Kingsgate Consolidated Limited · ASX:KCN
Kingsgate Consolidated — Diggers & Dealers 2007, Kalgoorlie
22 slides from Kingsgate Consolidated's conference presentation, Aug 8, 2007
Slide 1: ASX cover letter: Kingsgate presentation at Diggers & Dealers
For personal use only ABN 42 000 837 472 8 August 2007 Via ASX Online (22 pages including this page) Manager, Company Announcements Australian Stock Exchange Limited Level 4, 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam, Kingsgate's presentation at Diggers & Dealers, Kalgoorlie Please find attach
Slide 2: Kingsgate Consolidated Limited, August 2007
For personal use only Consolidated Limited August 2007
Slide 3: 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 the control of, &
Slide 4: Growth … and More Growth
For personal use only Growth … and More Growth Production Discoveries Up 40% This Year* Past Resource Growth of 110-120,000oz F’cast* 0.5-1Moz/yr in Resources ~300,000oz/yr - end 08* Chatree 10Moz potential Major new discoveries * dependent on lease grant timing within ‘regional play’
Slide 5: Who is Kingsgate?
Who is Kingsgate? (ASX:KCN) Thai focus – Chatree Mine For personal use only 90-150,000oz/yr since 2000 ~300,000oz/yr rate - end ‘08 Chatree Chatree 1.7 Moz Reserves Go World Class Gold Belt ld Bangkok 4.8 Moz Total Resource* Be lt Mkt Cap: ~A$500 million Shares: 92.7 million+7M options Thai sharehol
Slide 6: Trigger to Growth - Leases
For personal use only Trigger to Growth - Leases Trigger: Chatree North Mine Lease Approval Environmental Approval GRANTED Provincial Mining Approvals COMPLETE Provincial Forestry Land Access COMPLETE Process moving to Bangkok & nearing completion Final Approval expected soon
Slide 7: Chatree North Leases
Chatree North Leases A Pit A Pit & &A A East East Q Pits Q Pits 2.3 Moz Moz Resource Resource 2.3 For personal use only 1.4Moz Reserve 1.4Moz Reserve Higher grade Higher grade underground underground 5 km A Pit A Pit potential potential A East A East K Pits K Pits H West H West C-H Pit C-H Pit Impro
Slide 8: Excellent Track Record
Excellent Track Record World’s Safest Gold Mine Chatree For personal use only Chatree No other gold mine with better ISO standards Only mining company granted Social Accountability SA8000 Zero Environmental Incidents Community projects Training focus - 99% Thai High quality, stable workforce Thai in
Slide 9: Expansion – ON TRACK
For personal use only Expansion – ON TRACK Streamlined & proven processing route 5 Million tpa treatment plant (commission Dec ‘08) 300,000 oz/year rate from Dec ‘08 Grinding Mills on order – deposit paid Ausenco contract nearing completion Proven ON-Time/ON-Budget delivery Financed mainly by Thai B
Slide 10: Chatree Plant Expansion
For personal use only Chatree Plant Expansion Future Future Current Current QQ Pits Pits A Pit A Pit Ultimate Pit Profile Combined Throughput Combined Throughput 55 mtpa mtpa Expansion Plant Expansion Plant Processing Plant Processing Plant +2.65 mtpa +2.65 mtpa 2.35 mtpa 2.35 mtpa
Slide 11: Production Growth
Production Growth ~330,000 Eq Oz ~300,000 For personal use only Grade Increases Grade Increases Oz with Lease with Lease Granting Granting Silver ~1.5moz/yr Silver ~1.5moz/yr ’09 ’09 Extra~30,000ozAu equiv Extra~30,000ozAu equiv## 140,000 Oz 86,000 Oz 05/06 06/07F 07/08F* 08/09F 09/10F * dependent o
Slide 12: Unhedged Cash Flow
Unhedged Cash Flow Gold Hedges Gone For personal use only ~300,000 Re-rating due Re-rating due to to Oz increased increased operational cashflow operational cashflow 120,000 Oz 59,000 Oz 140,000 Oz 90,000 Oz Nil Oz Nil Oz Nil Oz 05/06 06/07F 07/08F 08/09F 09/10F
Slide 13: Chatree Cash Costs/t - Stable
Chatree Cash Costs/t - Stable Chatree Total Costs US$/t = Mining, Milling, Admin, Credits Percentage Change 3 yrs For personal use only 75% Oil price 60% Thai Baht vs USD 26% 30% 14% Chatree Cash Costs US$/t 0 Cash Costs US$/t Chatree Cash Chatree Cash Costs Costs US$/t US$/t 15 Range: Peer* Range:
Slide 14: Chatree North Leases
Chatree North Leases Chatree North Q Pits Q Pits Mining Lease Applications For personal use only A Pit A Pit A East A East K Pits K Pits 8 km H West H West C-H Pit C-H Pit
Slide 15: Chatree North Leases (looking south)
Chatree North Leases (looking south) C-H Pit C-H Pit H West H West For personal use only K Pits K Pits A Pit A Pit A East A East 8 km Q Pits Q Pits No drilling No drilling New as yet as yet New Mineralised Mineralised Trend Trend Chatree North Mining Lease Applications
Slide 16: Chatree North
Chatree North 2.7 Moz Moz Resource Resource For personal use only 2.7 1.4 Moz 1.4 Moz Reserve Reserve A Hill A Hill A East A East 30m @ 16 g/t Au feeder zone higher higher grade grade underground underground 12m @ 32 g/t Au + 320 g/t Ag potential potential
Slide 17: Exploration - Resource Growth
For personal use only Moz Exploration - Resource Growth 5 Mine Depletion (cum) Resources 4 Ore Reserves 3 2 1 2001 2002 2003 2004 2005 2006 2007F Major growth with drilling (~US$9m/yr)
Slide 18: Near-Mine Resource Growth
Near-Mine Resource Growth For personal use only Resistivity Resistivity Anomalous Anomalous Zones Zones Geophysics shows growth beyond Chatree Mine 23 km Resistivity shows trend of mineralisation (red) Chatree Chatree Historically high success rate of discovery using Geophysics 23km strike length &
Slide 19: New Discovery Potential
New Discovery Potential Phitsanulok Province For personal use only World class gold province Resistivity Resistivity 1300 km2 explor’n leases Anomalous Anomalous Zones Zones 40 prospective targets One target: Chatree-size 70 km Chatree North ~30km2 Geochem Anomaly vs. 23km2 Chatree Anomaly Phichit C
Slide 20: Thai Update
Thai Update Improving political & economic situation For personal use only Stock Mkt & local currency up strongly Approval processes convoluted in Asia EIA approval was key event in process Working with strong & complex bureaucracy Thai Investors aligned with Kingsgate Mines Dept Head states in Pres
Slide 21: Kingsgate: Value + Re-rating
For personal use only Kingsgate: Value + Re-rating 12 month Price Targets: Valuation Macquarie $8/sh Consensus 30% higher GSachs JBWere $7/sh Other Brokers $6-9/sh Rare for producer to trade Below Peers below NPV in current mkt Catalyst – New Leases Re-rating overdue Another great Asian miner Huge U
Slide 22: Golden Boomerang
Golden Boomerang KCN controls KCN controls The Thai “Golden Boomerang” core of core of Gold Gold Belt Belt For personal use only - New World Class Gold Belt - Major gold prospects identified - 10Moz Potential- Chatree alone Chatree Chatree Area Area Go Return, with new leases, to: ld Strong producti
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