The Martabe Mine has a low estimated cost structure, which compares favourably to competitors. Its low cost structure is largely due to the capacity and size of the project (4.5 Mtpa bulk style open-cut mining); the high grade of the ore (2.1 g/t gold average); good recovery (70-80% for gold and 50-70% for silver); a very low strip ratio of approximately 1.3:1 (waste:ore); and straightforward gold extraction processes (mine, crush, SAG/ball mill, CIL operation). In addition, Martabe benefits from the favourable location of facilities, which has the potential to reduce operating and transportation costs and provide access to a large base of skilled Indonesian workforce. As a result of these factors, Martabe’s operating life of mine cash cost is estimated to be in the lowest quartile of global gold producers.

The Board views strict cost management and increases in productivity as fundamental aspects of a world class operation and will continually seek to improve the efficiency and costs of the Martabe Mine.