Kingsgate Consolidated Limited · ASX:KCN
Kingsgate Consolidated — Shareholder Meeting (November 2010)
26 slides from Kingsgate Consolidated's shareholder meeting presentation, Nov 18, 2010
Slide 1: Kingsgate Consolidated Limited AGM 18 November 2010
Kingsgate Consolidated Limited Premier ASX mid-tier Gold producer AGM 18 November 2010
Slide 2: Chairman’s Address
Kingsgate Consolidated Limited Chairman’s Address Poised for Growth AGM 18th November 2010 Ross Smyth-Kirk Chairman
Slide 3: MD & CEO’s Summary
Kingsgate Consolidated Limited MD & CEO’s Summary Poised for Growth AGM 18th November 2010 Gavin Thomas Managing Director and CEO
Slide 4: 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 5: Disclaimer
Disclaimer 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 produc
Slide 6: Delivering Shareholder Value
Delivering Shareholder Value Record profit from high margins Record dividend paid Strong operating performance Strong share price growth Chatree expansion on time & budget Reserve growth Exploration success Growth opportunities
Slide 7: Strong Financial Performance
Strong Financial Performance Record Profit: Revenue: A$175 million; up 54% A$73.1M EBITDA: A$96 million Up 125% 1st year of Thai Tax (7months at 15%) Record dividend: A$0.35 per share unfranked 35c/sh (Yield 3.5%) Highest yield of any gold miner A$32 million net cash at 30 Sept 2010 No Debt Undrawn
Slide 8: Share Price Appreciation
Share Price Appreciation Gold Price Ten year ROI – 1400% 3rd Highest Return on Average annual ROI - 38.3% ASX 200 (last 10 yrs) Return on Equity – 23.1%
Slide 9: Chatree Operating Excellence
Chatree Operating Excellence Low Cost Gold 132,628oz Gold Production FY10 maintained US$335/oz Cash Costs FY10 US$335/oz costs US$257/oz + US$78/oz Thai Royalty Costs: US$15.50/t, Up 15% in 9 years Asian Competitive Low costs due grid to power/infrastructure Advantage Weakening US$ adds cost pressur
Slide 10: Expansion on Time and Budget
Expansion on Time and Budget Crusher Chatree processing plant capacity increase from 2.3 to +5 Mtpa Commissioning expected September Quarter 2011 Increase production up to 200,000 ounces per year CIP Tanks Grinding Capex: ~US$45M expensed; Remaining~US$80M Mandated Investec & Thai banks for US$100m
Slide 11: Growing World Class Deposit
Growing World Class Deposit World Class Gold Deposits are +5 Moz Western Australia’s Kalgoorlie Chatree ~6Moz Super Pit to date & growing (same scale) Section5 km including mined to date 1.9 Moz Reserve 4.3 Moz Resource 1 km
Slide 12: Organic Growth - Expanding Pits
Organic Growth - Expanding Pits Chatree Grade/Tonnage Variance Versus Gold Price* Gold Price Gold Grade Tonnes Contained Gold (US$) (g/t) (Millions) (Moz) 1050 0.98 71 2.2 1150 0.96 78 2.4 1250 0.85 100 2.7
Slide 13: Organic Growth – Below Pits
Organic Growth – Below Pits 30m @ 16g/t gold 12m @ 30g/t gold
Slide 14: Organic Growth – U/G Potential
Organic Growth – U/G Potential
Slide 15: Organic Growth – Thailand
Organic Growth – Thailand Chatree Thailand Regional Exploration Bangkok World class gold province Thai Gold Belt First mover advantage 1300km2 tenement package Phitsanulok Near mine satellite deposits Province Suwan Area – <10km trucking distance to Chatree plant Granted Phetchabun Provinc
Slide 16: Corporate Social Responsibility
Corporate Social Responsibility World Safest Gold Mine 7 years – No incidents Zero Environmental Incidents ISO Standards on all activities Only mining company granted Thailand National Zero Accident Award 2010.jpg Occupational Social Accountability SA8000 Safety & Health Award 2010 Traini
Slide 17: Dominion Transaction Summary
Dominion Transaction Summary 0.31 KCN shares per DOM share Offer Unanimously recommended by both Boards Implemented by Scheme of Arrangement Premium of 33% over pre bid price Impact Ownership ~76% KCN, ~24% DOM Scheme documentation late Dec 2010 Indicative timetable DOM shareholder meeting late Jan
Slide 18: Overview of Dominion
Overview of Dominion Challenger underground mine in South Australia Gold production rate ~100,000 ounces pa Exploration targets to increase reserve and resource position Ungeared balance sheet and healthy cash balance Prospective portfolio of regional exploration tenements and applications
Slide 19: Dominion’s Challenger Gold Mine
Dominion’s Challenger Gold Mine Reserves of 421,650 ounces (as at June 30, 2010) Resources of 950,220 ounces (as at June 30, 2010) 2010 production 81,000oz @ cash cost of $697/oz Strong reserve increase since commencement and further reserve growth anticipated
Slide 20: Transaction Highlights
Transaction Highlights Robust production outlook Production and Potential 300,000oz pa gold production exploration upside Substantial prospective exploration Enhanced cashflow from strong margins Strong combined No debt and A$47M net cash financial platform Ability to pursue further growth Two opera
Slide 21: Overview of Laguna Resources
Overview of Laguna Resources ARQUEROS ASX listed (ASX:LRC) Offer of 1 KCN share for every 520 LRC shares Santiago Equivalent to approx. A$0.02per share or A$22m Unanimously recommended by LRC Board Management team in Santiago and Copiapo Main asset is the Arqueros advanced project in the
Slide 22: Arqueros Project Well Located
Arqueros Project Well Located Arqueros located in the world-class Maricunga Gold-Silver Belt Maricunga Belt Host to over 70Moz gold resources Produced over 10Moz gold Currently producing ~500Kozpa Available infrastructure with access to power and water
Slide 23: Arqueros – Fast Track to Production
Arqueros – Fast Track to Production 1.1 Million ounces gold equivalent (JORC Indicated + Inferred) Arqueros Average grade of 1.5g/t gold equivalent (cut-off: 0.7 g/t) Target production of 100,000oz pa gold equivalent by open cut mine Plan to fast-track Arqueros through feasibility study into
Slide 24: Growing gold producer
Growing gold producer Chatree Reserves Drilling extensions to open pits Increasing High grade veins beneath pits Production Plant expansion on time and on budget Expanding Commissioning expected Sept Qtr 2011 Thailand: over 1300km2 tenements Discovery Stand alone prospects e.g. Chokdee Potential Ext
Slide 25: Outlook for 2011
Outlook for 2011 Chatree steady at 120,000 – 130,000 ounces Production Expansion expected to commission in September Quarter 2011 Steady at the operational level but under Costs pressure from weakening US$ DOM scheme implemented in early Feb 2011 Corporate LRC takeover expected to be completed in ea
Slide 26: Thank you
Kingsgate Consolidated Limited Thank you www.kingsgate.com.au
Kingsgate Consolidated — Shareholder Meeting (November 2010) on 6ix