Kingsgate Consolidated Limited · ASX:KCN

Kingsgate Consolidated — Shareholder Meeting (November 2010)

25 slides from Kingsgate Consolidated's shareholder meeting presentation, Nov 18, 2010

  1. Slide 1: CEO's Presentation 2010 Annual General Meeting

    For personal use only 18 November 2010 (25 pages including cover) Via ASX Online For Public Release The Manager Company Announcements Office Australian Securities Exchange Dear Sir/Madam, CEO’S PRESENTATION 2010 Annual General Meeting Please find attached the CEO’s Presentation for our 2010 Annual G

  2. Slide 2: Kingsgate Consolidated Limited AGM 18 November 2010

    Kingsgate Consolidated Limited Premier For personal use only ASX mid-tier Gold producer AGM 18 November 2010

  3. Slide 3: Disclaimer: Forward Looking Statements

    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

  4. Slide 4: Disclaimer: General Disclaimer

    Disclaimer General Disclaimer: For personal use only 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 investme

  5. Slide 5: Delivering Shareholder Value

    For personal use only Delivering Shareholder Value  Record profit from high margins  Record dividend paid  Strong operating performance  Share price up 42% year on year  Chatree expansion on time & budget  Reserve growth  Exploration success  Growth opportunities

  6. Slide 6: Strong Financial Performance

    For personal use only Strong Financial Performance Record Profit: Revenue: A$175 million; up 54% A$73.1M EBITDA: A$96 million Up 125% 1st year of Thai Tax (7months at 15%) Record dividend: A$0.35 per share unfranked 35c/sh (Yield 3.5%) Highest yield of any gold miner A$32 million net cash at 30 Sept

  7. Slide 7: Share Price Appreciation

    For personal use only Share Price Appreciation Gold Price Ten year ROI – 1400% 3rd Highest Return on Average annual ROI - 38.3% ASX 200 (last 10 yrs) Return on Equity – 23.1%

  8. Slide 8: Chatree Operating Excellence

    Chatree Operating Excellence Low Cost Gold 132,628oz Gold Production FY10 For personal use only maintained US$335/oz Cash Costs FY10 US$335/oz costs US$257/oz + US$78/oz Thai Royalty Costs: US$15.50/t, Up 15% in 9 years Asian Competitive Low costs due grid to power & labour Advantage Weakening US$ a

  9. Slide 9: Expansion on Time and Budget

    Expansion on Time and Budget Chatree processing plant capacity increase from 2.3 to +5 Mtpa For personal use only Commissioning expected September Quarter 2011 Increase production up to 200,000 ounces per year Grinding Capex: ~US$45M expensed; Remaining~US$80M Mandated Investec & Thai banks for US$1

  10. Slide 10: Growing World Class Deposit

    For personal use only Growing World Class Deposit World Class Gold Deposits are +5 Moz Western Australia’s Kalgoorlie Chatree ~6Moz Super Pit to date & growing (same scale) Section5 km including mined to date 1.9 Moz Reserve 4.3 Moz Resource 1 km

  11. Slide 11: Organic Growth - Expanding Pits

    Organic Growth - Expanding Pits For personal use only Chatree Grade/Tonnage Variance Versus Gold Price* Gold Price Gold Grade Tonnes Contained Gold (US$) (g/t) (Millions) (Moz) 1050 0.98 71 2.2 1150 0.96 78 2.4 1250 0.85 100 2.7

  12. Slide 12: Organic Growth – Below Pits

    For personal use only Organic Growth – Below Pits 30m @ 16g/t gold 12m @ 30g/t gold

  13. Slide 13: Organic Growth – U/G Potential

    Organic Growth – U/G Potential For personal use only

  14. Slide 14: Organic Growth – Thailand

    For personal use only Organic Growth – Thailand Chatree Thailand Regional Exploration Bangkok  World class gold province Thai Gold Belt  First mover advantage  1300km2 tenement package Phitsanulok  Near mine satellite deposits Province  Suwan Area – <10km trucking distance to Chatree plant Gran

  15. Slide 15: Corporate Social Responsibility

    Corporate Social Responsibility World Safest Gold Mine For personal use only  7 years – No incidents  Zero Environmental Incidents  ISO Standards on all activities  Only mining company granted Thailand National Zero Accident Award 2010.jpg Occupational Social Accountability SA8000 Safety & Heal

  16. Slide 16: Dominion Transaction Summary

    Dominion Transaction Summary For personal use only 0.31 KCN shares per DOM share Offer Unanimously recommended by both Boards Implemented by Scheme of Arrangement Offer valued Dominion at A$376M Impact Premium of 33% over pre bid price Ownership ~76% KCN, ~24% DOM Scheme documentation late Dec 2010

  17. Slide 17: Overview of Dominion

    Overview of Dominion  Challenger underground mine in South Australia For personal use only  Gold production rate ~100,000 ounces pa  Exploration targets to increase reserve and resource position  Ungeared balance sheet and healthy cash balance  Prospective portfolio of regional exploration tene

  18. Slide 18: Dominion's Challenger Gold Mine

    Dominion’s Challenger Gold Mine  Reserves of 421,650 ounces For personal use only (as at June 30, 2010)  Resources of 950,220 ounces (as at June 30, 2010)  2010 production 81,000oz @ cash cost of $697/oz  Strong reserve increase since commencement and further reserve growth anticipated

  19. Slide 19: Dominion Transaction Highlights

    Dominion Transaction Highlights Robust production outlook For personal use only Production and Potential 300,000oz pa gold production exploration upside Substantial prospective exploration Enhanced cashflow from strong margins Strong combined No debt and A$47M net cash financial platform Ability to

  20. Slide 20: Overview of Laguna Resources

    Overview of Laguna Resources ARQUEROS For personal use only  ASX listed (ASX:LRC)  Offer of 1 KCN share for every 520 LRC shares Santiago  Equivalent to approx. A$0.02per share or A$22m  Unanimously recommended by LRC Board  Management team in Santiago and Copiapo  Main asset is the Arqueros a

  21. Slide 21: Arqueros Project Well Located

    Arqueros Project Well Located For personal use only  Arqueros located in the world-class Maricunga Gold-Silver Belt  Maricunga Belt  Host to over 70Moz gold resources  Produced over 10Moz gold  Currently producing ~500Kozpa  Available infrastructure with access to power and water

  22. Slide 22: Arqueros – Fast Track to Production

    Arqueros – Fast Track to Production  1.1 Million ounces gold equivalent For personal use only (JORC Indicated + Inferred) Arqueros  Average grade of 1.5g/t gold equivalent (cut-off: 0.7 g/t)  Target production of 100,000oz pa gold equivalent by open cut mine  Plan to fast-track Arqueros through

  23. Slide 23: Growing gold producer

    Growing gold producer Chatree Reserves For personal use only Drilling extensions to open pits Increasing High grade veins beneath pits Production Plant expansion on time and on budget Expanding Commissioning expected Sept Qtr 2011 Thailand: over 1300km2 tenements Discovery Stand alone prospects e.g.

  24. Slide 24: Outlook for 2011

    For personal use only Outlook for 2011 Chatree steady at 120,000 – 130,000 ounces Production Expansion expected to commission in September Quarter 2011 Steady at the operational level but under Costs pressure from weakening US$ DOM scheme implemented in early Feb 2011 Corporate LRC takeover expected

  25. Slide 25: Thank you

    For personal use only Kingsgate Consolidated Limited Thank you www.kingsgate.com.au

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