Kingsgate Consolidated Limited · ASX:KCN
Kingsgate Consolidated — Shareholder Meeting (October 2004)
24 slides from Kingsgate Consolidated's shareholder meeting presentation, Oct 26, 2004
Slide 1: ASX cover letter: Annual General Meeting 2004
ABN 42 000 837 472 26 October 2004 Via ASX Online FOR PUBLIC RELEASE (24 pages including cover letter) The Manager Announcements Company Announcements Office Australian Stock Exchange Limited Dear Sir or Madam Annual General Meeting 2004 We enclose a copy of the Chairman’s address and the Managing D
Slide 2: Chairman's Address
Suite 801, Level 8 14 Martin Place Sydney NSW 2003 P: +61 2 8256 4800 F: +61 2 8256 4810 E: info@kingsgate.com.au W: www.kingsgate.com.au CHAIRMAN’S ADDRESS Annual General Meeting Tuesday, 26 October 2004 This has been a significant year in the history of your company. Not only did we achieve a comm
Slide 3: Chairman's Address (continued)
Chairman’s Address Annual General Meeting – 26 October 2004 Numerous new discoveries have been made to the north, south and west of current operations that have enabled us to define the Chatree Mineralizing System as stretching for at least 6 km and probably about 10 km. The advanced technologies an
Slide 4: Chairman's Address (continued)
Chairman’s Address Annual General Meeting – 26 October 2004 The company is considering the implications of this in the context of the current Board of Investment approval. The final option adopted to meet this ownership requirement will be based on generating the maximum financial return to the comp
Slide 5: Kingsgate – 2003/04
Kingsgate - Annual General Meeting 26 October 2004 Annual General Meeting Kingsgate – 2003 / 04 October 2004 A$ 37.7 million Net Profit 45.5 c / share Earnings 149,979 oz Gold Poured Zero Lost Time Injuries Zero Environmental Incidents 1.67 M tonnes Ore Treated 1
Slide 6: Summary
Annual General Meeting Summary Year Year October 2004 2003/04 2002/03 • Gold Produced (oz) 149,979 154,484 • Cash Cost (US$/oz) 135 94 • Profit (A$M) 38 47 (US$M) 27 28 • Earnings per Share (A$) 0.45 0.65 • Dividends (A$/share) 0.22 0.25 • Net Cash (A$M) 60 10 • Exploration success on and near mine
Slide 7: Annualised Throughput
Annual General Meeting Original Mill Construction (2001) October 2004 Annualised Throughput 2,200 Annual 2,000 DESIGN 2 Annualised Throughput ( kt ) General Meeting Completed Expansion 1,800 1,600 1,400 October 2004 1,200 DESIGN 1 1,000 800 600 400 200 0 Dec 01 Mar 02 Jun 02 Sep 02 Dec 02 Mar 03 Jun
Slide 8: Divestiture - Under KCN Control
Annual General Meeting Divestiture - Under KCN Control October 2004 • BOI Incentives - 8 yr tax holiday • 51% “Thai ownership” by Nov 2006 Free Trade Agreement (60% Australian) - Part of Implementation Process Commercial Transaction • Understanding Value is critical • Actively Investigating Alternat
Slide 9: Kingsgate – What We're Doing
Annual General Meeting Kingsgate – What We’re Doing October 2004 1. Seeking New Business Opportunities 2. Operating Excellence 3. Contribution 4. Vigorous Exploration GROWTH & PROFITABILITY Annual General Meeting 1. Seeking Business Opportunities October 2004 • Single Operation Diversification • Cha
Slide 10: Growth Options
Annual General Meeting Growth Options October 2004 120 Near-mine Exploration 100 “Grass roots” • US$10 /oz Exploration • Reserves up 70% • More expensive 80 • Confirmed High • China Prospectivity - long lead time Acquiring Cost US$/oz • Best Economics • South America 60 - same geology Acquisitions 4
Slide 11: Operational Excellence: Total Recordable Injury Frequency Rate
Annual General Meeting 2. Operational Excellence October 2004 Total Recordable Injury Frequency Rate 45.0 40.9 40.0 38.1 37.0 35.7 35.8 35.0 29.8 30.0 28.8 26.0 27.0 25.0 21.0 20.0 15.0 10.0 5.7 5.4 5.7 4.5 2.8 5.0 2.9 0 0 0 0 0 0.0 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 Australia Ch
Slide 12: Community Contribution
Annual General Meeting 3. Community Contribution October 2004 Emergency Training Community Expertise Annual General Meeting 3. Contribution - Training / Expertise October 2004 8
Slide 13: Exploration Expenditure
Annual Exploration Expenditure General Meeting 3. Exploration 10 8.9 Expenditure ( US$M ) October 2004 8 6 4.9 4 2.8 2.2 2.3 2 1.5 0.9 0.7 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Kingsgate Reserves 1,500 Reserves (oz x 1000) 1,000 500 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2
Slide 14: Short Term Exploration
Annual General Meeting Short Term October 2004 “ H Extension ” 65,000 oz “ P Pit ” Bonanza Grades + 100 g/t Annual General Short Term Meeting “ S Prospect ” October 2004 27 m @ 9.8 g/t C H D P 10
Slide 15: Medium Term
Annual General Medium Meeting October 2004 Term A ‘Resource’ ‘Reserve’ • Major K Structures C D H B Annual General Meeting Drilling October 2004 Pre-March 2003 11
Slide 16: Drilling
Annual General Meeting Drilling October 2004 Pre-March 2003 Following Structure Annual General Meeting Drilling October 2004 Pre-March 2003 Following Structure From Geophysics 12
Slide 17: Resistivity Targeting Tool
3D modelling Soil data Ground IP Remotely sensed data Local mapping Regional Mapping Airborne TEM Airborne Magnetics/ radiometrics Annual Resistivity General Meeting Targeting October 2004 Tool 13
Slide 18: Project Growth
Annual General Project Meeting October 2004 Growth 2004 Prospect Q A East 2003 Prospect K 2002 H Extension 2004 Annual General Project Growth Meeting Multi-million oz QE: 6 m @ 2.3 g/t October 2004 System Q: 13 m @ 18.0 g/t AE: 19 m @ 6.3 g/t M: 4 m @ 9.6 g/t S: 27 m @ 9.8 g/t P: 9 m @ +100 g/t R: 9
Slide 19: Project Growth: Long Term First Mover
Annual General Project Meeting October 2004 Growth Seeking Significant Lease Expansion > 75 % Controlled 10 km Multiple pits expected 1 km Annual General Long Term: FIRST MOVER Meeting October 2004 Andean Arc 15
Slide 20: Long Term
Annual General Meeting Long Term October 2004 Annual General Meeting Long Term October 2004 1,500 sq km Airborne Geophysics Prospective Region • Infrastructure Long Life potential 16
Slide 21: Regional Prospects
Annual General Regional Meeting October 2004 Prospects Numerous Prospective Targets within Economic Distance - on Kingsgate Tenements 17
Slide 22: Building Corporate Capacity
Annual General (1) Meeting Building Corporate Capacity October 2004 THEN • Mill Throughput + 25 % + 50 % • Reserves + 69 % • Land Controlled + 260 % • Exploration SPL’s + 2,500 % • Hedge Commitments - 25 % • Net Cash - US$32M to + US$42M • Total Dividends Paid + A$48M (1) From Operation Start at Nov
Slide 23: Kingsgate – Where We're Going / Who We Are
Annual General Meeting Kingsgate – Where We’re Going October 2004 GROWTH Vigorous Exploration • Short Medium and Long Term Acquire New Business PROFITABILITY Strong Dividends Strong Safety & Sustainability Performance To Enhance Shareholder Value Annual General Meeting Kingsgate – Who We Are October
Slide 24: www.kingsgate.com.au
Annual General Meeting October 2004 www.kingsgate.com.au 20
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