Archipelago Resources plc 
Annual Report 2012
Building on our 
achievements Archipelago Resources plc  
is a low cost South East Asian miner, 
listed on the AIM market of the 
London Stock Exchange (AIM: AR).
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). In 2013, Archipelago expects to 
produce between 140,000 and 155,000 Au Eq oz at a cash cost of 
between US$620 and US$680 per ounce (net of silver credits).
Our vision:
To grow into a respected and regionally dominant mid-cap gold 
producer, managing a portfolio of gold mines and delivering 
signiﬁcant value and returns for shareholders.
Business Review
01 Archipelago’s 2012 Highlights
02 Asset Overview
04 Chairman’s Statement
06 Chief Executive Ofﬁcer’s Review
12 Exploration Success
14 Resource & Reserve
16 Sustainability Report 
Governance
20 Board of Directors
21 Management Team
22 Directors’ Report
25 Corporate Governance
27 Principal Risks and Uncertainties
29 Statement of Directors’ 
Responsibilities in respect of  
the Financial Statements
Financial Statements
30 Independent auditors’ report 
31 Group statement of  
comprehensive income
32 Statements of ﬁnancial position
33 Statements of changes in equity
34 Statements of cash ﬂow
35 Notes to the ﬁnancial statements
Other
58 Directors and Advisers
59 Glossary of Terms
59 Competent Person Statement
www.archipelagoresources.com 01
 www.archipelagoresources.com
Archipelago Resources plc 
Annual Report 2012
225.2
93.3
Revenue US$ million
2012
2011
76.4
25.9
Proﬁt before tax US$ million
2012
2011
7.8
2.2
Earnings per share US cents
2012
2011
139,012
61,191
Production Au Eq oz 
2012
2011
93.7
18.5
Operating cash ﬂow US$ million
2012
2011
Archipelago’s 2012 Highlights
 Met guidance with output of 1 39,01 2 Au Eq oz and cash costs of US$635 per oz 
(net of silver credits).
 Revenues more than doubled to US$225m (FY 201 1: US$93m), driven by 
higher production.
 Sustained strong cash generation, with cash from operating activities of 
US$94m, up US$76m (FY 201 1: US$18m).
 Strong proﬁt growth reported, with EBIT & NPAT at US$84m & US$48m 
respectively (FY 201 1: US$31m and US$1 3m respectively).
 A strengthened balance sheet, with debt gearing reduced to 5 % 
(FY 201 1: 31 % ).
 Achieved plant throughput of 1,738, 197t (exceeding nameplate capacity).
 A strong safety record maintained, with no lost-time injuries reported  
for FY 201 2.
 Impressive exploration results reported throughout FY 201 2.
 A 50% extension of the life of mine to 9 years (plus 7 years of stockpiles).
Business Review Governance Financial Statements Other 02
Archipelago Resources plc 
Annual Report 2012 www.archipelagoresources.com
Regional Setting
Indonesia is the largest economy in  
South East Asia, with a GDP of over  
US$1 trillion. The country is highly 
prospective for a variety of mineral 
resources and in recent years has 
established itself as a prominent mining 
jurisdiction. Indonesia is an attractive 
destination for foreign investment.
Archipelago’s Toka Tindung Gold Mine  
is located in the Indonesian province of 
North Sulawesi, which has a population  
of approximately 2 million people.  
Sealed roads link Toka Tindung with the 
international airport near the provincial 
capital, Manado, and a deep-water port  
at Bitung, 30km south of the site.
Asset and Operations Summary
The Toka Tindung Gold Mine has a current 
JORC-compliant Resource of 3. 1 million gold 
equivalent ounces. The mine extends over  
ﬁve open pits – one main pit and four satellite 
pits. Concurrent production from all ﬁve pits 
will ensure continuity of ore supply, ﬂexibility 
in scheduling mining and optimising head 
grade feed to the treatment plant (through 
blending of ore). Mining is conducted by a 
“ Archipelago’s success serves as a leading 
example of what can be achieved in Indonesia 
through efﬁcient development, strong  
and capable management and supportive 
relationships with reliable local partners.”
Marcus Engelbrecht Chief Executive Ofﬁcer
Asset Overview
Foundation for 
future growth
In 201 2, Archipelago met its objectives,  
setting the foundation for further growth. 03
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Archipelago Resources plc 
Annual Report 2012
contractor using conventional open pit 
benching. The current mine plan calls for nine 
years of open pit mining, then a further seven 
years of stockpile processing.
The processing plant has a nameplate 
capacity of 1.7Mtpa, which rate was 
achieved within the ﬁrst 12 months of 
operations. Processing utilises a simple, 
robust Carbon-in-Leach design. The 
tailings storage facility has sufﬁcient 
capacity to support operations.
Other Projects
Archipelago also maintains an exploration 
team in Hanoi, Vietnam, and an interest in 
exploration projects in the Philippines held 
by Corplex Resources, Inc.
Key Value Drivers
 Toka Tindung is forecast to produce 
approximately 150,000 Au Eq oz per 
annum for the next ﬁve years, with a 
head grade of 2.79g/t Au, at low cash 
costs compared to its peers.
 Signiﬁcant brownﬁelds exploration 
potential exists around the site. 
Additional Resource & Reserve 
increases, and consequent Life  
of Mine extensions, are expected.
 Operations are fully funded and 
generate strong cash ﬂows; with 
revenue and EBIT more than  
doubling in 2012.

Archipelago is guided by an  
experienced management team.  
Its Indonesian operating subsidiaries 
have established a strong social licence 
and environmental credentials.
 The Company enjoys the support  
of a quality local partner in major 
shareholder PT Rajawali Corporation.
Vietnam
 Exploration
Philippines
 Exploration
Singapore
 Corporate ofﬁce
Toka Tindung Gold Mine
Sulawesi, Indonesia
 Location: North Sulawesi, Indonesia; 35km from 
Manado (pop. 1m); infrastructure in place
 Ownership: 
– 95% Archipelago 
– 5% PT Rajawali Corporation
 Tenement: 400km
2
; fully permitted – two 
Contracts of Work; AMDAL environmental permit

Resource: 3.00m oz Au, grade of 1.33g/t
 Reserve: 1.47m oz Au, grade of 1.7g/t
 Current mine plan: 5 pits to mine for 9 years, 
then stockpiles for 7 years
 Workforce: 70% local community; 25% broader 
Indonesia; 5% expatriates
 Health & safety: no LTIs for 2012
Business Review Governance Financial Statements Other 04
Archipelago Resources plc 
Annual Report 2012 www.archipelagoresources.com
Chairman’s Statement
A transformational
year
Archipelago’ s experienced and energetic 
management team is actively developing our 
corporate presence and proﬁle. The achievements  
of 201 2 add to the already strong foundations 
established in our core business.
“ It is important to reﬂect on the broader  
policy rationale underlying the changes to 
Indonesian mining law, which emphasises 
greater transparency and improved regulation 
of mining practices to share the beneﬁts of 
mining with the Indonesian community.”
Stephen K Sulistyo Non-Executive Chairman 05
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Archipelago Resources plc 
Annual Report 2012
Declining unemployment 
in Indonesia 
2012 2008 2009 2010 2011
6.0%
8.5%
8.0%
7.5%
6.5%
Growth in Indonesian GDP
IDR (trillion)
2012 2008 2009 2010 2011
4,000
9,000
8,000
7,000
6,000
5,000
Export growth in Indonesia 
USD (million)
2012 2007 2008 2009 2010 2011
0
250,000
200,000
150,000
100,000
50,000
To our shareholders, I am pleased to report 
on Archipelago’s affairs during 2012, in 
what was a transformational year for our 
Company. The Company achieved strong 
operational results at our Toka Tindung mine 
and grew the asset with material increases 
to our Resource and Reserve base. Our 
ﬁnancial results demonstrate our robust 
performance, with solid cash generation 
and proﬁts maintained throughout the 
period. We also made signiﬁcant progress  
in increasing the proﬁle of Archipelago  
in key capital markets.
With our core operation in North Sulawesi, 
Indonesia, Archipelago is clearly leveraged 
to one of the most dynamic business 
environments on the globe. With a 
population of 230 million people and  
GDP of greater than US$3,700 per capita, 
Indonesia continues to beneﬁt from a period 
of sustained and strong economic growth; 
centred on internal development and an 
increasingly prevalent middle class.
This trend is expected to continue over 
the next 10 years, which in turn will 
support further economic expansion and 
international investment in Indonesia – 
in particular in the resource sector, including 
precious metals. An increasingly educated 
and urbanized population will provide 
a strategic labour force in centres of 
investment, with mining regarded as a  
key industry in this context. Throughout the 
current growth phase, Indonesia’s national 
government continues to play a guiding role 
in ensuring that economic expansion occurs 
in a sustained and systematic manner.
The Indonesian people also continue  
to embrace democratic principles and 
governance. Presidential elections are 
scheduled for 2014 and this is already 
impacting on national policy and the 
political debate. Moving into 2013, 
Archipelago remains optimistic in respect  
of the country’s prospects and stability as it 
approaches the forthcoming election cycle.
This is of particular relevance to the mining 
sector, which remains a core source of 
economic beneﬁt for Indonesia. In 2012, 
the national government issued a number 
of policy pronouncements for the sector, 
which caused uncertainty for some industry 
participants. One particular issue was a 
pronouncement in early 2012 requiring 
foreign owned IUP holders to divest some of 
their interests in Indonesian mineral projects 
after ﬁve years of commercial production.
It is worth noting that this new divestment 
regime will not apply to Archipelago’s 
mining concessions, which are based  
on two pre-existing Contract of Work 
arrangements, negotiated directly with  
the Indonesian national government. 
Notwithstanding this, Archipelago was 
able to respond in a pro-active way  
to the changing policy landscape by 
working in close dialogue with government 
stakeholders at regional and national 
levels. We will continue to take this 
approach in 2013.
It is important to reﬂect on the broader  
policy rationale underlying the changes  
to Indonesian mining law, which 
emphasises greater transparency and 
improved regulation of mining practices  
to share the beneﬁts of mining with the 
Indonesian community. In this regard, 
Archipelago acknowledges the paradigm 
shift in Indonesian mining policy since  
the adoption of new laws in 2009. In 
conjunction with our core Indonesian 
stakeholders, Archipelago continues  
to work in a co-operative manner with 
government to advance commercial 
outcomes for Toka Tindung, consistent 
with the direction of national policy.
Moving forward, Archipelago will build  
on the achievements of the last year as  
we look to increase our production proﬁle. 
We will pursue our targeted exploration 
programme, enabling us to expand our 
resource and asset base, which provides 
the rationale for further capital expansion. 
Building on our reputation for delivering 
results, we will also continue to assess 
value accretive options for broader 
corporate expansion.
As we continue to implement these 
strategies, Archipelago will remain a  
strong cash generator. In this context,  
it was pleasing to announce a formal 
dividend policy subsequent to year end, 
with the Board committed to paying to 
shareholders at least 10% of operating 
cash ﬂows by way of dividends. Clearly,  
this outcome aligns with our corporate 
vision of delivering signiﬁcant value and 
returns for our shareholders.
On behalf of the Board, I would like  
to thank our shareholders for their  
ongoing support throughout 2012.
Stephen K Sulistyo
Non-Executive Chairman
2 May 2013
Source: S&P Capital IQ.
Business Review Governance Financial Statements Other 06
Archipelago Resources plc 
Annual Report 2012 www.archipelagoresources.com
Chief Executive Ofﬁcer’s Review
Delivering returns 
to shareholders
Archipelago achieved impressive results in its ﬁrst 
full year of production. Our strong cash generating 
proﬁle means we can start delivering concrete 
returns to our shareholders.
“ A key management objective is Archipelago’s 
focus on strong cash generation. Our capacity 
to generate strong cash ﬂows provides an 
opportunity to pursue a number of corporate 
initiatives, including the payment of dividends.”
Marcus Engelbrecht Chief Executive Ofﬁcer 07
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Archipelago Resources plc 
Annual Report 2012
I am pleased to report that Archipelago 
generated exceptional results in FY2012, 
our ﬁrst full year of production at our Toka 
Tindung gold mine.
In line with our focus on shareholder value, 
we successfully delivered on our goals and 
milestones. We met our initial production 
targets set at the beginning of 2012 at a 
competitive cash cost, demonstrating our 
ability to deliver consistent results from our 
operating activities. These positive outcomes 
resulted in the Company posting a robust 
proﬁt and generating strong cash ﬂows.
Our most important objective is ensuring 
that our employees work within a safe  
and healthy environment. During 2012,  
the Company had no lost-time injuries.  
We intend to build on this positive outcome 
and maintain our focus on safety and health 
as a management priority.
We continue to achieve encouraging 
exploration results from our highly 
prospective Toka Tindung gold mine,  
with a material increase to our JORC 
compliant mineral Resource and Reserve 
reported in Q1 2012. In addition, our low 
risk brownﬁelds exploration programme 
generated impressive intersections, 
adjacent and ‘down-dip’, to our high 
grade southern deposits and at our main 
Toka pit. We will continue to invest capital 
on a targeted near-mine exploration 
programme, with the aim of delivering 
further increases to the mine life.
The ability to expand the mineral reserve 
and achieve consistent operating results  
at Toka Tindung provides the foundation 
for our organic growth strategy and  
we are assessing mining and plant 
expansion options to increase production. 
We have already commenced the process 
of expanding our CIL tank capability and 
will be ﬁnalising a review of other options 
in the near future.
The outlook for our industry remains 
a positive one. Despite global economic 
volatility, we see signiﬁcant opportunity  
for Archipelago in the near term and  
we continually review opportunities for 
collaboration and consolidation in what  
can only be described as a fragmented gold 
sector. We adopt a prudent approach to all 
corporate activity, with the focus being on 
quality and on transactions that are clearly 
accretive from a shareholder perspective.
In the context of our delivery against our 
2012 objectives, I am now pleased to 
provide a further detailed review of our 
business and direction.
Social Licence
The Toka Tindung gold mine, Archipelago’s 
core operating asset, is located on the 
northern tip of the island of Sulawesi, 
Indonesia. It is approximately 35km 
northeast of the regional capital of 
Manado. Covering an area of 400km
2
,  
the mine comprises two Contract of  
Work arrangements and ﬁve open pits – 
the main Toka Tindung pit and the four 
satellite deposits of Araren, Pajajaran, 
Kopra and Blambangan.
As a growing economic entity and the 
largest employer in the region, Archipelago 
makes a signiﬁcant contribution to local 
communities from an employment, 
procurement, investment and cultural 
perspective. There are 11 villages within 
the vicinity of Toka Tindung and a 
population of over 10,000 people live 
in locations surrounding our operations.
In support of these communities, 
Archipelago continued to make signiﬁcant 
investments in infrastructure, schools, 
medical services and fresh water supply 
systems during 2012. In this regard, 
Archipelago has excellent relations with 
local community leaders and the regional 
government. Maintaining our strong social 
licence remains a cornerstone of our success 
as a gold producer in South East Asia.
Throughout 2012, Archipelago maintained 
its adherence to best practice environmental 
standards. Given the high rainfall location  
in which we operate, Archipelago is focused 
on maintaining superior water management 
and treatment systems; ensuring the quality 
of supply to downstream communities.
Operational Performance
In 2012, Taka Tindung recorded production 
of 1 39,012 Au Eq oz. Over the full year, the 
average head grade for Au Eq oz was 2.79g/t.
Throughout 2012, Archipelago continued  
to mine from the main Toka pit. Ore was  
also accessed from the higher grade satellite 
deposits, initially at Araren and Pajajaran; 
with mining commencing at Kopra towards 
the end of the year. By accessing these high 
grade deposits with ore near the surface, 
Archipelago achieved a decline in the strip 
ratio as the year progressed (reporting a full 
year strip ratio of 5.64:1).
Our Strategy
 Focus on operational targets
 Organic growth at T oka Tindung
– Ongoing exploration
– Expand the production base
 Corporate
– Growth through corporate 
initiative
– Strong capital management; 
dividend policy
2012 Operational Performance
Ore Mined (T) 2,744,116
Waste Mined (T) 15,488,415
Total Mined (T) 18,232,531
Ore Processed 1,738, 197
Strip Ratio 5.64
Head Grade for Au (g/t) 2.62
Head Grade for Ag (g/t) 9.11
Process Recovery Rate ( % ) 90.3%
Gold Ounces Produced  
(Eq oz) 139,01 2
Business Review Governance Financial Statements Other 08
Archipelago Resources plc 
Annual Report 2012 www.archipelagoresources.com
Chief Executive 
Ofﬁcer’s Review 
continued
Solid cash generation
“ Cost management remains a key focus  
for Archipelago, as we explore continuous 
improvement initiatives aimed at increasing 
productivity and cash margins.”
Marcus Engelbrecht Chief Executive Ofﬁcer 09
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Archipelago Resources plc 
Annual Report 2012
Head grade for Au
(g/t)
FY12 Q1 Q2 Q3 Q4
0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
NPAT earnings history 
USD (million)
FY12 1H
2011
2H
2011
FY11 1H
2012
2H
2012
(10)
50
40
30
10
20
0
Gold ounces produced
(Au Eq oz)
FY12 Q1 Q2 Q3 Q4
0
140,000
120,000
100,000
80,000
60,000
40,000
20,000
Drier seasonal conditions towards the end of 
2012, coupled with the sourcing of higher 
grade ore, meant that our production proﬁle 
was skewed towards greater output rates in 
the second half of the year. This is a trend 
which I expect to be repeated in future 
years, given the historically high levels of 
rainfall during the January to March wet 
season at Toka Tindung (and the ﬂow on 
impact of this on mining activities). 
In 2012, our processing plant operated in 
line with nameplate capacity of 1.7mtpa. 
Recovery rates also remained relatively 
constant throughout the year at 90.3%. 
Meeting production targets and maintaining 
a strong focus on input costs were key 
contributors in Archipelago achieving industry 
low cash costs of US$635 per oz (net of  
silver credits). Cost management remains  
a key focus for Archipelago, as we explore 
continuous improvement initiatives aimed at 
increasing productivity and cash margins.
In 2013, Archipelago anticipates production 
of 140,000 to 155,000 Au Eq oz, as we 
continue to mine at Toka, in addition to the 
high grade deposits of Kopra and Pajajaran; 
with ore also planned to be sourced from  
a newly opened pit at the Blambangan 
deposit later in the year. 2013 cash cost 
guidance is US$620 to US$680 per Au oz. 
Revenue
Revenue from gold sales for the year was 
US$225 million (201 1: US$93 million) with 
129,305 (201 1: 60,367) ounces sold at an 
average price of US$1,676 (201 1: US$1,675) 
per ounce.
Gross Proﬁt 
Gross proﬁt in 2012 was US$102 million 
(2011: US$45 million), reﬂecting increased 
volumes and strong management of 
operating costs.
Earnings before Interest & Tax (EBIT)
EBIT was US$84 million (201 1: US$31 
million), after accounting for US$18 million 
(201 1: US$14 million) in administrative & 
other costs. The increase, namely for 
administrative costs, has been due to higher 
employment costs associated with increased 
head count.
Proﬁt before Tax
The Group reported a proﬁt before  
tax of US$76 million in the year ended 
31 December 2012, compared with a 
proﬁt of US$26 million in the year ended 
31 December 2011. 2012 was our ﬁrst year 
of full production.
Taxation
The Group’s taxation charge amounted to 
US$28 million in 2012 (201 1: US$13 million), 
analysed as follows:
Year ended 31 December 
2012 
US$000
2011 
US$000
Indonesia
 Current year 18,750 5,757
 Deferred 9,620 7,489
Total 28,370 13,2 46
The higher income tax expense is reﬂective 
of increased proﬁtability; however the 
Group’s effective tax rate for 2012 
declined to 37% (2011: 51 %), favourably 
impacting income tax expense.
Exploration
The Toka Tindung mine is highly prospective 
and remains open at depth and along strike. 
In 201 1, Archipelago conducted a targeted 
exploration programme which, in early 2012, 
led to the announcement of a material 
increase to our Resource (up 52% ) to  
2.58M Au oz and Reserve (up 60% ) to  
1.47M Au oz. Based on the expanded 
Reserve, Archipelago was also able to justify 
extending the life of mine to sixteen years; 
being nine years mining plus seven years of 
stockpile processing.
Financial Performance
31 December 
2012
US$000
31 December 
2011
US$000
Revenue 225,153 93,259
Gross proﬁt 101,563 44,833
EBIT 83,812 30,989
Proﬁt before income tax 76,411 25,944
After tax proﬁt attributable to the parent company 44,985 12,692
Net cash generated by operations 93,689 18,498
Net cash inﬂow/(outﬂow) 28,777 (1,833)
Net gearing 4.9% 31.4 %
Debt/equity ratio 25.7% 41.2 %
Business Review Governance Financial Statements Other 10
Archipelago Resources plc 
Annual Report 2012 www.archipelagoresources.com
Building on the successes of 2011, 
Archipelago’s 2012 exploration 
programme focused on further targeted 
drilling activities at depth along known 
deposits and adjacent mineralised zones. 
Our aim was to increase the level of 
conﬁdence of the Resource, thereby 
allowing further conversion of additional 
ounces to the Reserve category. 
Concurrent to this, testing for further 
mineralisation at depth and along strike 
was aimed at expanding the overall 
Resource base. 
For a spend of US$12 million over the  
2012 year, Archipelago drilled 581 reverse 
circulation and diamond drill holes for 
82,391m at Toka Tindung. A series of 
exceptional results were released throughout 
the year. For prospects at or adjacent to the 
southern deposits, results included:

Kopra
– 27m at 5.56g/t Au (KIP020, 169-196m)
– 9m at 5.32g/t Au (KIP012, 135-144m)
 Blambangan 
– 3. 1m at 49.76g/t Au (BPD042,  
205.9-209m)
– 24m at 5.64g/t Au (BP020, 16-20m)
– 14m at 8.03g/t Au (BP015, 0-14m)
 Jipang
– 10m at 16.6g/t Au (JIP89A, 52-62m)
– 7m at 10.00g/t Au (JIP102, 46-52m)
 Pajajaran 
– 13m at 9.44g/t Au (PJJ032, 1 73-186m)
– 8m at 8.8g/t Au (PJJ003, 143-151m)
 Semut 
– 2m at 1 1.70g/t Au (SMB038, 145-147m)
At Toka East, adjacent to the Toka main 
pit, further impressive results were 
released, including:

25m at 2.45g/t (TITO058, 106-131m)
 12m at 4.96g/t (TITO078, 87-99m)
 14m at 3.34g/t (TITO015A, 101-1 15m)
The results demonstrate the prospective 
nature of Toka Tindung and the high 
likelihood that we will further expand the 
Resource and Reserve. In 2013, Archipelago 
will continue to invest in targeted near site 
exploration, with further drilling to occur at 
Toka East, Toka North and the southern high 
grade deposits. In addition, Archipelago 
expects to commence drilling the nearby 
Marawuwung prospect during the course  
of the year. 
Dividend
A key management objective is 
Archipelago’s focus on strong cash 
generation. Our capacity to generate  
strong cash ﬂows provides an opportunity  
to pursue a number of corporate initiatives, 
including the payment of dividends. 
Further to this objective and subsequent to 
year end, we announced the adoption of  
a dividend policy with the intention to pay 
shareholders interim and ﬁnal dividends  
of at least 10% of operating cash ﬂows. 
This provides our shareholders with 
exposure to the upside of an increase  
to the gold price and signiﬁcant leverage 
on cash operating margins. Where 
appropriate, the Company may also  
pay special dividends from time to time. 
In recognition of Archipelago’s ﬁrst full year 
of production, I am pleased to conﬁrm our 
intention to pay a dividend for the 2012 
ﬁnancial year, subject to shareholder 
approval and completing a court approved 
reduction of the share premium account. 
Speciﬁcally, Archipelago anticipates paying 
an “interim dividend” of 1.25p per ordinary 
share and a further one-off “special 
dividend” of 1p per ordinary share. 
Chief Executive Ofﬁcer’s 
Review continued 11
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Archipelago Resources plc 
Annual Report 2012
The proposed payment of an inaugural 
dividend demonstrates the transformation 
of Archipelago from an explorer/developer 
to an emergent stable cash producer, 
generating healthy cash ﬂows and 
providing real returns for shareholders. 
Outlook and Strategy
In 2013, Archipelago’s focus remains on 
delivering production and operational 
outcomes in line with our guidance and 
performance expectations. We will 
continue exploration initiatives to expand 
our Resource and Reserve, which will 
support plant expansion and the ability  
to increase production rates in the 
foreseeable future. Archipelago will also 
pursue opportunities for collaboration in 
the gold sector, with particular emphasis 
on the Asia-Paciﬁc region. 
In this regard, I am grateful for the ongoing 
support of our major shareholder, PT Rajawali 
Corporation, which is held in high esteem for 
its leadership role across the region, fostering 
a culture of transparency and strong 
corporate governance in South East Asia. 
Archipelago continues to beneﬁt from the 
association with Rajawali and the network 
this brings. This collaboration is a key point  
of differentiation for Archipelago relative  
to other miners operating in the region. 
In conclusion, I take this opportunity to 
thank our employees and shareholders  
for their contribution to our success.
Marcus Engelbrecht
Chief Executive Ofﬁcer and  
Managing Director 
2 May 2013
“ In 2013, Archipelago  
will continue to invest  
in targeted near site 
exploration, with further 
drilling to occur at Toka East, 
Toka North and the southern 
high grade deposits.”
Marcus Engelbrecht 
Chief Executive Ofﬁcer
Business Review Governance Financial Statements Other 12
Archipelago Resources plc 
Annual Report 2012 www.archipelagoresources.com
Exploration Success 
Exceptional 
drill results
Impressive drilling results adjacent to the main 
pit and southern deposits conﬁrms the highly 
prospective nature of the T oka Tindung Gold 
Mine, which remains open at depth and 
along strike.
In January 2012, Archipelago announced 
a signiﬁcant Resource and Reserve 
upgrade for Toka Tindung, based on a 
successful 2011 brownﬁelds exploration 
programme. During 2012, Archipelago 
continued its strategy of focussing on near 
mine drilling at the high grade southern 
producing deposits of Kopra, Blambangan 
and Pajajaran, as well as further drilling at 
the adjacent mineralised zones of Semut 
Barat, Semut Timur and Makassar and the 
nearby Jipang prospect. All of these sites 
are located in close proximity to the Toka 
Tindung processing infrastructure. Further 
drilling was also undertaken at the Toka 
East prospect, which adjoins the main 
Toka Tindung pit.
The adjacent map provides an overview  
of deposits and prospects investigated 
during 2012.
581 holes totalling 82,391m were drilled 
over the course of 2012. A series of 
exceptional drilling results were achieved 
that lay the foundation for anticipated 
further signiﬁcant Resource and Reserve 
upgrades in the future.
In this regard and subsequent to year  
end, Archipelago was able to announce  
an increase in the JORC compliant Resource 
from 2.58m Au oz to 3.00m Au oz. 13
 www.archipelagoresources.com
Archipelago Resources plc 
Annual Report 2012
300m
0m
300m
0m
172800mN
172500mN
172200mN
171900mN
172800mN
172500mN
172200mN
171900mN
11m @ 3.11 g/t Au
8.0 g/t Ag
24m @ 5.64 g/t Au
14.5 g/t Ag
14m @ 8.03 g/t Au
26.0 g/t Ag
9m @ 10.06 g/t Au
17.7 g/t Ag
10m @ 5.59 g/t Au
11.5 g/t Ag
8m @ 3.56 g/t Au
4.4 g/t Ag
9m @ 1.50 g/t Au
1.4 g/t Ag
10m @ 2.26 g/t Au
1.2 g/t Ag
5m @ 6.10 g/t Au
2.40 g/t Ag 3m @ 12.82 g/t Au
48 g/t Ag
14m @ 2.86 g/t Au
2.1 g/t Ag
19m @ 1.50 g/t Au
3.4 g/t Ag
10m @ 1.36 g/t Au
3.3 g/t Ag
8m @ 1.58 g/t Au
12.1 g/t Ag
34m @ 3.27 g/t Au
3.8 g/t Ag
19m @ 1.65 g/t Au
4.0 g/t Ag
BP022
BP022 BP046
BP018
BP024
BP019
BP024
BP016 BP020
BP015
BP039
BP009
BP008
BP010
BP007
BP006 BP005
BP004
BP002
BP001
BP046
BP045
BP044
BP044
BP016
BP015 BP014
BP014
BP012
BP038
BP007
BP010
BP018
BP015
BP011
BP003 MEASURED
RESOURCE
MEASURED
RESOURCE
INDICA TED INFERRED
INFERRED
Resource classiﬁcation
Inferred
Indicated
Measured
50 0 50m
Highlights of the drilling programme include the following:
Kopra: 
27m at 5.56g/t Au (KIP020, 169 – 196m)
9m at 5.32g/t Au (KIP012, 135 – 144m)
7m at 3.49g/t Au (KIP013, 122 – 129m)
8m at 4.72g/t Au (KIP013A, 146 – 154m)
Blambangan/Blambangan South: 
24.0m at 5.64g/t (BP020, 16 – 40m)
34.0m at 3.27g/t (BP016, 6 – 40m)
14.0m at 8.03g/t (BP015, 0 – 14m)
9.0m at 10.06g/t (BP010, 20 – 29m)
10.0m at 5.59g/t (BP007, 38 – 48m)
3.0m at 12.82g/t (BP005, 119 – 122m)
5.0m at 6.10g/t (BP004, 121 – 126m)
3.1m at 49.76g/t Au (BPD042, 205.9 – 209m)
[including 1m at 152g/t 
Au; 208 – 209m]
1m at 5.90g/t Au (BSP032, 98 – 99m)
8m at 7.93g/t Au (BP060A, 156 – 164m)
[including 3m at 17.92g/t 
Au; 158 – 161m]
8m at 3.41g/t Au (BP060, 146 – 154m)
[including 1m at 13.60g/t 
Au; 146 – 147m]
Pajajaran: 
8.0m at 8.80g/t Au (PJJ003, 143.3 – 151.3m)
15.1m at 4.10g/t Au (PJJ003, 165.6 – 180.7m)
16.0m at 3.33g/t Au (PJJ024, 93.0 – 109.0m)
13m at 9.44g/t Au (PJJ032, 173 – 186m)
[including 5m at 20.61g/t 
Au; 180 – 185m]
16m at 4.26g/t Au (PJJ033, 134 – 150m)
[including 3m at 17.39g/t 
Au; 145 – 148m]
7m at 3.66g/t Au (PJJ034, 6 – 13m)
Long Section View of Blambangan – a Selection of Drill Results 
6m at 14.75g/t Au (PJJ034, 139 – 145m)
[including 2m at 35.95g/t 
Au; 139 – 141m]
13m at 5.98g/t Au (PJJ028, 205 – 218m)
[including 2m at 27.55g/t 
Au; 206 – 208m]
5m at 10.32g/t Au (PJJ049, 24 – 29m)
6m at 5.71g/t Au (PJJ047, 103 – 109m)
[including 1m at 21.60g/t 
Au; 105 – 106m]
4m at 9.22g/t Au (PJJ046, 7 – 11m)
[including 2m at 14.85g/t 
Au; 7 – 9m]
7m at 4.44g/t Au (PJJ044, 143 – 150m)
[including 1m at 10.50g/t 
Au; 147 – 148m]
8m at 3.59g/t Au (PJJ040, 224 – 232m)
[including 2m at 8.81g/t 
Au; 224 – 226m]
10m at 3.64g/t Au (PJJ048, 92 – 102m)
[including 1m at 18.40g/t 
Au; 100 – 101m]
5m at 6.95g/t Au (PJJD051, 230 – 235m)
Semut Barat/Semut Timur: 
2m at 11.70g/t Au (SMB038, 145 – 147m)
7m at 4.28g/t Au (SMBD023, 231 – 238m)
1m at 9.53g/t Au (SMB042, 49 – 50m)
2m at 5.08g/t Au (SMB042, 72 – 74m)
4m at 6.91g/t Au (SMP050, 20 – 24m)
1m at 9.97g/t Au (SMP028, 61 – 62m)
Makassar: 
5m at 8.10g/t Au (MAK025, 95 – 100m)
[including 1m at 24.6g/t 
Au; 95 – 96m]
4m at 4.98g/t Au (MAK027, 100 – 104m)
6m at 5.98g/t Au (MAK028, 114 – 120m)
[including 2m at 13.95g/t 
Au; 115 – 117m]
Jipang:
10m at 16.61g/t Au (JIP089A, 52 – 62m)
[including 1m at 42.60g/t 
Au; 52 – 53m]
17m at 3.81g/t Au (JIP052A, 49 – 66m)
[including 5m at 8.49g/t 
Au; 61 – 66m]
8m at 6.49g/t Au (JIP057A, 102 – 110m)
[including 3m at 11.09g/t 
Au; 103 – 106m]
9m at 7.31g/t Au (JIP066, 72 – 81m)
10m at 4.83g/t Au (JIP068, 65 – 75m)
11m at 6.28g/t Au (JIP068A, 77 – 88m)
4m at 13.21g/t Au (JIP069, 128 – 132m)
[including 1m at 36.20g/t 
Au; 129 – 130m]
18m at 3.94g/t Au (JIP070A, 115 – 133m)
[including 4m at 9.59g/t 
Au; 121 – 125m]
9m at 6.05g/t Au (JIP073A, 67 – 76m)
6m at 10.73g/t Au (JIP076, 68 – 74m)
2m at 17.88g/t Au (JIP096, 70 – 72m)
[including 1m at 26.90g/t 
Au; 71 – 72m]
4m at 8.44g/t Au (JIP097A, 98 – 102m)
[including 2m at 15.25g/t 
Au; 98 – 100m]
7m at 10.00g/t Au (JIP102, 46 – 53m)
[including 2m at 21.65g/t 
Au; 46 – 48m]
7m at 8.83g/t Au (JIP103, 146 – 153m)
[including 3m at 16.97g/t 
Au; 147 – 150m]
5m at 7.61g/t Au (JIP106, 130 – 135m)
[including 3m at 9.50g/t 
Au; 130 – 133m]
Toka East: 
3m at 9.08g/t (TITO015A, 71 – 74m)
3m at 6.47g/t (TITO015A, 78 – 81m)
14m at 3.34g/t (TITO015A, 101 – 115m)
20m at 1.76g/t (TITO044, 95 – 115m)
7m at 3.28g/t (TITO046, 66 – 73m)
5m at 5.99g/t (TITO055, 76 – 81m)
6m at 7.55g/t (TITO058, 66 – 72m)
25m at 2.45g/t (TITO058, 106 – 131m)
6m at 4.21g/t (TITO059, 58 – 64m)
5m at 4.44g/t (TITO060, 52 – 57m)
20m at 1.57g/t (TITO067, 43 – 63m)
20m at 1.80g/t (TITO067A, 23 – 43m)
18m at 1.15g/t (TITO077A, 79 – 97m)
12m at 4.96g/t (TITO078, 87 – 99m)
3m at 5.62g/t (TITO079, 17 – 20m)
15m at 2.57g/t (TITO079, 70 – 85m)
Business Review Governance Financial Statements Other 14
Archipelago Resources plc 
Annual Report 2012 www.archipelagoresources.com
Toka Tindung Project Resources as of 31 December 2012
Grade Contained Ounces
Deposit Category
Tonnes 
’000
Gold 
g/t
Silver 
g/t
Gold 
oz M
Silver 
oz M
Gold Equiv 
oz M
Toka Tindung
1
 
(Cut-off grade of 0.5 g/t gold)
3
Measured 14.3 1.21 2.8 0.55 1.28 0.57
Indicated 33.0 0.83 1.6 0.88 1.74 0.90
Inferred 8.3 0.71 1.2 0.19 0.33 0.19
Total 55.6 0.91 1.9 1.63 3.35 1.67
Bone
2
 
(Cut-off grade of 1.0 g/t gold)
3
Measured 0.0 0.00 0.0 0.00 0.00 0.00
Indicated 0.7 2.81 5.4 0.07 0.13 0.07
Inferred 0.3 1.95 3.4 0.02 0.03 0.02
Total 1.1 2.55 4.8 0.09 0.16 0.09
Jipang
2
 
(Cut-off grade of 1.0 g/t gold)
3
Measured 0.0 0.00 0.0 0.00 0.00 0.00
Indicated 0.4 4.10 7.8 0.05 0.10 0.05
Inferred 0.5 3.69 10.3 0.05 0.15 0.06
T otal 0.8 3.89 9. 1 0.1 1 0.25 0.1 1
Makassar
2
 
(Cut-off grade of 1.0 g/t gold)
3
Measured 0.0 3.71 4.7 0.00 0.00 0.00
Indicated 0.5 2.41 6.6 0.04 0.11 0.04
Inferred 0.5 3.35 6.9 0.05 0.11 0.05
Total 1.0 2.89 6.7 0.09 0.22 0.10
Semut
2
 
(Cut-off grade of 1.0 g/t gold)
3
Measured 0.0 0.00 0.0 0.00 0.00 0.00
Indicated 0.4 1.75 9.0 0.02 0.11 0.02
Inferred 0.8 2.57 8.2 0.07 0.22 0.07
Total 1.2 2.31 8.50.09 0.330.09
Kopra
2
 
(Cut-off grade of 1.0 g/t gold)
3
Measured 0.2 4.13 6.7 0.03 0.05 0.03
Indicated 1.0 3.17 9.3 0.10 0.30 0.11
Inferred 0.5 2.95 11.6 0.05 0.19 0.05
T otal 1.8 3.24 9.6 0.18 0.55 0.1 9
Pajajaran
2
 
(Cut-off grade of 1.0 g/t gold)
3
Measured 0.3 4.30 18.5 0.04 0.18 0.04
Indicated 0.7 3.65 13.9 0.08 0.30 0.08
Inferred 1.2 3.38 10.7 0.13 0.40 0.13
Total 2.1 3.60 12.8 0.24 0.87 0.26
Blambangan
2
 
(Cut-off grade of 1.0 g/t gold)
3
Measured 0.2 3.28 12.5 0.02 0.08 0.02
Indicated 1.6 3.80 16.1 0.19 0.81 0.20
Inferred 1.5 2.48 6.5 0.12 0.30 0.12
Total 3.2 3.17 11.5 0.33 1.19 0.35
Araren
2
 
(Cut-off grade of 1.0 g/t gold)
3
Measured 0.1 2.41 2.8 0.01 0.01 0.01
Indicated 1.0 2.42 2.1 0.08 0.07 0.08
Inferred 1.3 2.88 3.4 0.12 0.15 0.12
Total 2.4 2.68 2.9 0.20 0.22 0.21
Stockpiles Subtotal 1.1 1.15 2.4 0.04 0.08 0.04
All Deposits Measured 15.1 1.35 3.3 0.66 1.60 0.68
Indicated 40.3 1.19 2.9 1.55 3.75 1.60
Inferred 14.9 1.67 3.9 0.80 1.87 0.82
Total 70.3 1.33 3.2 3.00 7.23 3.10
Resource and Reserve 
Notes on the 2012 Resource:
Assessment and Reporting Criteria: Notes for the Toka Tindung and Batupangah Mineral  
Resource estimates are based on Table 1 of the JORC Code 2012 and are detailed in the Resource 
Announcement released on 26 April, 2013. Notes on the Southern Mine Area (Batupangah) 
Resource Estimates were provided by the Company and veriﬁed by Mining Associates Pty Ltd. 
Notes on the Toka Tindung Resource Estimate were based on data provided by the Company and 
veriﬁed by Cube Consulting Pty Ltd. The Company owns 95% of the Toka Tindung Mine (and 
therefore 95% of the deposits referred to above). Mineral resource includes reserves as of 
31 December 2012. Some rounding of ﬁgures may cause numbers not to add correctly.
1.  Toka Tindung: The mineral resource estimate is based on 1,165 drill holes (133,600m) of which 
230 (19,183m) are diamond drill holes, 936 (114,417m) RC drill holes and 4282 (89,613m)  
RC Grade Control holes. Cube Consulting Pty Ltd conducted a review of the Grade Control 
practices at Toka Tindung in June –July 2012 which included the Grade Control resource 
modelling procedure and reviewed the Mined reconciliation against the 2011 Resource Model. 
This included a site visit, which resulted in some changes to the Grade Control Resource 
Modelling procedures for Grade Control. 
2.  In 2012 the Batupangah project consisted of the Kopra Extended (incorporating the Kopra, 
Blambangan South, Semut Barat, Makassar, Jipang, and Bone vein sets), Pajajaran, 
Blambangan, and Araren deposits. In 2013, after extensive additional drilling, the deposits are 
individually reported except for the Semut Veins which are reported as one. The mineral resource 
estimate for Bone is based on 82 drill holes (9,007m) of which 14 (899m) are diamond drill holes 
and 68 (8,108m) are RC drill holes. The mineral resource estimate for Jipang is based on 124 drill 
holes (14,486m) of which 6 (458m) are diamond drill holes and 118 (14,028m) are RC drill holes. 
The mineral resource estimate for Pajajaran is based on 329 drill holes (32,990m) of which 100 
(7 ,397m) are diamond drill holes and 229 (25,593m) are RC drill holes. An additional 1,694 
(34,044m) RC Grade Control holes have been drilled as part of mine production. The mineral 
resource estimate for Blambangan is based on 338 drill holes (35,239m) of which 51 (3,869m) 
are diamond drill holes and 287 (31,370m) are RC drill holes. The mineral resource estimate for 
Araren is based on 176 drill holes (13,414m) of which 95 (6,830m) are diamond drill holes and  
81 (6,584m) are RC drill holes. An additional 242 RC Grade Control holes have been drilled as 
part of mine production. The mineral resource estimate for Kopra is based on 156 drill holes 
(17 ,121m) of which 34 (2,260m) are diamond drill holes and 122 (14,861m) are RC drill holes.  
An additional 464 (9,946m) of RC Grade Control holes have been drilled as part of mine 
production. The mineral resource estimate for Makassar is based on 188 drill holes (18,253m)  
of which 44 (3,126m) are diamond drill holes and 144 (15,127m) are RC drill holes. The mineral 
resource estimate for Semut veins is based on 165 drill holes (16,872m) of which 40 (3,227m)  
are diamond drill holes and 125 (13,645m) 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 programs.
3.  Cut off grade used for mineral resources were as follows – Toka Tindung: 0.5g/t Au; Kopra: 1.0g/t 
Au; Pajajaran: 1.0g/t Au; Blambangan: 1.0g/t Au; Araren: 1.0g/t Au; Bone: 1.0g/t Au; Jipang: 
1.0g/t Au; Makassar: 1.0g/t Au and Semut: 1.0g/t Au. 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 Mine Area (Batupangah) orebodies. Au Eq = Au oz + (Ag oz x  
(Ag price/Au price) x (Ag recovery/Au recovery) ). Where Ag price = US$30, Au price = US$1,350, 
Ag recovery = 54% and Au recovery = 92%.
The Company’s JORC compliant Mineral Resources as of 31 December 2012, and its JORC compliant Ore Reserves as of 31 December 
2011, are as follows: 15
 www.archipelagoresources.com
Archipelago Resources plc 
Annual Report 2012
Toka Tindung Project Ore Reserves as of 31 December 2011
Grade Contained Oz
Deposit Category
Tonnes 
’000 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
Pajajaran Proved 0 0.0 0.0 0.00 0.00 0
Probable 1,000 4.7 20.6 0.15 0.66 0.16
T otal 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 Extended Proved 0 0.0 0.0 0.00 0.00 0
Probable 800 4.1 7 . 1 0.1 1 0.1 9 0.1 1
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 on the 2011 Reserve: 
The 2011 Reserve is based on the 2011 Resource. 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; Pajajaran: 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) are 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 (647m) 
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. As at the date 
of this Annual Report, work is ongoing on mining optimisation studies, pit designs and mine 
schedules in relation to updating the Reserve. The Company anticipates releasing a new 
Reserve later in 2013. Subject to the outcome of the ongoing work and the assumptions, 
grades and other parameters used in calculating an update, any new Reserve may differ from 
the Ore Reserves as of 31 December 2011.
Business Review Governance Financial Statements Other 16
Archipelago Resources plc 
Annual Report 2012 www.archipelagoresources.com
Sustainability Report
Our approach to 
sustainability
“ As a growing economic entity and the largest 
employer in the region, Archipelago makes a 
signiﬁcant contribution to local communities 
from an employment, procurement, investment 
and cultural perspective.”
Marcus Engelbrecht Chief Executive Ofﬁcer 17
 www.archipelagoresources.com
Archipelago Resources plc 
Annual Report 2012
Introduction 
A core element of Archipelago’s value 
proposition is that we have a strong  
social licence to operate. Our operation 
has to be proﬁtable. However, we take our 
responsibilities seriously with regard to 
meeting our social and environmental 
standards. Our sustainability programme 
has a key role in achieving a balanced 
project which gains the necessary consent 
and support from local communities.
We work according to ﬁve values: 
Leadership; Integrity; Teamwork; 
Corporate Citizenship; and Shareholder 
value. In our ﬁrst year of full production it 
is pleasing to note that the transition was 
also successful from the perspective of our 
sustainability programme. 
Archipelago will continue to consolidate on 
what has been achieved to date, as well as 
showing that our progress is tangible. 
Our Approach to Sustainability
Our sustainability programme is managed 
by our Indonesian operating subsidiaries, 
PT Meares Soputan Mining (MSM) and  
PT Tambang Tondano Nusajaya (TTN). 
MSM and TTN staff identify, develop and 
deliver activities and initiatives that are 
consistent with our overall sustainability 
objectives. We acknowledge the  
signiﬁcant contribution that MSM and 
TTN employees make in ensuring the 
success of this programme.
We operate in accordance with local  
and national licensing and regulatory 
requirements. In addition, we seek to 
comply with internationally-recognised 
standards, principally with regard to the 
International Finance Corporation’s (IFC) 
Sustainability Framework. This risk-based 
framework sets out expectations for  
policy and performance standards on 
environmental and social sustainability,  
as well as governance and transparency.
In accordance with the IFC Sustainability 
Framework, we will continue to conduct  
a Social Impact Assessment (SIA) every 
three to ﬁve years. Two SIAs have been 
conducted to date, in 2007 and late  
2009, with an SIA scheduled for 2013.  
Our community engagement model  
was developed in the light of previous  
SIA ﬁndings and it continues to evolve 
alongside ongoing and extensive local 
consultation. This active engagement  
has generated a comprehensive range  
of projects to meet clearly deﬁned 
community requirements.
The early focus in our sustainability 
programme was on community 
development and capacity building  
in accordance with the needs identiﬁed  
in the SIA. We are now in a position to 
expand the programme scope to cover,  
on a more coordinated basis, our wellbeing,  
health, safety and environmental activities 
where these had not already been 
prioritised for action.
Community
In respect of the community programme, 
our aim has been to reinforce and to help 
build local public institutions and to support 
efforts to give local communities the means 
to improve quality of life. In addition to  
the IFC framework, we referenced the 
Millennium Development Goals (MDGs) to 
prioritise improvements in health, education 
and water supplies. In the long run, our 
desire is to equip local communities with the 
facilities, skills and institutions they need to 
continue to build resilient and prosperous 
communities after mining operations have 
ended and our community investment also 
comes to an end.
We manage our community programme 
around three key strands –
 Community relations;
 Community development; and
 Community service.
The relationships we develop are  
central to our community programme.  
In addition, we may provide funds, send 
representatives, provide materials and 
offer organisational capability to activities 
within these programmes.
During 2012, our expenditure on community 
programmes was equivalent to over 1.1 % of 
the Company’s net proﬁt before tax for the 
year. This ﬁgure includes direct ﬁnancial 
support and estimated costs of indirect 
spend, such as time and materials.
Community Relations
We play an active role in the community, led 
ﬁrst and foremost by our ongoing dialogues 
with village, district and other community 
leaders. This engagement extends into all 
areas of community life, including religious 
and traditional festivals and events, sports 
and family health activities.
Case study 1: triathlon spectacular
In September 2012, MSM and TTN 
sponsored and organised a triathlon, 
involving 200 participants making up 
teams from local villages, businesses and 
organisations. The course ran through a 
large portion of the areas covered in the 
community programme, beginning on  
the beach at Rinondoran Bay, close to the 
Toka Tindung Gold Mine site, and ﬁnishing 
in one of the local villages, Batu Putih 
Bawah. The winning men’s team was  
from MSM, while the winning women’s 
team represented Batu Putih Bawah.
Community Development
A core programme objective is ensuring  
that the villages within our community 
programme area become resilient enough  
to continue to prosper and grow once the 
direct economic beneﬁts arising from active 
mining operations end. Through community 
development activities, we seek to increase 
the capacity, productivity and diversity of 
local business activities. We generally do this 
through microﬁnance, which has proved to 
be successful so far. We have helped fund 
ﬁshermen, chili farmers, cooperatives, cow 
farmers, wet land rice farmers and a local 
motorbike workshop.
Case study 2: ﬁnancing new businesses
Towards the end of 2012, we provided  
soft loans and microﬁnance to two new 
business ventures/cooperatives, one 
growing chili in Pinenek, the other vetiver 
in Pinasungkulan. Chili is an important 
local food staple and a cash crop in its  
own right, while vetiver is a hardy local 
grass used for land rehabilitation. The 
loans were principally provided in the form 
of supply of materials, rather than cash.
MSM and TTN buy the vetiver the 
cooperative produces. This is an example 
of the extensive coordinated range of 
support under our community programme, 
as we have provided a soft loan to the 
vetiver cooperative as well as developing  
a local training facility so that others  
from Pinasungkulan and nearby villages 
are able to join the cooperative. The 
cooperative is also providing a new source 
of employment for female villagers.
Business Review Governance Financial Statements Other Investors
Community
Employees
Standard setting 
& regulatory authorities
18
Archipelago Resources plc 
Annual Report 2012 www.archipelagoresources.com
Sustainability Report
continued
Supporting community 
business ventures
The vetiver native grass cooperative is an example of 
the extensive coordinated range of support under our 
community programmes. We provided a soft loan to 
establish the cooperative; developed a facility to train 
more people to join; and we buy the vetiver produced 
to use in land reclamation projects.
Key stakeholders and drivers
Investors
 Economic return

Responsible business
 Measurable performance against 
sustainability objectives and targets
 Strong licence to operate
Standard setting and  
regulatory authorities

Compliance with local and national 
regulatory and licensing requirements
 Transparency of performance
 Commitment to improvement in line 
with internationally recognised 
good practice
Community
 Involvement in process

Education
 Business support
 Community development
 Infrastructure development
 Good local environment
Employees

Local employment opportunities
 Clear development pathways in 
secure jobs
 Safe and healthy working environment
 Access to transferable qualiﬁcations
 Diversity and equality 19
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Archipelago Resources plc 
Annual Report 2012
Community Service
Community service covers sustainable local 
infrastructure development programmes, 
ranging from building roads through to the 
construction and renovation of community 
and religious buildings to public amenities 
and irrigation projects.
We place a signiﬁcant emphasis on 
improving education in the region. We 
need a pool of talented local people who 
have the skills necessary to work directly 
for and with us. They must also have 
capacity to develop local industry, 
agriculture and commerce to provide 
vibrant communities, ﬁrstly to work 
alongside the mine operations during 
operational life and, secondly, to equip  
the more economically active and aware 
communities for a post-mine future where 
they are resilient and self-sustaining.
Case study 3:
Farmers in Maen Village had always been 
wary of the unpredictability of natural 
water supplies. In recent years, the nearby 
river has regularly burst its banks, ﬂooding 
their ﬁelds and ruining their crops. MSM 
and TTN provided technical and material 
support to develop a more resilient 
irrigation and ﬂood defence system  
for Maen’s farmers. Some 100 hectares  
of previously unusable marshland has  
now been brought into active production 
by around 70 to 90 farmers. A positive 
additional consequence of the ﬂood 
defences and irrigation work has been  
that the farmers can use the new drainage 
infrastructure for easy access to the 
farming area.
In 2013, we will build on the positive 
reception to our activities to date. We will 
remain proactive in establishing regular 
meetings with village and local leaders,  
as well as taking the lead in initiating 
projects that we have identiﬁed as having 
a positive impact. These include: safe 
motorbike riding courses in schools in 
collaboration with police and mine staff; 
promoting health programmes in local 
villages in conjunction with health clinics; 
and continuing our National Education 
Day scholarship programme that was 
launched in 2012.
In established mining areas, the community 
programme is maturing. In areas where 
exploration is being undertaken, the 
community team is involved in activities 
designed to build relationships. For example, 
in the Blambangan area we have been 
recording dwellings that are likely to be 
affected by potential mining activity. This is 
the ﬁrst stage of community engagement 
related to the mining permitting process. 
The team will coordinate and manage 
community information and consultation 
events, identifying venues, arranging the 
logistics and refreshments and facilitating  
all aspects of the events.
Environment
The environmental programme is directed 
at minimising and mitigating the impacts 
arising from the mine and associated 
activities. Our signiﬁcant local impacts  
are land disturbance and reclamation 
issues, surface water, noise, local air 
quality, impact on aquatic biota and the 
management of sediments and tailings 
arising from mining operations.
In guiding both our ongoing environmental 
management activity and in the planning 
we already have under way for mine closure 
and rehabilitation, we make extensive 
reference to internationally accepted 
guidance on good practice. In addition  
to local legislation, the IFC sustainability 
framework and the MDGs mentioned earlier, 
we also take into account –
 the International Council on Mining 
and Minerals (ICMM) Sustainable 
Development Framework;
 the Australian minerals industry’s 
framework for sustainable 
development; and
 the Equator Principles on project 
ﬁnance which are themselves derived 
from elements of the IFC’s 
sustainability framework.
Case study 4: 
During 2012, we increased the area of 
land rehabilitated through various forms  
of land management from 50.87 hectares 
to 76.32 hectares. Some of this land is 
maintained for erosion and sedimentation 
control, while most of the remainder is 
made good for agriculture and farming. 
We normally aim to collect vegetation 
from sites before mining operations begin 
and then use this for replanting as part  
of the rehabilitation process. Where this  
is not possible, we have worked with local 
collectives to grow key crops for land 
stabilisation and rehabilitation purposes, 
as explained in the separate case study  
on vetiver cultivation. 
Health and Safety
We aspire to zero harm. We had no  
lost time incidents in 2012. We record 
incidents for our contractors as well as  
our direct employees.
We have established a six tier safety 
reporting system, ranging from the most 
serious lost time injuries (injuries requiring 
one or more days off work) through to 
near miss and serious potential events 
which could, if unmitigated, result in 
serious incidents.
We made a successful transition to full 
operations on the site with no signiﬁcant 
health and safety issues. We are in the ﬁnal 
stages of commissioning an occupational 
health and safety performance monitoring 
system so that we are able to manage and 
learn from our performance in a more 
proactive manner. We expect this to be 
operational in 2013.
Case study 5: 
A key focus in 2012 was enhancing the 
staff skill base for management of full 
operations. To this end, we ran 241 training 
events, providing over 4,300 hours of 
training, from basic induction training 
through key aspects of safe operations 
through audit and assessment. Notable 
among the more advanced courses our 
people successfully completed were: a 
Nebosh General Certiﬁcate in Safety; 
QHSE Integrated Management System 
Training (ISO 9001, ISO 14001 and OHSAS 
18001); and Occupational Hygiene 
Industry Training.
Moving Forward
Over the next year, Archipelago intends to 
develop more explicit links between policy 
and integrated approach to sustainability 
in action.
We recognise the need to develop clear 
measurables for showing progress against 
policy as the sustainability programme 
moves from getting immediate actions  
in place to maturing into a proactively 
managed and dynamic program. We  
will build on the existing performance 
measures and develop a comprehensive, 
clear set of objectives, targets and KPIs 
that are transparent and relevant. 
We will continue to drive the strategies and 
objectives outlined in this report. Signiﬁcant 
investment will be made throughout.
Business Review Governance Financial Statements Other 20
Archipelago Resources plc 
Annual Report 2012 www.archipelagoresources.com
Marcus Engelbrecht
Chief Executive Ofﬁcer and  
Managing Director
Mr Engelbrecht (Age 53) was appointed 
Chief Executive Ofﬁcer and Managing 
Director 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.
Stephen K Sulistyo
Non-Executive Chairman
Mr Sulistyo (Age 48) 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.
Jeremy W Ayre
Non-Executive Director
Mr Ayre (Age 47) 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.
Graeme R Duncan
Non-Executive Director
Mr Duncan (Age 57) 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. Mr Duncan  
has signiﬁcant experience working with 
ﬁnancial institutions for project ﬁnance  
and independent valuations and the 
preparation of Competent Persons Reports 
for public companies.
Board of Directors
Left to right:
Stephen Sulistyo, Graeme Duncan, 
Jeremy Ayre and Marcus Engelbrecht 21
 www.archipelagoresources.com
Archipelago Resources plc 
Annual Report 2012
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 201 1. 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.
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 20 
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 held senior 
positions at lawyers Herbert Smith and 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.
Charles Knight
General Manager – Operations
Mr Knight is General Manager – 
Operations and has executive 
responsibility for the Toka Tindung Gold 
Mine. Mr Knight has over 35 years’ 
experience in senior management roles 
across the resources and industrial sectors. 
Prior to joining Archipelago, Mr Knight was 
an executive director with 333 Consulting, 
where he was responsible for overseeing  
a range of productivity improvement 
initiatives in the mining industry,  
working on projects for Newcrest Mining, 
Straits Resources, Resolute Mining, Iluka 
Resources and OceanaGold (amongst 
others). In addition to his resources 
industry credentials, Mr Knight also has 
extensive South East Asian managerial 
experience, having held senior roles in 
Indonesia, Singapore and Malaysia. 
Steven Dudka 
Country President – Vietnam
Mr Dudka has overall executive responsibility 
for all activities in Vietnam. 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).
Management T eam
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. 
Top to bottom:
Colin Sutherland, Matthew Salthouse, 
Charles Knight and Steven Dudka
Financial Statements Other Governance Business Review 22
Archipelago Resources plc 
Annual Report 2012 www.archipelagoresources.com
Directors’ Report
The Directors present their annual report on the affairs of the Company and Group, together with the ﬁnancial statements and audit 
report for the year ended 31 December 2012.
The Group’s business activities, together with the factors likely to affect future development, performance and position are set out  
in the Chief Executive’s Review on pages 6 to 11 and in the Principal Risks and Uncertainties section on pages 27 to 28. The ﬁnancial 
performance, position and cash ﬂows of the Company and Group are set out on pages 31 to 34.
Principal activity and review of the business
The Company’s and Group’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 maintains an exploration team in Hanoi, Vietnam, and an interest in exploration projects in the Philippines held by 
Corplex Resources, Inc.
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 for the year after taxation and minority interests amounted to US$48.0 million (2011: US$12.7 million). 
Subsequent to year end, the Board has announced an intention to pay an interim dividend of 1.25p per ordinary share and a special 
dividend of 1p per ordinary share, subject to completion of required shareholder and court approval processes.
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 continued to adopt the going concern basis in preparing the audited 
ﬁnancial statements. 
Events since balance date
On 26 April 2013, the Group announced an increase in mineral resource estimates for the Toka Tindung Project. The resource has 
increased from 52.6 million tonnes to 70.3 million tonnes and, excluding silver as gold equivalent ounces, contained gold resources have 
increased by 16%.
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 Group policy that payment is made accordingly. The average credit period taken on trade 
creditors during 2012 was 59 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. 23
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Archipelago Resources plc 
Annual Report 2012
Substantial shareholdings
The Company had been notiﬁed as at 28 March 2013, 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 52.13
Columbia Wanger Asset Management LLC 52,965,113 9.20
Baker Steel Capital Managers LLP 36,635,299 6.37
BlackRock Investment Management (UK) Limited 26,185,580 4.55
Asia Image 19,427 ,014 3.38
Lombard Odier, Darier Hentsch 18,693,153 3.25
Directors and their interests
As at 31 December 2012 and the date of this report, the Directors held the following interests:
Ordinary shares 
of 1p each 2012 2011
Graeme Duncan 80,000 80,000
Jeremy Ayre 1,100,000 600,000
Eddy Porwanto
1
700,000 –
1. Director ceased acting as an executive effective 30 August 2012 and resigned effective 31 March 2013.
Share Options
Name of Director
Number of 
Options
Exercise 
Price Granted Exercised Expiry Date
Eddy Porwanto
1
700,000 £0.385 – 700,000 31/1 2/201 3
Jeremy Ayre 600,000 £0.258 – 600,000 31/1 2/201 2
Graeme Duncan 400,000 £0.385 – – 31/1 2/201 3
Stephen Sulistyo 400,000 £0.385 – – 31/1 2/201 3
Total Directors’ Options 2,100,000 – 1,300,000
1. Director ceased acting as an executive effective 30 August 2012 and resigned effective 31 March 2013. 
Inclusive of all employees and ofﬁce holders, during 2012: 3,635,000 options were exercised and ordinary shares issued; 60,000 options 
expired without exercise; and no new share options were issued. The balance of employee and ofﬁce holder options outstanding at 
31 December 2012 was 1,575,000.
No options or long-term incentives were issued to employees or ofﬁce holders for the year ended 31 December 2012.
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.
Business Review Governance Financial Statements Other 24
Archipelago Resources plc 
Annual Report 2012 www.archipelagoresources.com
Directors’ Emoluments
Name of Director
Fees/Basic 
Salary
US$
Others
2
US$
Share 
Options
US$
Year ended 
31 December 
2012
US$
Year ended 
31 December 
2011
US$
Number of Directors 5 5
Executive
Marcus Engelbrecht 660,000 228,909 – 888,909 310,870
Eddy Porwanto
1
264,325 203,932 – 468,257 796,069
Colin Loosemore – – – – 1,261,326
Non-Executive
Eddy Porwanto
1
26,195 – – 26,195 –
Jeremy Ayre 62,331 – – 62,331 83,431
Graeme Duncan 62,161 – – 62,161 83,431
Stephen Sulistyo 81,279 – – 81,279 83,106
Total Directors’ remuneration 1,156,291 432,841 – 1,589,132 2,618,232
1. Director ceased acting as an executive effective 30 August 2012 and resigned effective 31 March 2013.
2. Others includes bonuses and allowances.
By Order of the Board
Marcus Engelbrecht
Chief Executive Ofﬁcer and Managing Director
2 May 2013
Directors’ Report continued 25
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Archipelago Resources plc 
Annual Report 2012
Corporate governance
Companies listed on AIM are not required to make an annual 
statement to shareholders regarding compliance with the UK 
Corporate Governance Code (“Governance Code”). However the 
Board endeavours to comply with the Governance 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 four Directors, comprising one executive 
Director and three non-executive Directors (including the Company’s 
Chairman) with relevant sector experience to complement the 
executive Director and to provide an independent view to the Board. 
Further details on each of the Directors appears on page 20 of this 
Report. The Board met formally on 8 occasions during the year 
ended 31 December 2012. 
The Directors are responsible for the stewardship of the Company 
and for overseeing the conduct of the business of Archipelago and 
the activities of management, who are responsible for the day-to-
day conduct of the business.
The Directors’ primary responsibilities are to: preserve and enhance 
long-term shareholder value; ensure that Archipelago can meet its 
obligations on an ongoing basis; and ensure that Archipelago 
continues to operate in a reliable and safe manner. These 
responsibilities typically require the Board to be involved in strategic 
planning, key investment decisions, risk management and mitigation, 
senior management determination and assessment, communication 
planning and internal control integrity.
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 year one-third (or the nearest whole number less 
than one-third) of non-executive Directors come up for re-election 
in rotation, based on length of service since their last election, 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.
Audit Committee
The Audit Committee monitors and reviews: ﬁnancial statements 
and external Auditor’s reports; the performance of the external 
Auditor; internal information systems and controls, including 
ﬁnancial controls; the corporate group’s accounting policies;  
and compliance with legal and regulatory requirements. Where 
appropriate, the Audit Committee consults directly with 
Archipelago’s external auditor.
Because of the size of the Board, it is not possible to comply with 
the Governance Code requirement that the Audit Committee 
should be composed of at least three independent non-executive 
Directors. Notwithstanding this, the Board remains committed to 
reviewing the structure and composition of the Audit Committee 
as the Company develops.
Speciﬁc details on ﬁnancial reporting are set out elsewhere in this 
Annual Report. The responsibilities of the Company’s auditor 
appear in the Auditor’s Report on page 30.
The Audit Committee comprises: Mr Sulistyo (Committee 
Chairman), Mr Ayre and Mr Duncan (who was appointed to the 
Committee on 27 March 2012).
Remuneration & Nomination Committee
The Remuneration & Nomination Committee is responsible for: 
establishing Archipelago’s remuneration philosophy; determining 
the remuneration of Directors and the remuneration and other 
compensation of executive employees; and reviewing the terms 
and conditions of incentive schemes.
It is the policy of the Remuneration & Nomination Committee 
that Directors’ remuneration should be commensurate with 
services provided by them to the Company. In respect of non-
executive Directors, 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.
The Remuneration & Nomination Committee comprises: 
Mr Sulistyo (Committee Chairman) and Mr Engelbrecht (CEO and 
Managing Director).
Participation in Board and committee meetings
Director’s participation in meetings of the Board and sub-committees for 2012 is summarised in the table below.
Board of Directors Audit Risk Management Remuneration & Nomination
Environment, Health & Safety 
and Community
Number 
Held
Number 
Attended
Number 
Held
Number 
Attended
Number 
Held
Number 
Attended
Number 
Held
Number 
Attended
Number 
Held
Number 
Attended
Stephen Sulistyo 8 7 3 3 3 3
Marcus Engelbrecht 8 8 3 3
Jeremy Ayre 873311
Graeme Duncan 872211 1 1
Eddy Porwanto
1
86 11 1 –
1. Director resigned effective 31 March 2013.
Business Review Governance Financial Statements Other 26
Archipelago Resources plc 
Annual Report 2012 www.archipelagoresources.com
Risk Management Committee
The Risk Management Committee monitors and reviews the 
Group’s risk management programme in order to minimize 
business risk by safeguarding the assets and income earning 
capacity of the Group. The Committee employs a philosophy 
founded on the identiﬁcation of risk, the introduction of the 
necessary control measures to reduce the identiﬁed risks to the 
lowest level reasonably possible and the procurement of insurance 
where relevant and appropriate.
During 2012, the Risk Management Committee comprised: 
Mr Duncan (Committee Chairman), Mr Ayre and Mr Porwanto 
(who resigned as a Director effective 31 March 2013).
Environment, Health & Safety and Community Committee
The Environment, Health & Safety and Community Committee 
determines, monitors and reviews the Group’s policies and 
procedures in relation to Environmental, Health & Safety and 
Community issues.
During 2012, the Environment, Health & Safety and Community 
Committee comprised: Mr Duncan (Committee Chairman) and 
Mr Porwanto (who resigned as a Director effective 31 March 2013).
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.
Corporate governance continued 27
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Archipelago Resources plc 
Annual Report 2012
Inherent mining sector operating risks
In common with other enterprises undertaking business in  
the mining sector, the Company’s mineral exploration, project 
development, mining and related activities are subject to 
conditions beyond the Company’s control that can reduce,  
halt or limit production or increase the costs of production.
The success of the Company’s mining operations is dependent  
on many factors including: the discovery and/or acquisition  
of mineral reserves and resources; successful conclusions to 
feasibility and other mining studies; access to adequate capital  
for project development and to sustaining capital; design and 
construction of efﬁcient mining and processing facilities within 
capital expenditure budgets; the securing and maintaining of  
title to tenements; obtaining permits, consents and approvals 
necessary for the conduct of exploration and mining; compliance 
with the terms and conditions of all permits, consents and 
approvals during the course of mining activities; access to 
competent operational management and prudent ﬁnancial 
administration, including the availability and reliability of 
appropriately qualiﬁed employees, contractors and consultants; 
the ability to procure major equipment items and key 
consumables in a timely and cost-effective manner; the ability  
to access full power supply; and the ability to access road and  
port networks for the shipment of gold and copper concentrate.
An inability to secure ongoing supply of goods and services at 
prices assumed within the short and long term mine plans, and 
assumed within feasibility studies, could have a material and 
adverse effect on the results of the Company’s costs, results of 
operations and ﬁnancial condition. These are all beyond the 
control of the Company and could render a previously proﬁtable 
project unproﬁtable. Costs can also be affected by factors such as 
changes in market conditions, government policies and exchange 
rates, all of which are unpredictable and outside the control of the 
Company. The operations are also exposed to industrial 
disruption, which can be beyond the Company’s control.
Principal Risks and Uncertainties
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 uneconomic 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 that 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. 
Volatility of global ﬁnancial conditions that 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.
The Board regularly reviews the key risks 
facing the business and establishes 
appropriate management controls. The 
principal risks and uncertainties facing the 
Company are:
Business Review Governance Financial Statements Other 28
Archipelago Resources plc 
Annual Report 2012 www.archipelagoresources.com
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.
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.
Principal Risks and Uncertainties continued 29
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Archipelago Resources plc 
Annual Report 2012
Statement of Directors’ Responsibilities in respect of the 
Financial Statements
The Directors are responsible for preparing the Directors’ Report and the ﬁnancial statements in accordance with applicable laws 
and regulations.
Company law requires the Directors to prepare ﬁnancial statements for each ﬁnancial year. Under that law the Directors have elected to 
prepare the ﬁnancial statements in accordance with International Financial Reporting Standards (“IFRS”) as adopted by the European 
Union. The ﬁnancial statements are required by law to 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 these 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 the ﬁnancial statements comply with IFRS as adopted by the European Union; 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 adequate accounting records that are sufﬁcient to show and explain the Company’s and Group’s 
transactions and 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.
Business Review Governance Financial Statements Other 30
Archipelago Resources plc 
Annual Report 2012 www.archipelagoresources.com
Independent auditor’s report
To the members of Archipelago Resources plc
for the year ended 31 December 201 2
We have audited the ﬁnancial statements of Archipelago 
Resources plc for the year ended 31 December 2012 which 
comprise the consolidated statement of comprehensive  
income, the consolidated statements of ﬁnancial position, the 
consolidated statements of changes in equity, the consolidated 
statements of cash ﬂow, the company statements of ﬁnancial 
position, the company statements of changes in equity, the 
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 (IFRS) 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.
This 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 an auditor’s report 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 auditors
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 on 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 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 of the parent company’s affairs  
as at 31 December 2012 and of the group’s proﬁt for the  
year then ended;
 the group ﬁnancial statements have been properly prepared  
in accordance with IFRS as adopted by the European Union;
 the parent company ﬁnancial statements have been properly 
prepared in accordance with IFRS as adopted by 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 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 where, 
under the Companies Act 2006 we are required 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 
require for our audit.
Gareth Jones FCA
(Senior Statutory Auditor)
for and on behalf of Chantrey Vellacott DFK LLP
Chartered Accountants and Statutory Auditor
London
2 May 2013 31
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Archipelago Resources plc 
Annual Report 2012
Group statement of comprehensive income
For the year ended 31 December 201 2
Notes
Year ended 
31 December 
2012
US$000
Year ended 
31 December 
2011
US$000
Revenue 2 225,153 93,259
Cost of sales (123,590) (48,426)
Gross proﬁt 101,563 44,833
Other income 189 154
Administrative expenses (13,404) (1 1,598)
Other expenses (4,536) (2,400)
Operating proﬁt 3 83,812 30,989
Finance costs 3 (7,401) (5,045)
Proﬁt before income tax 76,411 25,944
Taxation 6 (28,370) (1 3,246)
Proﬁt for the year 48,041 12,698
Total comprehensive income for the year 48,041 12,698
Attributable to:
Owners of the parent 44,985 12,692
Non-controlling interest 3,056 6
48,041 12,698
Earnings per share (cents per share)
Basic 7 0.078 0.022
Diluted 7 0.077 0.022
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 
35 to 57 .
Business Review Other Financial Statements Governance 32
Archipelago Resources plc 
Annual Report 2012 www.archipelagoresources.com
Group Company
Notes
31 December 
2012
US$000
31 December 
2011
US$000
31 December 
2012
US$000
31 December 
2011
US$000
Non-current assets
Property, plant and equipment 8 138,175 140,772 – –
Development, exploration and evaluation 9 122,925 106,666 – –
Deferred stripping 10 2,000 5,112 – –
Investments 11 651 952 7,760 1,202
Other receivables 12 27,824 16,328 184,968 190,372
291,575 269,830 192,728 191,57 4
Current assets
Inventories 13 30,848 23,979 – –
Trade and other receivables 14 8,057 3,777 183 591
Cash and cash equivalents 15 51,128 22,351 427 3,133
90,033 50,107 610 3,724
Total assets 381,608 319,937 193,338 195,298
Equity and liabilities
Share capital 16 9,473 9,416 9,473 9,416
Share premium account 209,430 208,500 209,430 208,500
Other reserves 17 1,149 5,467 1,676 5,016
Retained earnings 23,190 (26,1 19) (27,643) (28,236)
Equity attributable to owners of the parent 243,242 197 ,264 192,936 194,696
Non-controlling interest 3,056 – – –
Total equity 246,298 197 ,264 192,936 194,696
Non-current liabilities
Other ﬁnancial liabilities 20 32,100 70,173 – –
Deferred tax liability 6 16,260 6,640 – –
Provisions 21 14,126 12,229 – –
62,486 89,042 – –
Current liabilities
Trade and other payables 19 28,001 17 ,24 1 402 602
Interest-bearing loans and borrowings 20 31,098 11,040 – –
Corporate taxes payable 13,725 5,350 – –
72,824 33,631 402 602
Total equity and liabilities 381,608 319,937 193,338 195,298
These ﬁnancial statements on pages 35 to 57 were authorised for issue and approved by the Board of Directors on 2 May 2012, and 
signed on its behalf by:
Marcus Engelbrecht
Chief Executive Ofﬁcer and Managing Director
Statements of ﬁnancial position
At 31 December 201 2 33
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Archipelago Resources plc 
Annual Report 2012
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
Changes in equity for 2011
As at 1 January 2011 9,373 208,333 10,045 (39,734) 188,01 7 (1 7) 188,000
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
Changes in equity for 2012
Total comprehensive income – – – 44,985 44,985 3,056 48,041
Options exercised 57 930 (4,324) 4,324 987 – 987
Share-based payments – – 6 – 6 – 6
Balance at 31 December 2012 9,473 209,430 1,149 23,190 243,242 3,056 246,298
Company
As at 1 January 2011 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
Changes in equity for 2012
Total comprehensive income – – – (2,747) (2,747) – (2,747)
Options exercised 57 930 (3,340) 3,340 987 – 987
Balance at 31 December 2012 9,473 209,430 1,676 (27,643) 192,936 – 192,936
The accompanying accounting policies and notes should be read in conjunction with these ﬁnancial statements as detailed on pages 
35 to 57 .
Statements of changes in equity
For the year ended 31 December 201 2
Business Review Other Financial Statements Governance 34
Archipelago Resources plc 
Annual Report 2012 www.archipelagoresources.com
Group Company
Notes
31 December 
2012
US$000
31 December 
2011
US$000
31 December 
2012
US$000
31 December 
2011
US$000
Cash inﬂows/(outﬂows) from operating activities 23 93,689 18,498 (1,987) (2,082)
Cash ﬂows from investing activities
Payments to acquire property, plant and equipment (17,858) (45,972) – –
Proceeds from sale of asset 42 95 – –
Payments for development, exploration and evaluation expenditure (20,096) (37 ,010) – –
Purchase of minority interest – (4,533) – –
Payment to acquire additional shares in Archipelago Metals Ltd – (1 3) – (1 3)
Net cash used in investing activities (37,912) (87 ,433) – (1 3)
Cash ﬂows from ﬁnancing activities
Proceeds from borrowings – 70,000 – –
Repayment of borrowings (17,067) – – –
Lease payments (3,961) (1, 182) – –
Issue of ordinary share capital 987 210 987 210
Interest paid (6,959) (1,926) – –
Loans to subsidiaries – – (1,706) (1 2,023)
Net cash (used by)/generated from ﬁnancing activities (27,000) 67 ,102 (719) (1 1,81 3)
Net increase/(decrease) in cash and cash equivalents 28,777 (1,833) (2,706) (1 3,908)
Cash and cash equivalents at start of year 22,351 24, 184 3,133 17 ,04 1
Cash and cash equivalents at end of year 51,128 22,351 427 3,133
The accompanying accounting policies and notes should be read in conjunction with these ﬁnancial statements as detailed on pages 
35 to 57 .
Statements of cash ﬂow
For the year ended 31 December 201 2 35
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Archipelago Resources plc 
Annual Report 2012
1. Signiﬁcant accounting policies
The principal accounting policies adopted in the preparation of the ﬁnancial report are set out below. These policies have been 
consistently applied to the year presented, unless otherwise stated. This ﬁnancial report comprises consolidated ﬁnancial statements for 
the Group consisting of Archipelago Resources plc and its subsidiaries (referred as the Group).
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 2012 and therefore comply with the UK Companies Act 2006.
The ﬁnancial statements are prepared under the historical cost convention except for ﬁnancial instruments, share-based payments 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 (US$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 2012.
Subsidiaries are entities controlled by the parent entity. Control exists where the parent has the power to govern the ﬁnancial and 
operating policies of an entity so as to obtain beneﬁts from its activities. Subsidiaries are included in the consolidated ﬁnancial report 
from the date control is transferred to the Group until the date control ceases. Where the Group’s interest is less than 100%, the interest 
attributable to outside shareholders is reﬂected in non-controlling interests. All intercompany transactions between Group companies 
are eliminated.
Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated statement of comprehensive 
income, statement of ﬁnancial position and statement of changes in equity respectively.
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 management to make judgements and estimates and 
form assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent 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, 
under different assumptions and conditions.
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.
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 be the higher of the fair value less costs to sell and value in use. 
Notes to the ﬁnancial statements
For the year ended 31 December 201 2
Business Review Other Financial Statements Governance 36
Archipelago Resources plc 
Annual Report 2012 www.archipelagoresources.com
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.
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 the US dollars.
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.
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 9 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 to 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.
1. Signiﬁcant accounting policies continued
Notes to the ﬁnancial statements continued
For the year ended 31 December 201 2 37
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Archipelago Resources plc 
Annual Report 2012
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.
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.
Business Review Other Financial Statements Governance 38
Archipelago Resources plc 
Annual Report 2012 www.archipelagoresources.com
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. Finished goods are doré bars 
which are on-site. 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.
Income Tax
Taxation as disclosed in the statement of comprehensive income comprises current and deferred tax. All taxes are recognised in the 
statement of comprehensive income except in the event it relates to items recognised directly in equity, in which case the tax is 
recognised in equity.
Current tax is the expected tax payable on the current period’s taxable income based on the applicable income tax rate for each jurisdiction.
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.
Deferred tax assets and liabilities are offset when they relate to the same taxation authority and current tax assets and liabilities are 
offset where the Group has a legal right to settle assets and liabilities on a net or simultaneous basis.
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 minimum lease payments at inception. 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 until the asset is ready for use.  
Other borrowing costs are expensed in the period in which they are incurred and reported in ﬁnance costs.
1. Signiﬁcant accounting policies continued
Notes to the ﬁnancial statements continued
For the year ended 31 December 201 2 39
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Archipelago Resources plc 
Annual Report 2012
Provisions
General
Provisions are recognised when the Group has a present obligation 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.
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 cash.
Financial instruments
All ﬁnancial assets and liabilities are initially recognised at the fair value of consideration paid, however in the case of ﬁnancial liabilities, 
the consideration is deemed to be less any 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 Group classiﬁes non derivative ﬁnancial assets into the following categories 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 less any impairment losses. 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.
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 proﬁt and loss 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.
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, 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 balances and short term highly liquid investments and are measured at cost, which is 
deemed to be fair value as they have short term maturities.
Business Review Other Financial Statements Governance 40
Archipelago Resources plc 
Annual Report 2012 www.archipelagoresources.com
Finance income and costs
Finance income and costs comprise interest expense on borrowings, the accumulation of interest on provisions and interest income on 
funds invested.
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 Black-Scholes simulation methodology. The fair value of the shares granted is recognised as an 
employee beneﬁts expense over the vesting period of the option, 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.
New and amended standards and interpretations
The accounting policies adopted are consistent with those of the previous ﬁnancial year. The Group has adopted all relevant new and 
amended IFRS and IFRIC interpretations effective on or after 1 January 2012 and these have not changed the Group’s accounting 
policies or had a material impact on the amounts reported in the current or prior ﬁnancial year.
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.
 IFRS 10 replaces the portion of IAS 27 that addresses accounting for consolidated ﬁnancial statements Consolidated Financial 
Statements. The standard is effective for annual periods beginning on or after 1 January 2014 although early adoption is permitted 
effective for annual periods beginning on or after 1 January 2013.
 IFRS 11 Joint Arrangements replaces IAS 31 Interests in Joint Ventures and requires interests in joint ventures to be equity accounted. 
This standard is effective for annual periods beginning on or after 1 January 2014 although early adoption is permitted.
 IFRS 12 Disclosure of Involvement with Other Entities will accompany IFRS 10 and IFRS 11. This standard combines the disclosure 
requirements previously covered by IAS 27 Consolidated and Separate Financial Statements, related to consolidated ﬁnancial 
statements, IAS 31 and IAS 28 Investments in Associates, as well as including additional disclosure requirements. This standard is 
effective for annual periods beginning on or after 1 January 2014 although early adoption is permitted.
 IFRS 13 Fair Value Measurement – provides a single framework for all fair value measurements and applies to annual periods 
beginning on or after1 January 2013.
 IAS 19 Employee Beneﬁts (Amendment) is to be applied retrospectively for annual periods beginning on or after 1 January 2013.
 IAS 27 Separate Financial Statements (as revised in 2011). The revised standard prescribes the accounting and disclosure 
requirements for investments in subsidiaries, joint ventures and associates when an entity prepares separate ﬁnancial statements. 
The accounting and disclosure requirements for investments in subsidiaries, joint ventures and associates in consolidated ﬁnancial 
statements are prescribed by IFRS 10, IFRS 11 and IFRS 12. The revised standard is to be applied for annual periods beginning on or 
after 1 January 2014 although early adoption is permitted.
 IFRIC 20 Stripping Costs in the Production Phase of Surface Mine provides a model for accounting for costs associated with the 
removal of waste during the production phase of a surface mine, including guidance on the apportionment of the costs incurred  
for obtaining a current and future beneﬁt and how capitalised costs are depreciated. This interpretation applies to annual periods 
beginning on or after 1 January 2013. As noted above, the Group currently defers stripping costs to the extent the period strip ratio 
exceeds the life of mine strip ratio. Amounts deferred on this basis will only be carried forward under IFRIC 20 where they relate to 
existing components of the ore body.
1. Signiﬁcant accounting policies continued
Notes to the ﬁnancial statements continued
For the year ended 31 December 201 2 41
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Archipelago Resources plc 
Annual Report 2012
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 2012
UK
US$000
Australia
US$000
Indonesia
US$000
Singapore
US$000
South East 
Asia
US$000
Total*
US$000
Revenue – Sale of Goods – – 230,731 – – 225,153
Cost of sales
Cash production costs
 – Mining – – (52,170) – – (52,170)
 – Processing – – (38,407) – – (38,407)
 – Selling – – (3,826) – – (3,826)
 – Overheads – –(16,044) – –(16,044)
– – (110,447) – – (110,447)
Changes in inventory – – 7 ,362 – – 10,014
Depreciation and amortisation – – (23,157) (55) – (23,212)
Administration and other costs (1,804) (347) (7 ,638) (7 ,354) (742) (17 ,885)
Proﬁt/(loss) from operations (1,804) (347) 96,851 (7,409) (742) 83,623
Other income 50 – 32 – – 82
Interest income – 1 106 – – 107
Finance expense (1) – (6,492) (908) – (7 ,401)
Proﬁt/(loss) before tax (1,755) (346) 90,497 (8,317) (742) 76,411
Tax expense – – (29,378) – – (28,370)
Net proﬁt/(loss) after tax (1,755) (346) 61,119 (8,317) (742) 48,041
Attributable to:
Equity shareholders of parent company (1,755) (346) 58,063 (8,317) (742) 44,985
Non controlling interest – – 3,056 – – 3,056
Net proﬁt/(loss) for year (1,755) (346) 61,119 (8,317) (742) 48,041
* Includes the reversal of an adjustment in the prior year that arose as a result of a difference in accounting policy between jurisdictions, resulting in lower revenue of US$5.6 million, higher 
inventory adjustment of US$2.7 million and related tax expense of US$1 million.
Sales revenue of goods are made to a single customer under a sales agreement at an agreed market price.
The results for the Indonesian operations have been reclassiﬁed to ensure consistency of disclosure across the Group.
Business Review Other Financial Statements Governance 42
Archipelago Resources plc 
Annual Report 2012 www.archipelagoresources.com
31 December 2012
UK
US$000
Australia
US$000
Indonesia
US$000
Singapore
US$000
South East 
Asia
US$000
Total*
US$000
Inventories – – 30,848 – – 30,848
Trade and other receivables 183 – 7 ,564 310 – 8,057
Cash and cash equivalents 414 20 50,386 296 12 51,128
Non current assets 651 – 290,752 172 – 291,575
Total assets 1,248 20 379,550 778 12 381,608
Current liabilities 402 28 63,304 9,090 – 72,824
Non current liabilities – – 62,486 – – 62,486
Total liabilities 402 28 125,790 9,090 – 135,310
Net assets 846 (8) 253,760 (8,312) 12 246,298
Capital expenditure – 3 18,643 39 – 18,685
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)
– – (4 1,6 1 7) – – (4 1,6 1 7)
Changes in inventory – – 11,562 – – 8,909
Depreciation and amortisation – – (14,068) – – (14,068)
Administration and other costs (3,092) (629) (5,101) (5,176) (1,650) (15,648)
Proﬁt/(loss) from operations (3,092) (629) 38,457 (5,176) (1,650) 30,835
Other income 93 5 56 – – 154
Finance expense – – (4,153) (892) – (5,045)
Proﬁt/(loss) before tax (2,999) (624) 34,360 (6,068) (1,650) 25,944
Tax expense – – (12,238) – – (13,246)
Net proﬁt/(loss) after tax (2,999) (624) 22,122 (6,068) (1,650) 12,698
Attributable to:
Equity shareholders of parent company (2,999) (624) 22,116 (6,068) (1,650) 12,692
Non controlling interest – – 6 – – 6
Net proﬁt/(loss) for year (2,999) (624) 22,122 (6,068) (1,650) 12,698
* Includes an adjustment arising as a result of a difference in accounting policy between jurisdictions, resulting in higher revenue of US$5.6 million, lower inventory adjustment of US$2.7 
million and related tax expense of US$1 million.
Sales revenue of goods are made to a single customer under a sales agreement at an agreed market price.
The results for the Indonesian operations have been reclassiﬁed to ensure consistency of disclosure across the Group.
2. Segment information continued
Notes to the ﬁnancial statements continued
For the year ended 31 December 201 2 43
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Archipelago Resources plc 
Annual Report 2012
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 – – 74,042 15,000 – 89,042
Total liabilities 602 105 101,176 15,790 – 122,673
Net assets 3,487 371 206,819 (10,515) 2 197 ,264
Capital expenditure – 2 50,258 266 – 50,526
* Includes an adjustment arising as a result of a difference in accounting policy between jurisdictions, resulting in lower inventory of US$2.7 million, higher debtors of US$0.6 and deferred tax 
of US$1 million and reduced current liabilities US$5 million.
3. Operating proﬁt
Year ended 
31 December 
2012
US$000
Year ended 
31 December 
2011
US$000
Operating Proﬁt has been arrived at after charging/(crediting):
Inventory adjustments to Cost of Sales (included in work in progress) (10,014) (8,910)
Depreciation of property, plant and equipment (note 8) 14,298 9,090
Amortisation of pre-operating expenses and mine development (note 9) 8,914 3,791
Finance costs:
Bank interest and loan charges 4,053 2,586
Finance lease expense 2,782 2,044
Restoration ﬁnance charges 566 415
Audit services:
– fees payable to the parent company’s auditor for the audit of the Company and Group accounts 82 66
– fees payable to auditors for the audit of subsidiaries’ accounts 126 91
Exploration and evaluation costs written off (note 9) 742 1,650
Borrowing costs written off – 539
Net foreign exchange losses 1,382 72
4. Remuneration of key management personnel
Year ended 
31 December 
2012
US$000
Year ended 
31 December 
2011
US$000
Wages, salaries and bonus 2,712 3,726
Share-Based Payments 6 605
Other employee costs 840 179
Total remuneration 3,559 4,510
Highest paid director 889 1,261
The share-based payments are in relation to share options issued to 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.
Business Review Other Financial Statements Governance 44
Archipelago Resources plc 
Annual Report 2012 www.archipelagoresources.com
5. Total employee remuneration (including key management personnel)
Year ended 
31 December 
2012
US$000
Year ended 
31 December 
2011
US$000
Wages and salaries (includes executive directors) 17 ,645 9,467
Share-Based Payments 7 708
Other employee costs 1,808 2,313
Total remuneration 19,460 12,488
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.
The Group had the following employees:
2012
Average No.
2011
Average No.
Directors 5 2
Management and administration 96 64
Development, mining, processing and exploration staff 636 469
Total employees 737 535
6. Taxation
Year ended 
31 December 
2012
US$000
Year ended 
31 December 
2011
US$000
Current tax charge
Current tax 18,750 5,757
Deferred tax 9,620 7,489
28,370 13,246
Reconciliation of current tax charge
Proﬁt on ordinary activities 76,411 25,944
Tax calculated at a rate of 17% (2011: 17%) 12,990 4,411
Effects of:
 – Different tax rates in other countries 13,890 6,202
 – Expenses not deductible for tax purposes 820 1,676
 – Income not assessable for tax purposes (34) (6)
 – Deferred tax asset not recognized 704 963
Tax expense recognized in accounts 28,370 13,246
The tax rate for 2012 is 17% to reﬂect the current corporate tax rate of Singapore, the company’s principal place of business.
Notes to the ﬁnancial statements continued
For the year ended 31 December 201 2 45
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Archipelago Resources plc 
Annual Report 2012
The detailed calculation of the deferred tax asset (liability) as of 31 December 2012 and 2011 is as follows:
Year ended 31 December 2012
Beginning 
Balance
US$000
Deferred 
Income Tax 
Beneﬁt 
(Expense)
US$000
Ending 
Balance
US$000
Utilised tax loss 350 (350) –
Provisions 474 503 977
Depreciation and amortization (4,344) (11,563) (15,907)
Stripping costs (1,706) 1,106 (600)
Leasing costs (408) (322) (730)
Revenue not assessable (1,006) 1,006 –
(6,640) (9,620) (16,260)
Year ended 31 December 2011
Beginning 
Balance
US$000
Deferred 
Income Tax 
Beneﬁt 
(Expense)
US$000
Ending 
Balance
US$000
Utilised tax loss 849 (499) 350
Provisions –474 474
Depreciation and amortization – (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)
Factors affecting future tax charge and deferred taxation
The Group has taxable losses to carry forward and offset against future proﬁts of approximately US$5.3 million (201 1: US$6.8 million).  
No deferred tax asset has been recognised as recovery of the amount cannot be reasonably foreseen based on the Group’s current activities.
7. Earnings per share
Year ended 
31 December 
2012
Shares
Year ended 
31 December 
2011
Shares
Weighted average number of shares in issue for the year
– number of shares with voting rights 573,329,306 569,249,238
– effect of share options in issue 7,753,301 11,448,301
Total used in calculation of diluted earnings per share 581,082,607 580,697,539
US$000 US$000
Earnings per share
Net proﬁt attributable to equity shareholders of the parent 44,985 12,692
Earnings per share (cents per share)
– basic 0.078 0.022
– diluted 0.077 0.022
The calculation of basic earnings per share is calculated by dividing proﬁt 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 7 ,753,301 options on issue which could potentially dilute ordinary shares. The dilutive earnings associated with 
these options would result in a proﬁt of US$45,021 (201 1: US$12,744) for the year attributable to equity shareholders of the Company.
Business Review Other Financial Statements Governance 46
Archipelago Resources plc 
Annual Report 2012 www.archipelagoresources.com
8. Property, plant and equipment
Year ended 31 December 2012
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 2012 11,210 126,504 2,570 363 10,916 769 152,332
Additions 1,744 12 1,245 14,708 394 976 19,079
Disposals – (392) (2, 182) – – (1 3) (2,587)
Reclassiﬁcation 2,201 (4,543) 2,185 (57) – 214 –
Transfer to development, exploration and 
evaluation (note 9) – – – (5,819) – – (5,819)
At 31 December 2012 15,155 121,581 3,818 9,195 11,310 1,946 163,005
Depreciation
At 1 January 2012 (1,436) (8,791) (518) – (505) (310) (11,560)
Charge for the year:
Depreciation (625) (11,126) (1,486) – (885) (176) (14,298)
Disposals – – 1,015 – – 13 1,028
Reclassiﬁcation (107) 1,059 (852) – – (100) –
At 31 December 2012 (2,168) (18,858) (1,841) – (1,390) (573) (24,830)
Net book value
At 31 December 2012 12,987 102,723 1,977 9,195 9,920 1,373 138,175
at 1 January 2012 9,774 117 ,713 2,052 363 10,411 459 140,772
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 development, exploration and 
evaluation (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
Notes to the ﬁnancial statements continued
For the year ended 31 December 201 2 47
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Archipelago Resources plc 
Annual Report 2012
The carrying value of plant and equipment and vehicles held under ﬁnance leases at 31 December 2012 is US$6,356 (2011: US$6,470). 
Depreciation expense on the lease plant and equipment and vehicles was US$813 in 2012 (2011: US$1,231).
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 charged to the income statement on a units of production basis of the life of mine. The total charge for the year was 
US$885 (2011: US$505)
9. Development, exploration and evaluation
Development
US$000
Exploration 
and evaluation
US$000
Total
US$000
Year ended 31 December 2012
Net book value
At 1 January 2012 96,245 10,421 106,666
Expenditure during the year 6,685 13,411 20,096
Write off –(742) (742)
Reclassiﬁcation from property, plant and equipment (note 8) 14,854 (9,035) 5,819
Amortisation (8,914) – (8,914)
At 31 December 2012 108,870 14,055 122,925
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 (1 1,865) –
Reclassiﬁcation from property, plant and equipment (note 8) 21,434 – 21,434
Amortisation (3,791) – (3,791)
At 31 December 2011 96,245 10,421 106,666
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 
US$2,044, prior commencement of the commercial production.
10. Deferred stripping
31 December 
2012
US$000
31 December 
2011
US$000
Balance of costs at beginning of period 5,112 –
Additions 4,039 5,269
Redemptions (7,151) (1 57)
Balance of costs at end of period 2,000 5,112
Costs associated with stripping activities where the stripping ratio exceeded the expected average stripping ratio over the life of a mine 
have been capitalised during the year. These amounts are expected to be redeemed over the life of mine.
Capitalised stripping costs have been redeemed during the year as a result of the stripping ratio falling below the expected average 
stripping ratio for the life of mine.
Business Review Other Financial Statements Governance 48
Archipelago Resources plc 
Annual Report 2012 www.archipelagoresources.com
11. Investments
Group
Other 
ﬁxed asset 
investments
US$000
Total
US$000
At 1 January 2012 952 952
Additions 15 15
Disposals (316) (316)
At 31 December 2012 651 651
At 1 January 2011 939 939
Additions 13 13
At 31 December 2011 952 952
Company
Shares in 
subsidiary 
undertakings
US$000
Other 
ﬁxed asset 
investments
US$000
Total
US$000
At 1 January 2012 250 952 1,202
Additions –1515
Disposals (250) (316) (566)
Additional Capital Contributions 7 ,109 – 7 ,109
At 31 December 2012 7,109 651 7,760
At 1 January 2011 250 939 1,189
Additions –1313
Disposals –––
At 31 December 2011 250 952 1,202
Other ﬁxed asset investments represents investments in Archipelago Metals Ltd US$651 (2011: US$651) and Corplex Resources Inc. 
which was written off during the year US$Nil (2011: US$301).
The additional capital contributions arises from the recognition of the amortised cost adjustment relating to the loan amounts 
receivable from subsidiaries using the effective interest method.
Subsidiary undertakings
Archipelago Resources plc owns 100% of the shares and voting rights in the following subsidiary undertakings as at 31 December 2012:
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
Metals Holdings Pte Ltd Singapore Ordinary shares Dormant
Metals Vietnam Pte Ltd Singapore Ordinary shares Dormant
Notes to the ﬁnancial statements continued
For the year ended 31 December 201 2 49
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Archipelago Resources plc 
Annual Report 2012
Archipelago Resources Pty Limited owns 100% of the shares and voting rights in the following subsidiary undertakings as at 
31 December 2012:
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 shares and voting rights in the following subsidiary undertakings as at 
31 December 2012:
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
As a condition of the ﬁnance facility there is a restriction over the transfer of the interests in the above Indonesian companies as 
detailed in Note 20.
12. Other non-current receivables
Group Company
31 December 
2012
US$000
31 December 
2011
US$000
31 December 
2012
US$000
31 December 
2011
US$000
Amounts receivable from subsidiaries – – 192,077 190,372
Fair value adjustment – – (7,109) –
Indirect tax recoverable 27,824 16,328 – –
27,824 16,328 184,968 190,372
The receivables from subsidiaries are unsecured, subject to interest at LIBOR plus 3% per annum from the draw down date(s) and 
repayable 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.
The fair value adjustment represents the difference between the face value and amortised cost of the amounts receivable from 
subsidiaries using the effective interest method.
The tax recoverable relates to Indonesia VAT and is expected to be recovered based on pending claims.
13. Inventories
Group
31 December 
2012
US$000
31 December 
2011
US$000
Consumables 11,924 15,069
Work in progress and ﬁnished goods 18,924 8,910
30,848 23,979
Consumables includes stocks of mining supplies, reagents, lubricants and spare parts held on site.
Work in progress and ﬁnished goods reﬂects the cost of gold contained in stockpiles and in circuit as well as gold poured which is on-site.
Business Review Other Financial Statements Governance 50
Archipelago Resources plc 
Annual Report 2012 www.archipelagoresources.com
14. Trade and other receivables
Group Company
31 December 
2012
US$000
31 December 
2011
US$000
31 December 
2012
US$000
31 December 
2011
US$000
Trade receivables 4,808 600 – –
Prepaid expenses 1,337 1,247 131 –
Other receivables 1,912 1,930 52 591
8,057 3,777 183 591
Trade receivables are non-interest bearing and are generally on 30 day terms, with no amount past due at year end.  There has been no 
default from customers and as a result credit risk is considered low.
Other receivables consist primarily of VAT recoverable from operations at Toka Tindung that can be recovered in future years.
The amounts presented do not include any impairment provision and 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 
2012
US$000
31 December 
2011
US$000
31 December 
2012
US$000
31 December 
2011
US$000
Cash at bank and in hand 30,892 19,992 427 3,133
Deposits at call 7,000 – – –
Restricted cash 13,236 2,359 – –
51,128 22,351 427 3,133
The credit risk on liquid funds is limited because the counterparties are banks with high credit ratings assigned by international credit-
rating agencies.
Restricted cash includes funds on deposit in separate bank account as a condition of the ﬁnance facility detailed in Note 20.
16. Share capital
2012 
Shares
2011 
Shares
2012 
US$
2011 
US$
Authorised
Ordinary shares of 1 pence each 700,000,000 700,000,000 11,216 10,819
Allotted, called up and fully paid
Opening balance 571,897,635 569,197 ,635 9,416 9,373
Issued during the year 3,635,000 2,700,000 57 43
Closing balance 575,532,635 571,897 ,635 9,473 9,416
1) On 6 January 2012, 300,000 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$63,850 (GBP 11,700).
2) On 11 January 2012, 100,000 and 200,000 ordinary shares were issued at an exercise price under the employee share option plan at 6 cents (3.90 pence) and 33 cents (21.1 pence) per share 
respectively to raise US$71,252 (GBP 46,100).
3) On 3 February 2012, 150,000 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$9,184 (GBP 5,850).
4) On 2 March 2012, 200,000 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$12,363 (GBP 7,800).
5) On 5 April 2012, 600,000 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$37,416 (GBP 23,400).
6) On 16 April 2012, 320,000 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$19,955 (GBP 12,480).
7) On 18 April 2012, 45,000 ordinary shares were issued at an exercise price under the employee share option plan at 62 cents (38.50 pence) per share to raise US$27,702 (GBP 17,325).
8) On 29 June 2012, 700,000 ordinary shares were issued at an exercise price under the employee share option plan at 60 cents (38.50 pence) per share to raise US$419,847 (GBP 269,500).
9) On 3 September 2012, 50,000 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$3,085 (GBP 1,950).
10) On 1 October 2012, 20,000 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$1,261 (GBP 780).
11) On 30 October 2012, 150,000 ordinary shares were issued at an exercise price under the employee share option plan at 62 cents (38.50 pence) per share to raise US$93,371 (GBP 57,750).
12) On 27 November 2012, 600,000 ordinary shares were issued at an exercise price under the employee share option plan at 42 cents (25.85 pence) per share to raise US$249,037 (GBP 155,100).
13) On 5 December 2012, 200,000 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$12,498 (GBP 7,800).
The related premium on these options issued has been included in the share premium reserve.
Notes to the ﬁnancial statements continued
For the year ended 31 December 201 2 51
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Archipelago Resources plc 
Annual Report 2012
17. Other reserves
Group
Options 
reserve
US$000
Foreign 
exchange
US$000
Total
US$000
At 1 January 2012 4,318 1,149 5,467
Movement in the year (4,318) – (4,318)
At 31 December 2012 –1,149 1,149
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
Company
Options 
reserve
US$000
Foreign 
exchange
US$000
Total
US$000
At 1 January 2012 3,340 1,676 5,016
Movement in the year (3,340) – (3,340)
At 31 December 2012 – 1,676 1,676
At 1 January 2011 8,354 1,676 10,030
Movement in the year (5,014) – (5,014)
At 31 December 2011 3,340 1,676 5,016
The options reserve arose as a result of the cost associated with options issued to directors and employees in prior years which will be 
transferred to retained earnings as and when these options are exercised or lapse.
Foreign exchange reserves arose as a result of a change in functional currency in a prior year.
18. Share options
Details of the number of share options and the weighted average exercise price (WAEP) outstanding during the year are as follows:
2012 2011
Number 
Shares WAEP US$
Number 
Shares WAEP US$
Outstanding at the beginning of the year 11,448,301 0.27 14,458,301 0.23
Exercised (3,635,000) 0.27 (2,700,000) 0.08
Lapsed (60,000) 0.61 (310,000) 0.56
Outstanding at the year end 7,753,301 0.28 11,448,301 0.27
Exercisable at the year end 7,753,301 0.28 11,448,301 0.27
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 include approximately 6.2 million options which are subject to shareholder approval prior to 
exercise, including these options the average remaining term of approximately 9 months.
Business Review Other Financial Statements Governance 52
Archipelago Resources plc 
Annual Report 2012 www.archipelagoresources.com
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
(US$)
Weighted 
average share 
price at 
measurement 
date
(US$)
Model 
used
31-Aug-12 0.00 60.00 0.01 1.84 0.193 0.449 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 0.243 0.241 Black-Scholes
31-Dec-13 0.00 60.00 2.34 4.91 0.039 0.035Black-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 
2012
US$000
31 December 
2011
US$000
31 December 
2012
US$000
31 December 
2011
US$000
Current liabilities
Trade payables and accruals 26,841 15,997 395 193
Other payables 1,160 1,244 7 409
28,001 17 ,24 1 402 602
Trade payables and accruals principally comprise amounts outstanding for trade purchases and ongoing costs. The average credit 
period taken for trade payables is 59 days (2011: 42 days).
The Directors consider that the carrying amount of trade and other payables approximates to their fair value.
20. Other ﬁnancial liabilities
Group Company
31 December 
2012
US$000
31 December 
2011
US$000
31 December 
2012
US$000
31 December 
2011
US$000
Non-current liabilities
Bank loans 27,500 64,500 – –
Finance lease 4,600 5,673 – –
32,100 70,173 – –
Current liabilities
Bank loans 29,500 9,567 – –
Finance lease 1,598 1,473 – –
31,098 11,040 – –
The bank loans are secured by:
 share pledges restricting sale or transfer of the interests in the Indonesian companies; and
 assignment of the intercompany receivables due from the Indonesian companies respectively.
Notes to the ﬁnancial statements continued
For the year ended 31 December 201 2
18. Share options continued 53
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Archipelago Resources plc 
Annual Report 2012
21. Provisions
Group Company
31 December 
2012
US$000
31 December 
2011
US$000
31 December 
2012
US$000
31 December 
2011
US$000
Non-current liabilities
Employee beneﬁt 1,696 759 – –
Mine closure 12,430 11,470 – –
14,126 12,229 – –
Employee 
Beneﬁts 
US$000
Mine 
Closure 
US$000
Total 
US$000
At 1 January 2012 759 1 1,470 12,229
Expense 1,015 755 1,770
Beneﬁts paid (78) – (78)
Unwind of discount –205 205
At 31 December 2012 1,696 12,430 14,126
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 2012 and 2011 are based on actuarial valuation 
reports of PT Towers Watson Purbajaga, an independent actuary. The calculation of employee service entitlements is based on the 
following assumptions:
2012 2011
Discount rate 5.0% 6.0%
Salary increase 8.0% per annum 8.0% per annum
Normal retirement age 55 years 55 years
Method Projected unit credit Projected unit credit
The provision for employee service entitlements as of 31 December 2012 is as follows:
2012 
US$000
2011 
US$000
Projected beneﬁt obligation 2,531 1,74 1
Unfunded obligation 2,531 1,74 1
Unrecognised actuarial loss (835) (982)
1,696 759
The components of the employee service entitlements expense are as follows:
31 December 
2012
US$000
31 December 
2011
US$000
Service cost 910 282
Interest cost 96 50
Other cost 9 32
1,015 364
Business Review Other Financial Statements Governance 54
Archipelago Resources plc 
Annual Report 2012 www.archipelagoresources.com
Mine Closure
The provision for mine closure is an estimate of the present value of the aggregate obligations in relation to reclamation and mine 
closure. To calculate the fair value of these obligations an estimated discount rate of 5% has been used as at 31 December 2012 on the 
basis of long-term government bonds and discounted the current best estimate projected cash ﬂows relating to the closure of the mine.
22. Obligations under a ﬁnance lease
31 December 
2012
US$000
31 December 
2011
US$000
Gross ﬁnance lease obligations – minimum lease payment
No later than 1 year 3,683 4,053
Later than 1 year and no later than 5 years 6,480 9,586
10,163 13,639
Future ﬁnance charges on ﬁnance leases (3,965) (6,494)
Present value of ﬁnance lease obligation 6,198 7, 1 45
The present value of ﬁnance lease obligations is as follows:
No later than 1 year 1,598 1,472
Later than 1 year and no later than 5 year 4,600 5,673
Present value of ﬁnance lease obligations 6,198 7, 1 45
An obligation under ﬁnance leases arises primarily from the rental of power generation units under a “Build, Own, Operate, Transfer”. 
The Company has the right, exercisable at any time during the term of the contract, to purchase the equipment based on a price 
detailed in the contract schedule.
The fair value of the Group’s lease obligation is approximately equal to their carrying value.
23. Notes to the statements of cash ﬂows
(a) Reconciliation of operating loss to net cash outﬂow from operating activities
Group Company
2012
US$000
2011
US$000
2012
US$000
2011
US$000
Operating proﬁt/(loss) before tax 83,812 30,989 (2,747) (3,761)
Non-cash items:
Depreciation 23,212 13,386 – –
Exploration and evaluation expenditure written off 742 1,650 – –
Investments written-off 302 – 552 –
Share-based payments 6 1,074 – 365
Provision for employee entitlements 937 363 – –
Provision for rehabilitation 960 3,758 – –
Gain on sale of asset – (16) – –
Loss of sale of investment 528 – – –
Stripping costs 3,112 (5,1 12) – –
Changes in net assets and liabilities:
Change in trade and other receivables (15,685) (1 1,455) 408 1,040
Change in prepayments (90) (1,248) – –
Change in Inventory (6,869) (19,726) – –
Change in trade and other payables 13,097 5,287 (200) 274
Corporate taxes paid (10,375) (407) – –
Increase in provisions – (45) – –
Net cash inﬂows/(outﬂows) from operating activities 93,689 18,498 (1,987) (2,082)
Notes to the ﬁnancial statements continued
For the year ended 31 December 201 2
21. Provisions continued 55
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Archipelago Resources plc 
Annual Report 2012
(b) Analysis of net funds
31 December 
2011
US$000
Cash ﬂows
US$000
Exchange 
differences
US$000
Other 
non-cash 
movements
US$000
31 December 
2012
US$000
Cash 22,351 28,777 – – 51,128
24. Contingent liabilities
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.
25. Financial instruments
The Group’s ﬁnancial instruments comprise trade receivables and payables, other payables, 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 Group’s  
cash ﬂow requirements and the interest rate is ﬁxed with the bank on rollover of the deposits.
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 is to ensure there are sufﬁcient loan facilities (including reﬁnancing, where necessary) in order to meet operational 
requirements, after taking into account cash ﬂows from operations and its holdings of cash and cash equivalents, as well as any Group 
distribution restrictions that exist. 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 2012 and have concluded that the fair 
value of those assets and liabilities is not materially different from book value.
Business Review Other Financial Statements Governance 56
Archipelago Resources plc 
Annual Report 2012 www.archipelagoresources.com
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
2012
US$000
2011
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 Pty Ltd to Archipelago Resources Pte Ltd 167 537
Archipelago Resources Pte Ltd to PT Meares Soputan Mining 2,817 1,971
Archipelago Resources Pte Ltd to PT Tambang Tondano Nusajaya 2,797 1, 1 57
Sub total 5,781 4,553
Rental of building:
PT Rajawali Adiwisma, an afﬁliate 40 42
Operating consumables expenses charged by:
PT Meares Soputan Mining to PT Tambang Tondano Nusajaya 6,730 1,01 1
PT Meares Soputan Mining to Archipelago Resources Pte Ltd 51 106
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 36 38
PT Rajawali Corpora to Archipelago Resources plc 5 –
Sub total 6,822 1,801
Gold sales:
PT Rajawali Corpora – 253
Employees 27 32
Sub total 27 285
Joint processing services between:
PT Tambang Tondano Nusajaya & PT Meares Soputan Mining 19,911 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 and Directors of the Group.
Notes to the ﬁnancial statements continued
For the year ended 31 December 201 2 57
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Archipelago Resources plc 
Annual Report 2012
(b) Due from related parties
2012
US$000
2011
US$000
Archipelago Resources Pte Ltd 191,283 189,558
Archipelago Resources Pty Ltd 794 814
Total 192,077 190,372
Majority Controlling Shareholder
PT Rajawali is the controlling shareholder of the Group holding 52.1 % of issued shares.
Group undertakings
As at 31 December 2012, there was a loan agreement between the Company and Archipelago Resources Pte Ltd to provide funding  
for development to the Toka project in Indonesia. The loan is interest free and as at 31 December 2012 the balance of the loan was 
US$191,283 (2011: US$189,558).
In turn Archipelago Resources Pte Ltd has an interest free loan payable to PT Meares Soputan Mining of US$149,442 and PT Tambang 
Tondano Nusajaya of US$86,187 which are all repayable after 31 December 2012.
Transactions with other related parties
There were no related party transactions other than those disclosed in this report.
27. Subsequent events
On 26 April 2013, the Group announced an increase in mineral resource estimates for the Toka Tindung Project. The resource has 
increased from 52.6 million tonnes to 70.3 million tonnes and, excluding silver as gold equivalent ounces, contained gold resources 
have increased by 16 %.
Business Review Other Financial Statements Governance 58
Archipelago Resources plc 
Annual Report 2012 www.archipelagoresources.com
Directors
Stephen Sulistyo (Non-Executive Chairman)
Marcus Engelbrecht (Chief Executive Ofﬁcer and 
Managing Director)
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
Nominated Adviser
Grant Thornton UK LLP ,
30 Finsbury Square,
London EC2P 2YU
Brokers
Canaccord Genuity Limited,
88 Wood Street,
London EC2V 7QR
Liberum Capital Limited,
Ropemaker Place, Level 12,
25 Ropemaker Street,
London EC2Y 9LY
Directors and Advisers 59
 www.archipelagoresources.com
Archipelago Resources plc 
Annual Report 2012
Terms and abbreviations used in this report include the following: 
Ag Silver 
Archipelago Archipelago Resources plc 
(Registration No. 4425340)
Au Gold 
Company Archipelago Resources plc 
(Registration No. 4425340)
CSR Corporate Social Responsibility
Eq Equivalent
g/t Grams per tonnes
Group Archipelago’s corporate group
JORC In respect of: mineral exploration results and Ore 
Reserves, JORC means the 2004 Australasian Code 
for Reporting of Exploration Results, Mineral 
Resources & Ore Reserves. In respect of Mineral 
Resources, JORC means the 2012 Australasian Code 
for Reporting of Exploration Results, Mineral 
Resources & Ore Reserves.
k Thousand
LTI Lost time injury
m Million
oz Troy ounces
tTonnes 
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. 
Glossary of terms
Competent Person Statement
The information in this report that relates to mineral  
exploration results has 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. Mr Fleming is a member  
of the Australasian Institute of Mining and Metallurgy and has 
sufﬁcient experience relevant to the style of mineralisation and 
type of deposit under consideration to qualify as a Competent 
Persons as deﬁned in JORC. Mr Fleming consents to the inclusion 
of the information contained in this Annual Report in the form 
and context in which it appears.
The information in this report that relates to Mineral Resources, 
together with any related assessments and interpretations, has 
been veriﬁed by and approved for release by Mr Graham Petersen 
BSc (Geology), MAusIMM, a qualiﬁed geologist and a full-time 
employee PT Tambang Tondano Nusajaya, a subsidiary of 
Archipelago. Mr Petersen has sufﬁcient experience which is 
relevant to the style of mineralisation and type of deposit under 
consideration and to the activity which he is undertaking to 
qualify as a Competent Person as deﬁned by JORC. Mr Petersen 
consents to the inclusion of the information contained in this 
Annual Report in the form and context in which it appears.
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, a subsidiary of 
Archipelago, prior to 30 January 2012. Mr Pontin is a member  
of the Australasian Institute of Mining and Metallurgy and has 
sufﬁcient experience relevant to the style of mineralisation and 
type of deposit under consideration to qualify as a Competent 
Person as deﬁned in JORC. 
Business Review Financial Statements Other Governance 60
Archipelago Resources plc 
Annual Report 2012 www.archipelagoresources.com
Notes  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.com