Kingsgate Consolidated Limited · ASX:KCN
Kingsgate Consolidated — FY2012 Earnings Presentation
21 slides from Kingsgate Consolidated's earnings presentation, Sep 4, 2012
Slide 1: ASX cover letter: 2012 Financial Results Presentation updated
For personal use only ABN 42 000 837 472 4 September 2012 Via ASX Online (21 pages including cover) The Manager Company Announcements Office Australian Securities Exchange Attached is 2012 Financial Results Presentation updated to include Metal Equivalent and Component Person Statements. KINGSGATE C
Slide 2: Financial Results for the Year to 30 June 2012
Kingsgate Consolidated Limited For personal use only Financial Results for the Year to 30 June 2012 30 August 2012
Slide 3: Disclaimer
For personal use only 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
Slide 4: Record Financial Year
For personal use only Record Financial Year Record Net profit before tax, up 413% to $91M Record Net profit after tax, up 255% to $75M Record EBITDA of $168m, an increase of 129% Strong EPS of 52.5cps, an increase of 181% Final dividend of 10cps, unfranked (Total 20cps for the year) Reco
Slide 5: Operating Highlights
For personal use only Operating Highlights Record Group pold production 208,760oz up 85% on FY2011 Group Total Cash Costs, US$720/oz (inc royalties) (Chatree US$618/oz Challenger US$862/oz) Chatree North expansion in final stages of optimisation operating ~6.2Mtpa Challenger West exploration
Slide 6: Income Statement
Income Statement Income Statement A$ Million : FY 2012 FY2011 Change % Sales revenue 357.3 172.4 +107 For personal use only Cost of sales (238.8) (113.7) +110 Gross Profit 118.6 58.7 +102 Exploration (1.9) (2.4) (21) Group admin (19.3) (17.8) +8 Other income / (expenses) 1.6 0.9 +78 Forex 1.3 (15.8)
Slide 7: Earnings by Operation
For personal use only Earnings by Operation EBITDA PBIT 16% 36% 64% 84% Chatree Challenger Chatree Challenger
Slide 8: Income Statement
For personal use only Income Statement Effective tax rate 18%. TAX Chatree plant 2 BOI tax privileges begin post optimisation. Finance costs of $9.4M (2011, $1.7M) mainly Finance Costs reflect interest expensed on the Akara debt facility. Royalties Gold sales up 78% and ave higher gold price.
Slide 9: Key Cashflow Items
For personal use only Key Cashflow Items Inventory Lower at $8.1M (2011, $23.9M) reflecting value Movements of net stockpile movements. Decreased to $7.1M (2011, $9.4M) reflecting Deferred Stripping continued mining above the life of mine strip ratio. Higher capex reflecting Chatree Plant 2 and Cape
Slide 10: Chatree Operations
For personal use only Chatree Operations 121,372oz up 59% on prior year. Strong Operational 5,116Kt @ 0.90g/t (2,533Kt @ 1.1g/t) Performance C North high grade zone completed Chatree total cash costs US$460/oz Total Cash Costs (before US$158/oz royalty). US$618/oz Higher costs for consumables and ro
Slide 11: Challenger Operations
For personal use only Challenger Operations 644.6Kt @ 4.55g/t (683.9Kt @ 4.70g/t) Gold Production Stope availability fell behind due to 87,388oz development shortfall. Total Cash Costs Total cash costs US$800/oz US$862/oz (before US$62/oz royalty) Challenger West stope (800 level) in-line Challenger
Slide 12: Challenger Strategy
Challenger Strategy Turning around the operation For personal use only Contractor Underperforming Understand the Development shortfall mainly due to poor issues equipment availability lack of experienced operators. Site responsible for business unit. Implementing Additional KCN experienced people in
Slide 13: Challenger Exploration Upside
Challenger Exploration Upside E Challenger Challenger W Ventilation Pit West Pit For personal use only Shaft M3 Zone 1.3m @ 47.5g/t M3 1.0m @ 29.8g/t Challenger West 1000m 2.1m @ 15.8g/t Challenger West 800 Level stope 1.0m @ 71.8g/t 0.6m @ 28.6g/t 1.0m @ 11.8g/t 800 Challenger meets expectations We
Slide 14: Nueva Esperanza
For personal use only Nueva Esperanza Teterita metallurgical work underway. Resource Two drillholes completed at Chimberos. Evaluation Camp reduced for winter . Integrated mine for Arqueros and Teterita completed and under review. Feasibility Study Ausenco appointed to take feasibility through to de
Slide 15: Nueva Esperanza Upside
Nueva Esperanza Upside Highly prospective regional exploration For personal use only Three established resources TETERITA Multiple highly prospective targets CHIMBEROS CERRO HUANTAJAYA POTOSI AMARILLO RIFLE ROSA High grade gold intercepts BOULDER ARQUEROS GRANDOTE from historical drilling CARACHITA
Slide 16: Bowdens Silver Project
For personal use only Bowdens Silver Project Resource definition drilling continuing. Drill Program Geotech and metallurgical drilling completed. Feasibility study well advanced. Feasibility Study Environmental baseline work continuing. Data collected will add to previous work. Detailed surface geol
Slide 17: Bowdens Upside Potential
For personal use only Bowdens Upside Potential A B A B C D C D Resource drilling continues to intersect mineralisation outside current resource Assays include 45m @ 117.8 AgEq and 40m @ 96.1 AgEq Notes: 1. Rounding of numbers may generate rounding errors. 2. Recovery factors Ag 81%, Pb 73% and Z
Slide 18: Outlook for FY2013
Outlook for FY2013 Group gold production 200,000oz to 220,000oz. For personal use only Gold Production First half year to be weaker than second half year. Chatree gold production 120,000oz to 130,000oz Chatree Higher throughput at lower grade. Metallurgical licence expected after verification comple
Slide 19: Delivering on its Growth Strategy
Delivering on its Growth Strategy Geographic and operational diversity in Asia/pac For personal use only Chatree Gold Mine Nueva Esperanza Challenger Bowdens Silver/gold Project Gold Mine Silver Project
Slide 20: Kingsgate Consolidated Limited
For personal use only Kingsgate Consolidated Limited Shares: 151 Million Market Cap: ~A$750M ASX: KCN www.kingsgate.com.au
Slide 21: Competent Persons Statements
COMPETENT PERSONS STATEMENTS In this report, information concerning Thailand operations relates to Exploration Results, Mineral Resources and Ore Reserve estimates based on information compiled by the following Competent Persons: Ron James, Guy Davies, Fiona Davidson and Suphanit Suphananthi who are
Kingsgate Consolidated — FY2012 Earnings Presentation on 6ix