Kingsgate Consolidated Limited · ASX:KCN

Kingsgate Consolidated — Shareholder Meeting (November 2012)

51 slides from Kingsgate Consolidated's shareholder meeting presentation, Nov 21, 2012

  1. Slide 1: ASX cover letter: CEO's Presentation 2012 AGM

    21 November 2012 Via ASX Online The Manager Company Announcements Office Australian Securities Exchange Dear Sir/Madam, CEO’S Presentation 2012 Annual General Meeting Please find attached amended CEO’s Presentation from the 2012 AGM, which was held on the 21 of November, 2012. Yours faithfully, KING

  2. Slide 2: Kingsgate Consolidated Limited AGM 21 November 2012

    Kingsgate Consolidated Limited Growing Precious Metals Miner in Asia/Pacific AGM 21 November 2012

  3. Slide 3: Chairman's Address

    Kingsgate Consolidated Limited Chairman’s Address Delivering on a Profitable Growth Strategy AGM 21st November 2012 eÉáá fÅçà{@^|Ü~ V{t|ÜÅtÇ

  4. Slide 4: Kingsgate Consolidated Limited

    Kingsgate Consolidated Limited Growing Precious Metals Miner in Asia/Pacific AGM 21 November 2012

  5. Slide 5: MD & CEO's Summary

    Kingsgate Consolidated Limited MD & CEO’s Summary Delivering on our Growth Strategy AGM 21st November 2012 Ztä|Ç g{ÉÅtá `tÇtz|Çz W|ÜxvàÉÜ tÇw VXb

  6. Slide 6: 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,

  7. Slide 7: Precious Metals in Asia/Pacific

    Precious Metals in Asia/Pacific Geographic and operational diversity  Gold production 209,000oz @ US$720/oz (including US$118/oz royalties)  Revenue A$357 million  EBITDA A$168 million Chatree  Profit before tax A$91 million Gold Mine  Net profit after tax A$75 million, up 255%  Earnings per s

  8. Slide 8: Record Financial Year Results

    Record Financial Year Results Strong operating platform  Gold production 209,000oz @ US$720/oz (including US$118/oz royalties)  Revenue A$357 million  EBITDA A$168 million Chatree  Profit before tax A$91 million Gold Mine  Net profit after tax A$75 million, up 255%  Earnings per share 52.5 cen

  9. Slide 9: Dividend Differential

    Dividend Differential Annual Dividend (cps) 40 35 30 25 20 15 10 5 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012  Final dividend A$0.10 per share (unfranked)  Total dividend paid of A$$0.20 per share for FY2012  Paid A$1.64/share over past 10 years (~$160 million)  Highest yielding go

  10. Slide 10: Growth Strategy

    Growth Strategy  Business is undergoing significant change  Growth focus is underwritten by company core strengths  Proven geological expertise in identifying quality assets with strong upside potential  Established track record in driving operational excellence

  11. Slide 11: Chatree Gold Mine in Thailand

    Chatree Gold Mine in Thailand Asian showcase gold mine Chatree Gold Mine

  12. Slide 12: Chatree Gold Mine

    Chatree Gold Mine Asian showcase gold mine Chatree World Class Gold Province Thailand Underexplored Bangkok Thai Gold Belt Phitsanulok First Mover Advantage Need patience & persistence Province Phetchabun Province SPLs Pending 63 km 1,200 km2 Tenements Chatree Multiple Targets Phichit Province SPL L

  13. Slide 13: Chatree - World Class Deposit

    Chatree - World Class Deposit Phitsanulok Large low grade gold Province deposit,+5Moz system (including 1.2Moz mined) Phichit Province CHATREE NORTH Process plants optimising Phetchabun ~6.2Mtpa @ ~0.8g/t 6 km Province 120Koz – 130Koz in FY13 Ban Kho Ban Din Dong Long Low cost: infrastructure, CHATR

  14. Slide 14: Chatree Growth Strategy

    Chatree Growth Strategy  Plants operating at +6.2Mtpa. Completed in 2012  4th upgrade of original plant  Achieved long term mine growth Projects Under  Expansion options to +7Mtpa Review  Access to surrounding resources  Underground potential through Future Growth high-grade feeder structures

  15. Slide 15: Chatree Resource Development

    Chatree Resource Development

  16. Slide 16: Chatree Resource Development

    Chatree Resource Development

  17. Slide 17: Chatree Resource Development

    Chatree Resource Development

  18. Slide 18: Chatree Resource Development

    Chatree Resource Development

  19. Slide 19: Chatree Resource Development

    Chatree Resource Development

  20. Slide 20: Chatree Resource Development

    Chatree Resource Development

  21. Slide 21: Chatree Resource Development

    Chatree Resource Development

  22. Slide 22: Chatree Underground Targets

    Chatree Underground Targets Underground lode structures in A and C Pits M01 Lode C Lode

  23. Slide 23: Chatree Underground Targets

    Chatree Underground Targets Long section for M01 lode in A Pit

  24. Slide 24: Chatree Underground Targets

    Chatree Underground Targets Long section for C Lode in C Pit

  25. Slide 25: Challenger Gold Mine

    Record Financial Year Results Acquired in February 2011 Challenger Gold Mine

  26. Slide 26: Challenger Gold Mine

    Challenger Gold Mine Turning around the operation  Full year 87,388oz @ US$862/oz (incl. US$62/oz royalty).  Underground development shortfall in 2011 reduced stope availability.  Issues analysed and strategy being implemented over the next six months.  Establishing two new mining fronts at Chal

  27. Slide 27: Challenger Current Development

    Challenger Current Development

  28. Slide 28: Challenger Deeps

    Challenger Deeps sea GHIALEEN GER ii Bil nin Necline Vent Shaft SuntaceRlogmRit 800mRE 79 FAULT

  29. Slide 29: Challenger West

    Challenger West Challenger West Trial mining of 800 Level stope meets expectations

  30. Slide 30: Challenger LOM Development

    Challenger LOM Development Vent Shortt SurfaceMl93mRE 800mRE 79 FAULT Challenger West 7 = 1 1 = = ~ l Ss Se . 1 1 I I

  31. Slide 31: Challenger Exploration Upside

    Challenger Exploration Upside E Challenger Challenger W Ventilation Shaft Pit West Pit M3 1000m South East Zone 800 2.0m @ 14.1g/t 1.1m @ 13.8g/t 0.9m @ 15.7g/t Challenger West M1 2.1m @ 12.5g/t 600m M2 Good results at SEZ Aminus 400m New shoot, Aminus 2, SEZ 200m Challenger Deeps M2 below 79 Fault

  32. Slide 32: Nueva Esperanza

    Nueva Esperanza Advanced silver/gold project in Chile  Gold production 209,000oz @ US$720/oz (including US$118/oz royalties)  Revenue A$357 million  EBITDA A$168 million  Profit before tax A$91 million  Net profit after tax A$75 million, up 255%  Earnings per share 52.5 cents  Final dividend

  33. Slide 33: Nueva Esperanza

    Nueva Esperanza Highly prospective growth project Nueva Esperanza Choquelimpie Teterita El Tesoro Chimberos San Cristobal Arqueros 5 Kilometres  Total Mineral Resource: 1.9 million oz AuEq (85 million oz AgEq).  The EIA process is well advanced and expected early 2013.  Feasibility work continuin

  34. Slide 34: Nueva Esperanza

    Nueva Esperanza Panorama Teterita Chimberos Huantajaya Arqueros Norte Arqueros Looking north from Arqueros • Multiple pits available • Mining flexibility

  35. Slide 35: Nueva Esperanza

    Nueva Esperanza Highly prospective regional exploration Three established resources TETERITA Multiple highly prospective targets CHIMBEROS CERRO HUANTAJAYA POTOSI AMARILLO RIFLE ROSA BOULDER ARQUEROS GRANDOTE High grade intercepts from historical drilling CARACHITA CARACHAPAMPA

  36. Slide 36: Bowdens Silver Project

    Bowdens Silver Project Kingsgate growth project in NSW  Gold production 209,000oz @ US$720/oz (including US$118/oz royalties)  Revenue A$357 million  EBITDA A$168 million  Profit before tax A$91 million  Net profit after tax A$75 million, up 255%  Earnings per share 52.5 cents  Final dividend

  37. Slide 37: 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

  38. Slide 38: Bowdens Upside Potential

    Bowdens Upside Potential Resources grow by 40% to 182Moz AgEq  Pit optimisation delivers low strip ratio (~1:1) and high grade starter pit.  Metallurgical testing delivers 9% improvement in recovery over earlier work.  Feasibility study and Environmental Impact Statement expected during the year.

  39. Slide 39: Akara Loan Re-financed

    Akara Loan Re-financed • Six year amortising multi currency loan facility with CIMB. • Equivalent to US$125 million plus Thai Baht working capital facility equivalent to US$15 million. • Improved terms from existing facility due to more favourable market conditions and strong cash flow generation fr

  40. Slide 40: Outlook

    Outlook • Group gold production for FY13 expected to be 200,000 to 220,000oz. • Chatree gold production between 120,000 to 130,000oz. • Challenger gold production between 80,000 and 90,000oz. • Nueva Esperanza feasibility evaluating power supply options and development route. • Bowdens feasibility a

  41. Slide 41: Kingsgate – Great Value Proposition

    Kingsgate – Great Value Proposition Profit and shareholder return focussed Diversified Production Growth  Strong production growth: 209Koz FY12 from 113Koz FY11 Strong Resource Growth  Nearly doubled to +10Moz AuEq from 5.4Moz AuEq FY10 Development Project Pipeline  Feasibility studies for Nueva

  42. Slide 42: Thank you

    Kingsgate Consolidated Limited Thank you Shares: 151 Million Market Cap: ~A$800M ASX: KCN www.kingsgate.com.au

  43. Slide 43: 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

  44. Slide 44: Corporate Social Responsibility

    Corporate Social Responsibility Asia’s Showcase Gold Mine  World’s safest gold mine – 9 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 Th

  45. Slide 45: Diversity Peer Comparison

    Diversity Peer Comparison 50.0% Board Snr Mgt Group 40.0% 30.0% 20.0% 10.0% 0.0% Kingsgate Evolution St Barbara Resolute Regis Troy 42% Professionals

  46. Slide 46: Corporate Structure

    Corporate Structure KINGSGATE 100% 100% 100% Dominion Laguna Res. KCN Capital Gold Operations Chile 49% 49% 49%** Phar Mai 51%* Issara Akara 51%* Nueva Thai Challenger Exploration Mining Mining Esperanza Shareholders Gold Mine Limited Limited Limited Project 100% 100% Gold Chatree 51%* Exploration *

  47. Slide 47: Thai Progressive Royalty Rate

    Thai Progressive Royalty Rate 20% 15% 10% US$1600/oz 5% 0% Baht/gm 0 400 600 1000 1500 2000 US$/oz 0 385 580 970 1450 1950 US$1.00=Baht 30, Jan 2011.

  48. Slide 48: Chatree

    Chatree Chatree Ore Reserves as at 30 June 2012 (>0.3g/t gold cut-off grade) Gold Silver Gold Silver Grade Tonnes Grade Contained Contained AuEq Source Category (millions) (g/t) (g/t) (Moz) (Moz) (Moz) From Pits Proven 46.2 0.79 7.9 1.17 11.7 1.30 Probable 16.7 0.72 5.9 0.39 3.2 0.42 Stockpiles 8.4

  49. Slide 49: Challenger

    Challenger Challenger Ore Reserves as at 30 June 2012 Tonnes Gold Gold Source Category Grade Contained (million) (g/t) (‘000 oz) From Mine Proven 0.64 4.32 90 Probable 2.61 6.61 550 Challenger Total Total 3.25 6.16 640 Challenger Mineral Resources as at 30 June 2012 Tonnes Gold Gold Source Category

  50. Slide 50: Nueva Esperanza

    Nueva Esperanza Nueva Esperanza Mineral Resources as at 30 June 2012 (0.5g/t AuEq cut-off grade) Gold Silver Gold Silver AgEq AuEq Tonnes Grade Grade Contained Contained Contained Contained Category (millions) (g/t) (g/t) (Moz) (Moz) (Moz) (Moz) Measured 1.8 0.01 90 0.00 5.1 5.2 0.12 Indicated 20.2

  51. Slide 51: Bowdens

    Bowdens Bowdens Mineral Resources as at 19 November 2012 (30g/t AgEq cut-off grade) Grade Contained Metal Category Tonnes Silver Lead Zinc AgEq Silver AgEq AuEq (t) 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 & Ind

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