archipelago resources plc   
annual report 2011
archipelago resources plc  annual report 2011
a platform for growth
registered office 
22 melton street 
london nw1 2bw 
united kingdom 
 
administration 
9 raffles place
2902 republic plaza
singapore   048619
 
phone 65 6535 3419
fax 65 6532 2620
email investorarplccomsg
website httpwwwarchipelagoresourcescouk designed and produced by emperor design consultants ltd
telephone 44 020 7729 9090  wwwemperordesigncouk
archipelago resources plc is a gold 
producer listed on the alternative 
investment market of the london 
stock exchange aim ar 
the vision of archipelago 
resources plc “archipelago”  
or “the company” is to grow 
into a respected and regionally 
dominant midcap gold 
producer managing a portfolio 
of gold mines and delivering 
significant value and returns for 
our shareholders archipelago’s 
principal activities are gold 
mining and exploration in 
indonesia as the 95 owner  
of the producing toka tindung 
gold mine in north sulawesi 
indonesia archipelago is also 
advancing exploration initiatives 
in vietnam and the philippines 
in 2012 archipelago expects  
to produce between 135000 
and 145000 gold equivalent 
ounces at a cash cost of 
between us540 and  
us590 per ounce 01 archipelago resources plc  
annual report 2011
business review governance financial statements
highlights
  successful commissioning of the toka tindung gold 
mine in north sulawesi indonesia with first gold 
pour occurring on 1 april 2011
  successful completion of construction and ramp up 
with nameplate production being achieved in 
november 2011
  raised project finance of us70 million to complete 
funding of the construction of the mine
  acquired an additional 10 in the toka tindung 
project increasing archipelago’s ownership to 95
  production of 61191 au eq oz 2010 nil 
  group net profit before tax of us259 million 2010 
loss of us124 million
  closing cash of us223 million as at 31 december 
2011 2010 us241 million and
  subsequent to year end the publication of a revised 
jorc compliant resource and reserve statement 
supporting an increase in the life of mine to nine 
years and seven years of stockpiles 
business review
01 highlights
02 asset overview
04 chairman’s statement
06 achievements
08 chief executive’s review
14 principal risks and uncertainties
16 resource and reserve
18 corporate social responsibility 
governance
22 board of directors
23 experienced management team
24 directors’ report
27 corporate governance
financial statements
28 independent auditors’ report 
29  statement of directors’ 
responsibilities in respect of the 
financial statements
30  group statement of 
comprehensive income
31 statements of financial position
32 statements of changes in equity
33 statements of cash flow
34 notes to the financial statements
59 directors and advisers
60 glossary of terms
60 competent person statement
we will achieve our vision by 
adhering to the following values 
leadership integrity  teamwork 
corporate citizenship and 
maximising shareholder value
marcus engelbrecht
chief executive archipelago resources plc  
annual report 2011
02
asset overview
following the successful commissioning of  
t oka tindung archipelago has created a significant  
value proposition for investors a quality low cost  
south east asian gold producer with excellent  
growth potential
regional summary
archipelago’s principal gold mining 
project is at toka tindung in north 
sulawesi indonesia it is located about 
34km northeast of the provincial 
capital manado sulawesi has a 
population in excess of 17 million and 
is the 11th largest island in the world 
market opportunity
having completed the production 
ramp up at toka tindung archipelago 
now has optionality to grow through 
resource expansion ongoing 
exploration and leverage to 
consolidation opportunities
asset summary
the toka tindung gold mine is  
the company’s principal asset and 
comprises a system of epithermal 
veins containing a resource of  
269 million gold equivalent ounces
title to the toka tindung gold mine  
is via two contracts of work 
arrangements and exploration permits 
covering 400km² of well mineralised 
and only partially explored ground  
in addition to the defined resource 
the company holds a 95 interest  
in the project 
first gold pour occurred in april 2011 
production for 2011 was 61191 au  
eq oz for the next six years the 
company forecasts annual 
production of circa 160000 au eq oz 
at a head grade of 289 gt au
other projects
the company maintains an 
exploration team in hanoi vietnam 
which is responsible for pursuing and 
reviewing opportunities in vietnam 
and across indochina team 
members have strong and effective 
relationships with government and 
business leaders across the region
archipelago also has the right to 
acquire not less than an 80 interest 
in the corplex projects including  
in the goldcopper rich surigao 
peninsula of north east mindanao 
philippines host to the highgrade 
boyongan coppergold porphyry 03 archipelago resources plc  
annual report 2011
vietnam
exploration indochina focus
singapore
corporate office
toka tindung gold project  
sulawesi indonesia
  location north sulawesi 
indonesia 34km to 
manado population 1m 
– infrastructure in place
  ownership 95  
archipelago 5  rajawali 
corporation
  tenement 400km
2
 fully 
permitted  valid mining 
concession
  resource 269 moz  
au eqgrade of 153 gt
  reserve 154 moz au eq
grade of 17 gt
  current mine plan five 
pits to mine for nine 
years then stockpiles  
for seven years including 
circa 160 koz au eq at 
head grade of 289gt au  
for next six years
  nameplate production 
capacity 17mtpa
  workforce 70 local 
community 25 broader 
indonesia 5 expatriate
  health  safety 3 ltis  
in 2011
philippines
exploration mindanao focus
business review governance financial statements archipelago resources plc  
annual report 2011
04
the archipelago board of directors
chairman’s statement
stephen k sulistyo
nonexecutive chairman
26 april 2012
overview
t o our shareholders 2011 was an 
exciting year for archipelago as the 
company successfully transitioned 
from developer to full production 
status there are few other companies 
in the region which have achieved 
such a move in recent times and on 
behalf of my fellow directors i am 
pleased to provide shareholders with 
this update
progressing into 2012 archipelago 
remains fully funded and is set to 
become a strong cash generator  
our robust production profile 
comparatively low cost base and 
strong social licence are core 
strengths for the company
archipelago continues to increase  
its operational scale and output 
supporting growth initiatives 
organically and by leveraging off our 
high quality t oka tindung asset base 
this foundation mine a strong balance 
sheet and exploration upside support 
archipelago’s growing profile in the 
region and more broadly with south 
east asian collaboration being of 
particular interest archipelago is well 
placed to take a leading role in gold 
sector consolidation
moving forward archipelago is also 
committed to expanding our 
exploration and near site drilling 
programme with potential reserve 
increases providing the impetus to 
examine throughput expansion 
options in this regard archipelago  
is setting the foundation to 
exponentially grow our production 
base at toka tindung conceptually 
greater reserves and incremental 
infrastructure changes are likely to 
provide a basis for material increases 
in low cost ounce production
we are now building a team that can 
leverage the quality of the t oka tindung 
asset to grow the business and create 
significant shareholder returns 05 archipelago resources plc  
annual report 2011
business review governance financial statements
the indonesian economy is the 
largest in south east asia since 2004 
it has enjoyed a significant rise in 
economic growth resulting in the 
credit rating agencies upgrading 
indonesia’s sovereign debt in this 
regard the strength of the indonesia 
economy provides a robust local 
business environment which is to the 
benefit of archipelago i am also 
pleased to report that during the year 
our work within the communities 
around the mine continued and the 
company maintains its excellent 
relations with the local community 
leaders and the regional government 
with 11 villages and over 11000 
people surrounding the operations it 
is worth remembering the significant 
contribution that the company makes 
to local communities from an 
employment procurement 
investment and cultural perspective 
during the year the company 
continued to invest in schools 
infrastructure medical services and 
treatments as well as community 
centres and fresh water supply 
systems archipelago also continues 
to adhere to the highest 
environmental standards
archipelago closely observes policy 
and legislative developments in 
indonesia for example the 
government recently issued a law 
requiring foreign owned iup holders 
to divest some of their interests in 
indonesian mineral projects after five 
years of commercial production the 
new divestment regime will not apply 
to archipelago’s mining concessions 
which are based on two binding and 
preexisting contract of work 
arrangements notwithstanding 
archipelago continues to monitor 
political and regulatory changes in 
indonesia
on behalf of the board of directors  
i would like to thank our shareholders 
for their ongoing support and we look 
forward to further growth and 
progress throughout 2012
 iup refers to “izin usaha pertambangan” which 
translates as mining business licence
160000 oz
  circa 160000 au eq oz pa  
for next six years at a 
competitive cash cost 
compared to peers head 
grade of 289gt au
our core strengths
  fully funded 
  strong cash generator 
  resource and reserve 
expansion 
  robust production 
profile 
  comparatively low  
cash costs 
  strong social licence  
  collaborative major 
shareholder 
  strong management 
team
expanding  
our resources archipelago resources plc  
annual report 2011
06
achievements
march
us15 million working 
capital loan facility
archipelago secured a  
us15 million subordinated loan 
facility with standard bank to 
provide corporate working 
capital
january
provision of a us55 
million loan facility 
archipelago secured a  
us55 million loan facility  
from permata a prominent 
indonesian bank the funds were 
used to complete construction 
of the toka tindung gold mine
april
first production
archipelago poured its first gold 
at the toka tindung gold mine 
establishing the growth 
platform 07 archipelago resources plc  
annual report 2011
2011 achievements 
funding 
project completion
first gold pour
new ceo
nameplate production
resource and reserve increase
november
full production at toka 
tindung gold mine
the company achieved nameplate 
processing throughput criteria of 
17 mtpa fulfilling an important 
milestone for archipelago 
nameplate throughput has  
been maintained
august
ceo appointment
marcus engelbrecht was 
appointed ceo marcus provides 
vision and leadership to grow the 
company as it moves into the 
production phase
december
increase in resources
archipelago announced a 
significant increase in mineral 
resource estimates for two  
of its five deposits toka and 
kopra further upgrades were 
announced in january 2012
business review governance financial statements archipelago resources plc  
annual report 2011
08
i am pleased to present my first report 
as chief executive officer of 
archipelago and articulate our 
strategy for the further successful 
development of the company our 
strategy is a simple one
  settle our existing production 
programme and maximise 
efficiencies at toka tindung
  continue exploration to grow the 
toka tindung asset allowing us to 
also consider options to expand 
our production profile and
  develop our corporate presence 
enabling us to leverage off our 
regional strength in south east asia 
the decision to join archipelago and 
relocate to singapore in august 2011 
was an easy one for me given my 
belief in the strength of the 
company’s assets the strong support 
of its shareholders and the exciting 
phase that the company had reached 
having moved from an explorer and 
mine developer into a gold producer 
the evolution from developer to 
producer can be a difficult one for 
many companies with the skills 
required to manage construction 
being somewhat different to those 
required to efficiently and cost 
effectively run a producing mine this 
transition has meant that the 
company has had to build not only a 
mine but also a capable management 
team and a corporate presence to 
enable us to continue to grow  
i am pleased that the company 
successfully managed this transition 
positioning us to take advantage of 
other opportunities as they arise  
both regionally and wider afield 
chief executive’s review
marcus engelbrecht
chief executive
26 april 2012
achieving full production 09 archipelago resources plc  
annual report 2011
2011 was a year focused on the 
construction of the mine and the 
ramp up to full production but we 
also applied significant effort to 
restarting our exploration programme 
this resulted in our announcement of 
material resource increases last 
december followed by a significant 
uplift in reserves as published in 
january 2012 discussed below in 
further detail this focus will be 
maintained into the future as we aim 
to grow the toka tindung asset and 
consequentially increase our 
production profile 
gold price outlook
archipelago operates in a highly 
prospective pricing industry the rise 
and strength in the price of gold 
continues to be a talking point in 
many economies and i foresee this 
robust trend continuing over the 
medium term with high levels of both 
personal and public debt and the 
need for some of the world’s largest 
economies to continue with their 
quantitative easing programmes the 
investment in physical gold along 
with its hedge against economic 
political and social crises will continue 
to support the gold “currency” for 
some years to come 
business review
located on the northern tip of the 
island of sulawesi indonesia and 
approximately 34km northeast of the 
regional capital of manado our 
flagship operation is the toka 
tindung gold mine which poured 
first gold in april 2011 covering an 
area of 400km
2
 inclusive of 
exploration permitted ground the 
toka tindung gold mine comprises 
two mining licences and will 
encompass five open pits – the main 
toka tindung pit along with four 
satellite pits to the south araren 
pajajaran kopra and blambangan 
pits we are currently drawing ore 
and blending from three of these pits 
– toka pajajaran and araren with 
mined ore being processed using a 
conventional carboninleach 
process
our strategy
settle our existing 
production programme  
and maximise efficiencies  
at toka tindung
continue exploration to 
grow the toka tindung 
asset allowing us to 
also consider options to 
expand our production 
profile
develop our corporate 
presence enabling us to 
leverage off our regional 
strength in south east asia
since the beginning of april when first  
gold was poured operations have ramped 
up smoothly
business review governance financial statements archipelago resources plc  
annual report 2011
10
archipelago operates in a highly prospective 
pricing industry the rise and strength in the price 
of gold continues to be a talking point in many 
economies and i foresee this robust trend 
continuing over the medium term
for the 2011 year toka tindung gold 
mine production statistics are as 
follows 
 year ended
 31 december 2011
ore mined ktonnes 1263
waste mined ktonnes 13766
total mined ktonnes 15029
ore processed ktonnes 877
average head grade gt 254
process recovery rate 92
gold produced au eq oz 61191
since the beginning of april when 
first gold was poured operations 
have ramped up smoothly and for 
the nine months up to the end of 
december we produced 61191  
gold equivalent ounces at a cash  
cost of us579 per oz 
we have an average strip ration of 51 
and have maintained operational 
throughput during the wet season 
from december to march this is  
a significant challenge but one  
that we overcame by successfully 
implementing a number of strategies 
in anticipation of rain events 
ore from the three open pits currently 
in production is blended allowing  
us to control head grade and already 
we are achieving above plan gold 
recoveries of circa 92 and we 
anticipate these to remain consistent 
throughout 2012 operationally our 
aim in the calendar year 2012 is to 
produce between 135000 and 
145000 au eq oz at a cash cost of 
between us540 and us590 per oz 
chief executive’s review continued 11 archipelago resources plc  
annual report 2011
i can report there have been no 
material difficulties in commissioning 
the processing plant given the nature 
of the mined material it was 
necessary to replace the rubber mill 
liners with steel liners during 2011 
this caused some temporary 
processing delays and was a relatively 
minor issue this has since been 
rectified and production has 
continued to increase with the focus 
now on improving efficiencies and 
cost control since november i am 
pleased to report that we have been 
running at the nameplate processing 
capacity of 17mtpa 
costs remain a key issue within the 
industry as has been reported by a 
number of our peers previously 
mining companies are experiencing 
cost inflation over a wide range of 
inputs no matter where they are 
geographically located archipelago is 
no different and we will be focusing 
on continuous improvement initiatives 
aimed at increasing productivity and 
controlling costs 
archipelago is a major employer in  
the local region employing over 1500 
people with more than 70 of staff 
coming from the near mine region 
and 95 from indonesia the mining 
industry as a whole is experiencing  
a significant shortage in technical 
mining and processing personnel 
exactly the sort of qualified people 
that archipelago requires and with 
this unbalanced supplydemand 
model there is of course the 
associated wage inflation 
notwithstanding this archipelago  
has been able to retain the majority  
of its key staff in the transition from 
developer to producer the company 
will also continue investing the 
necessary resources on training to 
ensure that archipelago has 
appropriate skills in place for all  
its key functions
financial performance
strong cash flow 
generator
sulawesi  
indonesia
toka tindung gold project
97years
current life of mine is  
nine years plus seven years 
of stockpiles ore is provided 
for five pits
business review governance financial statements
 31 december 2011 31 december 2010
 us’000 us’000
revenue 93259 –
gross profit 44833 –
ebit 30989 12411
profitloss before income tax 25944 12416
profitloss attributable to owners of  
 the parent company 12692 11600
cash inflowoutflows from operating activities 18498 5811
net decreaseincrease in cash and  
 cash equivalents 1833 11628
net gearing 314 14
debtequity ratio 412 – archipelago resources plc  
annual report 2011
12
revenue
revenue from gold sales for the year 
was us93 million with 60367 
ounces sold at an average price of 
us1675 per ounce
gross profit 
gross profit in 2011 was us45 million 
driven by a higher than expected 
realised gold price
earnings before interest and tax
ebit was us31 million before 
accounting for us5 million primarily 
associated with financing costs
 
profit before tax
the company reported a profit before 
tax of us259 million in the year 
ended 31 december 2011 compared 
with a loss of us124 million in the 
year ended 31 december 2010 2011 
was our first year of production
taxation
the company’s taxation charge 
amounted to us132 million in  
2011 analysed as follows
 year ended 31 december   2011 2010
  us’000 us’000
indonesia  
 current year 5757 –
 deferred 7489 849
total 13246 849
exploration
as noted above archipelago is 
committed to exploration and regards 
this as a key value driver for the 
company our mining licences sit 
within a much larger region and there 
are a number of prospective targets 
which have intercepts near to surface 
our current jorc compliant ore 
bodies are also open at depth and 
along strike
the prospective nature of 
archipelago’s resource base was 
highlighted subsequent to the end of 
the financial period with a reported 
material increase in our reserve and 
resource resulting from near mine 
brownfields exploration initially 
focused around the toka and kopra 
pits key outcomes announced in 
january 2012 subsequent to year 
end included the following
  the resource increased to 526mt  
 153 gt au for 258m contained 
oz au and 37 gt ag for 614m 
contained oz ag from 15mt  
34gt au for 17m contained oz  
au and 8 gt ag for 4m  
contained oz ag
  the proven and probable ore 
reserve increased to 276mt  17gt 
au for 147m contained oz au and 
43 gt ag for 379m contained oz 
ag from 762mt  37gt au for 
920k contained oz au and 89 gt 
ag for 218m contained oz ag
  excluding silver as gold equivalent 
ounces contained gold resources 
increased by 52 with ore reserves 
increasing by 60 and
  the increase in ore reserves 
supported extending the mining life 
from six to nine years with 
additional stockpile processing 
extended from two to seven years
archipelago is committed to exploration  
and regards this as a key value driver  
for the company
chief executive’s review continued
us93m
  revenue
us45m
 gross profit 13 archipelago resources plc  
annual report 2011
it should be noted that this drilling 
focused primarily on the toka and 
kopra pits comprising 55 and 10 
respectively of the current toka 
tindung mineral reserve drilling 
continues at these deposits and also 
at pajajaran araren and blambangan 
the announcement of our updated 
reserve and resource estimates was 
welcomed by the market and 
confirms my belief that the toka 
tindung mine has significant life of 
mine upside 
during 2012 we are continuing our 
exploration development programme 
with the objective of further increasing 
our resource and reserve estimates 
during the year 
summary  outlook
our focus is to grow into a respected 
and regionally dominant midcap 
gold producer managing a portfolio 
of gold mines and delivering 
significant value and returns for our 
shareholders with the management 
team that we now have in place we 
are able to achieve this vision and i 
look forward to updating you on our 
progress in this regard i am confident 
that archipelago will continue to grow 
and prosper throughout 2012 
finally i take this opportunity to 
thank all of our stakeholders and in 
particular pt rajawali corporation 
for their help and support in what  
has been a transformational year  
for archipelago
business review governance financial statements archipelago resources plc  
annual report 2011
14
principal risks and uncertainties
the board regularly reviews the key risks facing the 
business and establishes appropriate management 
controls the principal risks and uncertainties facing  
the company are
volatility of gold and other commodity prices
the company’s business is impacted by the general risks 
associated with the gold market in this regard profitability 
is affected by factors beyond the company’s control such 
as a fall in the market price of gold historically commodity 
prices including in particular the price of gold have 
fluctuated and are affected by numerous factors beyond 
the company’s control including global demand and 
supply international economic trends currency exchange 
fluctuations expectations for inflation speculative activity 
consumption patterns and global or regional political 
events the aggregate impact of these factors is impossible 
to predict fluctuations in commodity prices over the long 
term may also adversely impact the returns of the 
company’s exploration projects a significant reduction in 
global demand for gold leading to a fall in gold prices 
could lead to a significant fall in the cash flow of the 
company andor a delay in exploration and production or 
even abandonment of a project should it prove 
uneconomical to develop which may have a material 
adverse impact on the operating results and financial 
condition of the company over the longer term 
currency fluctuations may affect the company’s 
costs and margins
gold and silver is sold throughout the world based on  
us the company pays for goods and services in us  
and other currencies adverse fluctuations in these other 
currencies relative to the us could materially and 
adversely affect the company’s operating results 
profitability and financial position 
global financial conditions are volatile  
and this may impact on the company’s  
ability to source debt facilities
the company is potentially exposed to an adverse 
borrowing environment that may increase the financial risk 
inherent in its business and could have a material adverse 
impact on profitability and cash flow the company in the 
ordinary course of operations is required to provide and 
to issue financial assurances and undertakings the 
company’s ability to provide such assurances and 
undertakings is subject to external financial and credit 
market assessments and its own financial position
 
political economic and regulatory regime
the company’s extraction and processing activities are 
subject to the grant and continuation of appropriate 
licences leases permits and planning permissions the 
licences and operations of the company are in jurisdictions 
outside the united kingdom and accordingly there will be 
a number of risks which the company will be unable to 
control whilst the company will make every effort to 
ensure it has robust commercial agreements covering its 
activities there is a risk that the company’s activities will be 
adversely affected by economic and political factors such 
as the imposition of additional taxes and charges 
cancellation or suspension of licences and changes to the 
laws governing mineral exploration and operations there 
can be no assurance that applicable mining concessions 
will be granted or renewed or if so on what terms there is 
also the risk that the terms of any licence may be changed 
or other than as represented or expected indonesia the 
current focus of the company’s activity supports foreign 
investment the country has a welldeveloped exploration 
and mining code stable currency and proactive support for 
foreign companies notwithstanding recent announced 
regulations concerning divestment requirements for 
mining concessions granted under the new mining law 
which do not otherwise apply to the company 15 archipelago resources plc  
annual report 2011
business review governance financial statements
reserve and resource estimates
the estimation of mineral resources and reserves is a 
subjective process and the accuracy of any such estimates 
is a function of the quality of available data and of 
engineering and geological interpretation and judgement 
assurances cannot be given that the volume and grade of 
reserves recovered and rates of production achieved will be 
at the level anticipated the company’s future reported 
reserves and resources are estimates notwithstanding sign 
off by competent persons and adherence to the jorc 
standard no assurance can be given that the estimated 
reserves and resources will be recovered or that they will be 
recovered at the rates estimated mineral and metal reserve 
and resource estimates are based on limited sampling and 
consequently are uncertain because the samples may not 
be representative mineral and metal reserve and resource 
estimates may require revision either up or down based on 
actual production experience furthermore a decline in the 
market price for natural resources that the company may 
discover or invest in could render reserves containing 
relatively lower grades of these resources uneconomic  
to recover
environmental
the company’s exploration development and mining 
activities are subject to extensive laws and regulations 
governing environmental protection although the 
company closely follows and is operating in compliance 
with all applicable environmental regulations there can be 
no assurance that all future requirements will be achievable 
on reasonable terms failure to comply may result in 
enforcement actions causing operations to cease or be 
curtailed and may include corrective measures requiring 
significant capital expenditures
dependence on key personnel
the company is dependent upon its executive 
management team and various technical consultants 
whilst it has entered into contractual agreements with the 
aim of securing the services of these personnel the 
retention of their services cannot be guaranteed the 
development and success of the company depends on its 
ability to recruit and retain high quality and experienced 
staff the loss of the service of key personnel or the inability 
to attract additional qualified personnel as the company 
grows could have an adverse effect on future business and 
financial conditions
weather
the occurrence of high rainfall events may impact access 
mining and processing of ore at the company’s toka 
tindung gold mine
geology
geological factors might influence the ability of the 
company to extract gold from the toka tindung deposits 
these include the physical and metallurgical characteristics 
of waste and ore and the geotechnical stability of pit walls 
particularly during seismic events
uninsured risk
the company as a participant in exploration and 
development programmes may become subject to liability 
for hazards that cannot be insured against or third party 
claims that exceed the insurance cover archipelago resources plc  
annual report 2011
16
resource and reserve
the increase in t oka tindung’s resource and reserve 
and the extension of ‘life of mine’  are considerable achievements 
for archipelago as of 31 december 2011 the company’s jorc compliant 
resource and reserve statement is as follows
toka tindung project resources inclusive of ore reserves as of 31 december 2011
grade contained oz 
deposit category
tonnes
‘000
au
gt
ag
gt
au
oz m
ag
oz m
au eq
oz m
toka tindung measured 18900 138 31 084 187 088
indicated 20000 093 19 060 124 062
inferred 4600 098 13 014 020 015
total 43500 113 24 159 330 165
kopra extended measured
indicated 1800 351 80 020 044 021
inferred 2100 320 90 021 059 022
total 3900 334 85 041 103 043
pajajaran measured
indicated 1300 440 180 019 076 020
inferred 200 370 120 002 007 002
total 1500 440 170 021 082 023
blambangan measured 600 370 130 007 023 007
indicated 1200 360 140 013 052 014
inferred 200 290 90 002 005 002
total 1900 360 130 022 078 023
araren measured
indicated 1300 290 30 013 013 013
inferred 400 280 30 003 004 003
total 1700 280 30 016 017 016
stockpiles subtotal 200 110 27 001 002 001
all deposits measured 19500 145 34 091 210 094
indicated 25600 151 38 124 308 130
inferred 7400 181 40 043 095 044
total 52600 153 37 258 614 269 17 archipelago resources plc  
annual report 2011
business review governance financial statements
toka tindung project ore reserves as of 31 december 2011
grade contained oz
deposit category
tonnes
1000 au ag
au
oz m 
ag
oz m 
au eq
oz m
toka tindung proved 16300 14 33 074 170 077
probable 7100 10 24 023 056 024
total 23400 13 30 097 226 101
pajajaren proved 0 00 00 000 000 0
probable 1000 47 206 015 066 016
total 1000 47 206 015 066 016
araren proved 0 00 00 000 000 0
probable 800 32 26 008 006 008
total 800 32 26 008 006 008
blambangan proved 500 33 119 006 021 006
probable 1000 33 130 010 040 011
total 1500 33 126 016 061 017
kopra proved 0 00 00 000 000 0
extended probable 800 41 71 011 019 011
total 800 41 71 011 019 011
stockpiles subtotal 200 11 27 001 002 001
all deposits proved 16800 15 35 079 191 083
probable 10700 19 54 067 186 07
total 27700 17 43 147 379 154
notes 
the company owns 95 of the toka tindung mine and therefore 95 of the deposit identified above some rounding of figures may cause numbers not to add correctly cutoff 
grade used for mineral resources were as follows – toka tindung 05gt au kopra 10gt au pajajara 10gt au blambangan 10gt au araren 10gt au toka tindung the mineral 
resource estimate is based on 2296 drill holes 124212m of which 204 17594m are diamond drill holes and 2092 106618m 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 41255m of which 219 19469m are 
diamond drill holes and 225 21786m and rc drill holes the mineral resource estimate for pajajaran is based on 192 drill holes 17323m of which 87 7194m are diamond drill holes 
and 105 10129m are rc drill holes the mineral resource estimate for blambangan is based on 232 drill holes 21751m of which 63 647m are diamond drill holes and 169 6308m 
are rc drill holes the mineral resource for estimate of araren is based on 170 drill holes 13707m of which 93 7399m are diamond drill holes and 77 6308m 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 cutoff 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 priceau price x projected average ag recoveryprojected 
average au recovery the latter currently equate to us25us1150 and 7893 respectively reserve optimisation is based on a gold price of us1150 per ounce and silver price 
of us25 per ounce the ore reserve incorporates depletion from mining prior to 31 december 2011 this statement has been prepared in accordance with the guidelines defined in the 
2004 edition of jorc  archipelago resources plc  
annual report 2011
18
community 
baseline
11 villages in proximity  
to mine
circa 11000 people 
2500 families
other industries farming
fishing
corporate social responsibility
governance
the directors provide overall 
guidance and supervision of all 
aspects of corporate social 
responsibility by way of the 
environment health and safety  
and community committee
principal areas of csr areas of focus
the company has identified six areas 
of focus for its corporate social 
responsibility programme 
environment health and safety 
human rights employees business 
conduct and local communities the 
company has developed policies and 
is implementing strategies for these 
focus areas further details on each 
area are set out below
management plans are prepared for 
each area currently documented 
plans include the following
  human resources and development 
services and standards 
commitment
  community relations and 
development management plan
  culture and heritage management 
plan
  corporate social responsibility 
management plan
  supply management plan
  voluntary principles on security and 
human rights management plan 
and
  a detailed mine closure plan to be 
implemented when the project is 
completed
environment
the company recognises sound 
environmental management as a 
priority the following principles are 
highlights of the policy statements 
that guide the operations of our 
business units the company will
  develop and maintain an 
environmentally responsible culture 
throughout all of its operations
  consult and communicate with its 
stakeholders concerning its 
environmental approach
  meet or exceed all relevant 
statutory requirements industry 
standards and codes of practice
  rehabilitate and decommission sites 
and surrounding areas to the 
agreed end of use condition which 
will be safe and stable
  minimise waste and emissions 
promote more efficient use of 
production inputs and minimise its 
environmental impacts and
  conduct regular audits to measure 
the effectiveness of the 
environmental management 
system and the implementation of 
this policy
the company adheres to high 
environmental standards amongst 
other projects significant investment 
has been made in water management 
systems at the toka tindung gold 
mine the company also maintains a 
comprehensive water system 
compliance regime erosion 
sediment and waste disposal controls 
and conservation and rehabilitation 
programmes
the company is committed to maintaining 
a strong social licence and is proud of its 
achievements in north sulawesi 19 archipelago resources plc  
annual report 2011
business review governance financial statements
health and safety
the company operates a 
comprehensive health and safety 
programme to ensure the wellness 
and security of its employees to meet 
this objective the following standards 
are adhered to
  compliance with indonesian health 
and safety standards and others to 
which the company subscribes
  achievement and maintenance 
certification of the safety 
management system to ohsas 
18001
  provision of continual improvement 
of health and safety standards 
applying workforce consultation 
knowledge sharing and training 
and
  development of major hazard plans 
for the management of all activities 
identified as high risk
the control and eventual elimination 
of all work related hazards requires a 
dedicated team effort involving the 
active participation of all staff a 
comprehensive health and safety 
programme is the primary means for 
delivering best practice in health and 
safety management this is regularly 
updated to incorporate employee 
suggestions lessons learned from 
past incidents and new guidelines 
relating to new projects with the aim 
of identifying areas for further 
improvement of health and safety 
management 
human rights
the company recognises that its 
human rights conduct must be 
exemplary and deploys the necessary 
resources to ensure that it works to 
protect human rights within its sphere 
of activity it commits to maintaining 
collaborative working relationships 
with its stakeholders particularly 
governments to ensure that this 
policy is maintained
employees
the company is committed to 
conducting its employee relationships 
in a manner that is characterised by 
unity of purpose mutual 
collaboration transparency and a 
sense of responsibility to the local 
community
business conduct
the company is committed to 
conducting its business in a 
responsible manner and has produced 
a code of business conduct which all 
of its employees must adhere to in 
this regard the company will
  comply with laws and rules
  conduct its business fairly and 
honestly with its counterparties
  be independent of political activity 
and
  ensure employees maintain 
confidentiality of business related 
information archipelago resources plc  
annual report 2011
20
community policy
the company is committed to 
producing economic wealth for all of 
its stakeholders and to optimise the 
consequential benefits for its local 
communities the company will
  recognise and treat the community 
as an important stakeholder
  develop and operate with a culture 
of mutual respect between the 
company the local community 
and its employees
  ensure fairness in its dealings with 
its local communities
  undertake community programmes 
that develop and improve 
community livelihoods and are 
sustainable after mine closure
  identify and promote business 
development opportunities for 
neighbouring communities
  develop and implement 
employment policies which give 
preference to local communities 
and
  measure independently audit and 
report the outcomes of community 
programmes
corporate social responsibility continued
the following are 2011 highlights of 
the company’s involvement in its 
local communities
  maintained meetings with all local 
village community leaders and 
local government organisations  
on a regular basis 
  conducted visits and inspections in 
the mine area for all local senior 
high schools and teachers 
  provided school support materials 
for all elementary students  
developed plans for a mobile library 
and a scholarship scheme
  developed microcredit facilities to 
support a local women’s farming 
group and a national women’s 
cooperative group
  developed local public toilet and 
washing amenities 
  provided free medicines and 
antimalaria schemes
  built a new local bridge and 
improved access roads and 
  supported development of new 
business opportunities in production 
of vetvier grass 21 archipelago resources plc  
annual report 2011
social licence  
3 components
2way interface schooling 
and health
infrastructure and services
development  
cooperatives and local 
lending
business review governance financial statements archipelago resources plc  
annual report 2011
22
board of directors
stephen k sulistyo
nonexecutive chairman
mr sulistyo age 47 is a nominee  
of major shareholder pt rajawali 
corporation mr sulistyo is currently 
managing director business 
development and investment  
pt rajawali corporation 
he started his career in 1988 and has 
since served as a director and 
commissioner in various industries 
including finance capital markets 
banking media industrial 
transportation communication 
mining and plantation his leadership 
has brought exceptional growth and 
innovations within various companies
eddy p porwanto
deputy ceo and president  
director of indonesian operating 
subsidiaries pt meares soputan 
mining and pt tambang tondano 
nusajaya
mr porwanto age 43 has vast 
experience in various industries and 
knowledge about indonesia market 
previously mr porwanto was the 
chief financial officer of garuda 
indonesia airlines chief financial 
officer of general motors indonesia 
and chief financial officer of reckitt 
benckiser indonesia he was awarded 
the best future ceo in 2009 and 
the best chief financial officer in 
2010 by a prominent business 
magazine in indonesia
marcus engelbrecht
chief executive officer and
managing director
mr engelbrecht age 51 was 
appointed managing director  
and chief executive officer of 
archipelago in august 2011 he is  
a mining executive who has had 
considerable experience in the 
resources industry prior to joining 
archipelago mr engelbrecht was  
the chief financial officer of 
oceanagold corporation an 
australian based midtier gold miner 
previously he had over 20 years’ 
experience with bhpbilliton where 
he held the position of chief 
financial officer of their diamonds 
and specialty products group based 
in melbourne australia
graeme r duncan
nonexecutive director
mr duncan age 56 is a consultant 
mining engineer and executive 
director of tasman mining pty 
limited an australian based group 
with extensive experience in 
international and south east asian 
coal and resource operations 
graeme has significant experience 
working with financial institutions for 
project finance and independent 
valuations and the preparation of 
competent persons reports for 
public companies
jeremy w ayre
nonexecutive director
mr ayre age 46 is a mining engineer 
with more than 25 years’ experience 
in both technical and financial 
aspects of the industry in 2000 he 
cofounded awr lloyd a specialist 
corporate finance firm providing 
advisory services to the energy 
mining and metals sectors in the 
asiapacific 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 mid2010 mr ayre is also a 
nonexecutive director of genus 
gold fund genus natural resources 
fund and baker steel capital 
managers limited 23 archipelago resources plc  
annual report 2011
governance business review financial statements
experienced management team
the company’s management and control is overseen by mr engelbrecht as 
ceo and managing director he chairs and is supported by an executive 
management committee comprising executives responsible for a range of 
corporate and operational areas 
in addition to board responsibilities messrs engelbrecht and porwanto are 
members of the executive committee and their backgrounds are detailed at 
page 22 of this report 
other members of the executive management committee are as follows
colin sutherland
chief financial officer
mr sutherland has executive 
responsibility for the company’s 
financial treasury and risk 
management functions mr sutherland 
has extensive experience across all 
aspects of financial management 
prior to joining archipelago mr 
sutherland was chief financial officer 
for timmins gold corporation 
previously he acted as chief financial 
officer for aurico gold inc and 
mexgold resources inc in addition to 
financial management roles mr 
sutherland acted as president and 
ceo for nayarit gold inc and then 
capital gold corporation between 
2007 and 2011 he has also held 
senior roles with royal bank of 
canada pricewaterhouse coopers 
and deloitte  touche he is a 
chartered accountant and holds a 
bachelor of business administration
steven dudka 
country president – vietnam
mr dudka has overall executive 
responsibility for all activities in 
vietnam 
dave morrison 
chief operating officer – toka 
tindung gold project
mr morrison has overall operational 
responsibility for the toka tindung 
gold mine mr morrison graduated 
with a bachelor of engineering from 
the royal melbourne institute of 
technology and has 18 years of 
broadbased experience principally in 
the south east asian gold mining 
industry mr morrison was previously 
the process manager at the chatree 
gold mine thailand operations 
manager and director of aurora mt 
muro gold mine in indonesia and 
chief metallurgist at the porgera gold 
mine in papua new guinea in 
addition to operations mr morrison’s 
experience also includes numerous 
construction and plant 
commissioning activities on both new 
projects and expansions
matthew salthouse
company secretary vice president 
– investor relations  corporate 
affairs
mr salthouse has executive 
responsibility for the company’s 
investor relations human resources 
legal and company secretarial
governance functions mr salthouse 
has 19 years’ experience in 
governance corporate finance and 
resources prior to joining archipelago 
mr salthouse was company secretary 
and general counsel for oceanagold 
corporation where he also acted as 
country president of oceanagold’s 
philippines operations in addition to 
oceanagold mr salthouse has also 
held senior positions at lawyer herbert 
smith corrs chambers westgarth  
and an australian listed industrial 
conglomerate ion limited he holds a 
bachelor of economics and a bachelor 
of laws from monash university
mr dudka graduated with a degree in 
geology from dalhousie university 
nova scotia canada in 1987 he 
worked in mineral exploration in 
various parts of canada for the 
subsequent 10 years including nova 
scotia newfoundlandlabrador 
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 
nickelcopper deposit 2005 – 2006  
in mid2006 mr dudka began  
work for archipelago as chief 
representative and country managing 
director overseeing all incountry 
initiatives including gold exploration 
in the pac lang area bac kan 
province feasibility and project 
development of the co dinh chromite 
deposit thanh hoa province and 
active pursuit of other gold 
exploration and development 
opportunities 24 archipelago resources plc   
annual report 2011
directors’ report
the directors present their annual report on the affairs of the company together with the financial statements and 
audit report for the year ended 31 december 2011
the company’s business activities together with the factors likely to affect future development performance and 
position are set out in the business review on pages 8 to 13 the financial performance position and cash flows of 
the company and group are set out on pages 30 to 33
the directors have a reasonable expectation that the group has adequate resources to continue operations for the 
foreseeable future thus they continue to adopt the going concern basis of accounting in preparing the audited 
financial statements
principal activity and review of the business
the company’s principal activity is to acquire explore develop and mine gold and other precious metal deposits  
in south east asia in this regard the company’s primary focus is the toka tindung gold mine in which it holds  
a 95 interest 
the company also holds exploration licences and applications for additional exploration licences in vietnam and 
has the right to acquire not less than an 80 interest in corplex resources inc a philippine registered company with 
exploration applications in north east mindanao
a further review of the business activity has been included in the chief executive officer’s review contained 
elsewhere in this report 
financial reporting
a statement about the directors’ responsibilities for the group’s financial statements appears on page 29
insofar as the directors are aware
 — there is no relevant audit information of which the company’s auditor is unaware and
 — the directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit 
information and to establish that the auditor is aware of that information
the directors are responsible for the maintenance and integrity of the corporate and financial information included 
on the company’s website legislation in the united kingdom governing the preparation and dissemination of 
financial statements may differ from legislation in other jurisdictions
the board is ultimately responsible for the group’s system of internal control and for reviewing its effectiveness 
however such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives 
and can provide only reasonable and not absolute assurance against material misstatement or loss
results and dividend
the consolidated profitloss for the year after taxation and minority interests amounted to us127 million 2010 
loss us116 million no dividends have been paid or are proposed
going concern
after making enquiries the directors have formed a judgement at the time of approving the financial statements 
that there is a reasonable expectation that the company and the group as a whole have adequate resources to 
continue in operational existence for the foreseeable future for this reason the directors have adopted the going 
concern basis in preparing the financial statements 
events since balance date
on 30 january 2012 the company announced a material increase in mineral resource and ore reserve estimates at 
toka tindung mine in north sulawesi indonesia the resource has increased to 526 million tonnes from 15 million 
tonnes and the proven and probable ore reserve has increased to 276 million tonnes from 762 million tonnes
excluding silver as gold equivalent ounces contained gold resources have increased by 52 with ore reserves 
increasing by 60
the increase in ore reserves supports extending the mine of life from six to nine years which will impact the 
estimates of recoverable ounces used in 2011 25 archipelago resources plc   
annual report 2011
business review financial statments governance
political and charitable contributions
during the year the company made no european union political or charitable donations
creditor payment policy
it is the group’s normal practice to agree terms of transactions including payment terms with suppliers and 
provided suppliers perform in accordance with the agreed terms it is the company’s policy that payment is made 
accordingly the average credit period taken on trade creditors is 42 days
share capital and share options
details of changes in share capital and details of share options are given in notes 16 and 18 to the financial 
statements
since the balance sheet date the board has adopted a new unapproved share option scheme the “new scheme”  
to replace the group’s share option scheme of 2002 the “old scheme” the new scheme has been incorporated 
on similar terms to that of the previous scheme options which have been granted under the old scheme and are 
still outstanding remain in force in accordance with the terms of the old scheme
substantial shareholdings
the company had been notified as at 23 march 2012 the last practicable date prior to the publication of these 
accounts of the following interests of 3 or more in its issued share capital
ordinary shares of 1p each number percentage
pt rajawali corporation 300052362 524
columbia wanger asset management llc 50686683 88
baker steel capital managers llp 40909713 71
blackrock investment management uk limited 25625380 45
asia image 20961250 37
directors and their interests
as at 31 december 2011 and the date of this report the directors held the following interests
ordinary shares of 1p each 2011 2010
graeme duncan 80000 80000
jeremy ayre 600000 600000
share options
name of director
number of
options
exercise 
price £ granted exercised expiry date
colin loosemore
1
 900000 0039 – 900000 31122012
eddy porwanto 700000 0385 – – 31122013
jeremy ayre 600000 0258 – – 31122012
graeme duncan 400000 0385 – – 31122013
stephen sulisyto 400000 0385 – – 31122013
total director options 3000000 – 900000
1 director resigned with effect from 3 august 2011
inclusive of all employees and office holders during the year 7055000 options vested as a result of satisfaction of 
the vesting condition on 16 november 2011 subsequent to these options vesting a total of 2700000 options were 
exercised and ordinary shares issued 26 archipelago resources plc   
annual report 2011
directors’ remuneration
all matters concerning the remuneration of executive directors are considered by the remuneration  nomination 
committee and the board directors do not participate when their own individual salary or compensation is being 
discussed further particulars on the remuneration  nomination committee are set out in the corporate 
governance section of this report
directors’ emoluments
name of director
feesbasic
salary
us
other
benefits
us
share
options
us
year ended
31 december
2011
us
year ended
31 december
2010
us
number of directors 5 5
executive
marcus engelbrecht
1
 250000 60870 – 310870 –
colin loosemore
2
 306282  955044 – 1261326 404349
eddy porwanto 403593  392476 – 796069 11369
nonexecutive
jeremy ayre 63431 20000 – 83431 47966
graeme duncan 63431 20000 – 83431 132919
stephen sulisyto 63106 20000 – 83106 132926
total directors’ remuneration 1149843  1468390 – 2618233 729529
1 director appointed with effect from 3 august 2011
2 director resigned with effect from 3 august 2011
by order of the board
marcus engelbrecht
chief executive and managing director
26 april 2012
directors’ report continued 27 archipelago resources plc   
annual report 2011
business review financial statments governance
corporate governance
companies listed on aim are not required to make an 
annual statement to shareholders regarding compliance 
with the combined code – principles of good 
governance and code of best practice “the combined 
code” however the board endeavours to comply with 
the combined code principles and code in so far as it 
is appropriate and practical for a company the size of 
archipelago to do so 
board of directors
the board currently has five directors comprising two 
executive directors and three nonexecutive directors 
including the company’s chairman with relevant 
sector experience to complement the two executive 
directors and to provide an independent view to the 
board further details on each of the directors appears 
elsewhere in this report the board met formally on 11 
occasions during the year ended 31 december 2011 
in advance of board meetings an agenda is typically 
circulated together with applicable supporting 
documentation all directors bring independent 
judgement to bear on issues affecting the company and 
all have full access to information necessary to enable 
them to discharge their duties the roles of the 
chairman and chief executive officer are not combined 
and there is a division of responsibilities between them
nonexecutive directors are not appointed for specific 
terms rather each nonexecutive director comes up for 
reelection every three years and each new director is 
subject to election at the next annual general meeting 
following the date of appointment the board 
recognises that it may in due course be beneficial to 
appoint additional independent nonexecutive 
directors the remuneration  nomination committee 
will generally consider appointments of a director and 
thereafter make formal recommendations to the board 
the company has the following committees  
to assist the board
 — audit committee
 — risk management committee
 — remuneration  nomination committee and
 — environment health  safety and community 
committee
accountability and audit
specific details on financial reporting are set out 
elsewhere in this annual report overall board 
governance of the financial controls framework is 
overseen by the audit committee who where 
appropriate consults with the auditor 
the audit committee comprises mr sulistyo chairman 
and mr ayre the audit committee met during the year 
to approve the 2010 accounts and the half year 
accounts for 2011 because of the size of the board it is 
not possible to comply with the combined code 
requirement that the audit committee should be 
composed of at least three nonexecutive directors 
notwithstanding this the board will review the structure 
and composition of the audit committee as the 
company develops the board also proposes to 
implement a separate internal audit function
the responsibilities of the company’s auditor appear in 
the auditor’s report on page 28
remuneration policy
it is the policy of the remuneration  nomination 
committee that directors’ remuneration should be 
commensurate with services provided by them to the 
company the remuneration of all directors is 
determined by the committee the committee also 
establishes remuneration and compensation policies for 
executive employees where appropriate these policies 
are adopted for other employees of the company and 
group entities 
in respect of nonexecutive directors and save for a 
oneoff bonus paid in 2011 on achievement of certain 
milestones there are no formal bonus arrangements in 
place or other longterm incentive schemes other than 
share options issued from time to time to directors and 
employees under the company’s unapproved share 
option scheme the share options are awarded to 
provide an incentive which is related to the market 
performance of the company 
internal controls
the board recognises the importance of both financial 
and nonfinancial controls and has reviewed the 
company’s control environment and any related 
shortfalls during the year the directors are satisfied 
that given the current size and activities of the 
company adequate internal controls have been 
implemented but will continue to review systems
relations with shareholders
it is the policy of the company that the chief executive 
officer meets with institutional investors on a regular 
basis shareholders are also encouraged to participate in 
annual meetings of the company the company issues 
performance updates from time to time which are 
available for review on the company’s website 28 archipelago resources plc   
annual report 2011
independent auditors’ report
t o the members of archipelago resources plc
for the year ended 31 december 2011
we have audited the financial statements of archipelago 
resources plc for the year ended 31 december 2011 which 
comprise the group and parent company statements of 
financial position the consolidated statement of 
comprehensive income the group and company 
statements of changes in equity the group and parent 
company statements of cash flow and the related notes 
the financial reporting framework that has been applied in 
their preparation is applicable law and international 
financial reporting standards ifrss as adopted by the 
european union and as regards the parent company 
financial statements as applied in accordance with the 
provisions of the companies act 2006
the report is made solely to the company’s members 
as a body in accordance with chapter 3 of part 16 of the 
companies act 2006 our audit work has been 
undertaken so that we might state to the company’s 
members those matters we are required to state to them 
in a report of the auditor and for no other purpose to 
the fullest extent permitted by law we do not accept or 
assume responsibility to anyone other than the 
company and the company’s members as a body for 
our audit work for this report or for the opinions we 
have formed
respective responsibilities of directors and auditor
as explained more fully in the statement of directors’ 
responsibilities the directors are responsible for the 
preparation of the financial statements and for being 
satisfied that they give a true and fair view our 
responsibility is to audit and express an opinion on the 
financial statements in accordance with applicable law 
and international standards of auditing uk and ireland 
those standards require us to comply with the auditing 
practices board’s ethical standards for auditors
scope of the audit of the financial statements
an audit involves obtaining evidence about the amounts 
and disclosures in the financial statements sufficient to 
give reasonable assurance that the financial statements 
are free from material misstatement whether caused by 
fraud or error this includes an assessment of whether 
the accounting policies are appropriate to the group’s 
and the parent company’s circumstances and have been 
consistently applied and adequately disclosed the 
reasonableness of significant accounting estimates 
made by the directors and the overall presentation of 
the financial statements in addition we read all the 
financial and nonfinancial information in the annual 
report including the directors’ report the chairman’s 
statement and the chief executive officers report to 
identify material inconsistencies with the audited 
financial statements if we become aware of any 
apparent material misstatements or inconsistencies we 
consider the implications for our report
opinion on financial statements
in our opinion
 — the financial statements give a true and fair view of 
the state of the group’s and the parent company’s 
affairs as at 31 december 2011 and of the group’s 
profits for the year then ended
 — the group financial statements have been properly 
prepared in accordance with ifrss as adopted by the 
european union
 — the parent company financial statements have been 
properly prepared in accordance with ifrss as 
adopted for use in the european union and as applied 
in accordance with the provisions of the companies 
act 2006 and
 — the financial statements have been prepared in 
accordance with the requirements of the companies 
act 2006
opinion on other matters prescribed by the 
companies act 2006
in our opinion the information given in the directors’ 
report the chairman’s statement and the chief executive 
officers report for the financial year for which the 
financial statements are prepared is consistent with the 
financial statements
matters on which we are required to report by 
exception
we have nothing to report in respect of the following 
matters where the companies act 2006 requires us to 
report to you if in our opinion
 — adequate accounting records have not been kept by 
the parent company or returns adequate for our 
audit have not been received from branches not 
visited by us or
 — the parent company financial statements are not in 
agreement with the accounting records and returns 
or
 — certain disclosures of directors’ remuneration 
specified by law are not made or
 — we have not received all the information and 
explanations we required for our audit
gareth jones  
senior statutory auditor
for and on behalf of chantrey vellacott dfk llp
chartered accountants and statutory auditor
russell square house
1012 russell square
london
wc1b 5lf
26 april 2012 governance business review financial statements
29 archipelago resources plc   
annual report 2011
statement of directors’ responsibilities in respect  
of the financial statements
company law requires the directors to prepare financial statements for each financial year which give a true and  
fair view of the state of affairs of the company and the group and of the profit or loss of the group for that year  
in preparing those financial statements the directors are required to
 — select suitable accounting policies and then apply them consistently
 — make judgements and estimates that are reasonable and prudent
 — state whether applicable international financial reporting standards “ifrs” as adopted by the european union 
have been followed subject to any material departures disclosed and explained in the financial statements and
 — prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 
company and the group will continue in business
the directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at  
any time the financial position of the company and the group to enable them to ensure that the financial statements 
comply with the companies act 2006 they are also responsible for safeguarding the assets of the company and the 
group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities 30 archipelago resources plc   
annual report 2011
group statement of comprehensive income
for the year ended 31 december 2011
notes
year ended
31 december
2011
us000
year ended
31 december
2010
us000
revenue 2 93259 –
cost of sales 48426 – 
gross profit 44833 –
other income 154 280
administrative expenses 11598 10072
other expenses 2400 2619
operating profitloss 3 30989 12411
finance costs 3 5045 5
profitloss before income tax 25944 12416
taxation 6 13246 847
profitloss for the year 12698 11569
other comprehensive income
employee benefit – 48
total comprehensive incomeexpense for the year 12698 11617
attributable to
owners of the parent 12692 11600
noncontrolling interests 6 17
12698 11617
earningsloss per share cents per share
basic 7 0022 0024
diluted 7 0022 0023
there were no recognised gains or losses other than those shown above all the group’s activities consist of 
continuing operations 
 
the accompanying accounting policies and notes should be read in conjunction with these financial statements as 
detailed on pages 34 to 58 governance business review financial statements
31 archipelago resources plc   
annual report 2011
statements of financial position
at 31 december 2011
 
 
notes
group company
31 december
2011
us000
31 december
2010
us000
31 december
2011
us000
31 december
2010
us000
noncurrent assets
deferred tax asset 6 – 849 – –
property plant and equipment 8 140772 117877 – –
development exploration and evaluation 9 106666 53847 – –
deferred stripping 10 5112 – – –
investments 11 952 939 1202 1189
other receivables 12 16328 – 190372 179746
269830 173512 191574 180935
current assets
inventories 13 23979 4253 – –
trade and other receivables 14 3777 7403 591 1621
cash and cash equivalents 15 22351 24184 3133 17041
50107 35840 3724 18662
total assets 319937 209352 195298 199597
equity and liabilities
share capital 16 9416 9373 9416 9373
share premium account 208500 208333 208500 208333
other reserves 17 5467 10045 5016 10030
retained earnings 26119 39734 28236 29854
equity attributable to owners of the parent 197264 188017 194696 197882
noncontrolling interest – 17 – –
total equity 197264 188000 194696 197882
noncurrent liabilities
trade and other payables 19 – – – 1387
other financial liabilities 20 70173 – – –
deferred tax liability 6 6640 – – –
provisions 21 12229 8152 – –
89042 8152 – 1387
current liabilities
trade and other payables 19 17241 13200 602 328
interestbearing loans and borrowings 20 11040 – – –
income taxes payable 5350 – – –
33631 13200 602 328
total equity and liabilities 319937 209352 195298 199597
these financial statements on pages 30 to 58 were approved by the board of directors and authorised for issue on 
26 april 2012 and signed on its behalf by
marcus engelbrecht
chief executive and managing director      32 archipelago resources plc   
annual report 2011
statements of changes in equity
for the year ended 31 december 2011
share  
capital 
us000
share 
premium 
us000
other 
reserves 
us000
retained 
earnings 
us000
total 
us000
non
controlling 
interest 
us000
 total  
equity 
us000
group
as at 1 january 2010 6577 118693 3825 28134 100961 – 100961
changes in equity for 2010
total comprehensive income – – – 11600 11600 17 11617
shares issued 2796 90753 – – 93549 – 93549
share issue costs – 1113 – – 1113 – 1113
sharebased payments – – 6220 – 6220 – 6220
balance at 31 december 2010 9373 208333 10045 39734 188017 17 188000
changes in equity for 2011
total comprehensive income – – – 12692 12692 6 12698
options exercised 43 167 5652 5467 25 – 25
sharebased payments – – 1074 – 1074 – 1074
purchase of minority interest – – – 4544 4544 11 4533
balance at 31 december 2011 9416 208500 5467 26119 197264 – 197264
company
as at 1 january 2010 6577 118693 4029 116317 12982 – 12982
changes in equity for 2010
total comprehensive income – – – 86463 86463 – 86463
shares issued 2796 90753 – – 93549 – 93549
share issue costs – 1113 – – 1113 – 1113
sharebased payments – – 6001 – 6001 – 6001
balance at 31 december 2010 9373 208333 10030 29854 197882 – 197882
changes in equity for 2011
total comprehensive income – – – 3761 3761 – 3761
options exercised 43 167 5379 5379 210 – 210
sharebased payments – – 365 – 365 – 365
balance at 31 december 2011 9416 208500 5016 28236 194696 – 194696
the accompanying accounting policies and notes should be read in conjunction with these financial statements as 
detailed on pages 34 to 58 governance business review financial statements
33 archipelago resources plc   
annual report 2011
statements of cash flow
for the year ended 31 december 2011
group company
notes
31 december 
2011  
us000
31 december 
2010  
us000
31 december 
2011  
us000
31 december 
2010  
us000
cash inflowoutflows from operating activities 22 18498 5811 2082 2377
cash flows from investing activities
payments to acquire property plant and equipment 45972 52079 – –
proceeds from sale of investment – 167 – 167
proceeds from sale of asset 95 – – –
payments for development exploration and evaluation expenditure 37010 21421 – 1028
purchase of minority interest 4533 – – –
payment to acquire additional shares in archipelago metals ltd 13 591 13 591
net cash used in investing activities 87433 73924 13 1452
cash flows from financing activities
proceeds from borrowings 70000 – – –
lease payments 1182 – – –
issue of ordinary share capital 210 93549 210 93549
capital raising costs – 1113 – 1113
interest paid 1926 – – –
prepaid borrowing costs – 506 – 427
loans to subsidiaries – – 12023 81759
net cash generated fromused by financing activities 67102 91930 11813 10250
effect of change in exchange rates on cash and cash equivalents – 567 – 749
net decreaseincrease  in cash and cash equivalents 1833 11628 13908 5672
cash and cash equivalents at start of year 24184 12556 17041 11369
cash and cash equivalents at end of year 22351 24184 3133 17041
the accompanying accounting policies and notes should be read in conjunction with these financial statements as 
detailed on pages 34 to 58 34 archipelago resources plc   
annual report 2011
1 accounting policies
basis of preparation
the financial statements have been prepared in accordance with international financial reporting standards ifrs 
as adopted by the european union at 31 december 2011 and therefore the group financial statements comply with 
article 4 of the eu ias regulation and comply with the companies act 2006
the financial statements are prepared under the historical cost convention except for sharebased payments that 
are included at fair valued at the date of grant and other financial assets and liabilities that are measured at fair value 
the financial statements are presented in us dollars which is the group functional currency and all values are 
rounded to the nearest thousand 000 except when otherwise indicated the company is incorporated in the 
united kingdom and the principal places of business are singapore and indonesia
basis of consolidation
the consolidated financial statements comprise the financial statements of the group as at 31 december 2011
subsidiaries are fully consolidated from the date of acquisition being the date on which the group obtains control 
and continue to be consolidated until the date when control ceases 
the financial statements of the subsidiaries are prepared for the same reporting period as the parent company using 
consistent accounting policies 
all intragroup balances and transactions are eliminated in full
where the ownership of a subsidiary is less than 100 and therefore a noncontrolling interest nci exists any 
losses of that subsidiary are attributed to the nci even if that results in a deficit balance 
a change in the ownership interest of a subsidiary without loss of control is accounted for as an equity transaction 
going concern
the financial statements are prepared on a going concern basis supported by the current year and future cash flow 
forecasts the directors believe that the group has sufficient funds and adequate resources to undertake its 
operating activities meet its commitments and to continue in operational existence for the foreseeable future thus 
they continue to adopt the going concern basis of accounting in preparing the annual financial statements
significant accounting judgements estimates and assumptions 
the preparation of the financial statements in conformity with ifrs requires the use of estimates and assumptions that 
affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of 
revenues and expenses during the reporting period although these estimates are based on management’s best 
knowledge of the amounts events or actions actual results ultimately may differ from those estimates
significant areas of estimation uncertainty considered by management in preparing the consolidated financial 
statements include the following
mine closure provision 
the group assesses its mine closure provision annually significant estimates and assumptions are made in 
determining the provision for mine rehabilitation as there are numerous factors that will affect the ultimate liability 
payable these factors include estimates of the extent and costs of closure activities technological changes 
regulatory changes cost increases and changes in discount rates these uncertainties may result in future 
expenditure differing from the amounts currently provided the provision at reporting date represents 
management’s best estimate of the present value of the future rehabilitation costs required
ore reserve and resource estimates
ore reserves are estimates of the amount of ore that can be economically and legally extracted from the group’s 
mining properties the group estimates its ore reserves and mineral resources based on information compiled by 
appropriately qualified persons the estimation of recoverable reserves is based upon factors such as commodity 
prices future capital requirements and production costs along with geological assumptions and judgements made 
in estimating the size and grade of the ore body changes in reserve estimates may impact upon the carrying value 
of exploration and evaluation assets mine properties property plant and equipment goodwill provision for 
rehabilitation and depreciation and amortisation charges
notes to the financial statements
for the year ended 31 december 2011 governance business review financial statements
35 archipelago resources plc   
annual report 2011
exploration and evaluation expenditure
the application of the group’s accounting policy for exploration and evaluation expenditure requires judgement in 
determining whether it is likely that future economic benefits are likely either from future exploitation or sale or 
where mining activities have not reached a stage which permits a reasonable assessment of the existence of 
reserves
impairment of assets
the group assesses each cash generating unit annually to determine whether any indication of impairment exists 
where an indicator exists a formal estimate of the recoverable amount is made which is considered to the higher of 
the fair value less costs to sell and value in use these assessments require the use of estimates and assumptions 
such as longterm 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 
pretax discount rate that reflects current market assessments of the time value of money and the risks specific to 
the asset 
deferred stripping expenditure
the group defers advanced stripping costs incurred during the production stage of its operations this calculation 
requires the use of judgements and estimates such as estimates of tonnes of waste to be removed over the life of 
the mining area and economically recoverable reserves extracted as a result changes in a mine’s life and design will 
usually result in changes to the expected stripping ratio 
production start date
the group assesses the stage of each mine under construction to determine when a mine moves into the 
production stage being when the mine is substantially complete and ready for its intended use the group considers 
various relevant criteria to assess when the production phase is considered to commence when a mine 
development moves into the production stage the capitalisation of certain mine development costs ceases and 
costs are either regarded as forming part of the cost of inventory or expensed except costs that qualify for 
capitalisation relating to mining asset additions or improvements underground mine development or mineable 
reserve development it is also at this point that depreciation commences
new and amended standards and interpretations
the accounting policies adopted are consistent with those of the previous financial year except for the following 
new and amended ifrs and ifric interpretations effective as of 1 january 2011
 — ias 24 related party disclosures amendment effective 1 january 2011
 — ias 32 financial instruments presentation amendment effective 1 february 2010
 — improvements to ifrss may 2010
the adoption of the standards or interpretations is described below
ias 24 related party disclosures amendment
the iasb issued an amendment to ias 24 that clarifies the definitions of a related party the new definitions 
emphasise a symmetrical view of related party relationships and clarifies the circumstances in which persons and 
key management personnel affect related party relationships of an entity in addition the amendment introduces an 
exemption from the general related party disclosure requirements for transactions with government and entities that 
are controlled jointly controlled or significantly influenced by the same government as the reporting entity the 
adoption of the amendment did not have any impact on the financial position or performance of the group
ias 32 financial instruments presentation amendment
the iasb issued an amendment that alters the definition of a financial liability in ias 32 to enable entities to 
classify rights issues and certain options or warrants as equity instruments the amendment is applicable if the rights 
are given pro rata to all of the existing owners of the same class of an entity’s nonderivative equity instruments to 
acquire a fixed number of the entity’s own equity instruments for a fixed amount in any currency the amendment 
has had no effect on the financial position or performance of the group because the group does not have these 
types of instruments 36 archipelago resources plc   
annual report 2011
1 accounting policies continued
improvements to ifrss
in may 2010 the iasb issued amendments to its standards primarily with a view to removing inconsistencies and 
clarifying wording there are separate transitional provisions for each standard the adoption of the following 
amendments resulted in changes to accounting policies but no impact on the financial position or performance of 
the group
 — ifrs 3 business combinations the measurement options available for nci were amended only components of 
nci that constitute a present ownership interest that entitles their holders to a proportionate share of the entity’s 
net assets in the event of liquidation should be measured at either fair value or at the present ownership 
instruments’ proportionate share of the acquiree’s identifiable net assets all other components are to be 
measured at their acquisition date fair value
 — ifrs 7 financial instruments – disclosures the amendment was intended to simplify the disclosures provided by 
reducing the volume of disclosures around collateral held and improving disclosures by requiring qualitative 
information to put the quantitative information in context the group reflects the revised disclosure requirements 
in note 25
 — ias 1 presentation of financial statements the amendment clarifies that an entity may present an analysis of 
each component of other comprehensive income either in the statement of changes in equity or in the notes to 
the financial statements the group provides this analysis in the statement of changes in equity
other amendments resulting from improvements to ifrss to the following standards did not have any impact on the 
accounting policies financial position or performance of the group
 — ifrs 3 business combinations contingent consideration arising from the business combination prior to adoption 
of ifrs 3 as revised in 2008
 — ifrs 3 business combinations unreplaced and voluntarily replaced sharebased payment awards
 — ias 27 consolidated and separate financial statements
 — ias 34 interim financial statements
the following interpretation and amendments to interpretations did not have any impact on the account policies 
financial position or performance of the group
 — ifric 13 customer loyalty programmes determining the fair value of award credits
 — ifric 19 extinguishing financial liabilities with equity instruments
foreign currency translation
the functional currency of the entities within the group is the us dollar as this is the currency which most affects 
each company’s revenue costs and financing the group’s reporting currency is also us dollar
foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the 
dates of the transactions
foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at 
reporting period end exchange rates of monetary assets and liabilities denominated in foreign currencies are 
recognised in the income statement on consolidation exchange differences arising from the translation of the net 
investment in foreign entities are chargedcredited to other comprehensive income and recognised within other 
reserves in equity
property plant and equipment
upon completion of mine construction the assets are transferred into property plant and equipment items  
of property plant and equipment are stated at cost less accumulated depreciation and any accumulated  
impairment losses 
the initial cost of an asset comprises its purchase price or construction cost any costs directly attributable to 
bringing the asset into operation the initial estimate of the rehabilitation obligation and for qualifying assets 
borrowing costs the purchase price or construction cost is the aggregate amount paid and the fair value of any 
other consideration given to acquire the asset the capitalised value of a finance lease is also included within 
property plant and equipment
notes to the financial statements continued
for the year ended 31 december 2011 governance business review financial statements
37 archipelago resources plc   
annual report 2011
when a mine moves into the production stage the capitalisation of certain mine construction costs ceases and 
costs are either regarded as part of the cost of inventory or expensed except for costs which qualify for 
capitalisation relating to mining asset additions or improvements or mineable reserve development
depreciation
the cost of mine plant and equipment is depreciated using the unitofproduction method based on total  
estimated recoverable proven and probable gold reserves other property plant and equipment are depreciated on 
a straightline basis over their expected economic lives or where appropriate the estimated life of the mine which  
is currently nine years whichever is the shorter period expected useful life has due regard to both the assets own 
physical limitations and to assessments of economically recoverable resources of the mine property and to possible 
future variations in those assessments
depreciation is provided on all tangible fixed assets at rates calculated to write off the cost less estimated residual 
value which is reviewed at each financial year end based on prices prevailing at the date of acquisition of each asset 
evenly over its expected useful life as follows
land and mine buildings – unitofproduction basis
mine plant and equipment – unitofproduction basis
office plant and equipment – 3 – 7 years depending on the nature of the asset
motor vehicles – 4 years
  
the asset’s residual values useful lives and methods of depreciation are reviewed and adjusted prospectively if 
appropriate at each financial year end
 
exploration and evaluation
exploration and evaluation costs including the acquisition cost of exploration properties which relate to “an area of 
interest” are carried forward on the balance sheet where the rights to tenure are current and
 — the area of interest has commercially recoverable reserves or
 — the exploration andor 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 unitsofproduction basis
stripping costs incurred subsequently during the production phase are deferred the amount of stripping costs 
deferred is based on the strip ratio obtained by dividing the tonnage of waste mined by the quantity of ore mined 
stripping costs incurred in the period are deferred to the extent that the current period ratio exceeds the life of mine 
strip ratio such deferred costs are then charged to the profit and loss to the extent that in subsequent periods the 
current period ratio falls short of the mine ratio the life of mine ratio is based on economically recoverable reserves 
of the mine  38 archipelago resources plc   
annual report 2011
1 accounting policies continued
mine closure asset
on recognition of a mine closure provision an addition is made to property plant and equipment of the same 
amount this addition is then charged against profits on a unitofproduction 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 pretax 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 
cashgenerating 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 cashgenerating units exceeds its estimated recoverable 
amount impairments in asset values if any are recognised as a loss in the current year’s statement of income
an impairment loss is reversed if there has been a change in the estimate used to determine the recoverable amount 
of an asset an impairment loss is only reversed to the extent that the asset’s carrying amount does not exceed the 
carrying amount that would have been determined net of depreciation or amortisation if no impairment loss had 
been recognised
investments
investments include shares and interests in other entities not held for sale these assets are carried at historical cost 
less any impairment
inventories
inventories comprise consumables work in progress and finished goods consumables are valued at average cost 
consumables and finished goods are held at the lower of cost less a provision for obsolescence and net realisable 
value work in progress consists of ore in stockpiles and heap leach pads that are valued at the lower of average 
production cost and net realisable value net realisable value is the estimated selling price less any applicable selling 
expenses
revenue
revenue is recognised to the extent that it is probable that the economic benefits will flow to the group and that 
revenue can be reliably measured the following specific recognition criteria must also be met before revenue is 
recognised
sales
sales revenue comprises sales to third parties at invoiced amounts and excludes sales tax and discount revenue 
from sales of gold and silver is recognised when there has been a passing of the significant risks and rewards of 
ownership which means the following
the product is in a form suitable for delivery and no further processing is required by the group 
 — the quantity and quality grade of the product can be determined with reasonable accuracy 
 — the product has been delivered to the refinery and is no longer under the physical control of the group 
 — the selling price and associated costs in respect of the sale are determinable or can be reasonably estimated
interest income
interest income is recognised on a time proportion basis using the effective interest method
notes to the financial statements continued
for the year ended 31 december 2011 governance business review financial statements
39 archipelago resources plc   
annual report 2011
deferred taxation
deferred tax assets and liabilities are recognised for temporary timing differences at the tax rates expected to apply 
when the assets are recovered or liabilities are settled based on those tax rates which are enacted or substantively 
enacted for each jurisdiction
the relevant tax rates are applied to the cumulative amounts of deductible and taxable temporary timing differences 
to measure the deferred tax asset or liability an exception is made for certain temporary timing differences arising 
from the initial recognition of an asset or a liability no deferred tax asset or liability is recognised in relation to these 
temporary differences if they arose in a transaction other than a business combination that at the time of the 
transaction did not affect either accounting profit or taxable profit or loss
deferred tax assets are recognised for deductible temporary timing differences and unused tax losses only if it is 
probable that future taxable amounts will be available to utilise those temporary timing differences and losses
deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax 
bases of investments in controlled entities where the parent entity is able to control the timing of the reversal of the 
temporary timing differences and it is probable that the differences will not reverse in the foreseeable future
current and deferred tax attributable to amounts recognised directly in equity are also recognised directly in equity
leases
the determination of whether an arrangement is or contains a lease is based on the substance of the arrangement 
at inception date whether fulfilment of the arrangement is dependent on the use of a specific asset or assets and 
the arrangement conveys a right to use the asset even if that right is not explicitly specified in an arrangement 
finance leases are recognised as those leases that transfer substantially all the risks and rewards of ownership assets 
held under finance leases are capitalised and the outstanding future lease obligations are shown in liabilities at the 
fair value of the lease or if lower at the present value of the lease payments they are depreciated over the term of 
the lease or their useful economic lives whichever is the shorter the interest element finance charge of lease 
payments is charged to the income statement on a constant basis over the period of the lease
all other leases are regarded as operating leases and the payments made under them are charged to the income 
statement in the period on a straight line basis the group does not act as a lessor
borrowing costs
borrowing costs that are incurred in respect of the construction of a qualifying asset are capitalised where the 
construction of an asset takes a substantial period of time to be prepared for use other borrowing costs are 
expensed in the period in which they are incurred and reported in finance costs
provisions
general
provisions are recognised when the group has present obligations arising from legal or constructive commitment 
resulting from past events which will probably lead to an outflow of economic resources from the group which can 
be estimated reliably provisions are measured at the present value of the estimated expenditure required to settle 
the present obligation based on the most reliable evidence available at the balance sheet date all provisions are 
reviewed at each balance sheet date and adjusted to reflect the current best estimates
mine closure
an obligation to incur restoration rehabilitation and environmental costs arises when environmental disturbance is 
caused by the development or ongoing production of a mining property such costs arising from the 
decommissioning of plant and other site preparation work discounted to their net present values are provided for in 
full as soon as the obligation to incur such costs arises and can be quantified on recognition of a full provision an 
addition is made to property plant and equipment of the same amount this addition is then charged against profits 
on a unitofproduction 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 noncurrent asset
the periodic unwinding of the discount is recognised in the profit and loss as a finance cost additional disturbances 
or changes in rehabilitation costs will be recognised as additions or charges to the corresponding assets and liability 
when they occur  40 archipelago resources plc   
annual report 2011
1 accounting policies continued
longterm service benefit
the only employee benefit within the group relates to toka tindung employees the liability recognised in the 
balance sheet is the present value of the defined project benefit obligation at the balance sheet date adjusted for 
unrecognised actuarial gains or losses and past service costs the obligation is calculated annually by independent 
actuaries using the projected unit credit method or an accepted equivalent and independent assumptions the 
present value of the obligations is determined by discounting the estimated future obligation
financial instruments
financial assets and liabilities are recognised when the group becomes party to the contracts that give rise to them 
and are classified as loans and borrowings receivables payables financial instruments fair valued through profit and 
loss or available for sale financial assets as appropriate the group determines the classification of its financial 
assets and liabilities at initial recognition and where allowed and appropriate reevaluates this designation at each 
financial yearend 
all financial assets and liabilities are recognised initially at fair value plus in the case of financial assets not at fair 
value through profit or loss and loans and receivables directly attributable transaction costs 
the group’s financial assets include cash and shortterm deposits trade and other receivables loans and other 
receivables and unquoted financial instruments the group’s financial liabilities include trade and other payables 
and loans and borrowings
the subsequent measurement of financial assets depends on their classification as follows
loans and receivables
loans and receivables are nonderivative 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 availableforsale
such assets are carried at amortised cost using the effective interest method if the time value of money is significant 
gains and losses are recognised in the income statement when the loans and receivables are derecognised or 
impaired as well as through the amortisation process
availableforsale financial assets
availableforsale financial assets are those nonderivative financial assets that are designated as such or are not 
classified as loans and receivables heldtomaturity investments or financial assets at fair value through profit and 
loss after initial recognition availableforsale financial assets are measured at fair value with unrealised gains or 
losses being recognised as a separate component of equity until the investment is derecognised or until the 
investment is determined to be impaired at which time the cumulative gain or loss previously reported in equity is 
included in the income statement the options discussed in note 11 are accounted for at cost as they relate to equity 
instruments that do not have a quoted market price and whose fair value cannot be reliably measured
interest–bearing loans and borrowings
after initial recognition interestbearing loans and borrowings are subsequently measured at amortised cost using 
the effective interest rate method gains and losses are recognised in income statement when the liabilities are 
derecognised as well as through the amortisation process 
fair values
the fair value of quoted investments is determined by reference to quoted market prices without any deduction for 
transaction costs where there is no active market fair value is determined using valuation techniques these 
include using recent arm’slength market transactions reference to the current market value of another instrument 
which is substantially the same
impairment of financial assets
the group assesses at each reporting date whether there is objective evidence that a financial asset is impaired a 
financial asset is deemed to be impaired if there is objective evidence of impairment as a result of one or more 
events that has occurred after the initial recognition of the asset and that loss event has an impact on the estimated 
future cash flows of the financial asset that can be reliably measured 
notes to the financial statements continued
for the year ended 31 december 2011 governance business review financial statements
41 archipelago resources plc   
annual report 2011
financial assets carried at amortised cost
if there is objective evidence that an impairment loss on an unquoted equity instrument that is not carried at fair 
value because its fair value cannot be reliably measured or on a derivative asset that is linked to and must be settled 
by delivery of such an unquoted equity instrument has been incurred the amount of the loss is measured as the 
difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at 
the current market rate of return for a similar financial asset
cash and cash equivalents
cash and cash equivalents are defined as cash on hand demand deposits and shortterm highly liquid investments 
and are measured at cost which is deemed to be fair value as they have shortterm maturities
finance income and costs
finance income and costs comprise interest expense on borrowings the accumulation of interest on provisions 
interest income on funds invested and gains and losses on the disposal of availableforsale investments
interest income is recognised as it accrues taking into account the effective yield on the asset
sharebased 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 sharebased payments whereby employees render services as 
consideration for equity instruments of the company the group’s ultimate parent company shares granted are 
measured by reference to the fair value of the shares at the date at which they are granted 
the fair value is determined by using the blackscholes simulation methodology the fair value of the shares granted 
is recognised as an employee benefits expense the cost of which during the development of the group’s plant 
facilities is recorded as a component of deferred mine exploration and development cost and subsequently as 
employee compensation expense 
the cumulative expense recognised for equitysettled 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 
nonmarket vesting conditions are included in assumptions about the number of options that are expected to 
become exercisable and the number of shares that the employee will ultimately receive proceeds received on 
exercise of options net of any directly attributable transaction costs are credited to equity
standards issued but not yet effective
standards issued but not yet effective up to the date of issuance of the group’s financial statements are listed below 
this listing of standards and interpretations are those that the group reasonably expects to have an impact on 
disclosures financial position or performance when applied at a future date the group intends to adopt these 
standards when they become effective 
 — ias 1 financial statement presentation – presentation of items of other comprehensive income – effective for 
annual periods beginning on or after 1 july 2012
 — ias 19 employee benefits amendment – effective for annual periods beginning on or after 1 january 2013
 — ias 27 separate financial statements as revised in 2011 – effective for annual periods beginning on or after  
1 january 2013
 — ifrs 9 financial instruments classification and measurement – effective for annual periods beginning on or after 
1 january 2013
 — ifrs 10 consolidated financial statements – effective for annual periods beginning on or after 1 january 2013
 — ifrs 11 joint arrangements – effective for annual periods beginning on or after 1 january 2013
 — ifrs 12 disclosure of involvement with other entities – effective for annual periods beginning on or after 1 
january 2013
 — ifrs 13 fair value measurement – effective for annual periods beginning on or after 1 january 2013  42 archipelago resources plc   
annual report 2011
2 segment information 
the group operates in one principal area of activity that of exploration development and mining of gold 
tenements it also operates within five geographical markets united kingdom australia indonesia singapore and 
south east asia the segmental analysis of where these revenue and costs were incurred is consistent with the 
group’s internal reporting for performance measurement and resources allocation at board level
group profitloss before income tax and net assets are all within one activity that of exploration development and 
mining of precious and nonprecious metals
segment information on a geographical basis is set out below 
 
31 december 2011
uk
us000
australia
us000
indonesia
us000
singapore
us000
south east
asia
us000
total
us000
revenue – sale of goods – – 87681 – – 93259
cost of sales
cash production costs
 – mining – – 16206 – – 16206
 – processing – – 16149 – – 16149
 – selling – – 1710 – – 1710
 – overheads – – 7552 – – 7552
– – 41617 – – 41617
changes in inventory – – 11562 – – 8919
depreciation and amortisation – – 14068 – – 14068
administration and other costs 3092 629 5101 5176 1650 15648
interest income 93 5 56 – – 154
profitloss from operations 2999 624 38513 5176 1650 30989
finance expense – – 4153 891 – 5045
profitloss before tax 2999 624 34360 6067 1650 25944
tax expense – – 12238 – – 13246
net profitloss after tax 2999 624 22122 6067 1650 12698
attributable to
equity shareholders of parent company 2999 624 22116 6067 1650 12692
non controlling interest – – 6 – – 6
profitloss for year 2999 624 22122 6067 1650 12698
 includes an adjustment arising as a result of a difference in accounting policy between jurisdictions resulting in higher revenue of 56 million lower 
inventory adjustment of 27 million and related tax expense of 1 million
sales revenue of goods are made to a single customer under a sales agreement at an agreed market price
notes to the financial statements continued
for the year ended 31 december 2011 governance business review financial statements
43 archipelago resources plc   
annual report 2011
31 december 2011
uk
us000
australia
us000
indonesia
us000
singapore
us000
south east
asia
us000
total
us000
inventories – – 21279 – – 23979
trade and other receivables 6 20 4039 312 – 3777
cash and cash equivalents 3131 67 14378 4773 2 22351
non current assets 952 389 268299 190 – 269830
total assets 4089 476 307995 5275 2 319937
current liabilities 602 105 27134 790 – 33631
non current liabilities – – 75042 15000 – 89042
total liabilities 602 105 102176 15790 – 122673
net assets 3487 371 205819 10515 2 197264
capital expenditure – 2 50258 266 – 50525
 includes an adjustment arising as a result of a difference in accounting policy between jurisdictions resulting in lower inventory of 27 million higher 
debtors of 06 and deferred tax of 1 million and reduced current liabilities 5 million
31 december 2010
uk
us000
australia
us000
indonesia
us000
singapore
us000
south east
asia
us000
total
us000
revenue – – – – – –
administration and other costs 8517 1637 966 591 1028 12739
loss from operations 8517 1637 966 591 1028 12739
other income 273 – 7 – – 280
finance expense 5 – – – – 5
loss before tax 8249 1637 959 591 1028 12464
tax expense – – 847 – – 847
net loss after tax 8249 1637 112 591 1028 11617
attributable to
equity shareholders of parent company 8249 1637 95 591 1028 11600
non controlling interest – – 17 – – 17
loss for year 8249 1637 112 591 1028 11617
inventories – – 4253 – – 4253
trade and other receivables 1621 1618 4104 59 – 7403
cash and cash equivalents 17016 309 5703 1131 25 24184
non current assets 939 412 172157 5 – 173513
total assets 19576 2339 186217 1195 25 209353
current liabilities 328 221 12467 184 – 13200
non current liabilities – – 8153 – – 8153
total liabilities 328 221 20620 184 – 21353
net assets 19248 2118 165597 1011 25 188000
capital expenditure – 30 62909 – – 62939 44 archipelago resources plc   
annual report 2011
3 operating profitloss
 
year ended
31 december
2011
us000
year ended
31 december
2010
us000
operating profitloss has been arrived at after chargingcrediting
inventory adjustments to cost of sales included in work in progress 8910 –
depreciation of property plant and equipment 9090 6
amortisation of preoperating expenses and mine development 3791 –
bank interest 3001 5
finance lease expense 2044 –
audit services
–  fees payable to the parent company’s auditor for the audit of the company  
and group accounts 66 66
– fees payable to auditors for the audit of subsidiary accounts 91 94
exploration and evaluation costs written off 1650 2149
borrowing costs written off 539 702
net foreign exchange gainslosses 72 836
gain on available for sale asset – 51
4 remuneration of key management personnel
year ended
31 december
2011
us000
year ended
31 december
2010
us000
wages and salaries 3726 900
sharebased payments 605 334
other employee costs 179 75
total remuneration 4510 1309
highest paid director 1261 404
the sharebased payments are in relation to share options issued to directors and key management personnel the 
sharebased payments reflect the fair value of the share options granted under the ‘stock appreciation rights plan’ 
taking into account the terms and conditions upon which the options were granted
5 total employee remuneration including key management personnel
 
year ended
31 december
2011
us000
year ended
31 december
2010
us000
wages and salaries includes executive directors 9467 1273
sharebased payments 708 216
other employee costs 2313 48
total remuneration 12488 1537
the sharebased payments are in relation to share options issued to all employees including key management 
personnel the sharebased payments reflect the fair value of the share options granted under the ‘stock 
appreciation rights plan’ taking into account the terms and conditions upon which the options were granted 
in the year ended 31 december 2010 all remuneration costs relating to employees on the toka tindung project 
were capitalised as construction costs
the group capitalised the following staff expenses these are not included in the figures above
notes to the financial statements continued
for the year ended 31 december 2011 governance business review financial statements
45 archipelago resources plc   
annual report 2011
year ended
31 december
2011
us000
year ended
31 december
2010
us000
wages and salaries relating to exploration and development 1602 12296
the group had the following employees
2011
average no
2010
average no
directors 2 2
management and administration 64 22
development mining processing and exploration staff 469 331
total employees 535 355
6 taxation
 
year ended
31 december
2011
us000
year ended
31 december
2010
us000
current tax charge
current tax 5757 –
deferred tax 7489 849
13246 849
reconciliation of current tax charge
profitloss on ordinary activities 25944 12416
tax calculated at a rate of 17 2010 25 4411 3104
effects of
– different tax rates in other countries 6202 315
– expenses not deductible for tax purposes 1676 1843
– income not assessable for tax purposes 6 2
– prior year losses recognised – 1092
– deferred tax asset not recognised 963 1821
tax expense recognised in accounts 13246 849
the tax rate for 2011 has been changed 17 to reflect the current corporate tax rate of singapore the company’s 
principal place of business
the detailed calculation of the deferred tax asset liability as of december 31 2011 and 2010 are as follows
year ended 31 december 2011
beginning
balance
us000
deferred 
income 
tax benefit 
us000
ending 
balance
us000
utilised tax loss 849 499 350
provisions – 474 474
depreciation and amortisation – 4344 4344
stripping costs – 1706 1706
leasing costs – 408 408
revenue not assessable – 1006 1006
849 7489 6640 46 archipelago resources plc   
annual report 2011
6 taxation continued
year ended 31 december 2010
beginning
balance
us000
deferred 
income 
tax benefit 
us000
ending 
balance
us000
utilised tax loss – 849 849
– 849 849
factors affecting future tax charge and deferred taxation 
the group has taxable losses to carry forward and offset against future profits of approximately us68 million 
2010 us114 million of the deferred tax asset of us13 million 2010 us358 million relating to those losses 
only us03 million has been recognised recovery of the remaining amount cannot be reasonably foreseen based 
on the group’s current activities
7 earningsloss per share
 
year ended
31 december
2011
shares
year ended
31 december
2010
shares
weighted average number of shares in issue for the year
– number of shares with voting rights 569249238 484191183
– effect of share options in issue 11448301 7178301
total used in calculation of diluted earnings per share 580697539 491369484
us000 us000
earnings per share
net profitloss attributable to equity shareholders of the parent 12692 11600
earningsloss per share cents per share
– basic 0022 0024
– diluted 0022 0023
the calculation of basic earnings per share is calculated by dividing profitloss 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 11448301 options on issue which could potentially dilute ordinary shares the dilutive 
earnings associated with these options would result is a profitloss of us13 2010 us12 for the year attributable 
to equity shareholders of the company
notes to the financial statements continued
for the year ended 31 december 2011 governance business review financial statements
47 archipelago resources plc   
annual report 2011
8 property plant and equipment
year ended 31 december 2011
land and 
mine 
buildings 
us000
mine 
plant and 
equipment 
us000
motor 
vehicles 
us000
construction 
in progress 
us000
mine  
closure  
asset 
us000
office 
plant and 
equipment 
us000
total  
us000
cost
at 1 january 2011 4865 1367 373 105268 7712 350 119935
additions 3681 18414 3992 24237 3204 202 53730
disposals – – – – – 78 78
reclassification 2485 106723 1795 107708 – 295 –
transfer to mine development note 9 – – – 21434 – – 21434
transfer from to restoration asset 179 – – – – – 179
at 31 december 2011 11210 126504 2570 363 10916 769 152332
depreciation
at 1 january 2011 995 394 373 – – 296 2058
charge for the year
capitalised depreciation – 384 62 – – 24 470
depreciation 441 7081 934 – 505 129 9090
disposals – – – – – 58 58
reclassification – 932 851 – – 81 –
at 31 december 2011 1436 8791 518 – 505 310 11560
net book value 
at 31 december 2011 9774 117713 2052 363 10411 459 140772
at 1 january 2011 3870 973 – 105268 7712 54 117877
year ended 31 december 2010
land and 
mine 
buildings 
us000
mine 
plant and 
equipment 
us000
motor 
vehicles 
us000
construction 
in progress 
us000
mine  
closure  
asset 
us000
office 
plant and 
equipment 
us000 total us000
cost
at 1 january 2010 4040 860 373 51428 – 290 56991
additions 825 507 – 53840 – 60 55232
closure provisions – – – – 7712 – 7712
at 31 december 2010 4865 1367 373 105268 7712 350 119935
depreciation
at 1 january 2010 784 311 360 – – 266 1721
charge for the year
capitalised depreciation 211 83 13 – – 24 331
depreciation – – – – – 6 6
at 31 december 2010 995 394 373 – – 296 2058
net book value
at 31 december 2010 3870 973 – 105268 7712 54 117877
at 1 january 2010 3256 549 13 51428 – 24 55270
the carrying value of plant and equipment held under finance leases at 31 december 2011 was us6470224 2010 
nil depreciation expense on the lease plant and equipment was 1231 in 2011 2010nil 48 archipelago resources plc   
annual report 2011
8 property plant and equipment continued
the additions for the mine closure asset reflect the increase during the year of the anticipated closure liabilities of 
the toka tindung project on recognition of a closure provision see note 21 an addition is made to the restoration 
asset of the same amount the cost of this asset is changed to the income statement on a units of production basis 
of the life of mine the total charge for the year was us505 2010 nil
9 development exploration and evaluation 
development
us000
exploration 
and
evaluation
us000
total
us000
year ended 31 december 2011
net book value
at 1 january 2011 53847 – 53847
expenditure during the year 12890 23936 36826
write off – 1650 1650
transferred 11865 11865 –
reclassification from ppe 21434 – 21434
amortisation 3791 – 3791
at 31 december 2011 96245 10421 106666
year ended 31 december 2010
net book value
at 1 january 2010 33356 – 33356
expenditure during the year 20491 3270 23761
disposal to archipelago metals ltd – 1121 1121
write off – 2149 2149
at 31 december 2010 53847 – 53847
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 2044 prior commencement of the commercial production
10 deferred stripping costs 
31 december
2011
us000
31 december
2010
us000
balance of costs at beginning of period – –
additions 5269 –
redemptions 157 –
5112 –
costs associated with stripping activities have been capitalised during the year as a result of the stripping ratio 
exceeding the expected average stripping ratio over the life of a mine these amounts are expected to be redeemed 
over the life of mine 
notes to the financial statements continued
for the year ended 31 december 2011 governance business review financial statements
49 archipelago resources plc   
annual report 2011
11 investments
group
other fixed 
asset 
investments
us000
total
 
us000
at 1 january 2011 939 939
additions 13 13
at 31 december 2011 952 952
at 1 january 2010 364 364
additions 575 575
at 31 december 2010 939 939
company
shares in 
subsidiary 
undertakings
us000
other fixed 
asset 
investments
us000
total
 
us000
at 1 january 2011 250 939 1189
additions – 13 13
at 31 december 2011 250 952 1202
at 1 january 2010 262 364 626
additions – 575 575
fair value adjustment 12 – 12
at 31 december 2010 250 939 1189
other financial asset represents investments in archipelago metals ltd us651 2010 us638 and corplex us302 
2010 us302
pursuant to an option agreement dated 22 june 2002 lando pty ltd a company controlled by j c loosemore 
granted the company the option to acquire all of its interest in corplex the option can be exercised at any time 
prior to 31 december 2012 upon exercise of the option the company must pay us10 to lando pty ltd this option 
had not been exercised as at 31 december 2011
 
on 26 august 2002 the company entered into option agreements with a number of third parties which provided 
the company with the option to acquire all of the third parties’ interests in corplex these options can be exercised 
at any time prior to 31 december 2012 upon exercise of each option the company must pay us10 these options 
had not been exercised as at 31 december 2011
 
fair value information has not been disclosed for these investments as fair value cannot be measured reliably 50 archipelago resources plc   
annual report 2011
11 investments continued
subsidiary undertakings
archipelago resources plc owns 100 of the voting rights in the following subsidiary undertakings as at  
31 december 2011
name of subsidiary
country of
incorporation
nature of
holding business
archipelago resources pty limited australia ordinary shares
gold exploration  
 development
archipelago resources vietnam pty limited australia ordinary shares dormant
archipelago resources pte ltd singapore ordinary shares
gold exploration  
 development
archipelago resources holdings pte ltd singapore ordinary shares dormant
archipelago resources vietnam pte ltd singapore ordinary shares dormant
archipelago resources pty limited owns 100 of the voting rights in the following subsidiary undertakings as at  
31 december 2011
name of subsidiary
country of
incorporation
nature of
holding business
meares soputan offshore pty ltd australia ordinary shares dormant
tondano offshore pty ltd australia ordinary shares dormant
    
archipelago resources pte limited owned 95 of the voting rights in the following subsidiary undertakings as at  
31 december 2011
name of subsidiary
country of
incorporation
nature of
holding business
pt meares soputan mining indonesia ordinary shares
gold exploration  
 development
pt tambang tondano nusajaya indonesia ordinary shares
gold exploration  
 development
    
during the year the group acquired an additional 10 interest in the subsidiaries for 4533
as a condition of a finance facility there is a restriction over the transfer of the interests in the above indonesian 
companies
12 other noncurrent receivables
group company
31 december
2011
us000
31 december
2010
us000
31 december
2011
us000
31 december
2010
us000
amounts receivable from subsidiaries – – 190372 179746
tax recoverable 16328
16328 – 190372 179746
the receivables from subsidiaries are unsecured subject to interest at libor plus 3 per annum from the draw 
down dates and repayable on demand following the commencement of gold production and subject to the 
subsidiaries generating sufficient cash to fund the payment of interest after repayment of all bank debt creation of 
prudent and reasonable reserves and provisions and making provisions for payment of the subsidiaries operating 
exploration and capital expenditure
tax recoverable consist primarily of vat recoverable from operations at toka tindung that can be recovered in 
future years
notes to the financial statements continued
for the year ended 31 december 2011 governance business review financial statements
51 archipelago resources plc   
annual report 2011
13 inventories
group
 
31 december
2011
us000
31 december
2010
us000
consumables 15069 4253
work in progress 8910 –
23979 4253
consumables includes stocks of mining supplies reagents lubricants and spare parts held on site
work in progress reflects the cost of gold contained in stockpiles and in circuit
14 trade and other receivables
group company
 
31 december
2011
us000
31 december
2010
us000
31 december
2011
us000
31 december
2010
us000
trade receivables 600 – – –
prepaid expenses 1247 – – –
other receivables 1930 7403 591 1621
3777 7403 591 1621
trade receivables are noninterest bearing
the amounts presented in the financial statements are net of allowances for doubtful receivables estimated by the 
group’s management based on prior experience and their assessment of the current economic environment the 
directors consider that the carrying amount of trade and other receivables approximates to their fair value
15 cash and cash equivalents
group company
 
31 december
2011
us000
31 december
2010
us000
31 december
2011
us000
31 december
2010
us000
cash at bank and in hand 19992 24184 3133 17041
deposits at call restricted cash 2359 – – –
22351 24184 3133 17041
the credit risk on liquid funds is limited because the counterparties are banks with high credit ratings assigned by 
international creditrating agencies
restricted cash includes funds on deposit in a separate bank account as a condition of the finance facility 52 archipelago resources plc   
annual report 2011
16 share capital
2011
shares
2010
shares
2011
us
2010
us
authorised
ordinary shares of 1 pence each 700000000 570019334 10819 10331
allotted called up and fully paid
opening balance 569197635 391019334 9373 6577
issued during the year 2700000 178178301 43 2796
closing balance 571897635 569197635 9416 9373
1 on 29 september 2011 800000 and 115000 ordinary shares were issued at an exercise price under the employee share option plan at 6 cents 390 
pence and 44 cents 27 pence per share respectively to raise us63850 gbp 39150
2 on 21 december 2011 1685000 ordinary shares were issued at an exercise price under the employee share option plan at 6 cents 390 pence per share 
to raise us101569 gbp 65715
3 on 29 december 2011 100000 ordinary shares were issued at an exercise price under the employee share option plan at 6 cents 390 pence per share 
to raise us6028 gbp 3900
the related premium on these options issued has been included in the share premium reserve
17 other reserves
group 
option 
reserve
us000
foreign 
exchange
us000
total
us000
at 1 january 2011 8896 1149 10045
movement in the year 4578 – 4578
at 31 december 2011 4318 1149 5467 
at 1 january 2010 2676 1149 3825
movement in the year 6220 – 6220
at 31 december 2010 8896 1149 10045
   
company 
option 
reserve
us000
foreign 
exchange
us000
total
us000
at 1 january 2011 8354 1676 10030
movement in the year 5014 – 5014
at 31 december 2011 3340 1676 5016
at 1 january 2010 2353 1676 4029
movement in the year 6001 – 6001
at 31 december 2010 8354 1676 10030
the options reserve arose as a result of the cost associated with options issued to directors and employees in prior 
years which will be reversed as and when these options are exercised or lapse
foreign exchange reserves arose as a result of a change in functional currency in a prior year
notes to the financial statements continued
for the year ended 31 december 2011 governance business review financial statements
53 archipelago resources plc   
annual report 2011
18 share options
details of the number of share options and the weighted average exercise price waep outstanding during the year 
are as follows
2011 2010
number
shares
waep
us
number 
shares
waep
us
outstanding at the beginning of the year 14458301 023 19300000 023
granted – – 15016602 027
exercised 2700000 008 6178301 019
lapsed 310000 056 13680000 037
outstanding at the year end 11448301 027 14458301 023
exercisable at the year end 11448301 027 7178301 018
the fair value of the share options granted under the “stock appreciation rights plan” is estimated as at the date of 
grant using the blackscholes model taking into account the terms and conditions upon which the options were 
granted 
the options outstanding at year end have an average remaining term of approximately 10 months
the following table lists the inputs to the models used for the options granted
option
expiry 
date 
dividend 
yield 

expected 
volatility 

riskfree
interest 
rate 

expected 
life of 
options
 years
option
exercise 
price 
£
weighted 
average 
share price at
measurement 
date
£
model  
used 
31–aug–12 000 6000 001 184 0125 0407 blackscholes
31–dec–12 000 6000 634 507 0211  0215 blackscholes
31 dec–12 000 6000 234 391 0039  0035 blackscholes
31–dec–13 000 6000 001 322 0385 0370 blackscholes
31–dec–13 000 6000 234 491 0039  0035 blackscholes
the effects of early exercise have not been incorporated into the calculations the expected volatility was 
determined using an industry average for small capitalisation mining companies
19 trade and other payables
group company
 
31 december
2011
us000
31 december
2010
us000
31 december
2011
us000
31 december
2010
us000
noncurrent liabilities
others payable – – – 1387
– – – 1387
current liabilities
trade payables and accruals 15997 4346 193 286
other payables 1244 8854 409 42
17241 13200 602 328
trade payables and accruals principally comprise amounts outstanding for trade purchases and ongoing costs the 
average credit period taken for trade payables is 42 days 2010 22 days
the directors consider that the carrying amount of trade and other payables approximates to their fair value 54 archipelago resources plc   
annual report 2011
20 other financial liabilities
group company
 
31 december
2011
us000
31 december
2010
us000
31 december
2011
us000
31 december
2010
us000
noncurrent liabilities
bank loans 64500 – – –
finance lease 5673 – – –
70173 – – –
current liabilities
bank loans 9567 – – –
finance lease 1473 – – –
11040 – – –
the bank loans are secured by
 — share pledges restricting sale or transfer of the interests in the indonesian companies and
 — assignment of inter company receivables due from the indonesian companies respectively
21 provisions
group company
 
31 december
2011
us000
31 december
2010
us000
31 december
2011
us000
31 december
2010
us000
noncurrent liabilities – –
employee benefit 759 440 – –
mine closure 11470 7712 – –
12229 8152 – –
employee 
benefits
us000
mine 
closure
us000
total
us000
at 1 january 2011 400 7712 8112
expense 364 3229 3593
benefits paid 5 – 5
unwind of discount – 529 529
at 31 december 2011 759 11470 12229
employee benefits
the provision for employee benefits includes provisions for indonesian employee termination benefits
the provisions for employee termination benefits recognised as at 31 december 2011 are based on actuarial 
valuation reports dated 2 february 2012 of pt towers watson purbajaga an independent actuary the calculation 
of employee service entitlements is based on the following assumptions
discount rate 75  
salary increase 80  per annum 
normal retirement age 55 years 
mortality table mortalita indonesia tmi ’99 
notes to the financial statements continued
for the year ended 31 december 2011 governance business review financial statements
55 archipelago resources plc   
annual report 2011
the provision for employee service entitlements as of 31 december 2011 is as follows     
us000
projected benefit obligation 1741
unfunded obligation 1741
unrecognised actuarial loss 982
759
the components of the employee service entitlements expense are as follows
31 december 
2011
us000
31 december 
2010
us000
service cost 282 80
interest cost 50 24
other cost 32 –
364 104
mine closure
the provision for mine closure is an estimate of the present value of the aggregate obligations in relation to 
remediation to calculate the fair value of these obligations an estimated discount rate of 75 on the basis of 
longterm government bonds and discounted the current best estimate projected cash flows relating to the  
closure of the mine which is forecast to occur in 2019
22 notes to the statements of cash flows
a  reconciliation of operating loss to net cash outflow from operating activities
group company
2011
us000
2010
us000
2011
us000
2010
us000
operating profitloss before tax 30989 12464 3761 86463
noncash items
depreciation 13386 6 – –
exploration and evaluation expenditure written off 1650 1028 – 1028
foreign exchange gainloss – 976 – 773
sharebased payments 1074 6055 365 6001
provision for diminution of loans – – – 96176
provision for employee entitlements 363 40 – –
provision for rehabilitation 3758 – – –
gain on sale of investment – 51 – 51
gain on sale of asset 16 – – –
borrowing costs – 510 – 510
stripping costs 5112 – – –
management fees – – – 424
changes in net assets and liabilities
change in trade and other receivables 11455 2242 1040 642
change in prepayments 1248 15 – 4
change in inventory 19726 – – –
change in trade and other payables 5287 443 274 145
corporate taxes paid 407 – – –
increase in provisions 45 97 – –
net cash outflow from operating activities 18498 5811 2082 2377 56 archipelago resources plc   
annual report 2011
22 notes to the statements of cash flows continued
b  analysis of net funds
 
31 december
2010
us
cash  
flows
us
exchange
differences
us
other
noncash 
movements
us
31 december
2011
us
cash 24184 1904 71 – 22351
23 contingent liabilties 
the group is defending several claims that are considered to be matters in the ‘normal course of business’ none  
of which are considered of material significance to the company and its project the company is disclaiming any 
liability and is defending the claims whilst it is possible but not probable that these actions will succeed it is not 
practicable to estimate the potential effect of the claims and accordingly no provision for any liability has been 
recognised in these financial statements
24 commitments
at 31 december 2011 the group had capital commitments of us175 million in respect of capital and operational 
expenditure in the normal course of business 2010 us221 million relating to the construction of a gold mining 
plant at the toka tindung site
25 financial instruments 
the group’s financial instruments other than derivatives comprise trade creditors cash and loans 
 
interest rate risk profile of financial assets and liabilities
cash balances attract a floating rate of interest the group’s term deposits are placed with maturity dates set to 
match the groups cash flow requirements and the interest rate is fixed with the bank on rollover of the deposits  
the group’s investment in corplex through the options to acquire corplex as set out in note 9 is interest free the 
option is sterling denominated and expires on 31 december 2012 the group’s liquidity interest rate and foreign 
exchange risks are managed centrally following guidelines laid down by the board all nonroutine transactions 
require board approval
the group’s objective is to maintain a balance between continuity of funding and flexibility through the use of 
borrowings with a range of maturities
liquidity risk
the group’s policy has been to finance its operations and expansions through the issue of equity share capital and 
debt finance secured on the group’s mineral properties the group did not have any overdraft facilities during the year
currency risk
the group has operations in australia and indonesia and south east asia and any gains and losses from these 
currency differences are taken to the income statement 
fair values of financial assets and liabilities
the directors have performed a review of the financial assets and liabilities as at 31 december 2011 and have 
concluded that the fair value of those assets and liabilities is not materially different from book value
notes to the financial statements continued
for the year ended 31 december 2011 governance business review financial statements
57 archipelago resources plc   
annual report 2011
26 related party transactions
in addition to the related party information disclosed elsewhere in the financial statements the following significant 
transactions and balances between related parties took place at terms agreed between the parties concerned
a transactions with related parties
2011
us000
2010
us000
transfer of property plant  equipment
pt tambang tondano nusajaya to pt meares soputan mining 21728  – 
purchases of spare parts and consumable goods
pt tambang tondano nusajaya to pt meares soputan mining 2310 –
management fee
archipelago resources plc to archipelago resources pte ltd 888 –
archipelago resources plc to archipelago metals ltd 92 79
archipelago resources pty ltd to archipelago resources pte ltd 537 –
archipelago resources pte ltd to pt meares soputan mining 1971 –
archipelago resources pte ltd to pt tambang tondano nusajaya 1157 –
subtotal 4645 79
rental of building
pt rajawali adiwisma an affiliate 42 – 
operating consumables expenses charged by
pt meares soputan mining to pt tambang tondano nusajaya 1011 –
pt meares soputan mining to archipelago resources pte ltd 106 –
pt tambang tondano nusajaya to pt meares soputan mining 615 –
pt tambang tondano nusajaya to archipelago resources pte ltd 31 –
pt rajawali corpora to pt meares soputan mining 38 –
subtotal 1801  – 
gold sales
pt rajawali corpora 253 –
employees 32 –
subtotal 285 –
joint processing services between
pt tambang tondano nusajaya  pt meares soputan mining 4445 –
recruitment fees paid to pt rajawali corpora by archipelago resources pte ltd 243 –
gold sales were made for commemorative “first pour” gold bars to employees  directors of the group
  58 archipelago resources plc   
annual report 2011
26 related party transactions continued
b due from related parties
2011
us000
2010
us000
archipelago resources pte ltd 189558 179746
archipelago resources pty ltd 814 –
archipelago metals ltd 520 1330
total 190892 181076
c due to related parties
2011 2010
archipelago resources pty ltd – 1387
total – 1387
majority controlling shareholder
pt rajawali is the controlling shareholder of the group holding 522 of issued shares
group undertakings
as at 31 december 2011 there was a loan agreement between the company and archipelago resources pte ltd  
to provide funding for development to the toka tindung project in indonesia the loan is interest free and as at  
31 december 2011 the balance of the loan was us1896 million 2010us1797 million
in turn archipelago resources pte ltd has an interest free loan payable to pt meares soputan mining of  
us1494 million and pt tambang tondano nusajaya of us862 million which are all repayable after  
31 december 2011
director related entities
during the year the company held 6051240 shares in archipelago metals ltd a company of which colin 
loosemore is a director a management fee of us92 was charged during the year as at year end a total of us520 
was due and payable by archipelago metals ltd for a working capital loan provided during the year
transactions with other related parties
there were no related party transactions other than those disclosed in this financial statements
27 subsequent events
on 30 january 2012 the company announced a material increase in mineral resource and ore reserve estimates at 
toka tindung mine in north sulawesi indonesia the resource has increased to 526 million tonnes from 15 million 
tonnes and the proven and probable ore reserve has increased to 276 million tonnes from 762 million tonnes
excluding silver as gold equivalent ounces contained gold resources have increased by 52 with ore reserves 
increasing by 60
the increase in ore reserves supports extending the estimated life of the mine from six to nine years
notes to the financial statements continued
for the year ended 31 december 2011 governance business review financial statements
59 archipelago resources plc   
annual report 2011
directors and advisers
directors
stephen sulistyo nonexecutive chairman
marcus engelbrecht managing director and  
chief executive officer
eddy porwanto president director of pt meares 
soputan mining and pt tambang tondano nusajaya  
and deputy ceo
jeremy ayre nonexecutive
graeme duncan nonexecutive
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
1012 russell square london wc1b 5lf
solicitors
lawrence graham llp
4 more london riverside
london se1 2au
registrars and transfer agents
share registrars limited
suite e first floor 9 lion and lamb yard
farnham surrey gu9 7ll
bankers
hsbc
21 collyer quay hsbc building
singapore 049320
australia and new zealand banking group limited
level 7 77 st georges terrace
perth western australia 6000
nominated adviser
grant thornton uk llp
30 finsbury square
london ec2p 2yu
broker
ambrian partners limited
old change house
128 queen victoria street  
london ec4v 4bj 60 archipelago resources plc   
annual report 2011
glossary of t erms
terms and abbreviations used in this report include the 
following  
ag silver 
au gold 
csr corporate social responsibility
eq equivalent
gt grams per tonnes
jorc the 2004 australasian code for reporting of 
exploration results mineral resources  ore 
reserves
k thousand
lti lost time injury
m million
oz troy ounces
t tonnes 
us united states dollars 
 percentage 
the following terms have the meaning given to them  
by jorc competent person indicated inferred 
measured ore reserve resource reserve  
competent person statement
the information in this report that relates to the 
resource mineral exploration results together with any 
related assessments and interpretations have been 
verified by and approved for release by mr graeme 
fleming b app sc geol mausimm a qualified geologist 
and fulltime consultant for pt tambang tondano 
nusajaya a subsidiary of archipelago resources plc  
the information in this report that relates to ore 
reserves is based on information compiled by dean 
pontin formerly a fulltime employee of pt tambang 
tondano nusajaya prior to 30 january 2012  mr 
fleming and mr pontin are members of the australasian 
institute of mining and metallurgy and have sufficient 
experience relevant to the style of mineralisation and 
type of deposit under consideration to qualify as 
competent persons as defined in jorc mr fleming 
and mr pontin consent to the inclusion of the 
information contained in this annual report in the  
form and context in which it appears designed and produced by emperor design consultants ltd
telephone 44 020 7729 9090  wwwemperordesigncouk
archipelago resources plc is a gold 
producer listed on the alternative 
investment market of the london 
stock exchange aim ar 
the vision of archipelago 
resources plc “archipelago”  
or “the company” is to grow 
into a respected and regionally 
dominant midcap gold 
producer managing a portfolio 
of gold mines and delivering 
significant value and returns for 
our shareholders archipelago’s 
principal activities are gold 
mining and exploration in 
indonesia as the 95 owner  
of the producing toka tindung 
gold mine in north sulawesi 
indonesia archipelago is also 
advancing exploration initiatives 
in vietnam and the philippines 
in 2012 archipelago expects  
to produce between 135000 
and 145000 gold equivalent 
ounces at a cash cost of 
between us540 and  
us590 per ounce archipelago resources plc   
annual report 2011
archipelago resources plc  annual report 2011
a platform for growth
registered office 
22 melton street 
london nw1 2bw 
united kingdom 
 
administration 
9 raffles place
2902 republic plaza
singapore   048619
 
phone 65 6535 3419
fax 65 6532 2620
email investorarplccomsg
website httpwwwarchipelagoresourcescouk


Summary:
 archipelago resources plc  
annual report 2011
08
i am pleased to present my first report 
as chief executive officer of 
archipelago and articulate our 
strategy for the further successful 
development of the company our 
strategy is a simple one
  settle our existing production 
programme and maximise 
efficiencies at toka tindung
  continue exploration to grow the 
toka tindung asset allowing us to 
also consider options to expand 
our production profile and
  develop our corporate presence 
enabling us to leverage off our 
regional strength in south east asia 
the decision to join archipelago and 
relocate to singapore in august 2011 
was an easy one for me given my 
belief in the strength of the 
company’s assets the strong support 
of its shareholders and the exciting 
phase that the company had reached 
having moved from an explorer and 
mine developer into a gold producer 
the evolution from developer to 
producer can be a difficult one for 
many companies with the skills 
required to manage construction 
being somewhat different to those 
required to efficiently and cost 
effectively run a producing mine this 
transition has meant that the 
company has had to build not only a 
mine but also a capable management 
team and a corporate presence to 
enable us to continue to grow  
i am pleased that the company 
successfully managed this transition 
positioning us to take advantage of 
other opportunities as they arise  
both regionally and wider afield 
chief executive’s review
marcus engelbrecht
chief executive
26 april 2012
achieving full production 09 archipelago resources plc  
annual report 2011
2011 was a year focused on the 
construction of the mine and the 
ramp up to full production but we 
also applied significant effort to 
restarting our exploration programme 
this resulted in our announcement of 
material resource increases last 
december followed by a significant 
uplift in reserves as published in 
january 2012 discussed below in 
further detail this focus will be 
maintained into the future as we aim 
to grow the toka tindung asset and 
consequentially increase our 
production profile 
gold price outlook
archipelago operates in a highly 
prospective pricing industry the rise 
and strength in the price of gold 
continues to be a talking point in 
many economies and i foresee this 
robust trend continuing over the 
medium term with high levels of both 
personal and public debt and the 
need for some of the world’s largest 
economies to continue with their 
quantitative easing programmes the 
investment in physical gold along 
with its hedge against economic 
political and social crises will continue 
to support the gold “currency” for 
some years to come 
business review
located on the northern tip of the 
island of sulawesi indonesia and 
approximately 34km northeast of the 
regional capital of manado our 
flagship operation is the toka 
tindung gold mine which poured 
first gold in april 2011 covering an 
area of 400km
2
 inclusive of 
exploration permitted ground the 
toka tindung gold mine comprises 
two mining licences and will 
encompass five open pits – the main 
toka tindung pit along with four 
satellite pits to the south araren 
pajajaran kopra and blambangan 
pits we are currently drawing ore 
and blending from three of these pits 
– toka pajajaran and araren with 
mined ore being processed using a 
conventional carboninleach 
process
our strategy
settle our existing 
production programme  
and maximise efficiencies  
at toka tindung
continue exploration to 
grow the toka tindung 
asset allowing us to 
also consider options to 
expand our production 
profile
develop our corporate 
presence enabling us to 
leverage off our regional 
strength in south east asia
since the beginning of april when first  
gold was poured operations have ramped 
up smoothly
business review governance financial statements archipelago resources plc  
annual report 2011
10
archipelago operates in a highly prospective 
pricing industry the rise and strength in the price 
of gold continues to be a talking point in many 
economies and i foresee this robust trend 
continuing over the medium term
for the 2011 year toka tindung gold 
mine production statistics are as 
follows 
 year ended
 31 december 2011
ore mined ktonnes 1263
waste mined ktonnes 13766
total mined ktonnes 15029
ore processed ktonnes 877
average head grade gt 254
process recovery rate 92
gold produced au eq oz 61191
since the beginning of april when 
first gold was poured operations 
have ramped up smoothly and for 
the nine months up to the end of 
december we produced 61191  
gold equivalent ounces at a cash  
cost of us579 per oz 
we have an average strip ration of 51 
and have maintained operational 
throughput during the wet season 
from december to march this is  
a significant challenge but one  
that we overcame by successfully 
implementing a number of strategies 
in anticipation of rain events 
ore from the three open pits currently 
in production is blended allowing  
us to control head grade and already 
we are achieving above plan gold 
recoveries of circa 92 and we 
anticipate these to remain consistent 
throughout 2012 operationally our 
aim in the calendar year 2012 is to 
produce between 135000 and 
145000 au eq oz at a cash cost of 
between us540 and us590 per oz 
chief executive’s review continued 11 archipelago resources plc  
annual report 2011
i can report there have been no 
material difficulties in commissioning 
the processing plant given the nature 
of the mined material it was 
necessary to replace the rubber mill 
liners with steel liners during 2011 
this caused some temporary 
processing delays and was a relatively 
minor issue this has since been 
rectified and production has 
continued to increase with the focus 
now on improving efficiencies and 
cost control since november i am 
pleased to report that we have been 
running at the nameplate processing 
capacity of 17mtpa 
costs remain a key issue within the 
industry as has been reported by a 
number of our peers previously 
mining companies are experiencing 
cost inflation over a wide range of 
inputs no matter where they are 
geographically located archipelago is 
no different and we will be focusing 
on continuous improvement initiatives 
aimed at increasing productivity and 
controlling costs 
archipelago is a major employer in  
the local region employing over 1500 
people with more than 70 of staff 
coming from the near mine region 
and 95 from indonesia the mining 
industry as a whole is experiencing  
a significant shortage in technical 
mining and processing personnel 
exactly the sort of qualified people 
that archipelago requires and with 
this unbalanced supplydemand 
model there is of course the 
associated wage inflation 
notwithstanding this archipelago  
has been able to retain the majority  
of its key staff in the transition from 
developer to producer the company 
will also continue investing the 
necessary resources on training to 
ensure that archipelago has 
appropriate skills in place for all  
its key functions
financial performance
strong cash flow 
generator
sulawesi  
indonesia
toka tindung gold project
97years
current life of mine is  
nine years plus seven years 
of stockpiles ore is provided 
for five pits
business review governance financial statements
 31 december 2011 31 december 2010
 us’000 us’000
revenue 93259 –
gross profit 44833 –
ebit 30989 12411
profitloss before income tax 25944 12416
profitloss attributable to owners of  
 the parent company 12692 11600
cash inflowoutflows from operating activities 18498 5811
net decreaseincrease in cash and  
 cash equivalents 1833 11628
net gearing 314 14
debtequity ratio 412 – archipelago resources plc  
annual report 2011
12
revenue
revenue from gold sales for the year 
was us93 million with 60367 
ounces sold at an average price of 
us1675 per ounce
gross profit 
gross profit in 2011 was us45 million 
driven by a higher than expected 
realised gold price
earnings before interest and tax
ebit was us31 million before 
accounting for us5 million primarily 
associated with financing costs
 
profit before tax
the company reported a profit before 
tax of us259 million in the year 
ended 31 december 2011 compared 
with a loss of us124 million in the 
year ended 31 december 2010 2011 
was our first year of production
taxation
the company’s taxation charge 
amounted to us132 million in  
2011 analysed as follows
 year ended 31 december   2011 2010
  us’000 us’000
indonesia  
 current year 5757 –
 deferred 7489 849
total 13246 849
exploration
as noted above archipelago is 
committed to exploration and regards 
this as a key value driver for the 
company our mining licences sit 
within a much larger region and there 
are a number of prospective targets 
which have intercepts near to surface 
our current jorc compliant ore 
bodies are also open at depth and 
along strike
the prospective nature of 
archipelago’s resource base was 
highlighted subsequent to the end of 
the financial period with a reported 
material increase in our reserve and 
resource resulting from near mine 
brownfields exploration initially 
focused around the toka and kopra 
pits key outcomes announced in 
january 2012 subsequent to year 
end included the following
  the resource increased to 526mt  
 153 gt au for 258m contained 
oz au and 37 gt ag for 614m 
contained oz ag from 15mt  
34gt au for 17m contained oz  
au and 8 gt ag for 4m  
contained oz ag
  the proven and probable ore 
reserve increased to 276mt  17gt 
au for 147m contained oz au and 
43 gt ag for 379m contained oz 
ag from 762mt  37gt au for 
920k contained oz au and 89 gt 
ag for 218m contained oz ag
  excluding silver as gold equivalent 
ounces contained gold resources 
increased by 52 with ore reserves 
increasing by 60 and
  the increase in ore reserves 
supported extending the mining life 
from six to nine years with 
additional stockpile processing 
extended from two to seven years
archipelago is committed to exploration  
and regards this as a key value driver  
for the company
chief executive’s review continued
us93m
  revenue
us45m
 gross profit 13 archipelago resources plc  
annual report 2011
it should be noted that this drilling 
focused primarily on the toka and 
kopra pits comprising 55 and 10 
respectively of the current toka 
tindung mineral reserve drilling 
continues at these deposits and also 
at pajajaran araren and blambangan 
the announcement of our updated 
reserve and resource estimates was 
welcomed by the market and 
confirms my belief that the toka 
tindung mine has significant life of 
mine upside 
during 2012 we are continuing our 
exploration development programme 
with the objective of further increasing 
our resource and reserve estimates 
during the year 
summary  outlook
our focus is to grow into a respected 
and regionally dominant midcap 
gold producer managing a portfolio 
of gold mines and delivering 
significant value and returns for our 
shareholders with the management 
team that we now have in place we 
are able to achieve this vision and i 
look forward to updating you on our 
progress in this regard i am confident 
that archipelago will continue to grow 
and prosper throughout 2012 
finally i take this opportunity to 
thank all of our stakeholders and in 
particular pt rajawali corporation 
for their help and support in what  
has been a transformational year  
for archipelago
business review governance financial statements