Archi’s cash cost structure is relatively low compared to peers globally which allows generation of significant operating margin at current gold prices. Favorable cost structure can be achieved by the company due to overall low mining cost, close proximity between site and processing facilities, utilization of highly qualified yet cost effective local labor, ability to re-negotiate contracts with key suppliers at more attractive terms and silver credit by-product.

 

Operating Statistics 2011 2012 2013 1H2014
Gold production (koz) 61 134 147 65
Recovery rate (%) 92 90 91 90
Head Grade for Au 2.5 2.6 2.6 2.2
Ore processed (ktonnes) 877 1,738 1,924 1,010
Ore mined (ktonnes) 1,219 2,744 2,858 1,629
Waste mined (ktonnes) 13,766 15,488 14,808 7,958
Stripped ratio 11 6 5 5
C1 Cash cost excl. royalty (US$/oz) 589 639 601 674