Kingsgate Consolidated Limited · ASX:KCN
Kingsgate Consolidated — Investor Presentation (May 2014)
36 slides from Kingsgate Consolidated's investor presentation, May 2014
Slide 1: Adapting to changing markets and building for the future
Kingsgate Consolidated Limited Adapting to changing markets and building for the future May 2014
Slide 2: 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 3: 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 4: Kingsgate Today: Geographic and operational diversity
Kingsgate Today Geographic and operational diversity Two operating gold mines 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 Bowdens silver project in NSW Go
Slide 5: Chatree Gold Mine
Chatree Gold Mine
Slide 6: 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 FY14 guidance of 120,000oz to 130,000oz gold Produced over 1.4 million oz of gold to date Asi
Slide 7: Chatree: Focus remains on optimising production and reducing costs
Chatree Focus remains on optimising production and reducing costs March Quarter 2014 Chatree Quarterly Gold Production and Costs Gold production 31,609oz Ounces US$/Oz 1,556Kt @ 0.81g/t & 77.7% 50,000 1,000 (1,487Kt @ 0.93g/t & 80.3%) 40,000 750 Total cash costs US$805 30,000 (incl.US$102/oz r
Slide 8: Chatree – Potential Upside
Chatree – Potential Upside Additional resources identified in the northern part of the mining leases in the last 12 months Potential for Incremental plant expansion Reserve extension outside current pit designs 6 km Potential u/g targets through deep high grade feeder structures Further near
Slide 9: Strong Commitment to Thailand
Strong Commitment to Thailand Uniquely positioned in a major gold province Chatree World class underexplored gold province Thailand Bangkok Thai Gold Belt Phitsanulok Province First mover advantage But patience & SPLs Phetchabun Province persistence required Pending 63 km Chatree 1,200 km2 SPLA’s Mu
Slide 10: Nueva Esperanza
Nueva Esperanza Advanced silver/gold project in Chile Chimberos open pit
Slide 11: Nueva Esperanza: DFS confirms robust project economics
Nueva Esperanza DFS confirms robust project economics Nueva Esperanza Choquelimpie Teterita El Tesoro Chimberos San Cristobal Arqueros 5 Kilometres Consolidation of epithermal silver/gold deposits in Maricunga belt in Chile by Kingsgate Current development focused on heap leach and on-site power
Slide 12: Positive Definitive Feasibility Study results
Nueva Esperanza – Heap Leach Positive Definitive Feasibility Study results Resources 93.3Moz Silver Eq / 1.6Moz Gold Eq Throughput 3,000,000 tonnes per annum Initial mine life +6 years Annualised production (post ramp up) Silver (ave) 6,430,000 oz Gold (ave) 17,500 oz Silver Equivalent (AgEq) 7,500,
Slide 13: Nueva Esperanza – Project capex and opex estimates
Nueva Esperanza – Heap Leach Project capex and opex estimates Capex US$M US$M Direct Costs 110.4 Crushing circuit 34.2 Overland conveyor & agglomeration 21.8 Heap leach pads (initial) 22.4 Merrill Crowe 7.6 INCO plant 1.2 Support facilities (offices, camp, etc) 23.2 Indirect Costs 19.9 EPCM allocati
Slide 14: Nueva Esperanza Development schedule
Nueva Esperanza Development schedule Development DFS completed with positive results Addendum (DIA) to approved EIA lodged Schedule DIA approval expected within 6 months Order long lead items Current Work Value engineering of capital and operating Program costs Limited twin hole drilling
Slide 15: Nueva Esperanza Upside
Nueva Esperanza Upside Highly prospective regional exploration Extensive hydrothermal alteration footprint Three established resources TETERITA Multiple highly CHIMBEROS prospective targets CERRO HUANTAJAYA POTOSI AMARILLO RIFLE ROSA High grade gold BOULDER ARQUEROS GRANDOTE intercepts from CARACHIT
Slide 16: Nueva Esperanza: Panorama of Prospects
Nueva Esperanza Panorama of Prospects CARACHITA BOULDER C° AMARILLO RIFLE C° BLANCO ARQUEROS ROSA HUANTAJAYA POTOSI GRANDOTE CHIMBEROS TETERITA Potential leach pad site
Slide 17: Challenger Gold Mine
Challenger Gold Mine
Slide 18: Challenger Gold Mine: Adapting to volatile metal price conditions
Challenger Gold Mine Adapting to volatile metal price conditions Strategic restructure accelerated following gold price volatility New mine plan implemented in 2013 Focused on the higher grade Challenger West orebody New mining contract and contractor: Byrnecut commenced on 1 Aug ‘13 Hig
Slide 19: Challenger West Resources
Challenger West Resources Resource confidence based on drill density
Slide 20: Challenger: Continuing to optimise production and lower costs
Challenger Continuing to optimise production and lower costs March Quarter 2014 Challenger Quarterly Gold Production Gold production 17,116oz and "All-In" Costs 110Kt @ 5.05g/t & 96.1% Ounces US$/Oz (141Kt @ 4.64g/t & 95.9%) 25,000 2,500 Less stope and development ore available during quarter
Slide 21: Bowdens Silver Project
Bowdens Silver Project Kingsgate growth project in NSW
Slide 22: 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 23: Bowdens: Project timing to reflect market conditions
Bowdens Project timing to reflect market conditions Major elements of the DFS largely completed. Feasibility Study Sterilisation drilling confirms no mineralisation under proposed plant site Environmental Monitoring Plan in preparation. Environmental On-going recording of field Impact Statem
Slide 24: Outlook for FY2013/14
Outlook for FY2013/14 Group gold production of 190,000 to 210,000oz Mine/Project Gold Production Total cash costs3 Capital Expenditure (oz) ($/oz) FY2013/14 Chatree 120,000 – 130,000 US$775 – US$875 US$20M – US$25M Challenger1 70,000 – 80,000 A$1,300 – A$1,400 A$3M – A$4M1 n/a n/a A$4M – A$5M Nueva
Slide 25: Key Investment Highlights
Kingsgate Opportunity Key Investment Highlights World Class Cornerstone Asset at Chatree +6.0Moz gold mineralised system (produced and in-situ) Strong Resource Base Grown to over 10 million ounces gold equivalent (AuEq) Robust Development Project Nueva Esperanza DFS completed and delivered str
Slide 26: Kingsgate Consolidated Limited
Kingsgate Consolidated Limited Listed: ASX Code: KCN Shares: 224 Million Market Cap: ~A$200M www.kingsgate.com.au
Slide 27: 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 28: Corporate Structure
Corporate Structure KINGSGATE 100% 100% 100% 100% Challenger Laguna Res. Kingsgate KCN Capital Gold Operations Chile Bowdens Pty Ltd 49% 49%3 49%2 Phar Mai 51%1 Issara Akara Nueva Bowdens Challenger Exploration Mining Mining Esperanza Silver Gold Mine Limited Limited Limited Project Project 100% 100
Slide 29: Akara Resources Thai IPO
Akara Resources Thai IPO IPO of Akara Resources on Thai stock exchange Approval of draft prospectus and IPO application expected in June quarter. Prospectus registration will be current for 12 months Timing will depend on a number of factors including valuation metrics and market conditions
Slide 30: Balance Sheet
Balance Sheet Cash of A$37.4M at 31 March 2014 (Additional A$30.9M received in April from retail component of capital raising) Debt was reduced during the March Quarter with A$11M repaid. Existing facilities have repayment periods up to 6 years. Continued focus on optimising facilities over
Slide 31: 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 32: 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 33: Chatree Ore Reserves and Mineral Resources
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 34: Challenger Ore Reserves and Mineral Resources
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 35: Nueva Esperanza Ore Reserves and Mineral Resources
Nueva Esperanza Nueva Esperanza Ore Reserves (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) Proved - - - - - - - - Probable 17.1 0.27 97 1.89 148
Slide 36: Bowdens Mineral Resources
Bowdens Bowdens Mineral Resources as at 30 June 2013 (30g/t AgEq cut-off grade) 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 43.8 58 1.28 Meas & I
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