Kingsgate Consolidated Limited · ASX:KCN

Kingsgate Consolidated — FY2014 Earnings Presentation

20 slides from Kingsgate Consolidated's earnings presentation, Aug 29, 2014

  1. Slide 1: Financial Results for the Year to 30 June 2014

    Kingsgate Consolidated Limited Financial Results for the Year to 30 June 2014 29 August 2014

  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: Full Year Summary FY2014

    Full Year Summary FY2014 3

  4. Slide 4: Financial Highlights

    Financial Highlights  Underlying EBITDA* of $66.4 million  Underlying loss before tax $5.2 million  Gross cashflow from operations for the year of $72.9 million  Statutory loss after tax $96.3 million  Full year results significantly impacted by A$84.6 million non-cash impairment to Bowdens Sil

  5. Slide 5: Operating Highlights

    Operating Highlights GROUP OPERATING SUMMARY Full Year FY2014 Total Cash Operation Production Costs (ounces) (US$/ounce) Chatree 134,546 728 Challenger* 74,954 1,310* Total 209,500 936  Record Group annual gold production of 209,500oz  Group “All-in Sustaining Costs” US$1,099/oz (US$1,026/oz Jun Q

  6. Slide 6: Full Year Results

    Full Year Results 6

  7. Slide 7: Sales Revenue

    Sales Revenue  Higher sales volume offset by lower metal prices  Positive impact from weaker A$/US$ exchange rate (0.92 vs 1.03)  Average gold price received was US$1,291/oz (2013: US$1,588/oz) A$M 400 ▲34 ▼71 329 ▲36 328 300 200 100 0 Sales Revenue Gold and Silver Gold and Silver Forex Sales Rev

  8. Slide 8: Underlying EBITDA

    Underlying EBITDA  Higher volume at Chatree and Challenger increased cost of sales  Lower A$ increased converted US$ costs  Expensing mine development at Challenger increased unit costs A$M 119 ▼1 ▼9 ▼43 100 ▼2 64 50 0 EBITDA FY13 Revenue Cost of Sales Unit Costs Corporate EBITDA FY14 Volume 8

  9. Slide 9: Underlying NPAT

    Underlying NPAT  Lower depreciation and amortisation reflects Challenger FY2013 impairment charges  Tax change reflects change from prior year tax benefit  Prior year tax benefit related to Challenger impairment A$M 50 40 32 ▼54 30 ▲3 20 ▲33 10 0 (7) -10 -20 -30 NPAT FY13 EBITDA D&A Finance Tax N

  10. Slide 10: Cashflow

    Cashflow  Gross operational cashflow of $72.9M for the year despite a lower gold price  Reduction in project and capital expenditure and corporate costs  Focus remains on efficiency and cost improvements across all assets A$M 150 ▲73 ▲2 ▼40 ▲31 ▼24 100 ▼4 ▼15 64 41 50 0 Cash 30 June Operational I

  11. Slide 11: Balance Sheet

    Balance Sheet  Cash and bullion/dore of A$74.2M at 30 June 2014 Cash A$64.1M (Restricted cash A$10.5M, including US5M cash lock-up on Akara loan)  A$59M (gross) was raised in March/April from a share placement and an accelerated entitlement issue.  Continued focus on optimising facilities over ti

  12. Slide 12: Outlook

    Outlook 12

  13. Slide 13: Guidance for FY2015

    Guidance for FY2015 Group gold production guidance maintained at 195,000 to 215,000oz Mine/Project Gold Production Total cash costs3 Capital Expenditure (oz) ($/oz) FY2015 ($M) Chatree 130,000 – 140,000 US$750 – US$850 US$25M – US$30M Challenger1 65,000 – 75,000 A$1,300 – A$1,400 A$3M – A$4M1 n/a n/

  14. Slide 14: Summary for FY2015

    Summary for FY2015 Group gold production guidance 195,000oz to 215,000oz Gold Production (Chatree 130,000oz - 140,000oz, Challenger 65,000oz to 75,000oz) Optimisation on mining, metallurgy and infrastructure to Nueva Esperanza continue following DFS completion EIA addendum approvals expected early 2

  15. Slide 15: Kingsgate Consolidated Limited

    Kingsgate Consolidated Limited Listed: ASX Code: KCN Shares: 224 Million Market Cap: ~A$200M www.kingsgate.com.au

  16. Slide 16: 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

  17. Slide 17: Chatree

    Chatree Chatree Ore Reserves as at 30 April 2013 (>0.35g/t gold cut-off grade) 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 Stockpiles 9.3 0.58 9.

  18. Slide 18: Challenger

    Challenger Challenger Ore Reserves as at 30 June 2013 Tonnes Gold Gold Source Category Grade Contained (million) (g/t) (‘000 oz) From Mine Proven 0.25 5.52 40 Probable 0.22 8.30 60 Challenger Total Total 0.47 6.82 100 Challenger Mineral Resources as at 30 June 2013 Gold Gold Tonnes Grade Contained S

  19. Slide 19: Nueva Esperanza

    Nueva Esperanza Nueva Esperanza Ore Reserves (0.5g/t AuEq60 cut-off grade) Gold Silver Gold Equiv Gold Silver AgEq AuEq Tonnes Category Grade Grade Grade Contained Contained Contained Contained (millions) (g/t) (g/t) (g/t) (Koz) (Moz) (Moz) (Moz) Proved - - - - - - - - Probable 17.1 0.27 97 1.89 148

  20. Slide 20: Bowdens

    Bowdens Bowdens Mineral Resources as at 30 June 2013 (30g/t AgEq cut-off grade) 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 63.6 43.8 58 1.28 Meas & I

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