Kingsgate Consolidated Limited · ASX:KCN
Kingsgate Consolidated — Denver Gold Forum September 2014
37 slides from Kingsgate Consolidated's conference presentation, September 2014
Slide 1: Kingsgate Consolidated Limited – Denver Gold Forum
Kingsgate Consolidated Limited Denver Gold Forum September 2014
Slide 2: In memory of Gavin Thomas
In memory of Gavin Thomas 29th December 1950 – 4th June 2014
Slide 3: Adapting to changing markets and building for the future
Kingsgate Consolidated Limited Adapting to changing markets and building for the future Denver Gold Forum September 2014
Slide 4: 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 5: Kingsgate's Vision
Kingsgate’s Vision To be a preferred precious metals company Focus on delivering shareholder & stakeholder value through: Maximising operational performance of existing mines Developing high quality precious metal projects Lowering costs, increasing margins and improving cashflows Strategic
Slide 6: Geographic and operational diversity
Kingsgate Today Geographic and operational diversity Two operating gold mines producing over 200,000ozpa World class Chatree mine in Thailand Challenger underground mine in South Australia Two advanced-development silver projects Nueva Esperanza silver/gold project in Chile Chatree Bowde
Slide 7: Operating Highlights
Operating Highlights • Record annual gold production of 209,500oz, at the top-end of the guidance range of 190,000oz to 210,000oz • Chatree produced 134,546oz and Challenger 74,954oz • Strong Group performance for June Quarter with Chatree producing 36,475oz at total cash cost of US$631/oz and Chall
Slide 8: Chatree Gold Mine
Chatree Gold Mine
Slide 9: Chatree – World Class Deposit
Chatree – World Class Deposit Asian showcase gold mine Large open pit, low grade epithermal gold deposit Long life – Reserves 1.8Moz, Resources 4.0Moz Currently operating at ~6.2Mtpa @ 0.8g/t Au FY15 guidance of 130,000oz to 140,000oz gold Produced over 1.5 million oz of gold to date Asi
Slide 10: Strong June quarter to finish FY2014
Chatree Strong June quarter to finish FY2014 Chatree Quarterly Gold Production Ounces US$/Oz June Quarter 2014 50,000 Gold production 36,475oz 40,000 1,599kt @ 0.90g/t & 79.5% 750 Total cash costs US$631/oz 30,000 (incl.US$120/oz royalty) 500 Annual production of 134,546oz 20,000 Strong fi
Slide 11: Chatree – Potential Upside
Chatree – Potential Upside Additional resources identified in the northern part of the mining leases in the last 12 months Reserve extension outside current pit designs Incremental plant expansion options 6 km Deep high grade feeder structures identified for u/g potential Further near mine r
Slide 12: Uniquely positioned in a major gold province
Strong Commitment to Thailand Uniquely positioned in a major gold province Chatree World class underexplored gold province Thailand Bangkok Thai Gold Belt Phitsanulok Province First mover advantage But patience & SPLs Phetchabun Province persistence required Pending 63 km Chatree 1,200 km2 SPLA’s Mu
Slide 13: Nueva Esperanza
Nueva Esperanza Advanced silver/gold project in Chile Chimberos open pit
Slide 14: Nueva Esperanza – DFS confirms robust project economics
Nueva Esperanza DFS confirms robust project economics Choquelimpie Nueva Esperanza El Tesoro Teterita San Cristobal Chimberos Arqueros 5 Kilometres Consolidation of epithermal silver/gold deposits in Maricunga belt in Chile by Kingsgate Historical operating experience in Chile Current developm
Slide 15: Positive Definitive Feasibility Study results
Nueva Esperanza – Heap Leach Positive Definitive Feasibility Study results Resources 93.3Moz Silver Eq / 1.6Moz Gold Eq Throughput 3,000,000 tonnes per annum Initial mine life +6 years Annualised production (post ramp up) Silver (ave) 6,430,000 oz Gold (ave) 17,500 oz Silver Equivalent (AgEq) 7,500,
Slide 16: Current schedule
Nueva Esperanza Current schedule DFS completed with positive results Project Additional environmental approval (DIA) required under current development plan Schedule DIA lodged and approval expected within 6 months Optimisation studies for mining, metallurgy Current Work and infrastructure u
Slide 17: Nueva Esperanza Upside
Nueva Esperanza Upside Highly prospective regional exploration Extensive hydrothermal alteration footprint Three established resources TETERITA Multiple highly CHIMBEROS CERRO HUANTAJAYA POTOSI prospective targets AMARILLO RIFLE ROSA BOULDER ARQUEROS GRANDOTE Exploration drilling CARACHITA underway
Slide 18: Panorama of Prospects
Nueva Esperanza Panorama of Prospects CARACHITA BOULDER C° AMARILLO RIFLE C° BLANCO ARQUEROS ROSA HUANTAJAYA POTOSI GRANDOTE CHIMBEROS TETERITA Potential leach pad site
Slide 19: Challenger Gold Mine
Challenger Gold Mine
Slide 20: Adapting to volatile metal price conditions
Challenger Gold Mine Adapting to volatile metal price conditions Strategic restructure accelerated following gold price volatility New mine plan implemented in 2013 focused on the higher grade Challenger West orebody New mining contract and contractor: Costs lowered by ~30% Improved produc
Slide 21: Solid June quarter to finish FY2014
Challenger Solid June quarter to finish FY2014 Challenger Quarterly Gold Production June Quarter 2014 US$/Oz Ounces Gold production 18,975oz 25,000 2,500 126Kt @ 4.80g/t & 96.8% 20,000 2,000 Total operating costs US$1,291 (incl.US$50/oz royalty) 15,000 1,500 Costs include mine development ex
Slide 22: Challenger West Resources
Challenger West Resources Current mine plan focused on Challenger West
Slide 23: Bowdens Silver Project
Bowdens Silver Project Kingsgate growth project in NSW
Slide 24: Bowdens Overview
Bowdens Overview Epithermal silver deposit with lead and zinc by-products Large, continuous, near surface deposit hosted in volcanics Current resource estimate 182.million ounces AgEq (JORC) Comparable to ~4Moz gold Established infrastructure and mining workforce in region
Slide 25: Project timing to reflect market conditions
Bowdens Project timing to reflect market conditions Major elements of the DFS largely completed. Feasibility Study Power and water options identified but not yet finalised Environmental monitoring and on- Environmental going field data recording Impact Statement EIS work anticipated to be co
Slide 26: Encouraging results at Sayabouly in Lao PDR
Regional Exploration Encouraging results at Sayabouly in Lao PDR IP Resistivity High grade quartz veins extended in follow-up trenching. Qtz veins in trench Assay pending 4m @ 7.5g/t Au New channel sample results include: • 5m @ 6.7g/t gold • 4m @ 7.5g/t gold 2m @ 1.2g/t Au Zones of quartz-sulphide
Slide 27: Outlook
Outlook Group gold production for the fiscal year FY2015 is expected to be 195,000 to 215,000 ounces gold. Chatree production expected to be 130,000 to 140,000 ounces. Challenger production expected to be 65,000 to 75,000 ounces. Nueva Esperanza optimisation work to continue while EIA addend
Slide 28: Key Investment Highlights
Kingsgate Opportunity Key Investment Highlights World Class Cornerstone Asset at Chatree +6.0Moz gold mineralised system (produced and in-situ) Solid Operating Platform Gold production in FY2015 expected 195,000oz to 215,000oz Strong Resource Base Grown to around 10 million ounces gold equival
Slide 29: Kingsgate Consolidated Limited
Kingsgate Consolidated Limited Listed: ASX Code: KCN Shares: 224 Million Market Cap: ~A$190M www.kingsgate.com.au
Slide 30: 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 31: Balance Sheet
Balance Sheet Cash and bullion/dore of A$74.2M at 30 June 2014 Cash A$64.1M (Including restricted cash of A$10.5M) A$59M (gross) was raised in March/April from a share placement and an accelerated entitlement issue. Continued focus on optimising facilities over time, particularly in conjunctio
Slide 32: Corporate Social Responsibility
Corporate Social Responsibility Asia’s Showcase Gold Mine Safety focussed gold mine – 10 years no safety incidents Zero Environmental Incidents ISO Standards on all activities Only mining company granted Social Accountability SA8000 High quality, skilled stable workforce Zero Accident Award
Slide 33: Thai Progressive Royalty Rate
Thai Progressive Royalty Rate High royalty regime 20% 15% 10% US$1300/oz 5% 0% Baht/gm 0 400 600 1000 1500 2000 US$/oz 0 385 580 970 1450 1950 US$1.00=Baht 32, Jan 2014.
Slide 34: Chatree Ore Reserves as at 30 April 2013
Chatree Chatree Ore Reserves as at 30 April 2013 (>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 45.4 0.87 7.8 1.27 11.39 Probable 14.8 0.78 6.0 0.37 2.86 Stockpiles 9.3 0.58 9.
Slide 35: Challenger Ore Reserves as at 30 June 2013
Challenger Challenger Ore Reserves as at 30 June 2013 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 Gold Gold Tonnes Grade Contained S
Slide 36: Nueva Esperanza Ore Reserves
Nueva Esperanza Nueva Esperanza Ore Reserves (0.5g/t AuEq60 cut-off grade) Gold Silver Gold Gold Silver AgEq AuEq Category Tonnes Grade Grade Equiv Containe Containe Containe Containe Grade d d d d (millions) (g/t) (g/t) (g/t) (Koz) (Moz) (Moz) (Moz) Proved - - - - - - - - Probable 17.1 0.27 97 1.89
Slide 37: Bowdens Mineral Resources as at 30 June 2013
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 AuEq 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 43.8 58 1.28 Meas & I
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