Sumatra Copper & Gold : Half Year Accounts

Contents

SUMATRA COPPER & GOLD PLC‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌

HALF-YEAR FINANCIAL REPORT‌‌‌‌‌ FOR THE PERIOD ENDED 30 JUNE 2016

SUMATRA COPPER & GOLD PLC | LEVEL 1, 5 ORD STREET, WEST PERTH WA 6005, AUSTRALIA ABN 14 136 694 267

REGISTERED IN ENGLAND AND WALES | 39 PARKSIDE, CAMBRIDGE CB1 1PN UNITED KINGDOM REGISTRATION NUMBER 5777015

Corporate Directory

DIRECTORS

Stephen Daniel Robinson (Non-Executive Chairman) David Fowler (Managing Director)

Adi Adriansyah Sjoekri (Executive Director)

Jocelyn Severyn de Warrenne Waller (Non-Executive Director) Gavin Arnold Caudle (Non-Executive Director)

COMPANY SECRETARY

Susan Hunter

REGISTERED OFFICE

39 Parkside Cambridge CB1 1PN United Kingdom

AUSTRALIAN OFFICE

Level 1, 5 Ord Street West Perth WA 6005 Australia

Phone: [phone]

BANKERS

HSBC Bank plc 69 Pall Mall

London SW17 5EY United Kingdom

National Australia Bank 1238 Hay Street

West Perth WA 6005 Australia

CHARTERED ACCOUNTANTS AND STATUTORY AUDITORS

BDO LLP

55 Baker Street London W1U 7EU United Kingdom

SHARE REGISTRY

Computershare Investor Services Pty Limited Level 2, 45 St George's Terrace

PERTH WA 6000

Phone: [phone] (within Australia)

Phone: [phone] (outside Australia)

WEBSITE

www.sumatracoppergold.com

STOCK EXCHANGE LISTING 1 | P a g e

Australian Securities Exchange Share code: SUM

Contents

Directors' Report	1
Independent Auditors' Report	11
Consolidated Statement of Comprehensive Income	13
Consolidated Statement of Financial Position	14
Consolidated Statement of Changes in Equity	15
Consolidated Statement of Cash Flows	16
Directors' Declaration	17
Notes to the Consolidated Financial Statements	18

Directors' Report

The Directors of the Company have pleasure in submitting their report together with the condensed interim consolidated financial statements of the Group, being Sumatra Copper & Gold plc ('the Company' or 'the Group') and its controlled entities, for the half-year ended 30 June 2016 and the review report thereon.

Directors

The names of the directors of the company during or since the end of the half-year are:

Position held	Date of appointment	Date of resignation
Stephen Robinson	Independent Non-Executive Chairman	8 July 2013	-
David Fowler	Managing Director	14 April 2015	-
Adi Sjoekri	Executive Director	31 March 2011	-
Jocelyn Waller	Independent Non-Executive Director	12 May 2006	-
Gavin Caudle	Non-Executive Director	26 September 2013	-

Overview

Sumatra Copper & Gold Plc is a gold and silver producer and precious metals explorer focused on southern Sumatra, Indonesia. The Company's flagship asset is its Tembang gold-silver mine ("Tembang" or "the Project"), currently in production. The Company also has an extensive exploration portfolio with projects ranging from brownfield, near-production opportunities to strategically located greenfield holdings.

During the period ended 30 June 2016 the Group was focused on increasing production at its Tembang operation. The ramp up in production from the underground operation was slower than anticipated resulting in lower production than planned for the period.

The Group recorded a net loss for the period ended 30 June 2016 of US$11.3 million, representing (US$ 1.59) cents per share, in comparison to a restated net loss for the same period ended 30 June 2015 of US$2.6 million representing a loss of (US$ 0.41) cents per share.

Total assets increased by US$0.2 million to US$69.6 million from US$69.4 million as at 31 December 2015. Total liabilities were US$81.1 million, an increase of US$19.9 million from 31 December 2015. The movement in total liabilities was a result of drawdown of the US$5.1 million of Working Capital Loans and Convertible Notes, a $8.8 million increase in the value of the Hedge Liability as a result of an increase in the gold price during the period and an increase in Trade Payables of US$3.8 million.

Total equity of US$8.2 million at 31 December 2015 decreased by US$19.7 million to 30 June 2016 primarily as a result of the loss of the period of US$10.8 million. The hedging reserve associated with the hedge program decreased by US$8.8 million due to an increase in the gold price from US$ 1,056 per ounce at 31 December 2015 to US$ 1,317 per ounce at 30 June 2016.

During the period, cash and cash equivalents increased by US$0.05 million. Cash outflows from operating activities for the period were US$1.4 million. Net cash outflows from investing activities for the period were US$2.18 million. The cash outflow included residual construction expenditure for the Tembang processing facility.

The net cash inflow from financing activities of US$3.6 million mainly reflects US$4.5 million received in respect of the issue of convertible notes, and US$1.16 million working capital less repayment of borrowings. Interest paid during the 6 months totalled US$1.97 million.

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