Macraes New Zealand Success Story

Who Macraes Mining Company Limited is can be summed up by the following statements: +         We have been New Zealand's largest gold producer for seven years +         We have one of the lowest market capitalisation per reserve ounce of the gold producers in the  Australian Gold Index +         We have a resource finding cost of less than NZ$l0 per ounce +         We have a large land bank with proven reserves +         We have an Operating Cash Margin of approximately NZ$200 per ounce +         We have reduced our Dry Milled Tonne Cost by 34% since 1992   Our Mission is to continually grow our gold business, through maximising cashflow and focusing on our value drivers being: +         Increasing reserves +         Increasing cash operating margins +         Increasing production   The real challenge is the reduction of operating costs and the optimisation of revenue, particularly in the current gold price environment.   The Company has as at 31 December 1996 total mineral resources of 6.1 million ounces and reserves of 3.4 million ounces. This together with our current cash position of approximately NZ$15 million and strong hedging book of approximately 800,000 ounces places the Company on a sound financial footing whilst positioning itself to aggressively pursue its growth strategy when gold price and market conditions improve.