occur in 2019.
22. Notes to the statements of cash flows
(a)  Reconciliation of operating loss to net cash outflow from operating activities
Group Company
2011
US$000
2010
US$000
2011
US$000
2010
US$000
Operating profit/(loss) before tax 30,989 (12,464) (3,761) 86,463
Non-cash items:
Depreciation 13,386 6 – –
Exploration and evaluation expenditure written off 1,650 1,028 – 1,028
Foreign exchange (gain)/loss – 976 – 773
Share-based payments 1,074 6,055 365 6,001
Provision for diminution of loans – – – (96,176)
Provision for employee entitlements 363 40 – –
Provision for rehabilitation 3,758 – – –
Gain on sale of investment – (51) – (51)
Gain on sale of asset (16) – – –
Borrowing costs – 510 – 510
Stripping costs (5,112) – – –
Management Fees – – – (424)
Changes in net assets and liabilities:
Change in trade and other receivables (11,455) (2,242) 1,040 (642)
Change in prepayments (1,248) (15) – (4)
Change in Inventory (19,726) – – –
Change in trade and other payables 5,287 443 274 145
Corporate taxes paid (407) – – –
Increase in provisions (45) (97) – –
Net cash outflow from operating activities 18,498 (5,811) (2,082) (2,377) 56 Archipelago Resources plc   
Annual Report 2011
22. Notes to the statements of cash flows continued
(b)  Analysis of net funds
 
31 December
2010
US$
Cash  
flows
US$
Exchange
differences
US$
Other
non-cash 
movements
US$
31 December
2011
US$
Cash 24,184 (1,904) 71 – 22,351
23. Contingent liabilties 
The Group is defending several claims that are considered to be matters in the ‘normal course of business’, none  
of which are considered of material significance to the Company and its project. The Company is disclaiming any 
liability and is defending the claims. Whilst it is possible, but not probable, that these actions will succeed, it is not 
practicable to estimate the potential effect of the claims and accordingly no provision for any liability has been 
recognised in these financial statements.
24. Commitments
At 31 December 2011 the Group had capital commitments of US$1.75 million in respect of capital and operational 
expenditure in the normal course of business (2010: US$22.1 million) relating to the construction of a gold mining 
plant at the Toka Tindung site.
25. Financial instruments 
The Group’s financial instruments, other than derivatives, comprise trade creditors, cash and loans. 
 
Interest rate risk profile of financial assets and liabilities
Cash balances attract a floating rate of interest. The Group’s term deposits are placed with maturity dates set to 
match the Groups cash flow requirements and the interest rate is fixed with the bank on rollover of the deposits.  
The Group’s investment in Corplex through the options to acquire Corplex as set out in note 9 is interest free. The 
option is sterling denominated and expires on 31 December 2012. The Group’s liquidity, interest rate and foreign 
exchange risks are managed centrally following guidelines laid down by the Board. All non-routine transactions 
require Board approval.
The Group’s objective is to maintain a balance between continuity of funding and flexibility through the use of 
borrowings with a range of maturities.
Liquidity risk
The Group’s policy has been to finance its operations and expansions through the issue of equity share capital and 
debt finance secured on the Group’s mineral properties. The Group did not have any overdraft facilities during the year.
Currency risk
The Group has operations in Australia and Indonesia and South East Asia and any gains and losses from these 
currency differences are taken to the income statement. 
Fair values of financial assets and liabilities
The Directors have performed a review of the financial assets and liabilities as at 31 December 2011 and have 
concluded that the fair value of those assets and liabilities is not materially different from book value.
Notes to the financial statements continued
For the year ended 31 December 2011 Governance Business review Financial statements
57 Archipelago Resources plc   
Annual Report 2011
26. Related party transactions
In addition to the related party information disclosed elsewhere in the financial statements, the following significant 
transactions and balances between related parties took place at terms agreed between the parties concerned:
(a) Transactions with related parties:
2011
US$000
2010
US$000
Transfer of property, plant & equipment:
PT Tambang Tondano Nusajaya to PT Meares Soputan Mining 21,728  – 
Purchases of spare parts and consumable goods:
PT Tambang Tondano Nusajaya to PT Meares Soputan Mining 2,310 –
Management fee:
Archipelago Resources Plc to Archipelago Resources Pte Ltd 888 –
Archipelago Resources Plc to Archipelago Metals Ltd 92 79
Archipelago Resources Pty Ltd to Archipelago Resources Pte Ltd 537 –
Archipelago Resources Pte Ltd to PT Meares Soputan Mining 1,971 –
Archipelago Resources Pte Ltd to PT Tambang Tondano Nusajaya 1,157 –
Subtotal 4,645 79
Rental of building:
PT Rajawali Adiwisma, an affiliate 42 – 
Operating consumables expenses charged by:
PT Meares Soputan Mining to PT Tambang Tondano Nusajaya 1,011 –
PT Meares Soputan Mining to Archipelago Resources Pte Ltd 106 –
PT Tambang Tondano Nusajaya to PT Meares Soputan Mining 615 –
PT Tambang Tondano Nusajaya to Archipelago Resources Pte Ltd 31 –
PT Rajawali Corpora to PT Meares Soputan Mining 38 –
Subtotal 1,801  – 
Gold sales:
PT Rajawali Corpora 253 –
Employees 32 –
Subtotal 285 –
Joint processing services between:
PT Tambang Tondano Nusajaya & PT Meares Soputan Mining 4,445 –
Recruitment fees paid to PT Rajawali Corpora by Archipelago Resources Pte Ltd 243 –
Gold sales were made for commemorative “first pour” gold bars to employees & Directors of the Group.
  58 Archipelago Resources plc   
Annual Report 2011
26. Related party transactions continued
(b) Due from related parties
2011
US$000
2010
US$000
Archipelago Resources Pte Ltd 189,558 179,746
Archipelago Resources Pty Ltd 814 –
Archipelago Metals Ltd 520 1,330
Total 190,892 181,076
(c) Due to related parties
2011 2010
Archipelago Resources Pty Ltd – 1,387
Total – 1,387
Majority Controlling Shareholder
PT Rajawali is the controlling shareholder of the Group, holding 52.2% of issued shares.
Group undertakings
As at 31 December 2011, there was a loan agreement between the Company and Archipelago Resources Pte Ltd  
to provide funding for development to the Toka Tindung project in Indonesia. The loan is interest free and as at  
31 December 2011 the balance of the loan was US$189.6 million (2010:US$179.7 million).
In turn, Archipelago Resources Pte Ltd has an interest free loan payable to PT Meares Soputan Mining of  
US$149.4 million and PT Tambang Tondano Nusajaya of US$86.2 million which are all repayable after  
31 December 2011.
Director related entities
During the year the Company held 6,051,240 shares in Archipelago Metals Ltd, a company of which Colin 
Loosemore is a director. A management fee of US$92 was charged during the year. As at year end a total of US$520 
was due and payable by Archipelago Metals Ltd for a working capital loan provided during the year.
Transactions with other related parties
There were no related party transactions other than those disclosed in this financial statements.
27. Subsequent events
On 30 January 2012, the Company announced a material increase in mineral resource and ore reserve estimates at 
Toka Tindung Mine in North Sulawesi, Indonesia. The resource has increased to 52.6 million tonnes from 15 million 
tonnes and the proven and probable ore reserve has increased to 27.6 million tonnes from 7.62 million tonnes.
Excluding silver as gold equivalent ounces, contained gold resources have increased by 52%; with ore reserves 
increasing by 60%.
The increase in ore reserves supports extending the estimated life of the mine from six to nine years.
Notes to the financial statements continued
For the year ended 31 December 2011 Governance Business review Financial statements
59 Archipelago Resources plc   
Annual Report 2011
Directors and advisers
Directors
Stephen Sulistyo (Non-Executive Chairman)
Marcus Engelbrecht (Managing Director and  
Chief Executive Officer)
Eddy Porwanto (President Director of PT Meares 
Soputan Mining and PT Tambang Tondano Nusajaya  
and Deputy CEO)
Jeremy Ayre (Non-Executive)
Graeme Duncan (Non-Executive)
all of
22 Melton Street, London NW1 2BW
Secretarial Services and Registered Office
Cargil Management Services Limited,
22 Melton Street, London NW1 2BW
Registered Number 04425340
Statutory Auditor
Chantrey Vellacott DFK LLP,
Russell Square House,
10-12 Russell Square, London WC1B 5LF
Solicitors
Lawrence Graham LLP,
4 More London Riverside,
London, SE1 2AU
Registrars and Transfer Agents
Share Registrars Limited,
Suite E, First Floor, 9 Lion and Lamb Yard,
Farnham, Surrey GU9 7LL
Bankers
HSBC
21 Collyer Quay, HSBC Building
Singapore 049320
Australia and New Zealand Banking Group Limited,
Level 7, 77 St Georges Terrace,
Perth, Western Australia 6000
Nominated Adviser
Grant Thornton UK LLP,
30 Finsbury Square,
London, EC2P 2YU
Broker
Ambrian Partners Limited,
Old Change House,
128 Queen Victoria Street,  
London, EC4V 4BJ 60 Archipelago Resources plc   
Annual Report 2011
Glossary of T erms
Terms and abbreviations used in this report include the 
following:  
Ag Silver 
Au Gold 
CSR Corporate Social Responsibility
Eq Equivalent
g/t Grams per tonnes
JORC The 2004 Australasian Code for Reporting of 
Exploration Results, Mineral Resources & Ore 
Reserves
k Thousand
LTI Lost time injury
m Million
oz Troy ounces
t Tonnes 
US$ United States Dollars 
% Percentage 
The following terms have the meaning given to them  
by JORC: Competent Person, Indicated, Inferred, 
Measured, Ore Reserve, Resource, Reserve.  
Competent Person Statement
The information in this report that relates to the 
Resource, mineral exploration results, together with any 
related assessments and interpretations, have been 
verified by and approved for release by Mr. Graeme 
Fleming B App Sc (Geol), MAusIMM, a qualified geologist 
and full-time consultant for PT Tambang Tondano 
Nusajaya, a subsidiary of Archipelago Resources Plc.  
The information in this report that relates to Ore 
Reserves is based on information compiled by Dean 
Pontin, formerly a full-time employee of PT Tambang 
Tondano Nusajaya prior to 30 January 2012.  Mr. 
Fleming and Mr. Pontin are members of the Australasian 
Institute of Mining and Metallurgy and have sufficient 
experience relevant to the style of mineralisation and 
type of deposit under consideration to qualify as 
Competent Persons as defined in JORC. Mr. Fleming 
and Mr. Pontin consent to the inclusion of the 
information contained in this Annual Report in the  
form and context in which it appears. Designed and produced by Emperor Design Consultants Ltd
Telephone +44 (0)20 7729 9090  www.emperordesign.co.uk
Archipelago Resources plc is a gold 
producer listed on the Alternative 
Investment Market of the London 
Stock Exchange (AIM: AR). 
The vision of Archipelago 
Resources plc (“Archipelago”  
or “the Company”) is to grow 
into a respected and regionally 
dominant mid-cap gold 
producer, managing a portfolio 
of gold mines and delivering 
significant value and returns for 
our shareholders. Archipelago’s 
principal activities are gold 
mining and exploration in 
Indonesia (as the 95% owner  
of the producing Toka Tindung 
Gold Mine in North Sulawesi, 
Indonesia). Archipelago is also 
advancing exploration initiatives 
in Vietnam and the Philippines. 
In 2012, Archipelago expects  
to produce between 135,000 
and 145,000 gold equivalent 
ounces at a cash cost of 
between US$540 and  
US$590 per ounce. Archipelago Resources plc   
Annual Report 2011
Archipelago Resources plc  Annual Report 2011
A platform for growth
Registered office: 
22 Melton Street 
London NW1 2BW 
United Kingdom 
 
Administration: 
9 Raffles Place,
#29-02 Republic Plaza
Singapore   048619
 
Phone: +65 6535 3419
Fax: +65 6532 2620
Email: investor@arplc.com.sg
Website: http://www.archipelagoresources.co.uk/