Comments

1.0 Scenerios & Options

Scenerio 1 - is using current (2008 & 2009) truck load time of 2.80mins
Scenerio 2 - is using 2007 truck load time of 2.48mins (this is included to understand the difference it would make to the production profile in the 5 options in Scenerio 1)
Option 1 Present situation with 36 x 785 trucks & 5 x RH200 shovels
Option 2 SBP Target Case - 46 x Cat785 trucks & 6 x RH200 shovels
Option 3 Option 2 with wider Trays (replace all current trays in fleet with higher volume trays)
Option 4 Mixed Fleet - replace 21 x 785s due for replacement with 22 x 789s & 5 x RH200 shovels
Option 5 Mixed Fleet - replace 21 x 785s due for replacement with 26 x 789s & 6 x RH200 shovels

2.0 Additional Capital Costs

Additional Camp Accomodation - 30 x Truck operators & 5 x fitters in option 2 & option 3
Additional Charter Flights - not required - sufficient capacity at present (Sue Ryan)
Workshop Extension or Expansion - will require expansion in both truck options - fleet increase or truck size increase
Barge Wharf - assumed no modification required - Cat789 trucks will use soft waste dump or tip into new crusher
Probably an additional dozer for soft waste dump in order to get trucks to dump 10m - 20m short of tip head and push off with a D10 dozer

3.0 Haul Road or Ramp widths

Cat789 trucks - no pit design change required, will operate trucks on current 30m width roads/ramps
ptions in Scenerio 1)
Shovel Avail 0.85 Budget
Shovel UofA 0.88 Budget
Shovel UT_hrs_yr UT_hrs/yr 6,552 Calculated

RH200 bucket size m^3 26.0 Terex Hand Book

Fill Factor 0.85
Average Bucket Capacity m3 22.1
Loose Rock Density tons/m3 1.70 Jon Rutter - Geology

Tonnes per Pass (Bucket) tons 37.57 Calculated

Option 1 - Current Option 2 - 46 x 785s Option 3 - 46 x 785s Option 4 - Mixed Fleet Option 5 - Mixed Fleet
36 x Cat785 Current Tray Size Wider Tray 15 x 785s 22 x 789s 15 x 785s
5 x RH200 6 x RH200 6 x RH200 5 x RH200 6 x RH200
Shovel Productivity Cat785 Cat785 Cat 785 Cat785 Cat789 Cat785
Truck Payload 136.0 136.0 152.0 136.0 189.1 136.0

Truck Payload - Caterpillar tonnes/load 140.0 140.0 140.0 140.0 180.0 140.0
Actual Payload - VIMS tonnes/load 133.0 133.0 133.0 133.0

Truck Tray Volume m^3 88.0 88.0 90.0 88.0 108.0 88.0

Passes Per Truck Load 3.6 3.6 4.0 3.6 5.0 3.6

Av. Spot Time min/load 1.29 1.29 1.29 1.29 1.29 1.29
Av Load time min/load 2.80 2.80 2.80 2.80 3.73 2.80
Time per swing min/bucket 0.93 0.93 0.93 0.93 0.93 0.93
Total load time min/load 4.09 4.09 4.09 4.09 5.02 4.09

Production per Minute t/min 33.25 33.25 37.16 33.25 37.64 33.25
Production per Operating Time t/OT_hr 1,995 1,995 2,230 1,995 2,259 1,995
Production per Utilised Time t/UT_hr 1,796 1,796 2,007 1,796 2,033 1,796
Sheeting allowance % - - - - - -
Shovel Productivity t/UT_hr ex-pit 1,796 1,796 2,007 1,796 2,033 1,796

RH200 Shovel Fleet 4.8 5.6 5.6 1.8 3.2 1.8

Annual Movement Capability t/yr 56,475,008 65,887,509 73,638,981 21,178,128 42,623,487 21,178,128
56,475,008 65,887,509 73,638,981 63,801,615

Truck Productivity
Truck Av 0.85 0.85 0.85 0.85 0.85 0.85
Truck UA 0.88 0.88 0.88 0.88 0.88 0.88
Truck UT_hrs/yr UT_hrs/yr 6,552 6,552 6,552 6,552 6,552 6,552

Av haul time min 30.0 33.2 33.2 33.2 33.2 33.2

Av cycle time min 34.1 37.3 37.3 37.3 38.2 37.3
Truck Productivity Tonnes/yr/truck 1,568,443 1,433,849 1,602,537 1,433,849 1,945,001 1,433,849
Required Fleet Size # trucks 36.0 46.0 46.0 14.8 21.9 14.8
134,594 36.7

Load & Haul Cost/Tonne USD/tonne 1.301 1.393 1.247 1.287

ption 5 - Mixed Fleet
26 x 789s

Cat789
189.1

180.0

108.0

5.0

1.29
3.73
0.93
5.02

37.64
2,259
2,033
-
2,033

3.8
50,615,390
71,793,519

0.85
0.88
6,552

33.2
38.2
1,945,001
26.0
40.8

1.281
Cost Analysis
Option 1 - CurrOption 2 - 46Option 3 - 46
36 x Cat785Current Tray SizeWider Tray
5 x RH200 6 x RH200 6 x RH200
Cat785 Cat785 Cat 785
Calendar Days 365 365 365
Availability 0.85 0.85 0.85
U of A 0.88 0.88 0.88
UT_Hours UT_hrs/yr 6,552 6,552 6,552

PGK/USD 0.40 0.40 0.40

AUD/USD LOM 0.70 0.70 0.70
AUD/USD 2010 0.85 0.85 0.85

OPEX
0 - 6000 hrs
6000 - 12000 hrs
12000 -18000 hrs
18000 - 24000 hrs
24000 - 30000 hrs
30000 - 36000 hrs
36000 - 42000 hrs
42000 - 48000 hrs
48000 - 54000 hrs
54000 - 60000 hrs
Av. Cat machine cost per SMU PGK/hr 173.40 173.40 173.40

Maint. Cost USD/UT_hr 69.36 69.36 69.36

Maint. Cost USD/yr 454,480 454,480 454,480

Diesel Price USD/L 0.69 0.69 0.69

Fuel burn rate L/UT_hr 93.50 93.50 93.50
Fuel cost USD/UT_hr 64.52 64.52 64.52
Fuel cost USD/yr 422,733 422,733 422,733

Lube & Oils Cost USD/hr 2.63 2.63 2.63

Lube & Oils Cost USD/yr 17,233 17,233 17,233

Tyre unit cost USD/unit 16,500 16,500 16,500

Tyre life UT_hrs/unit 4,000 4,000 4,000
Tyre cost USD/UT_hr 24.75 24.75 24.75
Tyre Usage units/yr 9.8 9.8 9.8
Tyre Costs USD/yr 162,174 162,174 162,174

GET cost USD/UT_hr 3.32 3.32 3.32

GET Costs USD/yr 21,754 21,754 21,754

Base salary USD/yr 25,000 25,000 25,000

markup % 0.64 0.64 0.64
Gross base USD/yr 41,000 41,000 41,000
messing & accom K/manday 71.00 71.00 71.00
messing & accom USD/manday 28.40 28.40 28.40
Mandays Mandays/yr 180.00 180.00 180.00
messing & accom USD/yr/fte 5,112 5,112 5,112
Fifo cost (flight ex POM) K/return flight 1,100 1,100 1,100
Fifo cost (flight ex POM) USD/return flight 440 440 440
Roster requirements ftes 4.00 4.00 4.00
Flight cost USD/fte 5,736 5,736 5,736
Total Truck Operator Cost USD / yr 207,391 207,391 207,391
Total Truck Operator Cost USD/UT_hr 31.65 31.65 31.65

Total Operating Cost USD/yr 1,285,765 1,285,765 1,285,765

Total Operating Cost USD/UT_hr 196.23 196.23 196.23

CAPEX
New Truck (2009 price) USD/unit 2,150,300 2,150,300 2,150,300
New Truck (2010 price) USD/unit $ 2,300,821 $ 2,300,821 $ 2,300,821
Tyre Unit Cost USD/unit 16,500 16,500 16,500
Dispatch Equipment USD/unit $ 19,500 $ 19,500 $ 19,500
Subtotal USD/unit 2,419,321 2,419,321 2,419,321
Freight @12% % 290,319 290,319 290,319
Contingency @10% % 241,932 241,932 241,932
Total purchase cost USD/unit 2,951,572 2,951,572 2,951,572
Salvage value at 60,000 hrs USD/unit 150,000 150,000 150,000

Rubber Tray (2009 price) AUD/unit 328,500 328,500

Rubber Tray (2010 price) AUD/unit 361,350 361,350
Rubber Tray (discount price) AUD/unit 334,249 334,249 351,500
Rubber Tray (discount price) USD/unit 284,111 284,111 298,775
Freight @12% % 34,093 34,093 35,853
Contingency @10% % 28,411 28,411 29,878
Total purchase cost USD/unit 346,616 346,616 364,506

Life of machine hrs 60,000 60,000 60,000

Life of machine yrs 9.16 9.16 9.16
Sustaining Capital USD/yr 343,807 343,807 345,761

Tax reclaim on Capital Cost USD/yr - 98,946 - 98,946 - 99,482

Gross Op Cost USD/yr 1,530,627 1,530,627 1,532,044

Gross unit rate USD/Ut_hr 234 234 234

Fleet Requirement # trucks 36.0 46.0 46.0

Gross Fleet Cost USD/yr 55,113,346 70,334,589 70,399,702

Ex-pit movement tonnes/yr 56,475,008 65,887,509 73,638,981

Haul Cost / tonne USD / t 0.976 1.067 0.956

0.976 1.067 0.956

SBP Economic Assumptions

Martin Cummings
SBP
Long
2009 Term 2010/11

$A/$US 0.66 0.70 0.85

PGK/$US 0.36 0.4
EUR/$US 1.28 1.30
$US/West African CFA 512 505
EUR/West African CFA 656 656
US$/CAD 1.23 1.25
NZ$/US$ 0.53 0.57
US$/SGD 1.53 1.50

Gold ($US/oz) 900 850

Silver ($US/oz) 12.50 13.50

HFO ($US/mt) 370 460

Diesel ($US/ltr) to Lihir 0.59 0.69
Diesel ($US/ltr) to Ballarat ** 0.97 1.06
Diesel ($US/ltr) to Mt
Rawdon ** 1.02 1.11
Diesel ($US/ltr) to Bonikro 0.72 0.82
based on WTI Oil ($US/bbl) 55.00 70.00

CER's ($US) 17 20

CPI - US 1.0% 2.0%

CPI - Australia 2.5% 2.5%

Interest Rates
- US Fed Funds Rate 0.25% 4.0%
- Australia RBA Cash Rate 3.25% 4.0%
- US 10yr Bond Yield 2.75% 5.0%
- Australia 10yr Bond Yield 4.5% 5.5%
Option 4 - Mixed Fleet Option 5 - Mixed Fleet
15 x 785s 22 x 789s 15 x 785s 26 x 789s
5 x RH200 6 x RH200
Cat785 Cat789 Cat785 Cat789
365 365 365 365
0.85 0.85 0.85 0.85
0.88 0.88 0.88 0.88
6,552 6,552 6,552 6,552

0.40 0.40 0.40 0.40

0.70 0.70 0.70 0.70
0.85 0.85 0.85 0.85

33.36 33.36
125.05 125.05
307.05 307.05
158.41 158.41
191.93 191.93
263.46 263.46
100.20 100.20
437.39 437.39
51.36 51.36
298.93 298.93
173.40 196.71 173.40 196.71

69.36 78.69 69.36 78.69 1.13

454,480 515,586 454,480 515,586

0.69 0.69 0.69 0.69

93.50 124.50 93.50 124.50 1.33
64.52 85.91 64.52 85.91 1.33
422,733 562,891 422,733 562,891

2.63 3.47 2.63 3.47 1.32

17,233 22,737 17,233 22,737

16,500 22,500 16,500 22,500

4,000 4,000 4,000 4,000
24.75 33.75 24.75 33.75 1.36
9.8 9.8 9.8 9.8
162,174 221,146 162,174 221,146

3.32 4.38 3.32 4.38 1.32

21,754 28,700 21,754 28,700

25,000 25,000 25,000 25,000

0.64 1 0.64 1
41,000 41,000 41,000 41,000
71.00 71 71.00 71
28.40 28.40 28.40 28.40
180.00 180 180.00 180
5,112 5,112 5,112 5,112
1,100 1,100 1,100 1,100
440 440 440 440
4.00 4 4.00 4
 5,736 5,736 5,736 5,736
207,391 207,391 207,391 207,391
31.65 31.65 31.65 31.65 1.00

1,285,765 1,558,451 1,285,765 1,558,451

196.23 237.84 196.23 237.84 1.212

2,150,300 2,484,231 2,150,300 2,484,231

$ 2,300,821 $ 2,658,127 $ 2,300,821 $ 2,658,127
16,500 22,500 16,500 22,500
$ 19,500 $ 19,500 $ 19,500 $ 19,500
2,419,321 2,812,627 2,419,321 2,812,627
290,319 337,515 290,319 337,515
241,932 281,263 241,932 281,263
2,951,572 3,431,405 2,951,572 3,431,405
150,000 200,000 150,000 200,000

328,500 328,500
361,350 361,350
334,249 398,895 334,249 398,895
284,111 339,061 284,111 339,061
34,093 40,687 34,093 40,687
28,411 33,906 28,411 33,906
346,616 413,654 346,616 413,654

60,000 60,000 60,000 60,000

9.16 9.16 9.16 9.16
343,807 398,070 343,807 398,070

- 98,946 - 115,352 - 98,946 - 115,352

1,530,627 1,841,168 1,530,627 1,841,168

234 281 234 281

14.8 21.9 14.8 26.0

22,607,546 40,348,053 22,607,546 47,913,313

62,955,599 70,520,859
21,178,128 42,623,487 21,178,128 50,615,390
63,801,615 71,793,519
1.067 0.947 1.067 0.947
0.987 0.982
Cost Analysis
Option 1 - Current
36 x Cat785
5 x RH200
Cat785
Calendar Days 365
Availability 0.85
U of A 0.88
UT_Hours UT_hrs/yr 6,552

PGK/USD 0.40
AUD/USD LOM 0.70
AUD/USD 2010 0.85

Shovel Operating Costs

Av. Cat machine cost per SMU AU$/hr 317.99

Maint. Cost USD/UT_hr 270.29

Maint. Cost USD/yr 1,771,080

Diesel Price USD/L 0.69

Fuel burn rate L/UT_hr 319.00
Fuel cost USD/UT_hr 220.11
Fuel Cost USD/yr 1,442,266

Lube & Oils Usage L/UT_hr 5.88

Lube & Oils Cost USD/hr 47.04
Lube & Oils Cost USD/yr 308,229

GET cost USD/UT_hr 14.90

GET Costs USD/yr 97,632

Base salary USD/yr 25,000

markup % 0.64
Gross base USD/yr 41,000
messing & accom K/manday 71.00
messing & accom USD/manday 28.40
Mandays Mandays/yr 180.00
messing & accom USD/yr/fte 5,112
Fifo cost (flight ex POM) K/return flight 1,100
Fifo cost (flight ex POM) USD/return flight 440
Roster requirements ftes 4.00
Flight cost USD/fte 5,736
Total Shovel Operator Cost USD / yr 207,391
Total Shovel Operator Cost USD/UT_hr 31.65

Total Operating Cost USD/yr 3,826,597

Total Operating Cost USD/UT_hr 583.99
552
CAPEX
New Truck (2009 price) USD/unit
New Truck (2010 price) USD/unit $ -
Dispatch Equipment USD/unit
Subtotal USD/unit -
Freight @12% % -
Contingency @10% % -
Total purchase cost USD/unit -
Salvage value at 60,000 hrs USD/unit

Life of machine hrs 60,000

Life of machine yrs 9.16
Sustaining Capital USD/yr -

Tax reclaim on Capital Cost USD/yr -

Gross Op Cost USD/yr 3,826,597

Gross unit rate USD/Ut_hr 584

Fleet Requirement # Shovels 4.8

Gross Fleet Cost USD/yr 18,367,668

Ex-pit movement tonnes/yr 56,475,008

Loading Cost / tonne USD / t 0.325

SBP Economic Assumptions

Martin Cummings
SBP
Long
2009 Term

$A/$US 0.66 0.70

PGK/$US 0.36 0.4
EUR/$US 1.28 1.30
$US/West African CFA 512 505
EUR/West African CFA 656 656
US$/CAD 1.23 1.25
NZ$/US$ 0.53 0.57
US$/SGD 1.53 1.50

Gold ($US/oz) 900 850

Silver ($US/oz) 12.50 13.50

HFO ($US/mt) 370 460

Diesel ($US/ltr) to Lihir 0.59 0.69
Diesel ($US/ltr) to Ballarat ** 0.97 1.06
Diesel ($US/ltr) to Mt Rawdon
** 1.02 1.11
Diesel ($US/ltr) to Bonikro 0.72 0.82
based on WTI Oil ($US/bbl) 55.00 70.00
CER's ($US) 17 20

CPI - US 1.0% 2.0%

CPI - Australia 2.5% 2.5%

Interest Rates
- US Fed Funds Rate 0.25% 4.0%
- Australia RBA Cash Rate 3.25% 4.0%
- US 10yr Bond Yield 2.75% 5.0%
- Australia 10yr Bond Yield 4.5% 5.5%
Option 2 - 46 x 785s Option 3 - 46 x 78 Option 4 - Mixed Fleet Option 5 - Mixed Fleet
Current Tray Size Wider Tray 15 x 785s 22 x 789s 15 x 785s 26 x 789s
6 x RH200 6 x RH200 5 x RH200 6 x RH200
Cat785 Cat 785 Cat785 Cat789 Cat785 Cat789
365 365 365 365 365 365
0.85 0.85 0.85 0.85 0.85 0.85
0.88 0.88 0.88 0.88 0.88 0.88
6,552 6,552 6,552 6,552 6,552 6,552

0.40 0.40 0.40 0.40 0.40 0.40

0.70 0.70 0.70 0.70 0.70 0.70
0.85 0.85 0.85 0.85 0.85 0.85

317.99 317.99 317.99 317.99 317.99 317.99

270.29 270.29 270.29 270.29 270.29 270.29

1,771,080 1,771,080 1,771,080 1,771,080 1,771,080 1,771,080

0.69 0.69 0.69 0.69 0.69 0.69

319.00 319.00 319.00 319.00 319.00 319.00
220.11 220.11 220.11 220.11 220.11 220.11
1,442,266 1,442,266 1,442,266 1,442,266 1,442,266 1,442,266

5.88 5.88 5.88 5.88 5.88 5.88

47.04 47.04 47.04 47.04 47.04 47.04
308,229 308,229 308,229 308,229 308,229 308,229

14.90 14.90 14.90 14.90 14.90 14.90

97,632 97,632 97,632 97,632 97,632 97,632

25,000 25,000 25,000 25,000 25,000 25,000

0.64 0.64 0.64 1 0.64 1
41,000 41,000 41,000 41,000 41,000 41,000
71.00 71.00 71.00 71 71.00 71
28.40 28.40 28.40 28.40 28.40 28.40
180.00 180.00 180.00 180 180.00 180
5,112 5,112 5,112 5,112 5,112 5,112
1,100 1,100 1,100 1,100 1,100 1,100
440 440 440 440 440 440
4.00 4.00 4.00 4 4.00 4
5,736 5,736 5,736 5,736 5,736 5,736
207,391 207,391 207,391 207,391 207,391 207,391
31.65 31.65 31.65 31.65 31.65 31.65

3,826,597 3,826,597 3,826,597 3,826,597 3,826,597 3,826,597

583.99 583.99 583.99 583.99 583.99 583.99
552 552 552 552

$ - $ - $ - $ - $ - $ -

- - - - - -
 - - - - - -
- - - - - -
- - - - - -

60,000 60,000 60,000 60,000 60,000 60,000

9.16 9.16 9.16 9.16 9.16 9.16
- - - - - -

- - - - - -

3,826,597 3,826,597 3,826,597 3,826,597 3,826,597 3,826,597

584 584 584 584 584 584

5.6 5.6 1.8 3.2 1.8 3.8

21,428,946 21,428,946 6,887,875 12,245,112 6,887,875 14,541,070

19,132,987 21,428,946
65,887,509 73,638,981 21,178,128 42,623,487 21,178,128 50,615,390
63,801,615 71,793,519
0.325 0.291 0.325 0.287 0.325 0.287
0.300 0.298
Scenerio 1 - Current Load Times Option 1 - Current Option 2 - 46 x 785s Option 3 - 46 x 785s Option 4 - Mixed Fleet (22x789s) Option 5 - Mixed Fleet (26 x 789s)
36 x Cat785 Current Tray Size Wider Tray 15 x 785s 22 x 789s 15 x 785s 26 x 789s
5 x RH200 6 x RH200 6 x RH200 5 x RH200 6 x RH200
Cat785 Cat785 Cat 785 Cat785 Cat789 Cat785 Cat789
Truck Payload tons 136 136 152 136 189.1 136 189.1
Av. Spot Time min/load 1.29 1.29 1.29 1.29 1.29 1.29 1.29
Av Load time min/load 2.80 2.80 2.80 2.80 3.73 2.80 3.73
Time per swing min/bucket 0.93 0.93 0.93 0.93 0.93 0.93 0.93
Total load time min/load 4.09 4.09 4.09 4.09 5.02 4.09 5.02
Ex-Pit Shovel Productivity t/UT_hr 1,796 1,796 2,007 1,796 2,033 1,796 2,033

Annual Movement Capability t/year 56,475,008 65,887,509 73,638,981 21,178,128 42,623,487 21,178,128 50,615,390
Combined Movement Per Year 56,475,008 65,887,509 73,638,981 63,801,615 71,793,519

Shovel Fleet 5.0 6.0 6.0 2.0 3.0 2.0 4.0

Required Shovel Numbers 4.8 5.6 5.6 1.8 3.2 1.8 3.8

Truck Numbers 36 46 46 15 22 15 26

Operating Cost Per Truck US$/year 1,530,627 1,530,627 1,532,044 1,530,627 1,841,168 1,530,627 1,841,168
Truck Fleet Operating Cost US$/year 55,113,346 70,334,589 70,399,702 22,607,546 40,348,053 22,607,546 47,913,313

Operating Cost Per Shovel US$/year 3,826,597 3,826,597 3,826,597 3,826,597 3,826,597 3,826,597 3,826,597
Shovel Fleet Operating Cost US$/year 18,367,668 21,428,946 21,428,946 6,887,875 12,245,112 6,887,875 14,541,070

Total Load & Haul Cost US$/year 73,481,014 91,763,535 91,828,648 29,495,422 52,593,165 29,495,422 62,454,383
- - - -
Loading Unit Cost US$/t 0.325 0.325 0.291 0.300 0.298
Hauling Unit Cost US$/t 0.976 1.067 0.956 0.987 0.982

Load & Haul Unit Cost US$/t 1.301 1.393 1.247 1.287 1.281

100,000,000 1.500

1.393
Summary for Graph
90,000,000 Option 1 - Current 36 Option 2 - 46 x 785s Option 3 - 46 x 785s wi Option 4 - Mixed Flee
789s & 5.6 x RH200s
1.301 36 x Cat785 Current Tray Size Wider Tray
1.287 15 x1.281
785s & 22 x 789s15 x 785s & 26 x 789s
1.247 1.250
80,000,000 5 x RH200 6 x RH200 6 x RH200 5 x RH200 6 x RH200
Ex-Pit Shovel Productivity t/UT_hr 1,796 1,796 2,007 1,954 1,963
Combined Movement Per Year
70,000,000 t/yr 1.067 56,475,008 65,887,509 73,638,981 63,801,615 71,793,519
Required Shovel Numbers 0.976 4.8 5.6 0.987 5.6 0.982 5.0
1.000 Combined 5.6Movement Per Year
0.956
Truck Numbers
60,000,000 36 46 46 37 Truck Fl 41
eet Operating Cost/Year US$/yr
Truck Fleet Operating Cost/Year US$/yr 55,113,346 70,334,589 70,399,702 62,955,599 70,520,859 Operating Cost/Year
Shovel Fleet
Shovel Fleet Operating Cost/Year US$/yr 18,367,668 21,428,946 21,428,946 19,132,987 Total Load & Haul Cost/Year US$
21,428,946
50,000,000 0.750
Total Load & Haul Cost/Year US$ 73,481,014 91,763,535 91,828,648 82,088,587 91,949,805
Load & Haul Unit Cost US$/t
Loading Unit Cost
40,000,000
US$/t 0.303 0.303 0.271 0.279 0.278
Loading Uni t Cost US$/t
Hauling Unit Cost US$/t 0.976 1.067 0.956 0.987 0.982
0.500 Haul ing Uni t Cost US$/t
30,000,000
Load & Haul Unit Cost US$/t 1.301 1.393 1.247 1.287 1.281
20,000,000 0.303 0.303
0.271 0.279 0.278
0.250

10,000,000

- -
- -
Shovel Avail 0.85
Shovel UofA 0.88
Shovel UT_hrs_yr UT_hrs/yr 6,552

RH200 bucket size m^3 26.0 Terex Hand Book

Fill Factor 0.85
Average Bucket Capacity m3 22.1
Loose Rock Density tons/m3 1.70 Geology

Tonnes per Pass (Bucket) tons 37.57

Option 1 - Current Option 2 - 46 x 785s Option 3 - 46 x 785sOption 4 - Mixed Fleet Option 5 - Mixed Fleet
36 x Cat785 Current Tray Size Wider Tray 15 x 785s 22 x 789s 15 x 785s
5 x RH200 5 x RH200 5 x RH200 5 x RH200 5 x RH200
Shovel Productivity Cat785 Cat785 Cat 785 Cat785 Cat789 Cat785
Truck Payload 136.0 136.0 152.0 136.0 189.1 136.0

Truck Payload - Caterpillar tonnes/load 140.0 140.0 140.0 140.0 180.0 140.0
Actual Payload - VIMS tonnes/load 133.0 133.0 133.0 133.0

Truck Tray Volume m^3 88.0 88.0 90.0 88.0 108.0 88.0

Passes Per Truck Load 3.6 3.6 4.0 3.6 5.0 3.6

Av. Spot Time min/load 1.29 1.29 1.29 1.29 1.29 1.29
Av Load time min/load 2.48 2.48 2.48 2.48 3.31 2.48
Time per swing min/bucket 0.83 0.83 0.83 0.83 0.83 0.83
Total load time min/load 3.77 3.77 3.77 3.77 4.60 3.77

Production per Minute t/min 36.04 36.04 40.28 36.04 41.10 36.04
Production per Operating Time t/OT_hr 2,163 2,163 2,417 2,163 2,466 2,163
Production per Utilised Time t/UT_hr 1,946 1,946 2,175 1,946 2,219 1,946
Sheeting allowance % - - - - - -
Shovel Productivity t/UT_hr ex-pit 1,946 1,946 2,175 1,946 2,219 1,946

RH200 Shovel Fleet 4.5 5.0 5.0 1.8 3.2 1.8

Annual Movement Capability t/yr 57,133,551 63,765,123 71,266,903 22,955,444 46,534,843 22,955,444
57,133,551 63,765,123 71,266,903 69,490,287

Truck Productivity
Truck Av 0.85 0.85 0.85 0.85 0.85 0.85
Truck UA 0.88 0.88 0.88 0.88 0.88 0.88
Truck UT_hrs/yr UT_hrs/yr 6,552 6,552 6,552 6,552 6,552 6,552

Av haul time min 30.0 33.2 33.2 33.2 33.2 33.2

Av cycle time min 33.8 37.0 37.0 37.0 37.8 37.0
Truck Productivity Tonnes/yr/truck 1,583,150 1,446,130 1,616,263 1,446,130 1,966,726 1,446,130
Required Fleet Size # trucks 36.1 44.1 44.1 15.9 23.7 15.9
39.5

Load & Haul Cost/Tonne USD/tonne 1.286 1.358 1.215 1.252

ption 5 - Mixed Fleet
26 x 789s

Cat789
189.1

180.0

108.0

5.0

1.29
3.31
0.83
4.60

41.10
2,466
2,219
-
2,219

3.2
46,534,843
69,490,287

0.85
0.88
6,552

33.2
37.8
1,966,726
23.7
39.5

1.252
Cost Analysis
Option 1 - CurrOption 2 - 46Option 3 - 46
36 x Cat785Current Tray SizeWider Tray
5 x RH200 5 x RH200 5 x RH200
Cat785 Cat785 Cat 785
Calendar Days 365 365 365
Availability 0.85 0.85 0.85
U of A 0.88 0.88 0.88
UT_Hours UT_hrs/yr 6,552 6,552 6,552

PGK/USD 0.40 0.40 0.40

AUD/USD LOM 0.70 0.70 0.70
AUD/USD 2010 0.85 0.85 0.85

OPEX
0 - 6000 hrs
6000 - 12000 hrs
12000 -18000 hrs
18000 - 24000 hrs
24000 - 30000 hrs
30000 - 36000 hrs
36000 - 42000 hrs
42000 - 48000 hrs
48000 - 54000 hrs
54000 - 60000 hrs
Av. Cat machine cost per SMU PGK/hr 173.40 173.40 173.40

Maint. Cost USD/UT_hr 69.36 69.36 69.36

Maint. Cost USD/yr 454,480 454,480 454,480

Diesel Price USD/L 0.69 0.69 0.69

Fuel burn rate L/UT_hr 93.50 93.50 93.50
Fuel cost USD/UT_hr 64.52 64.52 64.52
Fuel cost USD/yr 422,733 422,733 422,733

Lube & Oils Cost USD/hr 2.63 2.63 2.63

Lube & Oils Cost USD/yr 17,233 17,233 17,233

Tyre unit cost USD/unit 16,500 16,500 16,500

Tyre life UT_hrs/unit 4,000 4,000 4,000
Tyre cost USD/UT_hr 24.75 24.75 24.75
Tyre Usage units/yr 9.8 9.8 9.8
Tyre Costs USD/yr 162,174 162,174 162,174

GET cost USD/UT_hr 3.32 3.32 3.32

GET Costs USD/yr 21,754 21,754 21,754

Base salary USD/yr 25,000 25,000 25,000

markup % 0.64 0.64 0.64
Gross base USD/yr 41,000 41,000 41,000
messing & accom K/manday 71.00 71.00 71.00
messing & accom USD/manday 28.40 28.40 28.40
Mandays Mandays/yr 180.00 180.00 180.00
messing & accom USD/yr/fte 5,112 5,112 5,112
Fifo cost (flight ex POM) K/return flight 1,100 1,100 1,100
Fifo cost (flight ex POM) USD/return flight 440 440 440
Roster requirements ftes 4.00 4.00 4.00
Flight cost USD/fte 5,736 5,736 5,736
Total Truck Operator Cost USD / yr 207,391 207,391 207,391
Total Truck Operator Cost USD/UT_hr 31.65 31.65 31.65

Total Operating Cost USD/yr 1,285,765 1,285,765 1,285,765

Total Operating Cost USD/UT_hr 196.23 196.23 196.23

CAPEX
New Truck (2009 price) USD/unit 2,150,300 2,150,300 2,150,300
New Truck (2010 price) USD/unit $ 2,300,821 $ 2,300,821 $ 2,300,821
Tyre Unit Cost USD/unit 16,500 16,500 16,500
Dispatch Equipment USD/unit $ 19,500 $ 19,500 $ 19,500
Subtotal USD/unit 2,419,321 2,419,321 2,419,321
Freight @12% % 290,319 290,319 290,319
Contingency @10% % 241,932 241,932 241,932
Total purchase cost USD/unit 2,951,572 2,951,572 2,951,572
Salvage value at 60,000 hrs USD/unit 150,000 150,000 150,000

Rubber Tray (2009 price) AUD/unit 328,500 328,500

Rubber Tray (2010 price) AUD/unit 361,350 361,350
Rubber Tray (discount price) AUD/unit 334,249 334,249 351,500
Rubber Tray (discount price) USD/unit 284,111 284,111 298,775
Freight @12% % 34,093 34,093 35,853
Contingency @10% % 28,411 28,411 29,878
Total purchase cost USD/unit 346,616 346,616 364,506

Life of machine hrs 60,000 60,000 60,000

Life of machine yrs 9.16 9.16 9.16
Sustaining Capital USD/yr 343,807 343,807 345,761

Tax reclaim on Capital Cost USD/yr - 98,946 - 98,946 - 99,482

Gross Op Cost USD/yr 1,530,627 1,530,627 1,532,044

Gross unit rate USD/Ut_hr 234 234 234

Fleet Requirement # trucks 36.1 44.1 44.1

Gross Fleet Cost USD/yr 55,238,085 67,490,911 67,553,391

Ex-pit movement tonnes/yr 57,133,551 63,765,123 71,266,903

Haul Cost / tonne USD / t 0.967 1.058 0.948

0.967 1.058 0.948

SBP Economic Assumptions

Martin Cummings
SBP
Long
2009 Term 2010/11

$A/$US 0.66 0.70 0.85

PGK/$US 0.36 0.4
EUR/$US 1.28 1.30
$US/West African CFA 512 505
EUR/West African CFA 656 656
US$/CAD 1.23 1.25
NZ$/US$ 0.53 0.57
US$/SGD 1.53 1.50

Gold ($US/oz) 900 850

Silver ($US/oz) 12.50 13.50

HFO ($US/mt) 370 460

Diesel ($US/ltr) to Lihir 0.59 0.69
Diesel ($US/ltr) to Ballarat ** 0.97 1.06
Diesel ($US/ltr) to Mt
Rawdon ** 1.02 1.11
Diesel ($US/ltr) to Bonikro 0.72 0.82
based on WTI Oil ($US/bbl) 55.00 70.00

CER's ($US) 17 20

CPI - US 1.0% 2.0%

CPI - Australia 2.5% 2.5%

Interest Rates
- US Fed Funds Rate 0.25% 4.0%
- Australia RBA Cash Rate 3.25% 4.0%
- US 10yr Bond Yield 2.75% 5.0%
- Australia 10yr Bond Yield 4.5% 5.5%
Option 4 - Mixed Fleet Option 5 - Mixed Fleet
15 x 785s 22 x 789s 15 x 785s 26 x 789s
5 x RH200 6 x RH200
Cat785 Cat789 Cat785 Cat789
365 365 365 365
0.85 0.85 0.85 0.85
0.88 0.88 0.88 0.88
6,552 6,552 6,552 6,552

0.40 0.40 0.40 0.40

0.70 0.70 0.70 0.70
0.85 0.85 0.85 0.85

33.36 33.36
125.05 125.05
307.05 307.05
158.41 158.41
191.93 191.93
263.46 263.46
100.20 100.20
437.39 437.39
51.36 51.36
298.93 298.93
173.40 196.71 173.40 196.71

69.36 78.69 69.36 78.69 1.13

454,480 515,586 454,480 515,586

0.69 0.69 0.69 0.69

93.50 124.50 93.50 124.50 1.33
64.52 85.91 64.52 85.91 1.33
422,733 562,891 422,733 562,891

2.63 3.47 2.63 3.47 1.32

17,233 22,737 17,233 22,737

16,500 22,500 16,500 22,500

4,000 4,000 4,000 4,000
24.75 33.75 24.75 33.75 1.36
9.8 9.8 9.8 9.8
162,174 221,146 162,174 221,146

3.32 4.38 3.32 4.38 1.32

21,754 28,700 21,754 28,700

25,000 25,000 25,000 25,000

0.64 1 0.64 1
41,000 41,000 41,000 41,000
71.00 71 71.00 71
28.40 28.40 28.40 28.40
180.00 180 180.00 180
5,112 5,112 5,112 5,112
1,100 1,100 1,100 1,100
440 440 440 440
4.00 4 4.00 4
 5,736 5,736 5,736 5,736
207,391 207,391 207,391 207,391
31.65 31.65 31.65 31.65 1.00

1,285,765 1,558,451 1,285,765 1,558,451

196.23 237.84 196.23 237.84 1.212

2,150,300 2,484,231 2,150,300 2,484,231

$ 2,300,821 $ 2,658,127 $ 2,300,821 $ 2,658,127
16,500 22,500 16,500 22,500
$ 19,500 $ 19,500 $ 19,500 $ 19,500
2,419,321 2,812,627 2,419,321 2,812,627
290,319 337,515 290,319 337,515
241,932 281,263 241,932 281,263
2,951,572 3,431,405 2,951,572 3,431,405
150,000 200,000 150,000 200,000

328,500 328,500
361,350 361,350
334,249 398,895 334,249 398,895
284,111 339,061 284,111 339,061
34,093 40,687 34,093 40,687
28,411 33,906 28,411 33,906
346,616 413,654 346,616 413,654

60,000 60,000 60,000 60,000

9.16 9.16 9.16 9.16
343,807 398,070 343,807 398,070

- 98,946 - 115,352 - 98,946 - 115,352

1,530,627 1,841,168 1,530,627 1,841,168

234 281 234 281 1.203

15.9 23.7 15.9 23.7

24,296,728 43,564,012 24,296,728 43,564,012

67,860,740 67,860,740
22,955,444 46,534,843 22,955,444 46,534,843
69,490,287 69,490,287
1.058 0.936 1.058 0.936
0.977 0.977
Cost Analysis
Option 1 - CurrOption 2 - 46
36 x Cat785Current Tray Size
5 x RH200 5 x RH200
Cat785 Cat785
Calendar Days 365 365
Availability 0.85 0.85
U of A 0.88 0.88
UT_Hours UT_hrs/yr 6,552 6,552

PGK/USD 0.40 0.40

AUD/USD LOM 0.70 0.70
AUD/USD 2010 0.85 0.85

Shovel Operating Costs

Av. Cat machine cost per SMU AU$/hr 317.99 317.99

Maint. Cost USD/UT_hr 270.29 270.29

Maint. Cost USD/yr 1,771,080 1,771,080

Diesel Price USD/L 0.69 0.69

Fuel burn rate L/UT_hr 319.00 319.00
Fuel cost USD/UT_hr 220.11 220.11
Fuel Cost USD/yr 1,442,266 1,442,266

Lube & Oils Usage L/UT_hr 5.88 5.88

Lube & Oils Cost USD/hr 47.04 47.04
Lube & Oils Cost USD/yr 308,229 308,229

GET cost USD/UT_hr 14.90 14.90

GET Costs USD/yr 97,632 97,632

Base salary USD/yr 25,000 25,000

markup % 0.64 0.64
Gross base USD/yr 41,000 41,000
messing & accom K/manday 71.00 71.00
messing & accom USD/manday 28.40 28.40
Mandays Mandays/yr 180.00 180.00
messing & accom USD/yr/fte 5,112 5,112
Fifo cost (flight ex POM) K/return flight 1,100 1,100
Fifo cost (flight ex POM) USD/return flight 440 440
Roster requirements ftes 4.00 4.00
Flight cost USD/fte 5,736 5,736
Total Shovel Operator Cost USD / yr 207,391 207,391
Total Shovel Operator Cost USD/UT_hr 31.65 31.65

Total Operating Cost USD/yr 3,826,597 3,826,597

Total Operating Cost USD/UT_hr 583.99 583.99
552 552
CAPEX
New Truck (2009 price) USD/unit
New Truck (2010 price) USD/unit $ - $ -
Dispatch Equipment USD/unit
Subtotal USD/unit - -
Freight @12% % - -
Contingency @10% % - -
Total purchase cost USD/unit - -
Salvage value at 60,000 hrs USD/unit

Life of machine hrs 60,000 60,000

Life of machine yrs 9.16 9.16
Sustaining Capital USD/yr - -

Tax reclaim on Capital Cost USD/yr - -

Gross Op Cost USD/yr 3,826,597 3,826,597

Gross unit rate USD/Ut_hr 584 584

Fleet Requirement # Shovels 4.5 5.0

Gross Fleet Cost USD/yr 17,143,157 19,132,987

Ex-pit movement tonnes/yr 57,133,551 63,765,123

Loading Cost / tonne USD / t 0.300 0.300

SBP Economic Assumptions

Martin Cummings
SBP
Long
2009 Term

$A/$US 0.66 0.70

PGK/$US 0.36 0.4
EUR/$US 1.28 1.30
$US/West African CFA 512 505
EUR/West African CFA 656 656
US$/CAD 1.23 1.25
NZ$/US$ 0.53 0.57
US$/SGD 1.53 1.50

Gold ($US/oz) 900 850

Silver ($US/oz) 12.50 13.50

HFO ($US/mt) 370 460

Diesel ($US/ltr) to Lihir 0.59 0.69
Diesel ($US/ltr) to Ballarat ** 0.97 1.06
Diesel ($US/ltr) to Mt Rawdon
** 1.02 1.11
Diesel ($US/ltr) to Bonikro 0.72 0.82
based on WTI Oil ($US/bbl) 55.00 70.00
CER's ($US) 17 20

CPI - US 1.0% 2.0%

CPI - Australia 2.5% 2.5%

Interest Rates
- US Fed Funds Rate 0.25% 4.0%
- Australia RBA Cash Rate 3.25% 4.0%
- US 10yr Bond Yield 2.75% 5.0%
- Australia 10yr Bond Yield 4.5% 5.5%
Option 3 - 46Option 4 - Mixed Fleet Option 5 - Mixed Fleet
Wider Tray 15 x 785s 22 x 789s 15 x 785s 26 x 789s
5 x RH200 5 x RH200 6 x RH200
Cat 785 Cat785 Cat789 Cat785 Cat789
365 365 365 365 365
0.85 0.85 0.85 0.85 0.85
0.88 0.88 0.88 0.88 0.88
6,552 6,552 6,552 6,552 6,552

0.40 0.40 0.40 0.40 0.40

0.70 0.70 0.70 0.70 0.70
0.85 0.85 0.85 0.85 0.85

317.99 317.99 317.99 317.99 317.99

270.29 270.29 270.29 270.29 270.29

1,771,080 1,771,080 1,771,080 1,771,080 1,771,080

0.69 0.69 0.69 0.69 0.69

319.00 319.00 319.00 319.00 319.00
220.11 220.11 220.11 220.11 220.11
1,442,266 1,442,266 1,442,266 1,442,266 1,442,266

5.88 5.88 5.88 5.88 5.88

47.04 47.04 47.04 47.04 47.04
308,229 308,229 308,229 308,229 308,229

14.90 14.90 14.90 14.90 14.90

97,632 97,632 97,632 97,632 97,632

25,000 25,000 25,000 25,000 25,000

0.64 0.64 1 0.64 1
41,000 41,000 41,000 41,000 41,000
71.00 71.00 71 71.00 71
28.40 28.40 28.40 28.40 28.40
180.00 180.00 180 180.00 180
5,112 5,112 5,112 5,112 5,112
1,100 1,100 1,100 1,100 1,100
440 440 440 440 440
4.00 4.00 4 4.00 4
5,736 5,736 5,736 5,736 5,736
207,391 207,391 207,391 207,391 207,391
31.65 31.65 31.65 31.65 31.65

3,826,597 3,826,597 3,826,597 3,826,597 3,826,597

583.99 583.99 583.99 583.99 583.99
552 552 552

$ - $ - $ - $ - $ -

- - - - -
 - - - - -
- - - - -
- - - - -

60,000 60,000 60,000 60,000 60,000

9.16 9.16 9.16 9.16 9.16
- - - - -

- - - - -

3,826,597 3,826,597 3,826,597 3,826,597 3,826,597

584 584 584 584 584

5.0 1.8 3.2 1.8 3.2

19,132,987 6,887,875 12,245,112 6,887,875 12,245,112

19,132,987 19,132,987
71,266,903 22,955,444 46,534,843 22,955,444 46,534,843
69,490,287 69,490,287
0.268 0.300 0.263 0.300 0.263
0.275 0.275
Scenerio 2 - Improved Load Time (19sec) Option 1 - Current Option 2 - 46 x 785s Option 3 - 46 x 785s Option 4 - Mixed Fleet (22x789s) Option 5 - Mixed Fleet (26 x 789s)
36 x Cat785 Current Tray Size Wider Tray 15 x 785s 22 x 789s 15 x 785s 26 x 789s
5 x RH200 5 x RH200 5 x RH200 5 x RH200 6 x RH200
Cat785 Cat785 Cat 785 Cat785 Cat789 Cat785 Cat789
Truck Payload tons 136 136 152 136 189.1 136 189.1
Av. Spot Time min/load 1.29 1.29 1.29 1.29 1.29 1.29 1.29
Av Load time min/load 2.48 2.48 2.48 2.48 3.31 2.48 3.31
Time per swing min/bucket 0.83 0.83 0.83 0.83 0.83 0.83 0.83
Total load time min/load 3.77 3.77 3.77 3.77 4.60 3.77 4.60
Ex-Pit Shovel Productivity t/UT_hr 1,946 1,946 2,175 1,946 2,219 1,946 2,219

Annual Movement Capability t/year 57,133,551 63,765,123 71,266,903 22,955,444 46,534,843 22,955,444 46,534,843
Combined Movement Per Year 57,133,551 63,765,123 71,266,903 69,490,287 69,490,287

Shovel Fleet 4.0 5.0 5.0 2.0 3.0 2.0 3.0

Required Shovel Numbers 4.5 5.0 5.0 1.8 3.2 1.8 3.2

Truck Numbers 36 44 44 16 24 16 24

Operating Cost Per Truck US$/year 1,530,627 1,530,627 1,532,044 1,530,627 1,841,168 1,530,627 1,841,168
Truck Fleet Operating Cost US$/year 55,238,085 67,490,911 67,553,391 24,296,728 43,564,012 24,296,728 43,564,012

Operating Cost Per Shovel US$/year 3,826,597 3,826,597 3,826,597 3,826,597 3,826,597 3,826,597 3,826,597
Shovel Fleet Operating Cost US$/year 17,143,157 19,132,987 19,132,987 6,887,875 12,245,112 6,887,875 12,245,112

Total Load & Haul Cost US$/year 72,381,242 86,623,898 86,686,379 31,184,603 55,809,124 31,184,603 55,809,124

Loading Unit Cost US$/t 0.300 0.300 0.268 0.275 0.275

Hauling Unit Cost US$/t 0.967 1.058 0.948 0.977 0.977

Load & Haul Unit Cost US$/t 1.267 1.358 1.216 1.252 1.252

100,000,000 1.500
Summary for Graph Option 1 - Current 36 Option 2 - 46 x 785s CurrOption 3 - 46 x 785s with Option 4 - Mixed Fleet789s & 5.6 x RH200s
36 x Cat785 Current Tray Size Wider Tray 15 x 785s & 22 x 789s 15 x 785s & 26 x 789s
90,000,000 1.358
5 x RH200 6 x RH200 6 x RH200 5 x RH200 6 x RH200
Ex-Pit Shovel Productivity 1.267 t/UT_hr 1,946 1,946
1.252 2,175
1.252 1.250 2,129 2,129
Combined Movement Per Year
80,000,000 t/yr 1.216
57,133,551 63,765,123 71,266,903 69,490,287 69,490,287
Required Shovel Numbers 4.5 5.0 5.0 5.0 5.0
Truck Numbers 1.067 36 46 46 40 40
70,000,000
Truck Fleet Operating Cost/Year US$/yr 55,238,085 67,490,911 67,553,391 1.000
67,860,740 67,860,740
0.976 0.987 0.982
Shovel Fleet Operating Cost/Year US$/yr 17,143,157
0.956 19,132,987 19,132,987 19,132,987 19,132,987
Total60,000,000
Load & Haul Cost/Year US$ 72,381,242 86,623,898 86,686,379 86,993,727 86,993,727
Combi ned Movement Per Year
Loading Unit Cost US$/t 0.303 0.303 0.271 0.279 0.278
Truck Fleet Operating Cost/Year US$/yr
Hauling Unit Cost US$/t 0.976 1.067 0.956 0.987 0.982
Shovel Fl eet Operating Cost/Year
50,000,000 0.750
Total Load & Haul Cost/Year US$
Load & Haul Unit Cost US$/t 1.267 1.358 1.216 1.252 1.252
40,000,000
Load & Haul Unit Cost US$/t
0.500 Loading Unit Cost US$/t
30,000,000 Haul ing Unit Cost US$/t

20,000,000 0.303 0.303

0.271 0.279 0.278
0.250

10,000,000

- -
20,000,000 0.303 0.303
0.271 0.279 0.278
0.250

10,000,000

- -