Kingsgate Consolidated Limited · ASX:KCN
Kingsgate Consolidated — Merger or Acquisition (October 2010)
27 slides from Kingsgate Consolidated's merger presentation, Oct 20, 2010
Slide 1: Kingsgate Dominion Consolidated Mining
Kingsgate Dominion For personal use only Consolidated Mining Combination to create the premier ASX mid-tier gold producer 20 October 2010
Slide 2: Kingsgate Disclaimer
KCN logo Kingsgate Disclaimer DOM logo For personal use only 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
Slide 3: Dominion Disclaimer
KCN logo Dominion Disclaimer DOM logo For personal use only Forward Looking Statements — Some statements in this presentation regarding estimates or future events are forward looking statements. They involve risk and uncertainties that could cause actual results to differ from estimated results. For
Slide 4: General Disclaimer
KCN logo General Disclaimer DOM logo 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 in
Slide 5: Transaction Overview
For personal use only Transaction Overview
Slide 6: Combination with Dominion consolidates Kingsgate's position
Combination with Dominion For personal use only consolidates Kingsgate’s position as “The Premier ASX Mid-Tier Gold Producer”
Slide 7: Transaction Highlights
KCN logo Transaction Highlights DOM logo For personal use only Scrip offer enables Kingsgate and Dominion shareholders to participate in the benefits of the combined company Robust production growth outlook Production and Potential 300,000 oz pa gold production exploration upside Substantial,
Slide 8: The Premier ASX Mid-Tier Gold Producer
KCN logo The Premier ASX Mid-Tier Gold Producer DOM logo For personal use only Combination of Kingsgate and Dominion moves to fill the void in the ASX gold sector and establishes a position as the preferred mid-tier gold exposure on the ASX Dominion Dominion 421,650 950,220 Implied A$1.6 Billion mar
Slide 9: The Premier ASX Mid-Tier Gold Producer
For personal use only 1 2 3 4 5 6 7 8 9 10 - 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 - Newcrest 135.2 Newcrest 77.2 Gold One 20.4 Allied 3.4 Oceana 8.9 Allied 8.3 Oceana 3.3 Intrepid 8.0 St Barbara 2.9 St Barbara 7.7 Resolute 2.4 Attributable Reserves (Moz) Resolute 7.0 Attributable Resources (Moz) 1 Kingsg
Slide 10: Transaction Summary
KCN logo Transaction Summary DOM logo For personal use only 0.31 Kingsgate shares for every 1 Dominion share Transaction Unanimously recommended by both Boards Implemented via a Dominion scheme of arrangement Offer values Dominion at A$376m A$3.63 per ordinary share outstanding — Premium of 33% over
Slide 11: Benefits to Kingsgate Shareholders
KCN logo Benefits to Kingsgate Shareholders DOM logo For personal use only Increases and diversifies reserve and resource base Significantly adds to Kingsgate’s gold production Enhanced cashflow from combined operations Combined exploration portfolio for continued organic growth Adds underground min
Slide 12: Benefits to Dominion Shareholders
KCN logo Benefits to Dominion Shareholders DOM logo For personal use only Attractive premium Strengthened financial platform and enhanced access to capital to underpin development of exploration portfolio Operational and growth diversification through exposure to Kingsgate’s prospective Chatree oper
Slide 13: Executing the Strategy for the Combined Entity
For personal use only Executing the Strategy for the Combined Entity
Slide 14: Forward Strategy for "New" Kingsgate
KCN logo Forward Strategy for “New” Kingsgate DOM logo For personal use only Continued focus on gold Overall Expand portfolio in Australasia, South East Asia and South America Look to build diverse portfolio of exploration, development and producing assets Continue high margin gold production Chatre
Slide 15: Maximising Chatree Potential
KCN logo Maximising Chatree Potential DOM logo For personal use only Section through Chatree North A pit Recent drilling to extend mineral resources at the Chatree Mine has intersected new high grade gold zones, confirming the high grade underground potential at Chatree Transaction Value-add: — Near
Slide 16: Enhanced Exploration Portfolio
KCN logo Enhanced Exploration Portfolio DOM logo For personal use only Merger creates significant regional exploration portfolio across Australia as well as South East Asia Strong balance sheet and cash flow would enable increased regional exploration program across all tenements Australian Explorat
Slide 17: Strong Financial Platform
KCN logo Strong Financial Platform DOM logo For personal use only Creates strong financial platform for future growth Revenue (2010): A$247M Strong Balance Sheet to fund commitments Organic growth, EBITDA (2010): A$125M including enhanced exploration Flexibility for future No debt and $47M net cash
Slide 18: Other Information
For personal use only Other Information
Slide 19: Pro Forma Market Cap and Operations
KCN logo Pro Forma Market Cap and Operations DOM logo For personal use only Kingsgate Kingsgate Dominion Pro Forma* Closing Share Price (19 October 2010) $11.71 $2.73 $11.71 Share Price – 30 day VWAP $11.61 $2.69 Shares on Issue 101.1m 103.5m Fully Diluted Shares on Issue1 102.8m 110.7m 133.3m Marke
Slide 20: About Kingsgate and Dominion
For personal use only About Kingsgate and Dominion
Slide 21: Overview of Kingsgate
KCN logo Overview of Kingsgate DOM logo For personal use only 2nd Largest ASX Gold producer (by Market Cap) Key asset: Chatree Mine, Thailand Producing: ~9 years, >1Moz poured Chatree Mine life: 12+ years with expansion Thailand Mkt Cap: ~A$1.2 Billion Shares: 101.1 Million, 1.7M options Bangkok 3rd
Slide 22: Kingsgate's World Class Chatree Gold Deposit
KCN logo Kingsgate’s World Class Chatree Gold Deposit DOM logo For personal use only “World Class” Deposits are >5 Moz Chatree ~6Moz to date & growing (including mined to date) Western Western Australia’s Australia’s Kalgoorlie Kalgoorlie Super Pit Super Pit 1.9 Moz Ore Reserve 4.3 Moz (same scale)
Slide 23: Overview of Dominion
KCN logo Overview of Dominion DOM logo For personal use only Approximately 100,000 ounce per annum producer from the Challenger mine in South Australia Mine life of around 4 years based on current reserves and production Mine life of around 9 years based on current resources and production Numerous
Slide 24: Dominion's Challenger Gold Project
KCN logo Dominion’s Challenger Gold Project DOM logo For personal use only Discovered May 1995 and development commenced March 2002 Historical open pit production of around 120,000 ounces at A$280/ounce Underground commissioned in July 2005 Production (FY2006 to FY2010) of 504,922 ounces — Cash cost
Slide 25: Appendix
For personal use only Appendix
Slide 26: Chatree
KCN logo Chatree DOM logo For personal use only Chatree Ore Reserves as at 30 June 2010 (>0.4g/t gold cut-off grade) Source Category Tonnes Gold Grade Silver Grade Gold Contained Silver Contained (millions) (g/t) (g/t) (million ounces) (million ounces) From Pits Proved 37.4 1.00 9.5 1.20 11.42 Proba
Slide 27: Challenger
KCN logo Challenger DOM logo For personal use only Challenger Ore Reserves as at 30 June 2010 Source Category Tonnes Gold Grade Gold Contained (thousands) (g/t) (thousand ounces) From Mine Proved 318 5.8 59 Probable 1,834 6.0 352 Stockpiles 157 2.1 9 Challenger Total Total 2,310 5.7 420 Challenger M
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