Kingsgate Consolidated Limited · ASX:KCN
Kingsgate Consolidated — Excellence in Mining Conference / Denver Gold Conference 2010
26 slides from Kingsgate Consolidated's conference presentation, Sep 21, 2010
Slide 1: 2010 Post Financials Presentation cover letter
For personal use only ABN 42 000 837 472 21 September 2010 Via ASX online FOR PUBLIC RELEASE (26 pages including cover) The Manager Company Announcements Office Australian Securities Exchange Dear Sir/Madam, 2010 Post Financials Presentation Please find attached Kingsgate presentation update which w
Slide 2: High Margin Gold Production
For personal use only Kingsgate Consolidated Limited High Margin Gold Production nd ASX 2nd largest gold company 1 st Millionth Ounce Bar September 2010
Slide 3: Disclaimer
For personal use only Disclaimer Forward Looking Statements: These materials These materials include include forward forward looking looking statements. statements. Forward Forward looking looking statements statements inherently inherently involve involve subjective subjective judgment judgment & &
Slide 4: Mid-Tier Miner
For personal use only ASX: Rising Mid-Tier Miner Low Cost Gold Production Expanding Production Increasing Reserves/Share Increasing Earnings/Share Proven Value Creator
Slide 5: Kingsgate – Asian Gold
For personal use only Kingsgate – Asian Gold 2 nd Largest ASX Gold Stock (by Mkt Cap) Key asset - Chatree Mine, Thailand Producing: ~9 years, >1Moz poured Mine life: 12+ years with expansion Mkt Cap: ~A$1 Billion Shares: 100.7 Million, 1.8M options Chatree Chatree 3rd best performing A
Slide 6: Low Cost Gold Producer
For personal use only Low Cost Gold Producer Low Cash Costs Good Position US$335/oz costs on Cost Curve 1000 Global Cash Cost Curve 2009 800 Lowest 20% of US$850-900/oz Gold Price US$/oz Cash Industry Costs 600 margin 400 Kingsgate FY2010 Average 200 US$335/oz @ 1.7g/t Au Gold Only Producers US$850-
Slide 7: Low Cost Production
For personal use only Low Cost Production Low Cost Gold 132,628oz Gold Production FY10 Maintained US$335/oz Cash Costs FY10 US$257/oz + US$78/oz Thai Royalty US$335/oz costs Asian Competitive Costs: US$15.50/t, Up15% in 9 years Advantage Grid power & labour keep costs low Costs Quarterly Cash Costs
Slide 8: Expansion: Double Capacity
For personal use only Expansion: Double Capacity Plant processing capacity increase from 2.3 to >5 Mtpa Mid-2011 Commissioning; Ausenco EPCM Increase production up to 200,000 ounces per year Current Plant Plant Expansion 2.3 Mtpa + 2.7 Mtpa Expanded Total +5 Mtpa Expansion Plant Area beside current
Slide 9: Construction Underway
For personal use only Construction Underway CIL Tanks CIL Tanks && Grinding Grinding Circuit Circuit under under construction construction Capex Remaining Capex Remaining ~US$100m; ~US$100m; Spent Spent Further Further US$25m US$25m Mandated Investec Mandated Investec & & Thai Thai banks banks :: Se
Slide 10: Construction Underway
For personal use only Construction Underway Key items Key items in in place place –– concrete concrete footings/slab footings/slab and and steelwork steelwork CIL Tanks CIL Tanks Stockpile Reclaim Stockpile Reclaim Primary Crusher Primary Crusher
Slide 11: World Class Deposit
For personal use only World Class Deposit World Class Deposits are >5 Moz Western Western Australia’s Australia’s Kalgoorlie Kalgoorlie Super Pit Super Pit Chatree ~6Moz 5 (same scale) (same scale) Section to date & growing km including mined to date 1.9 Moz Reserve 4.3 Moz Resource 1 km
Slide 12: Expanding Current Pits
Expanding Current Pits Current ‘A’ Pit design For personal use only is at limit of drill data Drilling restricted due to blasting in mine 30m @ 16g/t gold 12m @ 30g/t gold
Slide 13: Upside in Prior Pits
For personal use only Upside in Prior Pits Prior pits to re-open at current gold price Drilling to locate high-grade targets 17m@ 4.7g/t 26m@ 2.1g/t 1m@41g/t 3m@17g/t Conceptual Pits 2.5 km
Slide 14: Large Low Grade Potential
For personal use only Large Low Grade Potential Chatree Total Q Pit Reserves: 1.9 Moz (sth) Resources: 4.3 Moz ‘A’ Pit - Chatree North Larger Pit potential at current gold prices Chatree Grade/Tonnage Variance Versus A Pit Gold Price* Gold Price Gold Grade Tonnes Contained Gold (US$) (g/t) (Millions
Slide 15: Best Ever Profit; Up 125%
For personal use only Best Ever Profit; Up 125% EPS: 75.2 EPS: 75.2 cents/share cents/share FY10 Profit: A$73.1M Solid profit profit from from full full production production Solid Up 125% Maintain low Maintain low cash cash costs: costs: US$335/oz US$335/oz Add back Add back unrealised unrealised F
Slide 16: Highest Gold Dividend Yield
For personal use only Highest Gold Dividend Yield Differentiate KCN Differentiate KCN from from ETF’s ETF’s FY10 Dividend: 35c/sh Total: A$1.29/sh A$1.29/sh since since 2002 2002 Total: Yield: 3.5% Highest yield Highest yield of of any any gold gold miner miner Cash: A$49M Cash: A$49M atat end end J
Slide 17: Gold Province
For personal use only Gold Province Chatree Not a single mine - a Gold Province TT h h aa ii ll aa n ndd Satellite Pit Potential Bangkok Suwan Area – trucking distance to Chatree plant Thai Gold Belt Phitsanulok Province Potential for more mines Chokdee discovery Granted Phetchabun Provinc
Slide 18: Target: Fill The Void
For personal use only Target: Fill The Void No major No major ASX ASX gold gold companies companies Lihir & Andean except Newcrest except Newcrest Mid tier Mid tier Producers: Producers: gone from ASX 100-300,000 oz/year oz/year 100-300,000 Opportunity exists to KCN –– 22nd KCN nd largest gold produ
Slide 19: Growing a Mid Tier Miner
For personal use only Growing a Mid Tier Miner Forecast production Increasing ~130,000 ounces at low costs Production/share Expansion: to 200,000 ounces per year Open pit upside; Underground potential Increasing New discoveries Reserves/share High grade structures to augment ore feed S
Slide 20: Appendix
For personal use only Appendix www.kingsgate.com.au
Slide 21: Income Statement - Solid Base
Income Statement - Solid Base A$ Million : 2009-10 2008-09 For personal use only Revenue Gold/Silver 175 113 55% Interest / Other 1 4 Mining Costs (82) (70) 8% Inventory (Stockpiles) 28 20 Employee Costs (12) (11) - Admin, Biz Devel, Consult (9) (9) - D&A (14) (12) 17% Finance Costs (2) (2) - Explor
Slide 22: Low Cost Drivers
For personal use only Low Cost Drivers Asian Competitive Advantage Cost Comparisons – Thailand vs Australia Established Infrastructure Grid Power Open Pit Mining (US$): Sealed roads Waste: $1.70/t vs $2.50/t Lower cost support Ore: $3.40/t vs $4.00/t Skilled manufacturing “Buy Thai”
Slide 23: Current Operations
For personal use only Current Operations A Hill A East Pit A Pit A Pit looking looking West West K West K West K West Pit Pit looking looking South South
Slide 24: Chatree Mine History
For personal use only 1st Millionth oz - Feb 2010 Chatree Mine History 9 years operating 1993-95 Discovery Av Cash Costs: 2000-01 Construct 1Mtpa Plant 2001 First gold pour (Nov ’01) US$245/oz 2006 Expansion 2Mtpa Plant 2008 New Mining Leases 2010 1st millionth ounce
Slide 25: Sustainability Focus
For personal use only Sustainability Focus World’s Safest Gold Mine* Zero Environmental Incidents ISO standards on all activities Only mining company granted Social Accountability SA8000 Amnesty’s CSR ‘Benchmark’ Training focus - 99% Thai 80% workforce – local villagers 31% women in
Slide 26: Proven Ability
For personal use only Proven Ability Opportunity exists to stand-out amongst ASX mid-cap gold producers Focus on growth in Asia/Australia ‘Critical Mass’ in S.E. Asia Favourable track record: social/local development & environmental record Track record of investing in major value creating
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