Kingsgate Consolidated Limited · ASX:KCN
Kingsgate Consolidated — Investor Presentation (May 2007)
18 slides from Kingsgate Consolidated's investor presentation, May 2007
Slide 1: Kingsgate Consolidated Limited
Kingsgate Consolidated Limited [Note – no audio in this presentation] May 2007 May 2007
Slide 2: 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 3: Growth and More Growth
Growth and More Growth Gold Production Ozs 300,000 Production Oz Up 50% Next Year* 140,000 Oz 100,000 90-100koz F’cast 06/07 Oz 130-150koz F’cast 07/08 05/06 06/07F 07/08F 08/09F 09/10F *Dependent on lease grant timing Gold Resources MOzs Discoveries 4 Mine Depletion (cum) Resources Ore Reserves Pas
Slide 4: Leveraged to Gold Price
Leveraged to Gold Price Production Production Out of Out of Money Money Hedges Hedges 140 130150 Unhedged 127 120 90100 Forecast Unhedged by Jun07 Forecast Full gold price exposure 59 Hedges gone-no dilution 41 04/05 05/06 06/07F 07/08F Time for Net Cash=Mkt Cap Cash Flow Mkt Cap US$M NCM 3000 LHG
Slide 5: Who Is Kingsgate? KCN:ASX
Who Is Kingsgate ? KCN:ASX Key asset - Chatree 100-150,000 oz/yr 300,000 oz/yr target Chatree Chatree 1.7 Moz Reserves 3.8 Moz Resource 15+yrs in Thailand World’s safest Goldmine Mkt Cap: ~A$500m Shares: 90.4million 300 Km +2.25m part paid shares +7m options
Slide 6: Chatree Gold Mine
Chatree Gold Mine A Pit, A Pit, Chatree Chatree North North Final Current mining lease boundary A Pit Profile High Grade Underground Development Potential Main C-H Main C-H Pit Pit Expansion Plant Expansion Plant Site Site Existing Plant Existing Plant 2.65mtpa 2.65 mtpa 2.35mtpa 2.35 mtpa
Slide 7: Social & Corp Responsible
Social & Corp Responsible World’s Safest Goldmine Workplace ~9M hrs with 1 LTI SE Asia’s showcase mine No environmental incidents Environment Cyanide destruction plant Thai environmental leader Health & Education – schools, water Social Locally sourced warehouse items Global Corp Social Responsibili
Slide 8: Operational Results
Operational Results Mill Throughput Mill Throughput (Ktpa) (Ktpa) Head Grade Head Grade (g/t) (g/t) 2,400 5.3 2,000 5.3 1,829 1,671 3.9 Forecast 1,324 3.1 2.4 2.4 665 1.5 F’cst 01/02 02/03 03/04 04/05 05/06 06/07F 01/02 02/03 03/04 04/05 05/06 06/07F SPOT PRICE Cash Cost Cash Cost && Realised Realis
Slide 9: Chatree – Reduced Flexibility
Chatree – Reduced Flexibility Limited flexibility in mine Lower Profit to blend grade Due to low grades 1.5g/t Impact lowered by high & gold hedge deliveries mill throughput rate Costs higher short term Low cost/tonne processed Drilling focused around Focus-Mine Area mine to expand current Reduced R
Slide 10: Upside in Current Pits
Upside in Current Pits Extension to Main Pit at H West Improves current reduced flexibility Current Pits Current Pits New H New H West West Pit Pit Incl: 10m@9g/t; 3m@17g/t
Slide 11: Chatree Leases
Chatree Leases Current mine leases at Chatree & Chatree Nth More mine leases 8 in coming months km Environmental Approval Granted - Milestone: lease grant Major re-rating of stock underway
Slide 12: Chatree North Conceptual Pits
Chatree North Conceptual Pits A Pit A Pit & &AA East East Q Pits Q Pits 2.3 M 2.3 M oz oz Resource Resource 1.4Moz Reserve 1.4Moz Reserve Higher grade Higher grade A Pit A Pit underground underground potential potential A East A East K Pits K Pits H West H West C-H Pit C-H Pit
Slide 13: Higher Grade with Leases
Higher Grade with Leases Higher grades at A Pit with leases granted Chatree Nth A Pit ~13 Mt ~13 Mt @@ 2.2-2.5 g/t 2.2-2.5 g/t Au Au Grade & Cashflow improve Final A Pit shell Cash costs return to Chatree Nth A Pit lower levels Haul roads in place K East Pit 130-150koz FY07/08
Slide 14: Chatree Plant Expansion
Chatree Plant Expansion Expansion: Double output ~300,000 oz/yr 1-2Moz/yr silver 5mtpa plant Silver circuit to inc recoveries Mostly funded by Thai debt
Slide 15: Thai Risk Manageable
Thai Risk Manageable Decision-making delays Thai Politics constrained mine EIA approval shows Slowed lease process positive outlook Thai investor support Thai Investors in Thai subsidiary & at Kingsgate level Aligned with Kingsgate Thai bank support for Want growth to happen expansion Quality focus
Slide 16: Further Resource Growth
Further Resource Growth Red= Red= Silicification Silicification Geophysics shows growth beyond Chatree Chatree Nth 23 Resistivity (Red) shows km trend of mineralisation Historically high success Chatree rate of discovery using geophysics 23 Km strike length & expanding Ground Resistivity Map
Slide 17: Regional Prospects
Regional Prospects 675,000mE 700,000mE World class gold belt First mover advantage 1,825,000mN Granted Volcanic centres Core controlled by KCN ~1400 km2 expl leases 70 km Chatree Chatree 40 prospective targets 1,800,000mN 5 drill-ready targets At least one Pending Pending Chatree-size anomaly 1,775,
Slide 18: Re-rating Underway
Re-rating Underway 12 month Price Targets: Valuation Macquarie $8/sh GSachs JBWere $7-9/sh Consensus >20% uplift Other Brokers $6-9/sh KCN: Another Great Asian Below Peers Miner with Mkt Cap Catalyst- New leases upside in near term Major production growth Huge Upside Potential new Chatree-size Produ
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