Kingsgate Consolidated Limited · ASX:KCN
Kingsgate Consolidated — FY2013 Earnings Presentation
22 slides from Kingsgate Consolidated's earnings presentation, Aug 29, 2013
Slide 1: Financial Results for the Year to 30 June 2013
Kingsgate Consolidated Limited For personal use only Financial Results for the Year to 30 June 2013 29 August 2013
Slide 2: Disclaimer
Disclaimer Forward Looking Statements: For personal use only 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
Slide 3: 2013 Financial Year Summary
For personal use only 2013 Financial Year Summary 3
Slide 4: Financial Highlights
Financial Highlights Underlying EBITDA of $116 million For personal use only Underlying net profit before tax $17 million Underlying NPBT affected by lower gold price and industry wide cost pressures Statutory loss after tax $324 million Full year results significantly impacted by non-cash
Slide 5: Operating Highlights
Operating Highlights Group gold production 199,897oz For personal use only Group total cash costs, US$888/oz (inc royalties US$118/oz) (Chatree US$767/oz Challenger US$1,135/oz) Chatree Mineral Resources increased by 9% to 4.03Moz and Ore Reserves increased by 13% to 1.82Moz, after depletion
Slide 6: Chatree Operations
For personal use only Chatree Operations 133,681oz gold, up 10% on prior year. Strong Operational 5.7Mt @ 0.90g/t gold and 80% recovery Performance Higher grade and recovery reflect access to main orebody at A Pit and Q oxide ore Chatree total cash costs US$620/oz Total Cash Costs (before US$147/oz
Slide 7: Challenger Operations
For personal use only Challenger Operations 557Kt @ 3.91g/t for 66,216oz gold Gold endowment depleted across the 2 fault Production structures at Challenger Deeps Strategic review results in new mine plan to focus on Challenger West Total cash costs US$1,075/oz (before US$60/oz Total Cash Costs roya
Slide 8: Financial Year Results
For personal use only Financial Year Results 8
Slide 9: Income Statement
For personal use only Income Statement Consolidated A$ Million : FY2013 FY 2012 (Loss) / Profit before tax (339.6) 91.3 Impairments and other 356.0 0.6 Acquisition costs - 1.0 Forex 0.8 (1.3) Profit before tax and significant items 17.2* 91.6 D&A 85.5 67.6 Borrowing costs 13.1 9.4 EBITDA (before sig
Slide 10: Sales Revenue
For personal use only Sales Revenue Reduced sales volume and lower metal prices both impacted sales Average gold price received was US$1,588/oz (2012: US$1,663/oz) A$M 400 357 ▼11 ▼17 329 300 200 100 0 2012 Sales Revenue Gold and Silver Gold and Silver Price 2013 Sales Revenue Volume 10
Slide 11: Underlying EBITDA
For personal use only Underlying EBITDA Lower EBITDA reflects both revenue and cost impacts Industry wide cost pressures affected EBITDA for both operations A$M 200 168 ▼28 ▼15 150 ▼9 ▼1 116 100 50 0 2012 EBITDA Revenue Cost of Sales Unit Costs Corporate 2013 EBITDA Volume 11
Slide 12: Underlying NPBT
For personal use only Underlying NPBT Higher D&A reflects completion of investment programs at both mines A$M 92 ▼54 100 75 50 ▼18 ▼4 25 ▲1 17 0 2012 NPBT EBITDA D&A Finance FX 2013 NPBT 12
Slide 13: Financial Summary
For personal use only Financial Summary Cash and Cash and bullion/doré of A$54.8M Bullion Akara Mining US$125M multi currency loan Akara Debt facility, fully drawn. Amortising facility with Facility quarterly payments from Nov. ‘13 ~US$15M (Baht) working cap facility, undrawn A$20M drawn on
Slide 14: Impairments and Writedowns
Impairments and Writedowns Asset impairment A$M For personal use only Challenger ($312) New operating plan focusing on Challenger West $20 Challenger tax benefit Thailand ($14) Exploration projects outside the Chatree Mine area Australia ($6) Barton West mineral sands Exploration costs Quadr
Slide 15: Outlook for 2014 Financial Year
For personal use only Outlook for 2014 Financial Year 15
Slide 16: Guidance for FY2013/14
Guidance for FY2013/14 Group production 190,000 to 210,000oz For personal use only Mine/Project Production Total cash costs^ Capital Expenditure (‘000 oz) ($/oz) ($M) Chatree 120 - 130 US$775 – US$875 US$20 – US$25 Challenger* 70 - 80 A$1,250 – A$1,350 A$3 – A$4* n/a n/a A$3 – A$4 Nueva Esperanza A$
Slide 17: Strategic Focus
For personal use only Strategic Focus Kingsgate “Lean” programs across all ops. Maximise Opportunities to optimise mine plans. Operating Margins Maintain flexibility with regard to the gold price environment. Refine and finalise heap leach alternative. Nueva Esperanza Well positioned with current si
Slide 18: Summary for FY2014
Summary for FY2014 Gold Production For personal use only Group gold production 190,000oz to 210,000oz. Chatree gold production 120,000oz to 130,000oz. Chatree Steady throughput of around 6.2Mtpa @ ~ 0.8g/t gold. Challenger gold production 70,000oz to 80,000oz. Challenger New mine plan being implemen
Slide 19: Kingsgate Consolidated Limited
For personal use only Kingsgate Consolidated Limited Listed: ASX Code: KCN Shares: 152 Million Market Cap: ~A$400M www.kingsgate.com.au
Slide 20: Appendix: General Disclaimer
Appendix General Disclaimer: The information contained in this presentation is for informational purposes only and does not constitute an offer to issue, or arrange to issue securities or other financial products. The information contained in this presentation is not investment or financial product
Slide 21: Chatree
Chatree Chatree Ore Reserves as at 30 April 2013 (>0.35g/t gold cut-off grade) For personal use only Tonnes Gold Silver Gold Silver AuEq Source Category Grade Grade Contained Contained (million) (g/t) (g/t) (Moz) (Moz) (Moz) From Pits Proven 45.4 0.87 7.8 1.27 11.39 Probable 14.8 0.78 6.0 0.37 2.86
Slide 22: Income Statement
Income Statement Income Statement A$ Million : FY2013 FY 2012 Sales revenue 329.3 357.3 For personal use only Cost of sales (280.5) (238.8) Gross Profit 48.8 118.6 Exploration (0.7) (1.9) Group admin (21.2) (19.3) Other income / (expenses) (16.8) 1.6 Forex (0.8) 1.3 Impairments and other (332.7) (1.
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