Kingsgate Consolidated Limited · ASX:KCN

Kingsgate Consolidated — H1 FY2013 Earnings Presentation

21 slides from Kingsgate Consolidated's earnings presentation, Feb 25, 2013

  1. Slide 1: Financial Results for the Half Year to 31 December 2012

    Kingsgate Consolidated Limited Financial Results for the Half Year to 31 December 2012 25 February 2013

  2. 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,

  3. Slide 3: Financial Summary

    Financial Summary Half Year to December 2012  EBITDA (before significant items) $65 million  Net profit before tax and significant items $27 million  Net profit after tax $8.1 million  EPS of 17.4cps (before significant items)  Interim dividend of 5cps, unfranked  Gold sales volume up 10% to 9

  4. Slide 4: Operating Highlights

    Operating Highlights Half Year to December 2012  Group gold production 90,413oz up 5% on 1H FY12.  Group Total Cash Costs, US$843/oz (inc royalties) (Chatree US$736/oz Challenger US$1,026/oz).  Chatree Plant 2 received the metallurgical licence in October and combined plants now operating ~6.2Mtp

  5. Slide 5: Income Statement

    Income Statement Income Statement A$ Million 1H FY13 1H FY12 Change % Sales revenue 161.7 146.7 +10 Cost of sales (119.5) (95.0) +26 Gross Profit 42.1 51.7 (19) Exploration (15.6) - Group admin (10.1) (10.1) Other income / (expenses) (0.2) 0.3 Forex (1.4) 0.7 Profit before finance and tax 14.8 42.6

  6. Slide 6: Income Statement

    Income Statement Effective tax rate 10%. TAX Chatree Plant 2 BOI tax privileges in place following met licence grant. Finance costs of $6.6M (2011, $4.1M) mainly Finance Costs reflect interest expensed on the Akara debt facility. Higher royalties with Chatree gold sales up Royalties 10% despite lowe

  7. Slide 7: Key Cashflow Items

    Key Cashflow Items Inventory Increased by $8.1M (2011, $41.9M) reflecting Movements value of net stockpile movements. Increased by $1.6M (2011, $7.2M) reflecting Deferred Stripping continued mining above the life of mine strip ratio. Lower capex reflecting completion of Chatree Capex Plant 2 in prio

  8. Slide 8: Chatree Operations

    Chatree Operations 57,018oz up 41% on prior period. Strong Operational 2,546Kt @ 0.87g/t (1,943Kt @ 0.8g/t) Performance Chatree Plant 2 completed in Nov 2011 Chatree total cash costs US$573/oz Total Cash Costs (before US$163/oz royalty). US$736/oz Higher costs for consumables and royalties. Consiste

  9. Slide 9: A Pit Drilling

    A Pit Drilling High grade gold intersections adjacent to pit shell Section through M01 lode at A Pit Visual representation of the total gold accumulation at Chatree from the resource modelling (gram metres)

  10. Slide 10: Q Prospect Drilling

    Q Prospect Drilling High grade gold intersections from surface Visual representation of the total gold accumulation at Chatree from the resource modelling (gram metres) Section through M01 lode at A Pit

  11. Slide 11: Challenger Operations

    Challenger Operations Turning around the operation 268.1Kt @ 4.1g/t (309.6Kt @ 5.0g/t) Gold Production Accelerated development with focus on 33,395oz Challenger West and Challenger Deeps. Total cash costs US$964/oz Total Cash Costs (before US$62/oz royalty) US$1,026/oz Reflects low production vs dev

  12. Slide 12: Challenger

    Challenger Operation turning around and upside potential Visible gold in core (BQ) from Challenger West

  13. Slide 13: Nueva Esperanza

    Nueva Esperanza  Feasibility study extended to include Feasibility Study on-site power options and heap leach  Conducted in parallel to milling study  Heap leach metallurgical testwork is underway. Metallurgical  On-site column leach testing facilities in place. Testwork  Results received progr

  14. Slide 14: Bowdens Resource Growth

    Bowdens Resource Growth Resources grow by 40% to 182Moz AgEq*  Pit optimisation delivers low strip ratio (~1:1) and high grade starter pit.  Metallurgical testing delivers 9% improvement in recovery over earlier work.  Application for Director General’s Requirements for EIS lodged with NSW Govt.

  15. Slide 15: Outlook for FY2013

    Outlook for FY2013 Group gold production 200,000oz to 220,000oz. Gold Production Stronger second half year from both operating mines. Chatree gold production 120,000oz to 130,000oz Chatree Higher throughput at lower grade. Strategic drilling program to grow reserves and resources. Challenger gold pr

  16. Slide 16: Kingsgate Consolidated Limited

    Kingsgate Consolidated Limited Shares: 152 Million Market Cap: ~A$550M ASX: KCN www.kingsgate.com.au

  17. Slide 17: Appendix

    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

  18. Slide 18: Chatree

    Chatree Chatree Ore Reserves as at 30 June 2012 (>0.3g/t gold cut-off grade) Gold Silver Gold Silver Grade Tonnes Grade Contained Contained AuEq Source Category (millions) (g/t) (g/t) (Moz) (Moz) (Moz) From Pits Proven 46.2 0.79 7.9 1.17 11.7 1.30 Probable 16.7 0.72 5.9 0.39 3.2 0.42 Stockpiles 8.4

  19. Slide 19: Challenger

    Challenger Challenger Ore Reserves as at 30 June 2012 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 Tonnes Gold Gold Source Category

  20. Slide 20: Nueva Esperanza

    Nueva Esperanza Nueva Esperanza Mineral Resources as at 30 June 2012 (0.5g/t AuEq cut-off grade) Gold Silver Gold Silver AgEq AuEq Tonnes Grade Grade Contained Contained Contained Contained Category (millions) (g/t) (g/t) (Moz) (Moz) (Moz) (Moz) Measured 1.8 0.01 90 0.00 5.1 5.2 0.12 Indicated 20.2

  21. Slide 21: Bowdens

    Bowdens Bowdens Mineral Resources as at 19 November 2012 (30g/t AgEq cut-off grade) Grade Contained Metal Category Tonnes Silver Lead Zinc AgEq Silver AgEq AuEq (t) 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 63.6 43.8 58 1.28 Meas & Ind

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