Kingsgate Consolidated Limited · ASX:KCN
Kingsgate Consolidated — Non-Deal Roadshow (March 2011)
34 slides from Kingsgate Consolidated's roadshow presentation, Mar 17, 2011
Slide 1: Investor Presentation US and UK Roadshow
For personal use only 17 March 2011 Via ASX Online (34 pages including cover) Manager Company Announcements Office Australian Securities Exchange Dear Sir/Madam, Investor Presentation US and UK Roadshow Please find attached Chief Executive Officer’s presentation at USA and UK Roadshow. Yours faithfu
Slide 2: Kingsgate Consolidated Limited - Premier ASX mid-tier gold producer
Kingsgate Consolidated Limited For personal use only Premier ASX mid-tier Gold producer March 2011
Slide 3: Disclaimer
Disclaimer For personal use only 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 4: Premier ASX Mid-Tier Gold Miner
Premier ASX Mid-Tier Gold Miner For personal use only Production Growth Diversified Production Resource Growth Strong Cashflow Growth Opportunities
Slide 5: Kingsgate Growth Strategy
Kingsgate Growth Strategy 2010 - One Mine One Country For personal use only Chatree
Slide 6: Chatree – Thai Gold Belt
Chatree – Thai Gold Belt For personal use only Chatree Thailand World Class Gold Bangkok Province Thai Gold Belt Phitsanulok Province First Mover Advantage Granted Phetchabun Province 70 km Chatree Phichit 1,300 km2 Tenement Province Package Pending Multiple Targets Nakhonsawan Province
Slide 7: Chatree - World Class Deposit
Chatree - World Class Deposit For personal use only 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* (*As at 30 June 2010) 1 km
Slide 8: Chatree – Operations
Chatree – Operations For personal use only Quarterly Gold Production & Grade g/t Au US$ Production Grade 2.5 50,000 2.0 2 40,000 1.5 40,224 1.6 1.5 1.5 30,000 32,646 1.2 1.2 29,302 30,456 1 20,000 21,833 21,451 0.5 10,000 0 0 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Quarterly Cash Costs & Royalty L
Slide 9: Expansion on Time and Budget
Expansion on Time and Budget For personal use only Chatree processing plant capacity increase from 2.3 to +5 Mtpa First gold expected September Quarter 2011 Increase production rate up to 200,000 ounces per year Total project capex US$125M; EPCM contract US$100M Expensed ~US$60M; Remaining ~US$65M T
Slide 10: Chatree Expansion
Chatree Expansion (Photos as at 21 February 2011) For personal use only
Slide 11: Organic Growth - Expanding Pits
Organic Growth - Expanding Pits For personal use only Chatree Grade/Tonnage Variance Versus Gold Price* Gold Price Gold Grade Tonnes Contained Gold (US$) (g/t) (Millions) (Moz) 1050 0.98 71 2.2 1150 0.96 78 2.4 1250 0.85 100 2.7
Slide 12: Underground Potential
Underground Potential For personal use only
Slide 13: Kingsgate Diversifies
Kingsgate Diversifies 2011 Two Mines Two Countries For personal use only Chatree Challenger
Slide 14: Acquisition of Dominion
Acquisition of Dominion For personal use only Completed the acquisition of Dominion Mining in February 2011 Challenger underground gold mine in South Australia Prospective portfolio of regional exploration tenements and applications in Western Australia, South Australia and Laos Challenger Gold Mine
Slide 15: Challenger Gold Mine
Challenger Gold Mine For personal use only Exploration Potential Currently planning development around the 180 level fault Reserves 420Koz Focus on resource growth and conversion Resources 950Koz
Slide 16: Exploration Opportunities
Exploration Opportunities For personal use only Challenger Gold Mine Calingiri Advanced Exploration Projects Cundeelee – Gold prospect in Tropicana Belt (Host to the+5Moz Tropicana Deposit) Calingiri – Copper/gold in SW Yilgarn
Slide 17: Kingsgate Grows
Kingsgate Grows 2013 Three Mines Three Countries For personal use only Chatree Challenger Arqueros
Slide 18: Arqueros Project Well Located
Arqueros Project Well Located For personal use only Acquired 70% of Laguna in Feb 2011 Arqueros project 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
Slide 19: Fast Track to Production
Fast Track to Production For personal use only 1.1 Million ounces gold equivalent (JORC Indicated + Inferred) Arqueros Average grade of 1.5g/t gold equivalent (cut-off: 0.7 g/t g/e) Target production of 100,000oz pa gold equivalent by open cut mine Definition drilling re-commenced Plan to fast-track
Slide 20: Gold Production Growth
Kingsgate Grows 2013 Three Mines Three Countries For personal use only 400 Gold Production Growth ‘000oz Gold 300 200 Chatree 100 0 2008 2009 2010 2011F 2012F 2013F Chatree Challenger Arqueros (100%) Challenger Arqueros
Slide 21: Solid Half Year to Dec 2010
Solid Half Year to Dec 2010 For personal use only Underlying Profit: Statutory profit before tax A$11M - A$8.4M unrealised FX loss A$24 Million - A$4.5M DOM, LRC transaction costs Low production in first half Revenue: Interim dividend announced: 10c/share A$66 Million Stronger second half expected S
Slide 22: Healthy Margins Maintained
Healthy Margins Maintained For personal use only HY Gold Production Production as expected from low grade areas (ave ~1.2g/t) 43,284oz Stronger second half (ave ~1.6g/t) Chatree Cash Costs US$354/oz Total Cash Costs Thai royalty US$107/oz US$461/oz Gold price received US$1,299/oz *Includes ore to be
Slide 23: Proven Value Creator
Proven Value Creator For personal use only 3rd best ASX 200 return (last 10 yrs) Superior Returns Average annual ROI ~38% Return on Equity ~23% Interim dividend A$0.10/share Dividend Paid A$1.39/share over past 8 years Differential High yielding gold stock (+3%) Fully exposed to strong gold price St
Slide 24: Premier Mid Tier Gold Producer
Premier Mid Tier Gold Producer For personal use only Production • Plant expansion on time and budget • First Gold September Qtr 2011 Growth • Challenger and Arqueros Resource • In-pit and u/g potential at Chatree Growth • Prospective u/g zones at Challenger Thailand - Chatree Gold Mine Diversified A
Slide 25: Kingsgate Consolidated Limited
Kingsgate Consolidated Limited For personal use only Shares: 134 Million Market Cap: ~A$1.3Bn ASX: KCN OTC: KSKGY www.kingsgate.com.au
Slide 26: Appendix - General Disclaimer
Appendix For personal use only General Disclaimer: The information contained in this presentation is for informational purposes only and does not constitute an offer to issue, or arrange to issue securities or other financial products. The information contained in this presentation is not investment
Slide 27: Income Statement (A$M)
Income Statement (A$M) For personal use only A$ Million : Dec 10 HY Dec 09 HY Underlying Business Profit Total Revenue 66.2 88.5 Direct Costs (36.8) (42.8) Employee Benefits (6.8) (5.7) D&A (5.4) (7.6) Finance Costs (0.6) (1.1) Exploration Expenses 0 (0.1) Forex (9.3) (8.0) Inventory 13.1 14.2 Other
Slide 28: Corporate Structure
Corporate Structure For personal use only KINGSGATE 100% 100% 70% Dominion Laguna KCN Capital Gold Operations Resources 49% 49% 49%** Phar Mai 51%* Issara Akara 51%* Sinphum Challenger Arqueros Exploration Mining Mining Co. Ltd. Gold Mine Project Limited Limited Limited 100% 100% Gold 51%* Chatree E
Slide 29: Thai Progressive Royalty Rate
Thai Progressive Royalty Rate For personal use only 20% 15% 10% US$1250/oz 5% 0% Baht/gm 0 400 600 1000 1500 2000 US$/oz 0 385 580 965 1445 1930 US$1.00=Baht 30, Jan 2011.
Slide 30: Working in Thailand
Working in Thailand For personal use only Asian Competitive Advantage Cost Comparisons – Thailand vs Australia Established Infrastructure Grid Power Open Pit Mining (US$): Sealed roads Waste: $1.70/t vs $2.50/t Lower cost support Ore: $3.40/t vs $4.00/t Skilled manufacturing “Buy Thai” sourced suppl
Slide 31: Corporate Social Responsibility
Corporate Social Responsibility For personal use only World Safest Gold Mine 8 years – No incidents Zero Environmental Incidents ISO Standards on all activities Zero Accident Award Only mining company granted Thailand National 2010.jpg Occupational Social Accountability SA8000 Safety & Health Award
Slide 32: Chatree
Chatree For personal use only Chatree Ore Reserves as at 30 June 2010 (>0.4g/t gold cut-off grade) Source Category Tonnes Gold Grade Silver Grade Gold Contained Silver Contained (millions) (g/t) (g/t) (million ounces) (million ounces) From Pits Proved 37.4 1.00 9.5 1.20 11.42 Probable 18.7 0.98 8.4
Slide 33: Challenger
Challenger For personal use only Challenger Ore Reserves as at 30 June 2010 Source Category Tonnes Gold Grade Gold Contained (thousands) (g/t) (thousand ounces) From Mine Proved 318 5.8 59 Probable 1,834 6.0 352 Stockpiles 157 2.1 9 Challenger Total Total 2,310 5.7 420 Challenger Mineral Resources a
Slide 34: Arqueros
Arqueros For personal use only JORC Sep.2010 Million Grades, g/t Ounces, thousands Category Tonnes Gold Silver AuEQ60 Gold Silver AuEQ60 Cut- Cut-off grade 0.5 g/t Au EQ60 Indicated 7.0 0.35 83 1.73 78 18,596 387 Inferred 24.6 0.32 47 1.11 253 37,506 870 Total 31.6 0.33 55 1.24 332 56,103 1,258 Cut-
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