Kingsgate Consolidated Limited · ASX:KCN
Kingsgate Consolidated — Investor Presentation (February 2017)
27 slides from Kingsgate Consolidated's investor presentation, February 2017
Slide 1: Corporate & Chile Exploration Overview
CORPORATE & CHILE EXPLORATION OVERVIEW FEBRUARY 2017
Slide 2: 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 and develo
Slide 3: Kingsgate
Kingsgate Australian ASX Listed (KCN.ASX) : Market Cap ~ A$60 million1 (US$45 million) Cash ~ A$38 million2 (US$28.5 million) Enterprise Value (EV) ~ A$22 million1,2 (US$16.5 million) 1. As at 21 Feb 2017. EV/oz Resource (gold equiv. ounce3) US$3/oz [US$9/oz Chile only] 2. Unaudited as @ 31 January
Slide 4: Beyond: Strategic pivot towards South America
Kingsgate is an Australian based company with a long and successful history of operating gold and silver mines, with a former operating mine in Thailand and an exploration and development portfolio in Chile. Strategic pivot towards South America Australian portfolio divested in 2016, focus on Chile
Slide 5: Board & Senior Management
Board & Senior Management Management Greg Foulis Board Chief Executive Officer Ross Coyle Ross Smyth-Kirk Chairman Chief Financial Officer & Company Secretary Peter Alexander Non-Exec Director Alistair Waddell Peter Warren Non-Exec Director VP Corporate Development & Exploration Sharon Skeggs Non-Ex
Slide 6: Responsible Financial Management
RESPONSIBLE Corporate Debt Eliminated Jan 2017 FINANCIAL MANAGEMENT A$38M Dec ‘13 Dec ‘14 Cash position of A$38 million5 Dec ‘15 Dec ‘16 (US$28.5 million) Kingsgate is well positioned to fund 2017 activities Kingsgate is debt free ~US$100M corporate debt eliminated in just over 18 months 5. Unaudite
Slide 7: The Kingsgate Portfolio – two parts
The Kingsgate Portfolio – two parts CHILE Nueva Esperanza is an exploration and development project THAILAND Generating exciting exploration results Chatree Gold Mine – closed by Govt. order Independent Expert Valuation6 range 31 Dec 2016 between A$76 million to A$99 million Strategic investment inc
Slide 8: Chatree Gold Mine Thailand
Chatree Gold Mine Thailand May 2016 – Thai Government ordered all gold mining to cease by 31 December 2016 Chatree operations ceased on 31 December 2016 • Final 6 months production ~90Koz at US$500/oz cash costs • Project debt eliminated, creditor and employee liabilities extinguished • Workforce of
Slide 9: Chile: Building a portfolio in a great location
CHILE Building a portfolio in a great location Alistair Waddell VP – Corporate Development and Exploration 20+ years experience in exploration & mining Former CEO GoldQuest Mining Corp. & VP Greenfields Exploration for Kinross Gold Corp. Leonardo Hermosilla VP – Project Development 30+ years experie
Slide 10: Nueva Esperanza Overview
Nueva Esperanza Overview Strategy – build off a robust PFS study and unlock the district exploration potential History – ~1Moz AUEQ production under fragmented ownership. Now consolidated 100% KCN Scale – 45km2 alteration footprint / resource Differentiation – power and water options PFS to FS – met
Slide 11: Chile & Maricunga Belt – a great address
Chile & Maricunga Belt – a great address Chile – A premier jurisdiction Favoured mining investment destination Ranked 11th in Fraser Institute Mining Survey Worlds largest copper producer Top 20 global gold producer7 Maricunga Belt - New discoveries Defined total gold resources of >100 Moz AuEq Most
Slide 12: Nueva Esperanza History
NUEVA ESPERANZA HISTORY Project History Historic bonanza silver production pre-Kingsgate Consolidation of district and resources by Kingsgate in 2011 Extensive work completed 2012-14 Kingsgate project breakthroughs in 2015 Teterita Gold discovery at Chimberos Arqueros Chimberos Structural cost reduc
Slide 13: Nueva Esperanza Project Status & Differentiation
Nueva Esperanza Project Status & Differentiation Feasibility in progress Existing EIA permit, mods to be submitted 2Q 2017 Water offtake agreement in place Power options available Close to international all-weather highway Exploration ongoing 45Km² of prospective alteration Grid Power Options Nueva
Slide 14: Nueva Esperanza Three Oxide Resources to Date
Nueva Esperanza Three Oxide Resources to Date North Teterita Chimberos Arqueros Camp 1 Km 14
Slide 15: Nueva Esperanza Development Scenario
NUEVA ESPERANZA Development scenario Conventional mining, processing and layout Mining from three pits: Arqueros, Teterita & Chimberos Processing Flow Sheet is conventional: Includes SAG and ball mills, agitation leach and Merrill-Crowe to produce doré Fit for purpose design (Ausenco) Environmental:
Slide 16: 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 Robust economics Silver Price US$/oz 19 19 Project and Operating parameters Investment Capital (initial) US$M 206 Long life Life of Project Years 11.6 Gold Produced Koz 206 275 Short payback
Slide 17: Nueva Esperanza Exploration Potential
1 kilometre Arqueros Carachitas Chimberos Teterita LOOKING WEST Cerros Bravos paleovolcano Chimberos Rosa Grandote Potosi Arqueros Teterita Carachitas LOOKING EAST Cerro Blanco Huantajaya Rifle Boulder NUEVA ESPERANZA EXPLORATION POTENTIAL 45 Km² alteration footprint Recent Chimberos Gold discov
Slide 18: Nueva Esperanza Exploration
NUEVA ESPERANZA EXPLORATION Multiple Target Styles New concepts Evolving geological models dictating exploration strategy – Focus on dome margins Mature district – 35 years exploration – Full potential of historical data not realised 18 Similar geology to nearby La Coipa (Kinross Gold)
Slide 19: Nueva Esperanza Regional Target Generation
NUEVA ESPERANZA Regional Target Generation A systematic, multi-layered approach to unlocking potential Innovative ~800 hole Air-Blast (RAB) drill campaign in 2016 19
Slide 20: Nueva Esperanza Carachitas Target
NUEVA ESPERANZA Carachitas Target • Prospective 450 metre long corridor – Still open along strike • Validation of the innovative bedrock geochemistry campaigns ECCR-2 11 m @ 4.91 g/t Au & 32 g/t Ag from 14 m SCON-6 Carachitas 9 m @ 2.93 g/t Au & 25 g/t Ag from 18 m KRC-23 Oxidised gold-silver-rich s
Slide 21: Nueva Esperanza Huantajaya Prospect
NUEVA ESPERANZA Huantajaya Prospect Validation of new geological targeting models Exploration focus around the margins of large barren dacitic flow-domes Testing for down dip extensions of near surface mineralisation Initial drilling highlight in Q1 2017 (KDD-1) intercepted 24 metres grading 3.25 g/
Slide 22: Nueva Esperanza Calendar 2017 Workflow
Nueva Esperanza Calendar 2017 workflow Feasibility work streams -> enhance economics Exploration -> value add Progressing feasibility work streams Continue to build multi-layers of Technical, environmental & community inputs for district geology, geochemistry, permitting alteration etc Infill drilli
Slide 23: Kingsgate Challenges & Opportunities for 2017
Kingsgate Challenges & Opportunities for 2017 Strategic Exploration -> value add Navigate significant threats and uncertainties to Thai business Investigate optimal corporate structure Daylight value for our projects Chile Deliver Feasibility Study and permitting outcomes Unlock prospective explorat
Slide 24: Thank You
Kingsgate Consolidated Limited THANK YOU 24
Slide 25: 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” dated 17 March 2014. The information relating to Nueva Esperanza Mineral Resources
Slide 26: Mineral Resource and Ore Reserve Statement as at 30 June 2016
Ore Reserves Mineral Resource and Ore Reserve Statement as at 30 June 2016 Mineral Resources (Incl. Ore Reserves) Chatree with Met Licence beyond 31/12/16 26
Slide 27: Kingsgate Consolidated Limited
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