Kingsgate Consolidated Limited · ASX:KCN
Kingsgate Consolidated — Investor Presentation (November 2022)
30 slides from Kingsgate Consolidated's investor presentation, Nov 29, 2022
Slide 1: Corporate Presentation – November 2022
Corporate Presentation – November 2022 1
Slide 2: Disclaimer
Disclaimer These materials include forward looking statements. Forward looking statements inherently involve subjective judgment and analysis and are subject to significant uncertainties, risks and contingencies, many of which are outside of the control of, and may be unknown to, the Company. Actual
Slide 3: Corporate Overview
Corporate Overview
Slide 4: Corporate Summary
Corporate Summary Market Cap1 Share Price1 Shares on Issue Key Assets A$420m A$1.91 221.3m CHATREE GOLD PROJECT (Thailand) Cash2 Debt2 Options on Issue3 ▪ Metallurgical Processing licence granted in 2022 ▪ Scoping Study completed and key technical staff A$6.8m A$22.0m 2.5m appointments made ▪ Resour
Slide 5: Board and Management Team
Board and Management Team Experienced Stable Board ROSS SMYTH–KIRK (OAM) - EXECUTIVE CHAIRMAN PETER ALEXANDER ▪ Founding Director of former leading investment firm Clayton Robard ▪ Former Managing Director of Dominion Mining Ltd Management Ltd from 2008 to 2011 ▪ Former Chairman of Australian Jockey
Slide 6: Corporate Strategy 2023 & Beyond
Corporate Strategy 2023 & Beyond On the final stretch to restarting Chatree ▪ In 2022, the Thai Government continued to demonstrate strong support for restart of operations at the Chatree Gold Project ▪ Kingsgate has been granted metallurgical and mining licences required to operate the mine ▪ Appoi
Slide 7: Chatree Mine Operations
Chatree Mine Operations
Slide 8: Overview of Chatree
Overview of Chatree An established gold operation with existing infrastructure preparing to restart ▪ Akara Resources (“Akara”), Kingsgate’s wholly owned Thai subsidiary owns the Chatree gold mine located 280 kilometres north of Bangkok and straddles the Phichit, Petchabun and Phitsanoluk provinces
Slide 9: Fostering strong Thai Government Relationships
Fostering strong Thai Government Relationships The Thai Government is supportive of the restart as shown by concessions, granting of licences etc. Resetting Government and Community Relationships Growing Social Media presence ▪ Kingsgate has worked hard to reset government relationships ▪ Social med
Slide 10: Community Relations
Community Relations Establishment of a Community Relations and Development (CRD) Program Four Pillar Development Strategy 1 Sustainable Community 2 Educational Opportunities ▪ Kingsgate’s CRD program is built on the “Four Pillar Supporting the local community and the Development of students, teacher
Slide 11: Chatree Infrastructure
Chatree Infrastructure Established infrastructure in close proximity to mining leases Waste Dump Offices and Processing Plants Waste Dump 11
Slide 12: Preparing for Operational Restart
Preparing for Operational Restart Completion of key workstreams provides a clear pathway to the recommissioning of Plant 2 in 2023 ✓ 44 new Special Prospecting Licences granted in 2020, and Metallurgical Processing Licence received in January 2022 (valid for 5 years until January 2028, the maximum p
Slide 13: Pathway to Production
Pathway to Production Kingsgate is on the final stretch to the commissioning Plant 2 2022 CY2022 CY2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec Granted 44 SPLs MPL and 4 remaining ML's received Bridge Facility Fundin
Slide 14: Operational Outlook
Operational Outlook Initial processing of stockpiles followed by mining and ramp up of throughput ▪ Ore will be initially sourced from low grade stockpiles before mining operations recommence in September 2023 ▪ Mill capacity set at 2.5Mtpa initially with Plant 1 projected to come online in late 202
Slide 15: Operational Outlook (cont.)
Operational Outlook (cont.) Current Life of Mine supports forecast production of >1Moz of Gold and 4.3Moz of silver ▪ Initial studies suggest a LoMP with an AISC of Recovered Gold c.US$1,193/oz 140,000 125,799 127,952 ▪ Stockpiles will be processed until September 122,618 2023 when mining commences.
Slide 16: Chatree Life of Mine Physicals
Chatree Life of Mine Physicals 9-year mine life (based on reserves only) with average gold production of c.110koz p.a. Key Operational Current LoM Estimates (US$m unless otherwise stated1-5) Life of Mine 9.1 years Ore tonnes mined 44.9Mt Average ore mining rate 5.4Mtpa Average Strip Ratio 4.7x Ore p
Slide 17: Project Cost Metrics and Cash Flows
Project Cost Metrics and Cash Flows Low restart capex and average AISC of c.US$1,193/oz projected over Life of Mine Other considerations: US$/Au oz • Economic Benefits: Kingsgate is entitled to 100% of the Cost Breakdown produced economic benefits from the Chatree mine • Thai Board of Investment (BO
Slide 18: Financing the Restart of Chatree
Financing the Restart of Chatree Funding the refurbishment of Plant 2 ▪ In May 2022, Kingsgate secured a 12-month bridge facility to provide working capital for the Kingsgate group including costs associated with the recommissioning of the Chatree project and ordering of the long-lead items ▪ Total
Slide 19: Exploration Targets
Exploration Targets Kingsgate is pursuing a very agressive exploration program across the SPLs Rock sample specimens from massive milky quartz veins in the Yellow Tiger area, showing their individual assay values 41 g/t Au 22.5 g/t Au 4.56 g/t Au (SPL 5/2563) 4.87 g/t Au (SPL 17/2563) 19
Slide 20: Nueva Esperanza
Nueva Esperanza 20
Slide 21: Background
Background A highly prospective feasibility stage development project LOCATED IN THE MARICUNGA GOLD BELT OF THE ATACAMA REGION OF NORTHERN CHILE Project History ▪ Historic bonanza silver production pre-Kingsgate ▪ Consolidation of district and resources by Kingsgate in 2011 ▪ Kingsgate project break
Slide 22: Nueva Esperanza Overview
Nueva Esperanza Overview Project on care and maintenance as discussions progress with interested parties ▪ In July 2020, Laguna Resources Chile granted an Environmental Impact Assessment (RCA – 64/20) approval for the Nueva Esperanza Gold/Silver Project ▪ In 2021 water rights extended for a further
Slide 23: Appendix
Appendix 23
Slide 24: Gold Price Environment
Gold Price Environment KCN will benefit form a strong gold price environment, and natural hedge as operating costs and sales are transacted in Thai Baht THB/oz ▪ Over the past 4 years the Thai Baht gold price has steadily increased from c. THB40,000/oz to THB60,000+/oz ▪ KCN’s operating costs are de
Slide 25: Chatree Project History
Chatree Project History Millionth ounce poured KCN commences legal Receives BOI Annual production of proceedings under the Chatree deposit incentive for a new 125koz to 150koz p.a Thailand Australia Fee discovered processing plant Trade Agreement (TAFTA) 2001- 2011- 2013- Dec 2017- 1995 2010 2022 20
Slide 26: Exploration Program
Exploration Program Kingsgate is pursuing an active exploration program, with a particular focus on 32 SPLs ▪ Current exploration is concentrated on geological mapping, rock and soil sampling, RAB and RC drilling. ▪ Numerous significant rock chip assay results were identified in Yellow Tiger, Sua Da
Slide 27: Exploration Program (cont.)
Exploration Program (cont.) Kingsgate is also pursuing a very active exploration program especially across the newly granted SPLs ▪ Soil assay results returned up to 4.22g/t Au with 340ppm Pb in Chang Puek (23km south of Chatree). This area of potential is currently undergoing RC drilling to test mi
Slide 28: Mineral Resources and Ore Reserve Statement
Mineral Resources and Ore Reserve Statement As at 30 June 2022 Ore Reserves Information relating to Chatree Ore Reserve estimates is extracted from the ASX: KCN announcement Kingsgate announces 46% increase in Chatree Ore Reserve released 18 May 2022 and is available to view on www.kingsgate.com.au.
Slide 29: Mineral Resources and Ore Reserve Statement
Mineral Resources and Ore Reserve Statement As at 30 June 2022 Mineral Resources (inclusive of Ore Reserves) Information relating to Chatree Mineral Resource estimates is extracted from the ASX: KCN announcement Kingsgate Mineral Resources and Ore Reserves 2017 released 5 October 2017 and is availab
Slide 30: Notes to the Ore Reserves and Mineral Resources
Notes to the Ore Reserves and Mineral Resources 1. Rounding errors are apparent. 2. Chatree metallurgical recoveries: 83.3% Au and 38.7% Ag based on metallurgical test work and plant performance. 3. Chatree Mineral Resources are reported at cut-off of 0.30 g/t Au. 4. Chatree Ore Reserves were estima
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