Kingsgate Consolidated Limited · ASX:KCN
Kingsgate Consolidated — Shareholder Meeting (November 2016)
30 slides from Kingsgate Consolidated's shareholder meeting presentation, November 2016
Slide 1: Welcome - Kingsgate Consolidated AGM 2016
Welcome - Kingsgate Consolidated AGM 2016 1
Slide 2: AGM Presentation November 2016
AGM Presentation November 2016
Slide 3: Disclaimer
Disclaimer 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, the company. Actual results
Slide 4: Kingsgate Today
Kingsgate Today Stripped down to two core assets Considering corporate structure options to daylight value ASX Listed: Market Cap ~ A$50 million1 (US$37 million) Net debt KCN is Net Debt Zero2 as at 24 Nov 2016 Enterprise Value ~ A$50 million1,2 (US$37 million) Key Assets: Nueva Esperanza Project (C
Slide 5: Board of Directors
Board of Directors Ross Smyth-Kirk Sharon Skeggs Chairman Non-Executive Director Investment Management Marketing and Change Management • 40+ years experience in investment management • 35+ years experience in marketing and change and mining management in Australia the UK and Asia • Former director o
Slide 6: Senior Management
Senior Management Greg Foulis Alistair Waddell Chief Executive Officer VP – Corporate Development & Exploration Mining and Financial Markets Geology and Business Development • 30+ years experience in mining and financial markets • 20+ years of diverse resource industry • Previously SVP Business Deve
Slide 7: Kingsgate – Challenging FY16
Kingsgate – Challenging FY16 Macro Settings Thailand Rationalisation Debt Management Gold up 12.4% Challenger reserves A$128m as at 30 June 15 December 2016 closure Silver up 17.6% exhausted and mine sold Retiring A$128m debt in Still working through issues Bowdens Silver Project 19 mths sold for $2
Slide 8: Responsible Financial Management
Responsible Financial Management 50,000 Targeting repayment Dec ‘13 Dec ‘14 Dec ‘15 Dec ‘16 - of All Debt by Jan 2017 -50,000 AUD '000 -100,000 -150,000 Debt = Corporate & Project debt facilities Total Debt Net Debt -200,000 8
Slide 9: Chatree Gold Mine - Thailand
Chatree Gold Mine - Thailand 10 May 2016 – Thai Government orders all gold mining to cease by 31 December 2016 Strong community support for mine to stay open Government investigations have not produced any evidence of wrongdoing Outstanding Thai debt expected to be retired by end 2016 All employees
Slide 10: Nueva Esperanza, Chile – A Great Address
Nueva Esperanza, Chile – A Great Address Chile – a premier jurisdiction Favoured mining investment destination Ranked 10th in Fraser Institute mining survey Worlds largest copper producer Ranked 14 in global gold production Maricunga Belt - new discoveries Defined total gold resources of >100 Moz Au
Slide 11: Nueva Esperanza – Status
Nueva Esperanza – Status Status 100% ownership 45km² of geologically prospective alteration Grid Power Options Inventory of 1.9 Moz AuEq60* Significant feasibility-level work completed Water offtake agreement in place Power options available nearby Nueva Focussed Activities into 2017 F
Slide 12: Nueva Esperanza – Pre-Feasibility Study
Nueva Esperanza – Pre-Feasibility Study 2 Mtpa First 5 years Ave. Processing 135 Koz AuEq602/pa capacity US$ 633/oz cash costs Initial 11.6 year Life NPV5% US$168m1 Av 91Koz/pa AuEq602 IRR of 25% Study outcomes have framed the next steps for progressing technical studies and permitting This profilin
Slide 13: Nueva Esperanza – Exploration
Nueva Esperanza – Exploration 45 Km² alteration footprint wide open A systematic, multi-layered approach to unlocking potential Great scale potential New team = new approach Systematic regional data compilation of ~ 30 years historical patchwork US$3M budget for FY17 Innovative Blast hole drilling –
Slide 14: Nueva Esperanza – 45km2 Alteration Footprint
Nueva Esperanza – 45km2 Alteration Footprint 14
Slide 15: Nueva Esperanza – Exploration
Nueva Esperanza – Exploration Looking west 1 KM Arqueros Carachitas Chimberos Teterita Cerros Bravos paleovolcano Potosi Rosa Grandote Chimberos Arqueros Carachitas Teterita Cerro Blanco Huantajaya Rifle Boulder Looking east
Slide 16: Nueva Esperanza – RAB Drilling Locations
Nueva Esperanza – RAB Drilling Locations Air-Blast drill rig set-up on the SE flank of Cerro Gaston. 16
Slide 17: Nueva Esperanza – RC Drilling Locations
Nueva Esperanza – RC Drilling Locations 17
Slide 18: Nueva Esperanza – Workflow
Nueva Esperanza – Workflow Technical work streams -> enhance economics Feasibility activities ramping up in 2017 Permitting -> derisking Submit permit modifications in 2017 Exploration -> value add Enhance the multi-layers of district geology, geochemistry, alteration, etc RAB Drilling - Phase 2 cam
Slide 19: Kingsgate Challenges & Opportunities into Calendar 2017
Kingsgate Challenges & Opportunities into Calendar 2017 Strategic Navigate significant Thai uncertainties to business Investigate optimal corporate structure Daylight value for our projects Chile Deliver Feasibility Study and permitting outcomes Unlock exciting exploration potential Asse
Slide 20: Thank you
Kingsgate Consolidated Limited Thank you
Slide 21: KCN Ore Reserves and Mineral Resources as at 30 June 2016
KCN Ore Reserves and Mineral Resources as at 30 June 2016 Ore Reserves Grade Contained Metal Tonne Gold Silver Au Equiv Ag Equiv. Gold Silver Au Equiv. Ag Equiv. s Category (g/t) (g/t) (g/t) (g/t) (M oz) (M oz) (M oz) (M oz) (Millio Source n) Chatree Proved 2.1 1.15 17.7 1.28 174 0.08 1.20 0.09 11.8
Slide 22: KCN Ore Reserves and Mineral Resources (cont)
KCN Ore Reserves and Mineral Resources (cont) Chatree – With a Metallurgical Licence beyond 31 December 2016 The table below shows what the Chatree Reserve would be if the Metallurgical Licence was granted in the future. Grade Contained Metal Tonnes Gold Silver Au Equiv Ag Equiv. Gold Silver Au Equi
Slide 23: Appendix
Appendix Competent Person Statement The information relating to Nueva Esperanza Ore Reserves is extracted from an ASX announcement by Kingsgate titled “Nueva Esperanza Pre-Feasibility Study” dated 14 April 2016. The information relating to Nueva Esperanza Mineral Resources is extracted from an ASX a
Slide 24: Kingsgate Consolidated Limited
Kingsgate Consolidated Limited
Slide 25: Resolution 1
Resolution 1 Re-election of Peter Warren as a Non-Executive Director 25
Slide 26: Resolution 1
Resolution 1 Re-election of Peter Warren as a Non-Executive Director FOR Against Discretionary Abstain 31,540,876 29,495,307 4,881,512 225,575 26
Slide 27: Resolution 2
Resolution 2 Re-election of Ross Smyth-Kirk as a Non-Executive Director 27
Slide 28: Resolution 2
Resolution 2 Re-election of Ross Smyth-Kirk as a Non-Executive Director FOR Against Discretionary Abstain 35,386,315 25,490,530 4,883,062 378,633 28
Slide 29: Resolution 3
Resolution 3 Approval of Remuneration Report 29
Slide 30: Resolution 3
Resolution 3 Approval of Remuneration Report FOR Against Discretionary Abstain 51,281,929 4,205,877 4,877,470 314,422 30
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