Kingsgate Consolidated Limited · ASX:KCN
Kingsgate Consolidated — Investor Presentation (February 2007)
19 slides from Kingsgate Consolidated's investor presentation, Feb 28, 2007
Slide 1: Kingsgate Consolidated Limited - Tampa Update: Growth & Re-rating
Kingsgate Consolidated Limited Tampa Update Growth & Re-rating 28 February 28 February 2007 2007
Slide 2: Who Is Kingsgate?
Who Is Kingsgate ? Key asset - Chatree 100-150,000 oz/yr 300,000 oz/yr target Chatree Chatree 1.7Moz Reserves 3.8Moz Resource ASX Listed: KCN Mkt Cap: U$300m Shares: 90.6m 300 Km +3.3m options
Slide 3: Growth
Growth Production Consistent production Cash cost <US$200/oz 5Yr Av. Average 140,000oz/yr 2.4mtpa throughput F’cast FY07 100,000oz Expansion 300,000 oz 2 Moz Ag Commission end 2008 140,000 oz Target 300,000oz/yr FY06 2009 Discoveries 0.5-1 Moz/yr resource growth Chatree size exploration targets Reso
Slide 4: Chatree Gold Mine
Chatree Gold Mine AA Pit, Pit, Chatree Chatree North North Ultimate Current mining lease boundary Pit Profile High Grade Underground Development Potential Main C-H Main C-H Pit Pit Processing Plant Processing Plant 2.35mtpa 2.35 mtpa
Slide 5: Chatree Leases
Chatree Leases Mine leases at Chatree & Chatree Nth; More leases in next half year Environ Impact Assessmnt 6 mile approval imminent; Milestone to lease grant Major re-rating of stock should occur Lower profit short-term due to lower grade Costs controlled per tonne ore processed
Slide 6: Improving with New Leases
Improving with New Leases Low grade = fewer ounces & Tight Short Term higher unit cash costs Due to low grades 1.5g/t Limited flexibility in mine to & gold hedge deliveries blend grade Costs Controlled Cash costs US$404/oz Low Costs/tonne processed Costs/tonne processed OK Mill performance excellent
Slide 7: Operational Results
Operational Results Mill Throughput Mill Throughput (Ktpa) (Ktpa) Head Grade Head Grade (g/t) (g/t) Dec Half 06: 1.2 mtpa Dec Half 06: 1.5 g/t 5.3 2,000 Forecast 1,829 1,671 3.9 FutureGrades Future Grades 1,324 3.1 2.4 2.4 F’cast 665 01/02 02/03 03/04 04/05 05/06 06/07F 01/02 02/03 03/04 04/05 05/06
Slide 8: Leveraged to Gold Price
Leveraged to Gold Price 170 Forecast Unhedged in Jun’07 140 Rare for an ASX gold stock 127 120 to be unhedged this year 100 Cashflow benefits come Forecast with increased grade from new leases 59 41 04/05 05/06 06/07F 07/08F Production Production Out of Out of Money Money Hedges Hedges
Slide 9: Upside in Current Pits
Upside in Current Pits Extension potential to Main Pit at H West H West: 9m @ 7.86 g/t; 3m @ 19.5 g/t Au
Slide 10: Higher Grade with Leases
Higher Grade with Leases Higher grades at A Pit with leases granted Chatree Nth A Pit ~13 Mt ~13 Mt @ @ 2.2-2.5 g/t 2.2-2.5 g/t Au Au Grade & Cashflow improve Ultimate A Pit shell Cash costs return to low Chatree Nth A Pit levels Haul roads in place 150-170koz FY07/08
Slide 11: Chatree North Conceptual Pit
Chatree North Conceptual Pit Chatree Nth: Nth: Chatree 2.7 M 2.7 M oz oz Resource Resource A Hill A Hill 1.4Moz Reserve 1.4Moz Reserve A East A East 30m @ 30m @ 16 16 g/t g/t Au Au feeder feeder zone zone higher higher grade grade underground underground 12m @ 12m @ 32 32 g/t g/t Au Au ++ 320 320 g/
Slide 12: Socially Responsible
Socially Responsible World Best Safety Record >8.5M hrs with only 1 LTI Workplace Awards – Women, Training, Safety ISO 9001, OHSAS 18001 Awards – No Environ incidents Environment Tailings Cyanide levels at Worlds Best Practice ISO14001 Health & Education– schools, water Social Community managed fund
Slide 13: Thai Risk Manageable
Thai Risk Manageable New govt focused on stabilising Thai Politics economy Business as Usual Manageable changes ahead Support in Thai subsidiary Thai Investors Keen to see growth Aligned with Kingsgate IPO of Thai sub in 18 - 36 months on Thai exchange Invested in Thai sub. Management control w KCN
Slide 14: Chatree Expansion
Chatree Expansion Expansion: Double output >300,000 oz/yr >2Moz/yr silver 5mtpa plant (+2.7mtpa) Add silver circuit (Merrill Crowe) Silver recoveries from 45% to >70% Ausenco finalising capex & timeframe Fully funded by Thai debt (under negotiation)
Slide 15: Exploration Expenditure / Growing Resources
Growing Resources (Moz) (US$m) 4.5 Moz 3.8 Moz Gold, 32 Moz Silver Exploration Expenditure 4 12 ~1 Moz / yr for 3 yrs 3.8 Moz 3 Potential for 5-10 Mozs 9 Gold 2 6 1 3 - 2001 2002 2003 2004 2005 FY2006 Additional Mineral Resources Mine Depletion (cumulative) Ore Reserves Annual Exploration Expenditur
Slide 16: Further Resource Growth
Further Ling Ling Volcanic Volcanic Resource Complex Complex Growth Geophysics shows growth beyond Chatree Chatree Nth 14 High success rate of mile discovery Chatree Chatree Chatree 65% of geophysical Volcanic Volcanic anomalies mineralized Complex Complex 14 mile strike length & expanding
Slide 17: Regional Prospects
Regional Prospects 675,000mE 700,000mE World class gold province - 550 sq.mile expl leases 1,825,000mN Granted 40 prospective targets Volcanic centres One target: 70 mile Chatree Chatree Chatree-size Anomaly 1,800,000mN First Mover Advantage - Selected best areas Pending Pending 1,775,000mN 10 Miles
Slide 18: Undervalued! All metrics
Undervalued! All metrics Trading ~$4/sh Upside: Valuation Macquarie $6/share Consensus 30% higher Goldman JBWere $6/share Other Brokers $5 - 9/share Major Re-rating imminent Below Peers Another Great Asian Miner <50% of Peers Rapid resource growth Huge Upside New drill-ready targets Exploration Grow
Slide 19: 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,
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