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anzhela fima

United States


Member since June 10, 2013

  • The sharp fall in the gold price has spooked investors. Shares in mining groups have tumbled and questions have been raised about whether gold firms are past their sell-by date. Archipelago Resources has not been immune to these concerns. It produces gold in Indonesia and its stock has fallen 19 per cent in the past month from 60p to 481⁄2p. But at this level, the shares are cheap. Unlike most gold companies trading on AIM, Archipelago is already in production. It is one of the lowest-cost producers on the London market and it is about to start paying a dividend.

    FORTUNES: Boss Marcus Engelbrecht and Sulawesi island Archipelago joined AIM in 2003 just after securing the rights to a large mine, Toka Tindung, on the Indonesian island of Sulawesi. Early days were tricky as the firm struggled to get mining permits, but Rajawali Corporation took a major stake in 2009 and the company’s fortunes changed. Rajawali is an Indonesian conglomerate run by one of the country’s richest men, Peter Sondakh. Not surprisingly, he and his colleagues are well connected, and following their investment, doors opened and the firm won permission to start mining.

    Production began in April 2011. Four months later a new chief executive, Marcus Engelbrecht, was appointed and the company has been making good progress ever since. Engelbrecht, an Australian, has a wealth of experience, including more than 20 years at mining giant BHP Billiton. The rest of the management are old mining hands too a...