Kingsgate Consolidated Limited · ASX:KCN
Kingsgate Consolidated — H1 FY2014 Earnings Presentation
21 slides from Kingsgate Consolidated's earnings presentation, Feb 18, 2014
Slide 1: Financial Results for the Half Year to 31 December 2013
Kingsgate Consolidated Limited For personal use only Financial Results for the Half Year to 31 December 2013 18 February 2014
Slide 2: Disclaimer
Disclaimer Forward Looking Statements: For personal use only 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
Slide 3: First Half Summary FY14
For personal use only First Half Summary FY14 3
Slide 4: Financial Highlights
Financial Highlights Underlying EBITDA* of $27.9 million For personal use only Statutory net loss after tax $4.9 million Gross cashflow from operations for the 6 months of $41.5 million Higher gold sales (+19%) offset by lower gold price received Investment and capital expenditure reduced
Slide 5: Operating Highlights
Operating Highlights GROUP OPERATING SUMMARY For personal use only First Half FY14 First Half FY13 % Change Total Cash Total Cash Total Cash Operation Production Production Production Costs Costs Costs (ounces) (US$/ounce) (ounces) (US$/ounce) % % Chatree 66,462 774 57,018 747 17% 4% Challenger* 38,
Slide 6: Half Year Results
For personal use only 6 Half Year Results
Slide 7: Sales Revenue
For personal use only Sales Revenue Higher sales volume offset by lower metal prices Positive impact from weaker A$/US$ exchange rate (0.92 vs 1.04) Average gold price received was US$1,297/oz (2013: US$1,676/oz) A$M ▲31 ▼47 200 ▲19 162 165 100 0 Sales Revenue Gold and Silver Gold and Silver F
Slide 8: Underlying EBITDA
For personal use only Underlying EBITDA Higher volume at Chatree increased cost of sales Lower A$ increased converted US$ costs Expensing mine development at Challenger increased unit costs A$M ▲3 ▼14 65 ▼27 50 ▲1 28 0 EBITDA Revenue Cost of Sales Unit Costs Corporate EBITDA 1HFY13 Volume 1HFY
Slide 9: Underlying NPAT
Underlying NPAT Lower depreciation and amortisation reflects Challenger FY2013 For personal use only impairment charges Higher finance costs reflect a full period of Akara debt facilities A$M 27 ▼38 30 20 10 ▲7 ▼1 0 (5) 0 -10 -20 NPAT 1HFY13 EBITDA D&A Finance Tax NPAT 1HFY14 9
Slide 10: Cashflow
Cashflow Gross operational cashflow of 41.5M for the 6 months despite a For personal use only lower gold price Project and capital expenditure reduced by 62% Focus remains on efficiency and cost improvements across all assets A$M 100 ▲42 ▼3 ▼25 ▼8 ▼10 50 41 ▼7 ▼5 25 0 Cash 30 June Operational
Slide 11: Balance Sheet
Balance Sheet Debt was reduced during the half year with A$17M repaid. For personal use only Existing facilities have repayment periods up to 6 years. Continued focus on optimising facilities over time, particularly in conjunction with Akara IPO and funding development projects. US$119M mult
Slide 12: Outlook
For personal use only 12 Outlook
Slide 13: Guidance for FY2013/14
Guidance for FY2013/14 Group gold production guidance maintained at 190,000 to 210,000oz For personal use only Mine/Project Gold Production Total cash costs3 Capital Expenditure (oz) ($/oz) FY2013/14 ($M) Chatree 120,000 – 130,000 US$775 – US$875 US$20M – US$25M Challenger1 70,000 – 80,000 A$1,300 –
Slide 14: Summary for FY2013/14
Summary for FY2013/14 Group gold production 190,000oz to 210,000oz Gold Production For personal use only (Chatree 120,000oz - 130,000oz, Challenger 70,000oz to 80,000oz) DFS for heap leach and on-site power being finalised in the Nueva Esperanza March quarter. EIA addendum approvals expected mid-yea
Slide 15: Kingsgate Consolidated Limited
For personal use only Kingsgate Consolidated Limited Listed: ASX Code: KCN Shares: 164 Million Market Cap: ~A$250M www.kingsgate.com.au
Slide 16: Appendix: General Disclaimer
Appendix General Disclaimer: The information contained in this presentation is for informational purposes only and does not constitute an offer to issue, or arrange to issue securities or other financial products. The information contained in this presentation is not investment or financial product
Slide 17: Income Statement
Income Statement Income Statement A$ Million : 1HFY14 1HFY13 Sales revenue 165.1 161.7 For personal use only Cost of sales (153.6) (119.6) Gross Profit 11.5 42.1 Exploration (0.7) (15.6) Group admin (9.6) (10.1) Other income / (expenses) 2.3 (0.2) Forex 2.3 (1.4) Other (0.2) - (Loss) / Profit before
Slide 18: Chatree
Chatree Chatree Ore Reserves as at 30 April 2013 (>0.35g/t gold cut-off grade) For personal use only Tonnes Gold Silver Gold Silver AuEq Source Category Grade Grade Contained Contained (million) (g/t) (g/t) (Moz) (Moz) (Moz) From Pits Proven 45.4 0.87 7.8 1.27 11.39 Probable 14.8 0.78 6.0 0.37 2.86
Slide 19: Challenger
Challenger Challenger Ore Reserves as at 30 June 2013 For personal use only Tonnes Gold Gold Source Category Grade Contained (million) (g/t) (‘000 oz) From Mine Proven 0.25 5.52 40 Probable 0.22 8.30 60 Challenger Total Total 0.47 6.82 100 Challenger Mineral Resources as at 30 June 2013 Tonnes Gold
Slide 20: Nueva Esperanza
For personal use only Nueva Esperanza Nueva Esperanza Mineral Resources as at 30 June 2013 (0.5g/t AuEq60 cut-off grade) Gold Silver Gold Equiv Gold Silver AgEq AuEq Tonnes Category Grade Grade Grade Contained Contained Contained Contained (millions) (g/t) (g/t) (g/t) (Koz) (Moz) (Moz) (Moz) Measure
Slide 21: Bowdens
Bowdens Bowdens Mineral Resources as at 30 June 2013 (30g/t AgEq cut-off grade) For personal use only Grade Contained Metal Category Tonnes Silver Lead Zinc AgEq Silver AgEq AuEq (million) g/t % % g/t (Moz) (Moz) (Moz) Measured 23.6 56.6 0.31 0.41 74.5 43.0 57 1.25 Indicated 28.4 48.0 0.27 0.36 63.6
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