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Tembang Operations Update: Mining Suspension

Sumatra Copper & Gold plc has temporarily suspended open pit mining activities at its Tembang gold-silver operation in Sumatra, Indonesia. With the scheduled completion of the main open pit mine this month, the remaining reserves are in a lower grade area that is only marginally profitable under current costs. However, expected reductions in power costs later this year when connected to the grid will significantly improve profitability. During this period until mining restarts in the fourth quarter with lower costs, the company has lowered its 2018 production guidance. The CEO commented that the temporary suspension will improve the long term profitability of the operation.

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19 views2 pages

Tembang Operations Update: Mining Suspension

Sumatra Copper & Gold plc has temporarily suspended open pit mining activities at its Tembang gold-silver operation in Sumatra, Indonesia. With the scheduled completion of the main open pit mine this month, the remaining reserves are in a lower grade area that is only marginally profitable under current costs. However, expected reductions in power costs later this year when connected to the grid will significantly improve profitability. During this period until mining restarts in the fourth quarter with lower costs, the company has lowered its 2018 production guidance. The CEO commented that the temporary suspension will improve the long term profitability of the operation.

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Akhmedov Ckhasanov
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SUMATRA

COPPER & GOLD PLC


Registered No. 5777015

ASX Announcement: 01 June 2018

Tembang Operations Update


Mine Production
Sumatra Copper & Gold plc (“the Company”) announces that it has temporarily suspended open pit
mining activities at its Tembang gold-silver operation located in southern Sumatra, Indonesia.
With the scheduled completion of the Berenai open pit mine this month, the majority of the remaining
open pit reserves are contained within the lower grade Asmar orebody. Under Tembang’s current cost
structure and the prevailing gold price, Asmar is marginally profitable.
As previously announced, the proposed connection of Tembang to the State-owned electricity grid later
this year will result in considerable reductions to power charges (from US$0.26 / Kwh to approximately
US$0.09 / Kwh) with expected savings in processing costs, underground mining costs and administration.
During this intervening period, the Company has decided to terminate the Open Pit Equipment Hire
Contract and anticipates mining will restart in the fourth quarter with a lower cost, bulk mining
arrangement. The lower processing costs from grid power and a new open pit mining arrangement will
allow the Asmar pit to be reoptimized at a lower cut-off grade. This will also potentially allow the
significant Inferred Resource at Asmar to be targeted for conversion to reserves.
Accordingly, the Company has lowered its 2018 production guidance to 37,500 – 42,500 oz AuEq from
45,000 - 55,000 oz AuEq reflecting the temporary suspension of open pit mining.
Chief Executive Officer Rob Gregory commented: “Whilst there will be a short term loss in production,
our decision to temporarily suspend open pit mining will significantly improve the profitability of the
Asmar orebody and secure the near term future of the operation.”

For further information please contact:


Robert Gregory Phil Retter
Chief Executive Officer Investor Relations
Sumatra Copper & Gold plc NWR Communications
+61 8 9480 0620 M: +61 407 440 882
rgregory@[Link] phil@[Link]

About Sumatra Copper & Gold plc


Sumatra Copper & Gold plc (ASX: SUM) is a gold and silver producer and precious metals explorer in southern
Sumatra, Indonesia. The Company’s flagship asset is its Tembang gold-silver mine, currently in production.
The Company also has an extensive exploration portfolio with projects ranging from brownfield, near-
production opportunities to strategically located greenfield holdings.

Directors
Jocelyn Waller Gavin Caudle Andy Robb
Non-Executive Chairman Non-Executive Director Non-Executive Director
Rob Gregory David Fowler Adi Sjoekri
Chief Executive Officer Non-Executive Director Executive Director

Sumatra Copper & Gold plc (ASX:SUM) Page 1 of 2


ASX ANNOUNCEMENT 1 JUNE 2018

Contact
Amberley Business Centre Registered address
IBM Building, Level 3 39 Parkside, Cambridge
1060 Hay Street United Kingdom CB1 1PN
West Perth Registered Number 5777015
Western Australia 6005

T: + 61 8 9480 0620
E: info@[Link] ASX Code: SUM
Web: [Link]

Sumatra Copper & Gold plc (ASX:SUM) Page 2 of 2

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