Kingsgate Consolidated Limited · ASX:KCN
Kingsgate Consolidated — Shareholder Meeting (November 2011)
39 slides from Kingsgate Consolidated's shareholder meeting presentation, Nov 18, 2011
Slide 1: CEO's Presentation – ASX cover letter
28 November 2011 Via ASX Online The Manager Company Announcements Office Australian Securities Exchange Dear Sir/Madam, CEO’S Presentation 2011 Annual General Meeting Please find attached amended CEO’s Presentation from the 2011 AGM, which was held on th the 18 of November, 2011. The amendment relat
Slide 2: Kingsgate Consolidated Limited – AGM 18 November 2011
Kingsgate Consolidated Limited Premier ASX mid-tier Gold Producer AGM 18 November 2011
Slide 3: Chairman's Address
Kingsgate Consolidated Limited Chairman’s Address Year of Transition AGM 18th November 2011 Ross Smyth-Kirk Chairman
Slide 4: MD & CEO's Summary
Kingsgate Consolidated Limited MD & CEO’s Summary Year of Transition AGM 18th November 2011 Gavin Thomas Managing Director and CEO
Slide 5: 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,
Slide 6: 2011 – A year of Transition
2011 – A year of Transition Second gold mine at Challenger Added advanced silver/gold project in Chile (KCN now 96% of Laguna) Chatree expansion to +5Mtpa completed and commissioning Expansion more than 5% under budget Enhanced Arqueros by acquiring Esperanza and Chimberos leases Strong
Slide 7: Financial Performance
Financial Performance Revenue: A$172 million Profit EBITDA: A$68 million (pre significant items) Net Profit $21 million Margin Operating cash margin US$747/oz A$36M cash and bullion at 30 Sept 2011 US$100M Thai baht facility for expansion Finance A$40M drawn on revolving facility Five year A$35M con
Slide 8: Dividend Yield
Dividend Differential 10% 8% Dividend Yield 6% 4% 2% 0% 17 28 28 15 6 3 5 13 15 1 3 2 6 3 6 Sep Mar Aug Mar Sep Mar Sep Apr Sep Mar Sep Mar Sep Mar Sep 02 02 03 04 04 05 06 06 06 07 09 10 10 11 11 Total 2011 dividend A$0.15/share (unfranked) Paid A$1.44/share over past 10 years Highest yieldin
Slide 9: 2011 – Two Mines and Two Advanced Projects
Precious Metals in the Pacific Rim 2011 – Two Mines and Two Advanced Projects Chatree Nueva Esperanza Challenger Bowdens
Slide 10: Chatree Gold Mine in Thailand
Chatree Gold Mine in Thailand Asian showcase gold mine Chatree
Slide 11: Thai Political Change
Thai Political Change Landmark victory by Puea Thai Party with 265 seats out of 500 seats Formed coalition to strengthen majority Chatree Led by Yingluck Shinawatra sister of Thailand former prime minister Thaksin Bangkok Shinawatra Decisive victory should lead to a more politically stable T
Slide 12: Chatree Gold Mine
Chatree Gold Mine The first 10 years Year Year Resource Class The Next 10 Years 1 10 Gold Resources 1.8Moz 3.7Moz Continue to grow Gold Reserves 0.7Moz 1.8Moz Plant capacity likely to Ore Milled 0.7Mtpa 2.5Mtpa expand to 7 -10mtpa Gold Head Grade 5.3g/t 1.1g/t Steady Increase with plant Total Gold P
Slide 13: Chatree North Expansion
Chatree North Expansion Completed on time and under budget Chatree plant (day/night) photo from Poster
Slide 14: Chatree - World Class Deposit
Chatree - World Class Deposit Phitsanulok Province Chatree ~5Moz to date & growing Phichit (including mined to date) Province CHATREE NORTH Phetchabun Province Ban Large low grade and Kho Din Ban Dong Long low cost gold deposit CHATREE Significant near mine potential 1 Km
Slide 15: Section 2290
Section 2290
Slide 16: C North section 2,290N
C Nortn section 2,290N
Slide 17: C North Section 2,265N
(5 Se : = =o = es (3 UT aie 99.0m@33.39g/ tu) ate incl. bm@39. 239.5 Au v Sr er Mined ore Target ore
Slide 18: Challenger Gold Mine
Challenger Gold Mine Acquired by Kingsgate in Feb 2011 Challenger
Slide 19: Challenger Gold Mine – Turn Around Story
Challenger Gold Mine Turn Around Story Underground gold mine in remote South Australia . Production rate ~100koz pa to grow to ~120Kozpa over next 12 - 18mths Third quartile costs expected to improve in 2012 Strong reserve growth achieved. Current reserves ~610Koz , up over 100% on 2010 incl
Slide 20: Challenger Mineralised Structures
Challenger Mineralised Structures NE SW Ventilation Shaft Challenger RL(m) 1000 M1 800 Level M2 Exploration Drive 800 M3 Identified 600 Structures 400 280 Level Exploration Drive Open Upside 200 Down 0 Dip -200 Open -400 Down Dip Long Section
Slide 21: Challenger Development Advance
Challenger Development Advance M2 440m 420m Reconciliation 115% 400m 380m Reconciliation 148% & Mining 85% complete 360m 340m Positive Reconciliation trend continues 320m 300m 280m 260m Development in advance of mining
Slide 22: Challenger Update
Challenger Update • Gold production 10,187 ounces in October • November and December production remains positive to meet annual forecast • Development ahead of mining nearing optimum level • Positive reconciliation continuing at lower levels
Slide 23: Challenger Upside Potential
Challenger Upside Potential E W Ventilation Shaft Challenger Challenger Oblique Section West RL(m) Other Structures 1000 820 Level Area of current drilling M1 800 M2 800 Level Upside M3 Exploration Drive 600 400 280 Level Exploration Drive 200 Open Open Down Down Dip Dip 0 Open -200 Down Upside Dip
Slide 24: Nueva Esperanza
Nueva Esperanza Advanced silver/gold project in Chile Nueva Esperanza
Slide 25: Nueva Esperanza Well Located
Nueva Esperanza Well Located Esperanza Teterita Chimberos Arqueros 5 Kilometres
Slide 26: Fast Track to Production
Fast Track to Production 71Moz silver & 0.23Moz gold 28.5Mt @ 0.25g/t Au & 78g/t Ag (cutoff: 0.5g/t AuEq*) Feasibility study in Q1 2012 followed by construction in 2012/13 Expected annual output of ~4.5Moz silver & ~25Koz Au by open pit Proven management team Exploration potential (* Cal
Slide 27: Nueva Esperanza Panorama
Nueva Esperanza Panorama (looking northeast from Arqueros) Teterita Chimberos Huantajaya Arqueros Norte Arqueros • Multiple pits available • Mining flexibility & low strip ratio
Slide 28: Nueva Esperanza Preliminary mine and plant layout
Nueva Esperanza Preliminary mine and plant layout
Slide 29: Kingsgate Growth Project – Bowdens
Kingsgate Growth Project Bowdens Silver Project in NSW Bowdens
Slide 30: Bowdens Overview
Bowdens Overview Epithermal silver deposit with lead and zinc by-products Large, continuous, near surface deposit hosted in a volcanic sequence of breccia and tuff (Rylstone Volcanics) Resource estimate 99Moz Ag, 175Kt Pb & 233Kt Zn (JORC) Established infrastructure and mining workforce Fe
Slide 31: Bowdens Upside Potential
Bowdens Upside Potential 1 kilometre Significant resource potential along strike 10,750mN and at depth Drilling to start in early 2012 Pit shell reflects the current base of drilling A B 10,500mN High grade starter pit 10,250mN A B 10,000mN 9,750mN 14,750mE 15,000mE 15,250mE 15,500mE
Slide 32: Outlook for 2012
Outlook for 2012 Challenger 95,000 – 105,000 ounces Production Chatree production under review due to the flooding but up strongly year on year Costs Steady to improving at the operating level Nueva Esperanza: Feasibility completion and decision to mine. Growth Projects Bowdens: resource extension d
Slide 33: Summary
Summary Diversified Production Growth Resource Growth Development Project Pipeline Generating Strong Cashflow Dividend Differential Premier ASX Mid-Tier Precious Metal Miner
Slide 34: Thank you
Kingsgate Consolidated Limited Thank you Shares: 139 Million Market Cap: ~A$1Bn ASX: KCN www.kingsgate.com.au
Slide 35: Appendix – General Disclaimer
Appendix - 1 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 prod
Slide 36: Appendix – Chatree
Appendix 2 - Chatree Chatree Ore Reserves as at 30 June 2011 (>0.4g/t gold cut-off grade) Gold Silver Gold Silver Tonnes Source Category Grade Grade Contained Contained (millions) (g/t) (g/t) (Moz) (Moz) From Pits Proven 36.0 0.99 8.5 1.14 9.9 Probable 15.6 0.97 7.0 0.49 3.5 Stockpiles 8.4 0.69 11.7
Slide 37: Appendix – Challenger
Appendix 3 - Challenger Challenger Ore Reserves as at 30 June 2011 Gold Gold Tonnes Source Category Grade Contained (thousands) (g/t) (‘000 oz) From Mine Proven 600 4.46 90 Probable 2,740 5.94 520 Challenger Total Total 3,340 5.67 610 Challenger Mineral Resources as at 30 June 2011 Gold Gold Tonnes
Slide 38: Appendix – Nueva Esperanza
Appendix 4 - Nueva Esperanza Mineral Indicated Inferred Total Resources >0.5g/t Tonnes Gold Silver Tonnes Gold Silver Tonnes Gold Silver Gold Silver AuEq M g/t g/t M g/t g/t M g/t g/t MOz MOz Arqueros 16.3 0.32 81 4.0 0.3 50 20.0 0.32 75 0.20 48.1 Chimberos 3.7 0.2 85 3.7 0.20 85 0.02 10.1 Teterita
Slide 39: Appendix – Bowdens
Appendix 5 - Bowdens Cut-off Grade Contained Silver Resource AgEq Tonnes Silver Lead Zinc AgEq Silver AgEq Class (g/t) (t) g/t % % g/t (Moz) (Moz) Indicated 30 31.2 60.6 0.30 0.40 77.5 60.8 78 Inferred 30 27.0 44.0 0.30 0.40 61.0 38.7 53 Indicated & 30 58.2 52.9 0.30 0.40 69.8 99.4 131 Inferred Note
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