Kingsgate Consolidated Limited · ASX:KCN
Kingsgate Consolidated — Denver Gold Forum September 2013
35 slides from Kingsgate Consolidated's conference presentation, Sep 24, 2013
Slide 1: Building Shareholder Value
Kingsgate Consolidated Limited For personal use only Building Shareholder Value Denver Gold Forum September 2013
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: Kingsgate's Vision
Kingsgate’s Vision To be a preferred precious metals company For personal use only Delivering shareholder & stakeholder value through: Maximising efficient expansion from existing operations and developing high quality precious metal projects Increasing output, lowering production costs and impr
Slide 4: Kingsgate Today
Kingsgate Today Geographic and operational diversity For personal use only Two operating gold mines with growth potential World class Chatree mine in Thailand Challenger underground mine in South Australia Two exceptional, advanced-development silver projects Chatree Nueva Esperanza silver
Slide 5: Operating Highlights FY2013
Operating Highlights FY2013 Group gold production 199,897oz For personal use only Group total cash costs, US$888/oz (inc royalties US$118/oz) (Chatree US$767/oz Challenger US$1,135/oz) Chatree Mineral Resources increased by 9% to 4.03Moz and Ore Reserves increased by 13% to 1.82Moz, after depl
Slide 6: Strong Commitment to Thailand
Strong Commitment to Thailand Control of a major gold province For personal use only Chatree World Class Gold Province Thailand Underexplored Bangkok Thai Gold Belt Phitsanulok Province First mover advantage But need patience & SPLs Phetchabun Province persistence Pending 63 km Chatree 1,200 km2 ten
Slide 7: Chatree – World Class Deposit
Chatree – World Class Deposit Asian showcase gold mine For personal use only Large open pit, low grade epithermal gold deposit Long life – Reserves 1.8Moz, Resources 4.0Moz Currently operating at ~6.2Mtpa @ 0.8g/t Au Producing 120,000oz to 130,000oz gold in FY14 Produced over 1.4 million o
Slide 8: Akara Resources Thai IPO
For personal use only Akara Resources Thai IPO IPO of Akara Resources on Thai stock exchange Advisors appointed and IPO documents lodged with Thai authorities Prospectus registration is current for 12 months Timing will depend on a number of factors including valuation metrics and market condi
Slide 9: Challenger Gold Mine
Challenger Gold Mine Underground gold mine in South Australia For personal use only Narrow vein, medium grade u/g gold mine FY2013: 557Kt @ 3.91g/t Au for 66,216oz Total production to date of around 950,000ozAu Transition to new mine plan over Sept Qtr Production to end August 12,326oz Challen
Slide 10: Challenger Gold Mine
Challenger Gold Mine Adapting to lower metal price conditions For personal use only Strategic restructure following gold price uncertainty Mining to shift focus principally to the higher grade Challenger West Lower costs through: 30% reduction in mine development costs New mining contract
Slide 11: Challenger West Development
Challenger West Development Planned mine development for FY2014 For personal use only
Slide 12: Challenger West Resources
Challenger West Resources Resource based on strong drill results For personal use only Drill Results
Slide 13: Challenger West Resources
Challenger West Resources Resource confidence based on drill density For personal use only
Slide 14: Challenger Deeps
Challenger Deeps Access remains available for mining in the future For personal use only
Slide 15: Challenger Ground Conditions
Challenger Ground Conditions Narrow stopes but high grade gold For personal use only Challenger West Challenger West Challenger Main 870 Stope - Panel #1 870 Stope - Panel #2 below 79 Fault 205 Aminus
Slide 16: Nueva Esperanza
Nueva Esperanza Advanced silver/gold project in Chile For personal use only Gold production 209,000oz @ US$720/oz (including US$118/oz royalties) Revenue A$357 million EBITDA A$168 million Profit before tax A$91 million Net profit after tax A$75 million, up 255% Earnings per share 52.5 c
Slide 17: Nueva Esperanza
Nueva Esperanza Highly prospective growth project Nueva Esperanza For personal use only Choquelimpie Teterita Chimberos El Tesoro San Cristobal Arqueros 5 Kilometres Consolidated epithermal silver/gold deposits in Maricunga belt in Chile Feasibility focused on heap leach and on-site power option
Slide 18: Nueva Esperanza Panorama of Prospects
Nueva Esperanza Panorama of Prospects For personal use only
Slide 19: Nueva Esperanza – Why Heap Leach?
Nueva Esperanza Why Heap Leach? For personal use only • Good metallurgical recovery • Scale-up ability • Lower capital costs • Shorter time to production • Lower operating costs • Improved returns
Slide 20: Nueva Esperanza Regional exploration upside
Nueva Esperanza Regional exploration upside For personal use only Three established resources TETERITA Multiple highly prospective targets CHIMBEROS CERRO HUANTAJAYA POTOSI AMARILLO RIFLE ROSA BOULDER ARQUEROS GRANDOTE High grade intercepts from historical drilling CARACHITA CARACHAPAMPA
Slide 21: Bowdens Silver Project
Bowdens Silver Project Kingsgate growth project in NSW For personal use only Gold production 209,000oz @ US$720/oz (including US$118/oz royalties) Revenue A$357 million EBITDA A$168 million Profit before tax A$91 million Net profit after tax A$75 million, up 255% Earnings per share 52.5
Slide 22: Bowdens Silver Project
Bowdens Silver Project Significant growth project with upside For personal use only Located 25km east of Mudgee, around 240km NW of Sydney Epithermal silver deposit with lead and zinc by-products Large, continuous, near surface deposit hosted in volcanics Initial resource and feasibility wor
Slide 23: Bowdens Silver Project
Bowdens Silver Project Project timing to reflect market conditions For personal use only Completion of the technical feasibility study Feasibility including mine planning, infrastructure and Study metallurgy aligned to the finalisation of the EIS in 2014. Open pit mining with pit optimisation Mi
Slide 24: Kingsgate – Great Value Proposition
Kingsgate – Great Value Proposition Focussed on profit and shareholder return Solid Production Platform For personal use only Gold production: 200,000 ounce FY13 Strong Resource Growth Grown to over 10 million ounces AuEq over the past 3 years Project Pipeline – Sequential Developments Feasibi
Slide 25: Kingsgate Consolidated Limited
For personal use only Kingsgate Consolidated Limited Listed: ASX Code: KCN Shares: 152 Million Market Cap: ~A$250M www.kingsgate.com.au
Slide 26: Appendix – General Disclaimer
Appendix 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 product
Slide 27: Financial Highlights FY2013
Financial Highlights FY2013 Underlying EBITDA of $116 million For personal use only Underlying net profit before tax $17 million Underlying NPBT affected by lower gold price and industry wide cost pressures Statutory loss after tax $324 million Full year results significantly impacted by n
Slide 28: Corporate Social Responsibility
For personal use only Corporate Social Responsibility Asia’s Showcase Gold Mine Safety focussed gold mine – 10 years no safety incidents Zero Environmental Incidents ISO Standards on all activities Only mining company granted Social Accountability SA8000 High quality, skilled stable workforc
Slide 29: Corporate Structure
For personal use only Corporate Structure KINGSGATE 100% 100% 100% 100% Dominion Laguna Res. Kingsgate KCN Capital Gold Operations Chile Bowdens Pty Ltd 49% 49%3 49%2 Phar Mai 51%1 Issara Akara Nueva Bowdens Challenger Exploration Mining Mining Esperanza Silver Gold Mine Limited Limited Limited Proj
Slide 30: Chatree - Unit Operating Costs
Chatree - Unit Operating Costs Stable unit costs despite cost pressures $20 For personal use only 18.65 18.37 18.36 16.48 16.41 15.11 15.21 15.42 $15 13.77 12.48 10.45 10.03 $10 $5 $0 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09* 2009/10 2010/11 2011/11 2012/13 Total direct cost p
Slide 31: Thai Progressive Royalty Rate
Thai Progressive Royalty Rate High royalty regime at current gold prices For personal use only 20% 15% 10% US$1600/oz 5% 0% Baht/gm 0 400 600 1000 1500 2000 US$/oz 0 385 580 970 1450 1950 US$1.00=Baht 30, Jan 2011.
Slide 32: Chatree Ore Reserves and Mineral Resources
Chatree Chatree Ore Reserves as at 30 April 2013 (>0.35g/t gold cut-off grade) For personal use only Gold Silver Gold Silver Tonnes Grade Grade Contained Contained AuEq Source Category (million) (g/t) (g/t) (Moz) (Moz) (Moz) From Pits Proven 45.4 0.87 7.8 1.27 11.39 Probable 14.8 0.78 6.0 0.37 2.86
Slide 33: Challenger Ore Reserves and Mineral Resources
Challenger Challenger Ore Reserves as at 30 June 2012 For personal use only Tonnes Gold Gold Source Category Grade Contained (million) (g/t) (‘000 oz) From Mine Proven 0.64 4.32 90 Probable 2.61 6.61 550 Challenger Total Total 3.25 6.16 640 Challenger Mineral Resources as at 30 June 2012 Gold Gold T
Slide 34: Nueva Esperanza Mineral Resources
For personal use only Nueva Esperanza Nueva Esperanza Mineral Resources as at 30 June 2012 (0.5g/t AuEq cut-off grade) Tonnes Gold Silver Gold Silver AgEq AuEq Category Grade Grade Contained Contained Contained Contained (millions) (g/t) (g/t) (Moz) (Moz) (Moz) (Moz) Measured 1.8 0.01 90 0.00 5.1 5.
Slide 35: Bowdens Mineral Resources
Bowdens Bowdens Mineral Resources as at 19 November 2012 (30g/t AgEq cut-off grade) For personal use only Grade Contained Metal Category Tonnes Silver Lead Zinc AgEq Silver AgEq AuEq (million) g/t % % g/t (Moz) (Moz) (Moz) Measured 23.6 56.6 0.31 0.41 74.5 43.0 57 1.25 Indicated 28.4 48.0 0.27 0.36
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