Kingsgate Consolidated Limited · ASX:KCN
Kingsgate Consolidated — Investor Presentation (September 2015)
23 slides from Kingsgate Consolidated's investor presentation, September 2015
Slide 1: Kingsgate Consolidated Limited Corporate Presentation
Kingsgate Consolidated Limited Gold Producer and Developer Corporate Presentation September 2015
Slide 2: Disclaimer
Disclaimer Forward Looking Statements: These materials include forward looking statements. Forward looking statements inherently involve subjective judgment & analysis & are subject to significant uncertainties, risks & contingencies, many of which are outside of the control of, & may be unknown to,
Slide 3: Kingsgate Today
Kingsgate Today ASX Listed: Market Cap ~US$108M Net debt US$35M# Enterprise Value US$143M Portfolio: Chatree Gold Mine (Thailand) ~130,000 ozpa^ Nueva Esperanza Project (Chile) - 1.9 Moz GEO* resource Challenger Gold Mine (Aust) - nearing end of life but options Bowdens Project (Aust) - silver and z
Slide 4: Why Kingsgate?
Why Kingsgate? A renewal and re-focus New CEO Back to basics approach Our success and focus is epithermal gold in the Pacific Rim We are in big mineralised systems World class mine – Chatree in Thailand Flagship project – Nueva Esperanza in Chile The plan is to grow from these two beachheads Core ca
Slide 5: Nueva Esperanza (100% KCN)
Nueva Esperanza (100% KCN) The Maricunga Belt, Chile
Slide 6: Chile & The Maricunga Belt
Chile & The Maricunga Belt Chile Favoured mining investment destination Ranked 13 in Fraser Institute survey Worlds largest copper producer Ranked 14 in global gold production Nueva Esperanza 1.9 Moz Maricunga Belt Defined total resources of ~100 Moz Epithermal gold styles in the north We believe Nu
Slide 7: Nueva Esperanza – A Flagship Project
Nueva Esperanza – A Flagship Project History Historic bonanza silver production Consolidation of tenements and resources in 2011 Extensive feasibility work completed 2012-14 Several process routes considered Breakthroughs Gold discovery at Chimberos Lower capex/opex environment Structural shift to l
Slide 8: Nueva Esperanza – FY15 Achievements
Nueva Esperanza – FY15 Achievements Discovery of Chimberos Gold Nueva Esperanza Mineral Resources increased 21% to 34.6 Mt at 1.7 g/t AuEq60 for 1.9 Moz gold equivalent* Teterita 0.3Moz GEO* Identified high-potential gold targets for follow-up Chimberos 0.64Moz GEO* Arqueros 0.97Moz GEO* Nueva Esper
Slide 9: Nueva Esperanza - Chimberos Gold Discovery
Nueva Esperanza - Chimberos Gold Discovery Chimberos Historical Gold: 0.3 Moz Silver: 40 Moz GEO*: 0.7 Moz Chimberos Silver Silver: 8.6 Moz GEO*: 0.16 Moz Chimberos Gold Gold: 0.28 Moz Silver: 11.9 Moz GEO*: 0.48 Moz Chimberos Total Gold: 0.3 Moz Silver: 20.5 Moz GEO*: 0.64 Moz * Mineral Resources a
Slide 10: Nueva Esperanza – What we have
Nueva Esperanza – What we have √ 100% ownership √ Favourable mining investment jurisdiction √ Skills to explore, build, operate √ Inventory of 1.9 Moz GEO* √ Significant feasibility level work completed √ Initial permitting in place √ Water rights secured √ Power options available √ Identified gold
Slide 11: Nueva Esperanza – FY16 Plan
Nueva Esperanza – FY16 Plan We are updating economics with an Optimisation Study Design parameters around 2 Mtpa milling and agitated leach Indicative capital and operating cost estimates Updated Ore Reserves Relevant information to modify existing permits Submit permit amendments Explore high poten
Slide 12: Chatree Mine, Thailand
Chatree Mine, Thailand Proven track record Discovered, developed, expanded Highly efficient mining of low grade epithermal gold Produced over 1.6 Moz gold Chatree Outstanding safety and environmental record Operating Cashflow Thailand Bangkok FY15 production: 125 Koz, EBITDA US$45M FY16 budget: 125-
Slide 13: Chatree Mine - Underground Targets
Chatree Mine - Underground Targets A Deeps Sediment Host A Central Ae1 Ae2 Ae3Ae4 Ae5 Drilling Targets C Deeps A +6.0 Moz gold mineralised system (produced and in-situ) Drilling Target Drilling Target
Slide 14: Challenger Mine, Australia (100%)
Challenger Mine, Australia (100%) One million ounce production history Tenacity and good exploration has delivered Delivered on costs in the past 2 years Unit cost reductions greater than 30% A cash contributor in FY15; US$10M EBITDA Nearing the end of current reserve life Current reserves exhausted
Slide 15: Bowdens Project, Australia (100%)
Bowdens Project, Australia (100%) - Size & Leverage Large Mineral Resource (100% KCN) 134 Moz silver & 343 Kt of zinc* Significant feasibility level work completed Cyclical option value to silver and zinc Reassess the way forward * Bowdens Mineral Resources table in Appendix
Slide 16: Kingsgate – the investment opportunity
Kingsgate – the investment opportunity Flagship project in Nueva Esperanza – 1.9 Moz GEO+ De-risk, add value and advance towards development World class mine at Chatree +6.0 Moz gold mineralised system (produced and in-situ) Core capabilities in-house Explore, develop, build and operate Mana
Slide 17: Kingsgate Consolidated Limited
Kingsgate Consolidated Limited Listed: ASX Code : KCN Shares: 224 Million Market Cap: ~US$108M *A$/US$=0.72 www.kingsgate.com.au
Slide 18: Corporate Profile
Corporate Profile Market Summary Board of Directors ASX Code: KCN Ross Smyth-Kirk Chairman Shares on Issue: 223.6 million Peter Alexander Non-Exec Director Peter McAleer Non-Exec Director Market Cap: US$108 million Sharon Skeggs Non-Exec Director (@ US$0.48/share) Peter Warren Non-Exec Director Subs
Slide 19: Appendix
Appendix Competent Persons Statement Nueva Esperanza: The information in this report that relates to exploration results and data quality is based on and fairly represents information compiled by Mr Ron James who is a member of the Australasian Institute of Mining and Metallurgy and a full time empl
Slide 20: Nueva Esperanza
Nueva Esperanza Nueva Esperanza Project Total Mineral Resource (0.5g/t gold equivalent cut-off) Tonnes Au Ag Au Eq60. Ounces (moz) Deposit Category (Million) (g/t) (g/t) (g/t) Au Ag Au Eq60 Ag Eq60 Measured - - - - - - - - Indicated 14.1 0.35 88 1.82 0.16 39.9 0.82 49.4 Arqueros Inferred 3.3 0.4 57
Slide 21: Chatree
Chatree Chatree Ore Reserves as at 30 June 2014 (>0.35g/t gold cut-off grade) Gold Silver Gold Silver Tonnes Grade Grade Contained Contained AuEq Source Category (million) (g/t) (g/t) (Moz) (Moz) (Moz) From Pits Proven 32.7 0.88 9.9 0.93 10.4 1.01 Probable 12.0 0.77 7.7 0.30 3.0 0.32 Stockpiles 9.7
Slide 22: Challenger
Challenger Challenger Ore Reserves as at 30 June 2014 Gold Gold Tonnes Grade Contained Source Category (million) (g/t) (‘000 oz) From Mine Proven 0.06 5.63 20 Probable 0.78 5.78 140 Challenger Total Total 0.84 5.77 160 Challenger Mineral Resources as at 30 June 2014 Gold Gold Tonnes Grade Contained
Slide 23: Bowdens
Bowdens Bowdens Mineral Resources as at 30 June 2013 (30g/t AgEq cut-off grade) Grade Contained Metal Category Tonnes (million) Silver Lead Zinc AgEq Silver AgEq Lead Zinc g/t % % g/t (Moz) (Moz) (kt) (kt) Measured 23.6 56.6 0.31 0.41 74.5 43.0 57 72 97 Indicated 28.4 48.0 0.27 0.36 63.6 43.8 58 76
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