Kingsgate Consolidated Limited · ASX:KCN
Kingsgate Consolidated — Investor Presentation (September 2016)
28 slides from Kingsgate Consolidated's investor presentation, September 2016
Slide 1: Corporate Presentation September 2016
Corporate Presentation September 2016
Slide 2: Disclaimer
Disclaimer 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, the company. Actual results
Slide 3: Navigating Extreme Uncertainty in 2016
Navigating Extreme Uncertainty in 2016 Kingsgate is an Australian based company and has a long and successful history in operating gold and silver mines, with current and former operating mines in Australia and South East Asia, and an exploration portfolio in Chile. The Company has recently disposed
Slide 4: Kingsgate Today
Kingsgate Today Stripped down to two core assets Voluntarily suspended from trading based on uncertainties with Thai business Considering corporate structure options to daylight value ASX Listed: Market Cap ~ A$ 82 million1 (US$ 62 million) Net debt ~ A$ 32 million 2 (US$ 24 million) as at 31 Aug 20
Slide 5: Macro backdrop
Macro backdrop A fundamental turnaround for gold and silver Gold & Silver Price US$ - Sep 2011 - present $1,900 45 The 5 year gold down cycle ended in 2015 Increased global financial market concerns in 2016 $1,800 40 US Fed rate tightening has been slow $1,700 Investors seek precious metals exposure
Slide 6: Chatree Gold Mine - Thailand
Chatree Gold Mine - Thailand ? Given there is still significant uncertainty and a number of sensitivities relating to the Chatree Gold Mine, Kingsgate is not able to provide briefings or make any comment on those matters at this time. However, on 16 September 2016, Northern Gulf Petroleum Pte Ltd lo
Slide 7: Nueva Esperanza, Chile – A Great Address
Nueva Esperanza, Chile – A Great Address Chile – a premier jurisdiction Favoured mining investment destination Ranked 10th in Fraser Institute mining survey Worlds largest copper producer Ranked 14 in global gold production Maricunga Belt - new discoveries Defined total gold resources of >100 Moz Au
Slide 8: Nueva Esperanza – A Flagship Project
Nueva Esperanza – A Flagship Project History Historic bonanza silver production pre-Kingsgate Consolidation of tenements and resources by Kingsgate in 2011 Extensive feasibility work completed 2012-14 Gold discoveries in 2014 and 2015 Nueva Esperanza Status Teterita Mineral Resources 1.9 Moz AuEq601
Slide 9: Nueva Esperanza – Status
Nueva Esperanza – Status Status 100% ownership Grid Power 45Km² of alteration Options Inventory of 1.9 Moz AuEq60* Significant feasibility-level work completed Water offtake agreement in place Power options available nearby Exploration ongoing Nueva Permitting ongoing Feasibility p
Slide 10: Nueva Esperanza – Three Resources to Date
Nueva Esperanza – Three Resources to Date North Teterita Chimberos Arqueros Camp 1 Km
Slide 11: Nueva Esperanza - Chimberos
Nueva Esperanza - Chimberos Open pit mine 1998-99 - Kinross Gold Oxide ore processed at La Coipa mine High sulphidation mineralisation hosted in Palaeozoic sediments and breccia's Bonanza grades mined with sections of >1,000 West wall of Chimberos pit showing oxides assoc. with mineralisatio
Slide 12: Nueva Esperanza - Chimberos Gold
Nueva Esperanza - Chimberos Gold Model: Structurally controlled replacement of Paleozoic Numerous exploration targets nearby remain to be tested conglomerates by massive silica/hydrothermal breccia
Slide 13: Nueva Esperanza - Chimberos Gold
Nueva Esperanza - Chimberos Gold Gold-rich hydrothermal breccia's, a new variant of historical Chimberos bonanza (silver) mineralization • 36m @ 8.6 g/t Au & 177 g/t Ag from 168m (ECHR25) Previously unknown gold zone with higher grade • 35m @ 3.4 g/t Au & 33 g/t Ag from 204m intercepts includes
Slide 14: Nueva Esperanza - Arqueros
Nueva Esperanza - Arqueros High sulphidation gold-silver mineralisation hosted in vuggy silica mantos and ledges Previously mined underground 1999-2004 - 289 koz Au EQ60 @ 7.4 g/t Au EQ) Current open pit resource: 200 koz Au & 46 Moz Ag (7.4 Mt @ 0.36 g/t Au & 82 g/t Ag) Arqueros North Silver
Slide 15: Nueva Esperanza - Teterita
Nueva Esperanza - Teterita High sulphidation silver mineralisation hosted in silicified volcanics Manto style oxidised mineralisation 5.7 Mt @ 92 g/t Ag (16.8 Moz Ag) Teterita Open pit - Near-surface with low strip; feeder zones yet to be discovered Geological interpretation of Teterita
Slide 16: Nueva Esperanza – Pre-Feasibility Study
Nueva Esperanza – Pre-Feasibility Study 2 Mtpa First 5 years Ave. Processing 135 Koz AuEq602/pa capacity US$ 633/oz cash costs Initial 11.6 year Life NPV5% US$168m1 Av 91Koz/pa AuEq602 IRR of 25% Study outcomes have framed the next steps for progressing technical studies and permitting. This profili
Slide 17: Nueva Esperanza Development - PFS assumptions
Nueva Esperanza Development - PFS assumptions Conventional mining, processing and layout • Assumes mining from three pits: Arqueros, Teterita & Chimberos • Processing by SAG ball mill, agitation leach & Merrill-Crowe to produce doré • Dry stack tailings to recover water and reduce environmental foot
Slide 18: Pre-Feasibility Study – Key Outcomes
Pre-Feasibility Study – Key Outcomes First 5 Macro Assumptions Life of Mine Years Gold Price US$/oz 1,200 1,200 Silver Price US$/oz Project and Operating parameters 19 19 Robust Economics Investment capital (initial) US$M 206 Life of Project Gold Produced Year Moz 11.6 0.275 Long life 0.206 Sh
Slide 19: Nueva Esperanza – Exploration
Nueva Esperanza – Exploration 45 Km² alteration footprint Looking west 1 KM Arqueros Mature district – 35 years exploration Carachitas Chimberos Teterita Full potential of historical data not Cerros Bravos paleovolcano realised Application of new geological models Potosi Rosa Chimberos Grandote Arqu
Slide 20: Nueva Esperanza – Exploration
Nueva Esperanza – Exploration 2016 Programs Regional scale baseline work 45km2 Alteration Footprint Regional bedrock drilling Prospect RC drill campaigns Multiple Target Styles 20
Slide 21: Nueva Esperanza – Regional Target Generation
Nueva Esperanza - Regional Target Generation A systematic, multi-layered approach to unlocking potential 485 air-blast drillholes 21
Slide 22: Nueva Esperanza – 2016 & 2017 workflow
Nueva Esperanza – 2016 & 2017 workflow Technical work streams -> enhance economics Completed - Optimisation study (PFS level) – viable project Rolling into Feasibility work streams Technical, environmental & community inputs for permitting Permitting -> derisking Submit permit modifications in 2
Slide 23: Kingsgate Challenges & Opportunities into 2017
Kingsgate Challenges & Opportunities into 2017 Strategic Navigate significant threats and uncertainties to business Investigate optimal corporate structure Daylight value for our projects Chile Deliver Feasibility Study and permitting outcomes Unlock exciting exploration potential Assess
Slide 24: Thank you
Kingsgate Consolidated Limited Thank you
Slide 25: Appendix – Competent Person Statement
Appendix Competent Person Statement COMPETENT PERSON STATEMENT The information relating to Nueva Esperanza Ore Reserves is extracted from an announcement by Kingsgate titled “Nueva Esperanza, Chile – Definitive Feasibility Study Delivers Strong Results” from 17 March 2014. The information relating t
Slide 26: Mineral Resource and Ore Reserve Statement as at 30 June 2015
Mineral Resource and Ore Reserve Statement as at 30 June 2015 26
Slide 27: Kingsgate key data
Kingsgate key data Kingsgate Scorecard Financial Year 2013 2014 2015 2016 Comments Chatree (Koz) 133.7 134.5 125.1 97.5 Operations Challenger (Koz) 66.2 75.0 80.2 49.0 Mine disposal 3rd Q FY16 KCN Production (Koz) 199.9 209.5 205.2 146.5 Gold Price – Ave (US$/oz) 1,588 1,291 1,208 1,135 Gold price i
Slide 28: Kingsgate Consolidated Limited
Kingsgate Consolidated Limited
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