Kingsgate Consolidated Limited · ASX:KCN
Kingsgate Consolidated — H1 FY2010 Earnings Presentation
9 slides from Kingsgate Consolidated's earnings presentation, Feb 24, 2010
Slide 1: Kingsgate Consolidated Limited: Half Year Financials Update
Kingsgate Consolidated Limited Low Cost Gold Producer Growing in a Gold Province Update Half Year Financials 24 February 2010
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: P & L: Costs Contained
P & L : Costs Contained Strong profit Profit: A$33M - Chatree in full production Impacted by foreign exchange Revenue: A$88M - $A7M unrealised FX Loss Thai Baht/AUD Adding back unrealised FX Loss (A$7M) ‘Underlying Profit’ Approach used by most Resource Equity Analysts A$40 million Dividend announce
Slide 4: Income Statement (A$M)
Income Statement (A$M) A$ Million : Dec 09 HY Revenue + Other Income 88.5 Direct Costs (42.9) Employee Benefits (5.7) D&A (7.6) Finance Costs (1.0) Exploration Expenses (0.1) Forex (8.0) Inventory 14.2 Other (4.9) Tax 0.7 Profit 33.2 Comparison with December 2008 Half Year not valid as mine only ret
Slide 5: Low Cost Production
Low Cost Production 69,526 oz Half Yr Gold Production Low Cost Gold US$332/oz Half Yr Cash Costs Half Year 2009 including US$72/oz Thai Royalty Production Up - Forecast: 120-140,000 oz June FY10 Upper End Forecast Will produce @ Upper End of Range Due to ‘Asian Advantage’ Lowest 20% of Unit Costs st
Slide 6: Low Cost Gold Producer
Low Cost Gold Producer Lowest 20% of World Production 1000 Low Cost Drivers: 800 Global Cash Cost Gold Price US$ Grid Power Cash Curve 2008 margin Local workforce 600 Local suppliers Average 400 2008/09 (US$467/oz) Efficient safe mine 200 Kingsgate Dec Half‘09 Average Gold Only Robust depo
Slide 7: Costs Maintained
Costs Maintained Production Grade 50 2.3 2.5 2.0 40 1.7 2 43,036 1.5 Unit Costs stable 30 32,992 40,224 1.5 29,302 Costs/oz vary with grade 20 1 10 0.5 0 0 Mar 09 Jun 09 Sep 09 Dec 09 Mining av $7.30 Processing av $6.40 Site Support av $2.40 Quarterly Gold Production & Grade plus Grade Control i
Slide 8: 1st Millionth oz poured Feb 2010
1st Millionth oz poured Feb 2010 Chatree Mine History 8+ years operating 1993-95 Discovery Av Cash Costs: 2000-01 Construct 1Mtpa Plant 2001 First gold pour (Nov ’01) US$232/oz 2006 Expansion 2Mtpa Plant 2008 New Mining Leases 2010 1st millionth ounce
Slide 9: Solid Investment Drivers
Solid Investment Drivers Low Cost Asian Gold Producer Production Growth - Expansion Deposit & Reserve growth potential Satellite pit potential New discoveries Control of a Gold Province 3rd Largest ASX Gold Producer Strong Financials, No debt
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