Kingsgate Consolidated Limited · ASX:KCN
Kingsgate Consolidated — Shareholder Meeting (November 2011)
39 slides from Kingsgate Consolidated's shareholder meeting presentation, Nov 18, 2011
Slide 1: CEO's Presentation 2011 Annual General Meeting
For personal use only 18 November 2011 Via ASX Online The Manager Company Announcements Office Australian Securities Exchange Dear Sir/Madam, CEO’S Presentation 2011 Annual General Meeting Please find attached the CEO’s Presentation at our 2011 Annual General Meeting held at 2:00 p.m. today at the M
Slide 2: Kingsgate Consolidated Limited AGM
For personal use only Kingsgate Consolidated Limited Premier ASX mid-tier Gold Producer AGM 18 November 2011
Slide 3: Chairman's Address
For personal use only Kingsgate Consolidated Limited Chairman’s Address Year of Transition AGM 18th November 2010 Ross Smyth-Kirk Chairman
Slide 4: MD & CEO's Summary
For personal use only Kingsgate Consolidated Limited MD & CEO’s Summary Year of Transition AGM 18th November 2010 Gavin Thomas Managing Director and CEO
Slide 5: 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 of the control of
Slide 6: 2011 – A year of Transition
For personal use only 2011 – A year of Transition § Second gold mine at Challenger § Added advanced silver/gold project in Chile (KCN now 96% of Laguna) § Chatree expansion to +5Mtpa completed and commissioning § Expansion more than 5% under budget § Enhanced Arqueros by acquiring Esperanza and Chim
Slide 7: Financial Performance
For personal use only Financial Performance Revenue: A$172 million; down 2% Profit EBITDA: A$68 million (pre significant items) Net Profit $21 million Margin Operating cash margin US$747/oz A$36M cash and bullion at 30 Sept 2010 US$100M Thai baht facility for expansion Finance A$40M drawn on revolvi
Slide 8: Dividend Differential
For personal use only Dividend Differential 7.79% 6.96% 6.83% 6.49% 6.39% 4.95% 3.40% 3.26% 3.32% 2.22% 2.26% 1.97% 1.64% 1.72% 1.34% Sep 02 1 Sep 03 1 Sep 04 1 Sep 05 1 Sep 06 1 Sep 07 1 Sep 08 1 Sep 09 1 Sep 10 1 Sep 1 • Total 2011 dividend A$0.15/share (unfranked) • Paid A$1.44/share over past 10
Slide 9: Precious Metals in the Pacific Rim
Precious Metals in the Pacific Rim 2011 – Two Mines and Two Advanced Projects For personal use only Chatree Nueva Esperanza Challenger Bowdens
Slide 10: Chatree Gold Mine in Thailand
Chatree Gold Mine in Thailand Asian showcase gold mine For personal use only Chatree
Slide 11: Thai Political Change
Thai Political Change § Landmark victory by Puea Thai Party For personal use only with 265 seats out of 500 seats § Formed coalition to strengthen majority Chatree § Led by Yingluck Shinawatra sister of Thailand former prime minister Thaksin Bangkok Shinawatra § Decisive victory should lead to a mor
Slide 12: Chatree Gold Mine
Chatree Gold Mine The first 10 years For personal use only Year Year Resource Class The Next 10 Years 1 10 Gold Resources 1.8Moz 3.7Moz Continue to grow Gold Reserves 0.7Moz 1.8Moz Plant capacity likely to Ore Milled 0.7Mtpa 2.5Mtpa expand to 7 -10mtpa Gold Head Grade 5.3g/t 1.1g/t Steady Increase w
Slide 13: Chatree North Expansion
Chatree North Expansion Completed on time and under budget For personal use only Chatree plant (day/night) photo from Poster
Slide 14: Chatree - World Class Deposit
Chatree - World Class Deposit Phitsanulok Province For personal use only Chatree ~6Moz to date & growing Phichit (including mined to date) Province CHATREE NORTH Phetchabun Province Ban Large low grade and Kho Din Ban Dong Long low cost gold deposit CHATREE Significant near mine potential 1 Km
Slide 15: Section 2290
For personal use only Section 2290
Slide 16: C North section 2,290N
C Nortn section 2,290N
Slide 17: C North Section 2,265N
For personal use only C North Section 2,265N
Slide 18: Challenger Gold Mine
Challenger Gold Mine Acquired by Kingsgate in Feb 2011 For personal use only Challenger
Slide 19: Challenger Gold Mine Turn Around Story
Challenger Gold Mine Turn Around Story For personal use only § Underground gold mine in remote South Australia . § Production rate ~100koz pa to grow to ~120Kozpa over next 12 - 18mths § Third quartile costs expected to improve in 2012 § Strong reserve growth achieved. Current reserves ~610Koz , up
Slide 20: Challenger Mineralised Structures
Challenger Mineralised Structures NE SW For personal use only Ventilation Shaft Challenger RL(m) 1000 M1 800 Level M2 Exploration Drive 800 M3 Identified 600 Structures 400 280 Level Exploration Drive Open Upside 200 Down 0 Dip -200 Open -400 Down Dip Long Section
Slide 21: Challenger Development Advance
Challenger Development Advance For personal use only M2 440m 420m Reconciliation 115% 400m 380m Reconciliation 148% & Mining 85% complete 360m 340m Positive Reconciliation trend continues 320m 300m 280m 260m Development in advance of mining
Slide 22: Challenger Update
For personal use only Challenger Update • Gold production 10,187 ounces in October • November and December production remains positive to meet annual forecast • Development ahead of mining nearing optimum level • Positive reconciliation continuing at lower levels
Slide 23: Challenger Upside Potential
Challenger Upside Potential E W Ventilation Shaft Challenger For personal use only Challenger Oblique Section West RL(m) Other Structures 1000 820 Level Area of current drilling M1 800 M2 800 Level Upside M3 Exploration Drive 600 400 280 Level Exploration Drive 200 Open Open Down Down Dip Dip 0 Open
Slide 24: Nueva Esperanza
Nueva Esperanza Advanced silver/gold project in Chile For personal use only Nueva Esperanza
Slide 25: Nueva Esperanza Well Located
Nueva Esperanza Well Located For personal use only Esperanza Teterita Chimberos Arqueros 5 Kilometres
Slide 26: Fast Track to Production
Fast Track to Production § 1.8 Million ounces gold EQ* For personal use only (80 Million ounces silver EQ) § Average grade of ~2.0g/t* gold equivalent (cut-off: 0.5 g/t g/e) § Feasibility study in Q1 2012 followed by construction in 2012/13 § Annual output of 100,000 –120,000oz* gold equivalent by o
Slide 27: Nueva Esperanza Panorama
Nueva Esperanza Panorama (looking northeast from Arqueros) For personal use only Teterita Chimberos Huantajaya Arqueros Norte Arqueros • Multiple pits available • Mining flexibility & low strip ratio
Slide 28: Nueva Esperanza Preliminary mine and plant layout
Nueva Esperanza Preliminary mine and plant layout For personal use only
Slide 29: Bowdens Silver Project in NSW
Kingsgate Growth Project Bowdens Silver Project in NSW For personal use only Bowdens
Slide 30: Bowdens Overview
Bowdens Overview § Epithermal silver deposit with For personal use only lead and zinc by-products § Large, continuous, near surface deposit hosted in a volcanic sequence of breccia and tuff (Rylstone Volcanics) § Resource estimate 99Moz Ag, 131Moz AgEq (JORC) § Established infrastructure and mining
Slide 31: Bowdens Upside Potential
Bowdens Upside Potential 1 kilometre For personal use only § Significant resource potential along strike 10,750mN and at depth § Drilling to start in early 2012 § Pit shell reflects the current base of drilling A B 10,500mN § High grade starter pit 10,250mN A B 10,000mN 9,750mN 14,750mE 15,000mE 15,
Slide 32: Outlook for 2012
For personal use only Outlook for 2012 Challenger 95,000 – 105,000 ounces Production Chatree production under review due to the flooding but up strongly year on year Costs Steady to improving at the operating level Nueva Esperanza: Feasibility completion and decision to mine. Growth Projects Bowdens
Slide 33: Summary
Summary ü Diversified Production Growth For personal use only ü Resource Growth ü Development Project Pipeline ü Generating Strong Cashflow ü Dividend Differential Premier ASX Mid-Tier Precious Metal Miner
Slide 34: Thank you
Kingsgate Consolidated Limited Thank you For personal use only Shares: 139 Million Market Cap: ~A$1Bn ASX: KCN www.kingsgate.com.au
Slide 35: General Disclaimer
Appendix General Disclaimer: For personal use only 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 36: Chatree Ore Reserves and Mineral Resources
Chatree Chatree Ore Reserves as at 30 June 2010 (>0.4g/t gold cut-off grade) For personal use only Gold Silver Gold Silver Tonnes Source Category Grade Grade Contained Contained (millions) (g/t) (g/t) (Moz) (Moz) From Pits Proved 37.4 1.00 9.5 1.20 11.42 Probable 18.7 0.98 8.4 0.59 5.02 Stockpiles 5
Slide 37: Challenger Ore Reserves and Mineral Resources
Challenger Challenger Ore Reserves as at 30 June 2010 For personal use only Gold Gold Tonnes Source Category Grade Contained (‘000) (g/t) (‘000 oz) 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 as at 30 June
Slide 38: Nueva Esperanza Mineral Resources
Nueva Esperanza Mineral Indicated Inferred Total Resources For personal use only >0.5g/t Tonnes Gold Silver Tonnes Gold Silver Tonnes Gold Silver Gold Silver AuEq M g/t g/t M g/t g/t M g/t g/t MOz MOz Arqueros 16.3 0.32 81 4.0 0.3 50 20.0 0.32 75 0.20 48.1 Chimberos 3.7 0.2 85 3.7 0.20 85 0.02 10.1
Slide 39: Bowdens Mineral Resource
For personal use only Bowdens Cut-off Grade Contained Silver Resource AgEq Tonnes Silver Lead Zinc AgEq Silver AgEq Class (g/t) (t) g/t % % g/t (Moz) (Moz) Indicated 30 31.2 60.6 0.30 0.40 77.5 60.8 78 Inferred 30 27.0 44.0 0.30 0.40 61.0 38.7 53 Indicated & 30 58.2 52.9 0.30 0.40 69.8 99.4 131 Infe
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