Kingsgate Consolidated Limited · ASX:KCN
Kingsgate Consolidated — Diggers and Dealers 2011
32 slides from Kingsgate Consolidated's conference presentation, Aug 2, 2011
Slide 1: Growing a Premier Mid-Tier Gold Miner in Asia/Pacific
Kingsgate Consolidated Limited For personal use only Growing a Premier Mid-Tier Gold Miner in Asia/Pacific Gavin Thomas Diggers and Dealers August 2011
Slide 2: Disclaimer
For personal use only 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
Slide 3: Building a Premier Mid-Tier Gold Miner
Building a Premier Mid-Tier Gold Miner For personal use only Diversified Production Growth Resource Growth Development Projects Generating Strong Cashflow Further Growth Opportunities
Slide 4: Acquires Bowdens Silver Project
Acquires Bowdens Silver Project For personal use only • Silver resource of 97Moz (130Moz AgEq) with strong upside potential • In-ground value of $5Bn, equiv to +3Moz gold • Purchase price of $75M represents $0.77/Ag resource oz ($0.58/Ag equivalent resource oz) • Proceeding immediately to BFS, signi
Slide 5: Transaction Rationale
Transaction Rationale For personal use only • Continues KCN stated aim of project and geographic diversification. Strategy • Bowdens represents a rare “walk-up” development opportunity . • Uses KCN technical expertise to acquire and develop advanced projects. Key Objective • Bowdens last evaluated i
Slide 6: Bowdens Project Summary
For personal use only Bowdens Project Summary • Epithermal silver deposit with lead and zinc by- products • Located 25km E of Mudgee, some 240km NW of Sydney • Established infrastructure and mining workforce • Large, continuous, near surface deposit hosted in a volcanic sequence of breccia and tuff
Slide 7: Bowdens - Key Attributes
Bowdens - Key Attributes For personal use only • Shallow, flat dipping continuous ore Robust Resource bodies • 3-4 Mtpa throughput, +10yr mine life • BFS work to start immediately Advanced Project • Met testwork, EIS, mining and scoping studies already undertaken • Current pit shell bottoms on drill
Slide 8: Exploration Upside
Exploration 1km Upside For personal use only • 43,000m of drilling • Most holes less than 100m deep • Minor drilling on neighbouring freehold properties • Clear targets for drilling program
Slide 9: Current Pit Shell
For personal use only Current Pit Shell
Slide 10: Kingsgate Growth Strategy: 2010 - One Mine One Country
Kingsgate Growth Strategy 2010 - One Mine One Country For personal use only Chatree
Slide 11: Thai Political Change
Thai Political Change Landmark victory by Puea Thai Party For personal use only 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 mor
Slide 12: Chatree – Thai Gold Belt
For personal use only Chatree – Thai Gold Belt Chatree Thailand World Class Gold Bangkok Province Thai Gold Belt Phitsanulok Province First Mover Advantage Granted Phetchabun Province 70 km Chatree Phichit 1,300 km2 Tenement Province Package Pending Multiple Targets Nakhonsawan Province
Slide 13: Chatree - World Class Deposit
For personal use only Chatree - World Class Deposit World Class Gold Deposits are +5 Moz Chatree ~6Moz to date & growing Section5 km including mined to date 1.9 Moz Reserve 4.3 Moz Resource* (*As at 30 June 2010) 1 km
Slide 14: Organic Growth - Expanding Pits
Organic Growth - Expanding Pits For personal use only Chatree Grade/Tonnage Variance Versus Gold Price* Gold Price Gold Grade Tonnes Contained Gold (US$) (g/t) (Millions) (Moz) 1050 0.98 71 2.2 1150 0.96 78 2.4 1250 0.85 100 2.7
Slide 15: Chatree Expansion on Time
For personal use only Chatree Expansion on Time Chatree processing plant capacity increase from 2.3 to +5 Mtpa Completion scheduled in September Quarter 2011 Increase production rate up to 200,000 ounces per year Current Plant 2.3 Mtpa What’s Next? +2.7 Plant expansion to Mtpa +2.7 Mtpa Total projec
Slide 16: Chatree Expansion Under Budget
Chatree Expansion Under Budget For personal use only Chatree North expansion on time and ~5% under budget Despite Heaviest wet season in a generation Capital pressure on resource construction projects Established partnership in Asian development built up over a decade with Ausenco
Slide 17: Kingsgate Diversifies: 2011 - Two Mines Two Countries
Kingsgate Diversifies 2011 - Two Mines Two Countries For personal use only Chatree Challenger
Slide 18: Challenger Gold Mine Turn Around Story
Challenger Gold Mine Turn Around Story For personal use only Acquired by KCN in Feb 2011 Underground mine in Central South Australia Annual production ~100koz Reserves ~420koz Resources of ~950koz Strong reserve increase since commencement and further reserve growth anticipated
Slide 19: Challenger Upside Potential
Challenger Upside Potential E W Ventilation Shaft Challenger For personal use only Challenger 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 Upsid
Slide 20: Kingsgate Grows: 2013 Three Mines Three Countries
Kingsgate Grows For personal use only 2013 Three Mines Three Countries Chatree Challenger Arqueros
Slide 21: Arqueros Project Well Located
Arqueros Project Well Located Choquelimpie For personal use only Significant experience in the gold and copper belts El Tesoro San Cristobal Arqueros project located in the world- class Maricunga Gold-Silver Belt Maricunga Belt Host to over 70Moz gold resources Produced over 10Moz gold C
Slide 22: Esperanza Enhances Arqueros
Esperanza Enhances Arqueros Chimberos Pit For personal use only Adds ~20Moz of silver Esperanza Considerable surface rights resources (~340koz gold EQ) Teterita and mine infrastructure Earlier plant commissioning Chimberos Satellite mineralisation and and faster ramp-up with increased explor
Slide 23: Fast Track to Production
Fast Track to Production 1.6 Million ounces gold EQ* For personal use only (95 Million ounces silver EQ) Average grade of 1.5g/t* gold equivalent (cut-off: 0.7 g/t g/e) Target production of 100,000oz pa* gold equivalent by open cut mine 19,000m definition drilling completed Feasibility stu
Slide 24: Kingsgate Delivers Strong Production Growth
Kingsgate Delivers For personal use only Strong Production Growth 600 500 Gold Production Growth (in ‘000 ounces AuEq) 400 300 Chatree 200 100 0 2008 2009 2010 2011F 2012F 2013F 2014F Chatree Challenger Arqueros (100%) Bowdens Challenger Arqueros
Slide 25: June Quarter Summary
For personal use only June Quarter Summary • Group Gold Production 36,877oz (Chatree 16,180oz, Challenger 20,697oz) • Total Cash Costs, Chatree US$583/oz, Challenger US$1,059/oz (Incl. royalties) • Chatree Expansion on schedule and ~5% under budget • Positive gold reconciliation of 124% from lower l
Slide 26: June Quarter Detail
June Quarter Detail • Mining restricted to low grade areas For personal use only and by noise curfew Chatree • Expansion on time & under budget • C North high grade in Dec & Mar Qtr • Stope pillar failures dilute ore grade Challenger • U/g trucking waste constrained • M2 shoot reconciliation 124% •
Slide 27: Kingsgate Consolidated Limited
For personal use only Kingsgate Consolidated Limited Shares: 134 Million Market Cap: ~A$1.3Bn ASX: KCN www.kingsgate.com.au
Slide 28: Appendix: General Disclaimer
Appendix General Disclaimer: 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 investment
Slide 29: Chatree Ore Reserves and Mineral Resources
Chatree Chatree Ore Reserves as at 30 June 2010 (>0.4g/t gold cut-off grade) For personal use only Gold Silver Gold Silver Tonnes Source Category Grade Grade Contained Contained (millions) (g/t) (g/t) (Moz) (Moz) From Pits Proved 37.4 1.00 9.5 1.20 11.42 Probable 18.7 0.98 8.4 0.59 5.02 Stockpiles 5
Slide 30: Challenger Ore Reserves and Mineral Resources
Challenger Challenger Ore Reserves as at 30 June 2010 For personal use only Gold Gold Tonnes Source Category Grade Contained (‘000) (g/t) (‘000 oz) 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 Mineral Resources as at 30 June
Slide 31: Arqueros JORC Resources
Arqueros JORC Sep 2010 Grades (g/t) Contained Ounces (‘000 oz) Million For personal use only Tonnes Category Gold Silver Au EQ60 Gold Silver Au EQ60 Cut-off grade 0.5g/t AU EQ60 Indicated 7.0 0.35 83 1.73 78 18,596 387 Inferred 24.6 0.32 47 1.11 253 37,506 870 Total 31.6 0.33 55 1.24 332 56,103 1,25
Slide 32: Bowdens
Bowdens • Bowdens has existing NI 43-101 resource For personal use only • Measured, Indicated & Inferred = 97Moz Ag (40 g/t Ag equivalent cut-off) • M, I & I = 130Moz AgEq (40 g/t Ag equiv cut-off) • JORC-compliant resource expected in next 2 months Class Cut-off Tonnes Grade Ag Eq cut (AgEq g/t) (t