Kingsgate Consolidated Limited · ASX:KCN
Kingsgate Consolidated — Sydney Mining Club July 2011
38 slides from Kingsgate Consolidated's conference presentation, July 2011
Slide 1: Growing a Premier Mid-Tier Gold Miner in Asia/Pacific
Kingsgate Consolidated Limited Growing a Premier Mid-Tier Gold Miner in Asia/Pacific Gavin Thomas Sydney Mining Club July 2011
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: Premier ASX Mid-Tier Gold Miner
Premier ASX Mid-Tier Gold Miner Why Gold and silver Production Growth Diversified Production Resource Growth Strong Cashflow Growth Opportunities
Slide 4: Why Gold?
US$ Why Gold ? $1600 • Flat/decreasing mine supply $1400 • Growing physical demand • China $1200 • Central bank buying • Growing investment demand $1000 • Inflation hedge $800 • Currency protection • Safe haven/asset class $600 $400 $200 (Source: Dr M Murenbeeld) $0 1971 1975 1980 1985 1990 1995 200
Slide 5: Is This a Gold Bubble?
Is This a Gold Bubble? Relative Performance Jan 1980 2000% $850 1500% 1000% 500% 1972-1985 May 2011 $1,572 0 1999-Present Time since beginning of Cycle (Source: Bloomberg)
Slide 6: Is This a Gold Bubble? No!
Is This a Gold Bubble? No! Relative Performance Jan 1980 2000% $850 1500% 1000% 500% 1972-1985 May 2011 $1,572 0 1999-Present Time since beginning of Cycle (Source: Bloomberg)
Slide 7: Global Market Size Gold Market
Gold: Over Talked & Under Invested Global Market • Bond Market : $91,200 Bn • Equity Market : $41,500 Bn Size • Total Gold Market : $1,100 Bn Gold Market • ETF’s, coins & bars ~$200 Bn • China imported 200t of gold in Jan 11 Investment Assets (~50% of world production) Growing Inflation • Which curr
Slide 8: Chinese Gold Demand
Chinese Gold Demand Tonnes 700 China Developed West 600 500 400 Total Gold Demand 300 200 China Outstrips western world 100 demand for the first time in 2010 0 2001 2005 2010 Source: GFMS, World Gold Council M Tonnes 250 China 200 India Gold Investment Demand 150 100 China catching up fast 50 0
Slide 9: Global Gold Production
Global Gold Production Mine Production Gold (t) Price 3,000 1,600 1,400 2,500 1,200 2,000 1,000 1,500 800 600 1,000 400 500 200 0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 (Source: USGS)
Slide 10: Gold Industry Discovery Profile
Gold Industry Discovery Profile Number of Contained Discoveries Gold (MOz) 16 160 14 140 12 120 10 100 8 80 6 60 4 40 2 20 0 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 (Source: Newcrest)
Slide 11: Why Silver?
US$ Why Silver ? $50 • Silver is a unique precious metal • High correlation to gold • Produced primarily as a by-product • Silver is a store of value $40 • Physical demand has risen significantly over the past few years • ETF demand continues at record levels • Silver is a versatile industrial metal
Slide 12: The Golden Harvest
Pacific “Rim of Fire” The Golden Harvest Beijing Sado New York Tokyo Hehaughlin Hishikari Los Angeles Mulatos Monywa Loei Sepon Didipio Masbate Bangkok Atlas Bella Vista Miwah Mamut Tampakan Bau Toka Tindung Mt Kelian Gosowong Fruta del Norte Lebong Muro Awak Ok Tedi Lihir Pierina Pongkor Mas Grasbe
Slide 13: Kingsgate Growth Strategy
Kingsgate Growth Strategy 2010 - One Mine One Country Chatree
Slide 14: Thai Political Change
Thai Political Change Landmark victory by Puea Thai Party with 265 seats out of 500 seats Formed coalition to strengthen majority Chatree Led by Yingluck Shinawatra sister of Thailand former prime minister Thaksin Bangkok Shinawatra Decisive victory should lead to a more politically stable T
Slide 15: Chatree – Thai Gold Belt
Chatree – Thai Gold Belt Chatree Thailand World Class Gold Bangkok Province Thai Gold Belt Phitsanulok Province First Mover Advantage Granted Phetchabun Province 70 km Chatree Phichit 1,300 km2 Tenement Province Package Pending Multiple Targets Nakhonsawan Province
Slide 16: Chatree - World Class Deposit
Chatree - World Class Deposit World Class Gold Deposits are +5 Moz Chatree ~6Moz to date & growing Section5 km including mined to date 1.9 Moz Reserve 4.3 Moz Resource* (*As at 30 June 2010) 1 km
Slide 17: Organic Growth - Expanding Pits
Organic Growth - Expanding Pits Chatree Grade/Tonnage Variance Versus Gold Price* Gold Price Gold Grade Tonnes Contained Gold (US$) (g/t) (Millions) (Moz) 1050 0.98 71 2.2 1150 0.96 78 2.4 1250 0.85 100 2.7
Slide 18: Underground Potential
UG EL gr Guirg LCUGLUULGL 25 January 2011 ae <3 sot 1,805,000 2 - Om} 100m} 1. — — = Terni ‘volcanic In Quartz-carhonate-pyrite 200m) breccia vein hosted in sub-vertical dilational breccia structure Reference ZF Mineralized vein A deep potential mineralisation OF Fault, interpreted Exploration drill
Slide 19: Exploration Potential
Exploration Potential Phitsanulok Province Current reserves within Chatree and Chatree North leases Phichit Province CHATREE NORTH Open to the North, East and Phetchabun South Province Ban Ban Significant near mine potential Kho Din Dong Long CHATREE 1 Km
Slide 20: Capital Projects Under Pressure
Capital Projects Under Pressure
Slide 21: Chatree Expansion on Schedule
Chatree Expansion on Schedule And Under Budget Chatree processing plant capacity increase from 2.3 to +5 Mtpa Completion expected in September Quarter 2011 Increase production rate up to 200,000 ounces per year Current Plant 2.3 Mtpa What’s Next? +2.7 Plant expansion to Mtpa +2.7 Mtpa Total project
Slide 22: Kingsgate Diversifies
Kingsgate Diversifies 2011 - Two Mines Two Countries Chatree Challenger
Slide 23: Challenger Gold Mine
Challenger Gold Mine Turn Around Story Acquired by KCN in Feb 2011 Underground mine in Central South Australia Annual production ~100koz Reserves ~420koz Resources of ~950koz Strong reserve increase since commencement and further reserve growth anticipated
Slide 24: Challenger Mineralised Structures
Challenger Mineralised Structures NE SW 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 25: Challenger Exploration Drilling
Challenger Exploration Drilling E W Ventilation Shaft Challenger Challenger SIGNIFICANT CHALLENGER WEST INTERSECTIONS from surface and underground drilling West RL(m) Hole ID Interval Gold Comments Intercept Other (m) (g/t) (g/t gold) RL Structures 1000 1 1 08CDDH0083 1.21 251.95 surface drilling 93
Slide 26: Challenger Upside Potential
Challenger Upside Potential E W Ventilation Shaft Challenger Challenger 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 -200 Down Upside Dip
Slide 27: Challenger Area Opportunities
Challenger Area Opportunities Challenger – single point gold anomaly Additional structures identified for follow-up Long term exploration Challenger potential in mine vicinity
Slide 28: Kingsgate Grows: Three Mines Three Countries
Kingsgate Grows 2013 Three Mines Three Countries Chatree Challenger Arqueros
Slide 29: Arqueros Project Well Located
Arqueros Project Well Located Choquelimpie Significant experience in the gold and copper belts El Tesoro Acquired 70% of Laguna in Feb 2011 San Cristobal Arqueros project located in the world- class Maricunga Gold-Silver Belt Maricunga Belt Host to over 70Moz gold resources Produced over
Slide 30: Acquired Esperanza from Kinross
Acquired Esperanza from Kinross Chimberos Pit Esperanza Considerable surface rights and Adds ~20Moz of silver resources mine infrastructure (~340koz gold EQ) Teterita Chimberos Satellite mineralisation and Earlier plant commissioning and increased exploration potential faster ramp-up with Te
Slide 31: Fast Track to Production
Fast Track to Production 1.6 Million ounces gold EQ* (95 Million ounces silver EQ) 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 19,000m definition drilling completed Feasibility study commenced Proven
Slide 32: Kingsgate to Deliver Strong Production Growth
Kingsgate to Deliver Strong Production Growth 500 Gold Production Growth 400 (in ‘000 ounces) 300 Chatree 200 100 0 2008 2009 2010 2011F 2012F 2013F 2014F Chatree Challenger Arqueros (100%) Challenger Arqueros
Slide 33: Premier Mid Tier Gold Producer
Premier Mid Tier Gold Producer Diversified Thailand - Chatree mine and expansion Production Australia - Challenger Gold Mine and Growth Chile - Arqueros Au/Ag project (KCN 70%) Resource • In-pit and u/g potential at Chatree Growth • Prospective u/g zones at Challenger Thailand - Chatree near mine an
Slide 34: Kingsgate Consolidated Limited
Kingsgate Consolidated Limited Shares: 134 Million Market Cap: ~A$1.1Bn ASX: KCN www.kingsgate.com.au
Slide 35: 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
Slide 36: Chatree
Chatree 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 0.59 5.02 Stockpiles 5
Slide 37: Challenger
Challenger 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 as at 30 June 2010 Sour
Slide 38: Arqueros
Arqueros JORC Sep.2010 Million Grades, g/t Ounces, thousands Category Tonnes Gold Silver AuEQ60 Gold Silver AuEQ60 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-off grade 0.7 g/t Au EQ60 I
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