Kingston Resources Ltd. · ASX:KSN
Kingston Resources — Investor Presentation (March 2024)
45 slides from Kingston Resources's investor presentation, Mar 28, 2024
Slide 1: Capital Raising Presentation
Step change in cash flow with open pit mining Capital Raising Presentation Accelerating to hard rock mining Infill and expand the underground resources March 2024 Begin underground drilling and development ASX: KSN
Slide 2: Important notices and disclaimer
Important notices and disclaimer Forward Looking Statements Mineral Hill Gold Bar Certain statements contained in this presentation, including information as to the future financial or operating performance of KSN and its projects, are forward looking statements. Such forward looking statements: inc
Slide 3: Important notices and disclaimer
Important notices and disclaimer Exploration by Other Explorers This presentation contains information sourced from the reports of Other Explorers. References to the original reports are provided as footnotes where the information is cited in this presentation. KSN does not vouch for the accuracy of
Slide 4: Kingston Resources: key highlights
Kingston Resources: key highlights 1 Successful completion of the Mineral Hill Tailings Project in the Cobar Basin: The Tailings Project has been a highly successful operation for the company. Operating cash of $24m has set the stage for the re-commencement of open pit mining. 2 Near term expansion
Slide 5: Corporate snapshot
Corporate snapshot Shares on issue 497.9m 3-Year Share Price Performance Market Volume('000) RHS Close Price (A$) (LHS) Warrants & options2 and 3 98.7m 0.25 Share price @ 26 March 2024 $0.09 1,500 0.20 Market cap @ 26 March 2024 $44.8m 0.15 1,000 Cash $3.3m 0.10 500 0.05 Restricted cash for environm
Slide 6: Regional setting and increasing production of foundational base metals
Regional setting and increasing production of foundational base metals • Strategic advantage from ownership of flexible processing capacity and 8.9Mt of polymetallic resources • Clear path to underground mining sees increasing levels of copper and zinc production Lead Zinc Gold Silver FY24 FY27 Copp
Slide 7: Highly experienced and well-regarded Executive Team
Highly experienced and well-regarded Executive Team Significant experience across the development life cycle through to production Mick Wilkes Andrew Corbett Tony Wehby Stuart Rechner Non-Executive Chairman Managing Director Non-Executive Director Non-Executive Director Mick is a seasoned mining And
Slide 8: Equity Raising Summary
Equity Raising Summary Offer size and • c.A$8.1 million institutional placement (“Placement”) and a c.A$5.4 million Accelerated Non-Renounceable Entitlements Offer (“ANREO”) raising up to structure c.A$13.5 million (together, “Offer”) at A$0.065 per share (“Offer Price”). The Offer is not underwritt
Slide 9: Indicative Equity Raising Timeline
Indicative Equity Raising Timeline Event Date Trading halt Wednesday, 27 March 2024 Announcement of the Placement and ANREO Thursday, 28 March 2024 Trading halt lifted, trading resumes on an ex-entitlement basis Tuesday, 2 April 2024 7:00pm (Sydney time) on Record date for the Entitlement Offer Wedn
Slide 10: Sources and Uses of Funds (excl. Op. Cash Flow from Pearse)
Sources and Uses of Funds (excl. Op. Cash Flow from Pearse) Setting the foundation for a long-term mining operation and increasing production of base metals, essential for the energy transition • Substantial value being built from a fully approved and Sources of Funds (excl. Op. Cash Flow from Pears
Slide 11: Mineral Hill: Growth strategy for 2024 and beyond
Mineral Hill Growth strategy for 2024 and beyond Growth Strategy for 2024 and Beyond www.kingstonresources.com.au I ASX: KSN Capital Raising Presentation March 2024 11
Slide 12: Extensive existing infrastructure, production set to increase 133% in FY25
Extensive existing infrastructure Targeting a mine plan beyond 10 years Production set to increase 133% in FY25 Mineral Hill Processing Capacity 700 ktpa Phase 3 350 ktpa Regional acquisition Phase 1 potential to expand Complete the Tailings the processing Today The Future Project capacity Float cap
Slide 13: Mineral Hill: a capital efficient growth platform
Mineral Hill: a capital efficient growth platform Strong operational performance; well-positioned for continued growth • Delivery on the plan - Operating cash flow of $24m since acquiring Mineral Hill January 2022 ($23m total consideration1) • Resource growth - Since acquisition resources have grown
Slide 14: Strong cash flow from the Tailings Project
Strong cash flow from the Tailings Project Successful transition from the Tailings Project to open pit and underground mining underway • Focus on extracting high-grade in the remaining Cumulative Operating Cashflow to 31 December 2023 months of the Tailings Project A$m $24m • Production has signific
Slide 15: Mineral Hill: strategic location in the Cobar Basin
Mineral Hill: strategic location in the Cobar Basin Significant organic and regional resource growth opportunities Abundance of gold-silver and polymetallic deposits within trucking distance of Mineral Hill processing plant Mineral Hill Overview Location 516km W of Sydney NSW in Cobar Basin Ownershi
Slide 16: Refurbished plant scheduled for Q4 FY2024
Refurbished plant scheduled for Q4 FY2024 Transforming Mineral Hill back to a hard rock mining operation • All approvals in place • Refurbishment on track and on budget • All major equipment ordered and contractors in place • Crushing, grinding and flotation to commence in Q2 2024 • Initial feed of
Slide 17: Underground and open pit mining
Underground and open pit mining Focus on extending 5-year mine life, producing both precious and base metals Underground Underground Open pit mining Underground drilling mining to to commence in refurbishment is to commence commence later Q2 2024 well advanced in Q4 2024 in 2024 Calendar Year 2023 2
Slide 18: Mineral Hill – Pearse open pit mining
Mineral Hill – Pearse open pit mining High-grade gold ore with silver credits • New pit at Pearse North and a cutback at Pearse South • Forecast of 258kt @ 3.72g/t gold and 57g/t silver (at A$2571/oz price and AISC A$1,339)1. Re- optimisation at current gold prices underway • All permits and approva
Slide 19: Mineral Hill – underground mining
Mineral Hill – underground mining Existing decline development minimises capital requirement to access high-grade ore Long section of Southern Ore Zone looking east • Production target1 using the Southern Ore Zone (SOZ) and Jack’s Hut • Existing decline development reduces capital expenditure • Acce
Slide 20: Southern Ore Zone: underground
Southern Ore Zone: underground Multiple orebodies with significant potential for extensions and new discoveries • Near mine exploration to extend the underground mine life Existing Mineral • KSNDDH017 - A New Discovery at Mineral Hill Resource Zone • 12.5m @ 3.41% CuEq1 • Near existing underground d
Slide 21: Advanced near mine development plan
Advanced near mine development 5 EL1999 plan Resource expansion strategy and near mine exploration • Five priority targets within the ML • Focus on resource expansion and extending the 4 mine life 3 2.5km 22 1 Southern Ore Zone (SOZ) Extension 2 South Aurum (Pearse Corridor) 3 Ashes Graben 4 Parkers
Slide 22: Upside opportunities
Upside opportunities Resource expansion strategy and near mine exploration EOZ high GD140 Parkers Hill grade Au target MRE update and target extensions Red Terror target • Mineralisation over 2.5km SOZ MRE1 • Multiple ore Jacks Hut update Infill & Extension bodies New Lode • Existing Extension devel
Slide 23: Regional exploration
Regional exploration Highly prospective exploration tenure within EL8334 • Coincident geophysical features (gravity and induced polarisation) • Highly prospective geology and regional scale structures • Lead-in-soil anomalies adjacent to prospects in neighbouring tenements • The only operating polym
Slide 24: Misima Gold Project
Misima Gold Project Capital Raising Presentation March 2024 24
Slide 25: Misima – definitive feasibility and ore reserve
Misima – definitive feasibility and ore reserve1 Misima Project • 600km from Port Moresby Large scale, long-life, low-cost open pit gold and silver mine • DFS Complete • Historically produced 4Moz AuEq over 15 years • High leverage opportunity on the gold price 3.8Moz Gold 22.1Moz Silver • DFS uses
Slide 26: Summary: focus on executing our clearly defined strategy
Summary: focus on executing our clearly defined strategy Leveraging the existing gold-copper asset base while advancing future growth opportunities Experienced management team focused on maximising returns from Mineral Hill and Misima Insert mining picture Material expansion in cash flow with the co
Slide 27: Appendix
Appendix www.kingstonresources.com.au I ASX: KSN Capital Raising Presentation March 2024 27
Slide 28: Building a safety culture and establishing our ESG framework
Building a safety culture and establishing our ESG framework Investing in our people and our community Kingston is one of the largest employers in Condobolin Kingston’s ESG framework helps us to operate in a safe, responsible and sustainable way Investing in our local and residential workforce is go
Slide 29: Exploration within EL1999
Exploration within EL1999 Multiple drill targets to be tested • Several near mine targets with potential to significantly expand contained copper and gold • Lead is the primary pathfinder element for polymetallic mineralisation MLs • Geochemical anomalies coincident with IP chargeability anomalies •
Slide 30: Mineral Hill Mine – Resources and Reserves
Mineral Hill Mine – Resources and Reserves Attractive commodity base with significant growth potential • High grade Pearse open pit Mineral Resources Total Mineral Resources • Polymetallic underground Mineral Resources Deposit Kt Au Ag Cu Pb Zn Au Ag Cu Pb Zn • Additional resource areas to be estima
Slide 31: Mineral Hill – Social Licence
Mineral Hill – Social Licence Environmental and Social Licence to operate • Stakeholder engagement – excellent relationship with land- holders, community and Condobolin Chamber of Commerce • Mining Licences (ML) granted • Environment protection, cyanide and water permits in place • Environmental Bon
Slide 32: Competent Person Statement
Competent Person Statement Competent Person’s Statement - Mineral Resource Reported in Accordance with 2012 JORC Code – Mineral Hill Competent Person’s Statement - Mineral Resource Reported in Accordance with 2012 JORC Code – Misima The information in this report that relates to the reporting of the
Slide 33: Mineral Hill – Resources & Reserves
Mineral Hill – Resources & Reserves Attractive commodity base with significant growth potential Total Probable Reserve Inventory Measured Resource Inventory Au Ag Au Ag Au Ag Cu Pb Zn Au Ag Cu Pb Zn Deposit Kt (g/t) (g/t) (Koz) (Koz) Deposit Kt (g/t) (g/t) % % % (Koz) (Koz) (Kt) (Kt) (Kt) TSF 1,171
Slide 34: Metal equivalents
Metal equivalents This presentation quotes metal equivalent grades for the life of mine plan, Mineral Resources and Ore Reserves. Price assumptions used are based primarily on consensus forecasts with adjustments based on company expectations. Gold equivalent (AuEq) and copper equivalent (CuEq) conv
Slide 35: Misima Gold Project – Resources & Reserves
Misima Gold Project – Resources & Reserves Misima resources & reserves Indicated Resource Inventory Misima Resources Total Au Ag C/O Au Ag Au Ag C/O Au Ag Deposit Mt (g/t) (g/t) (Moz) (Moz) Deposit Mt (g/t) (g/t) (Moz) (Moz) Umuna 93.5 0.78 4.3 0.3 2.4 13.1 Umuna 157.6 0.7 4.1 0.3 3.6 20.5 Ewatinona
Slide 36: Key risks
Key risks Set out below are the principal risks and uncertainties associated with KSN and its subsidiaries, which are likely to have an effect on KSN’s future financial prospects. It is not possible to determine the likelihood of these risks occurring with any certainty. If one or more of these risk
Slide 37: Key risks
Key risks (5) Reliance on Key Personnel The responsibility of overseeing the day-to-day operations and the strategic management of the Company depends substantially on KSN's Board and executive team. There can be no assurance given that there will be no detrimental impact on KSN if one or more of it
Slide 38: Key risks
Key risks (8) Political Risk, Commodity Price Volatility and Exchange Rates Risks Both from its existing producing operations and, in the event that KSN achieves exploration success, the revenue that may be derived through the sale of commodities exposes potential income to commodity price and excha
Slide 39: Key risks
Key risks (12) Contract Risks KSN operates through a series of contractual relationships with consultants, operators and sub-contractors and may, sell production through various marketing contracts. All contracts carry risks associated with the performance by the parties of their obligations and the
Slide 40: Key risks
Key risks (15) Production and Cost Estimates The ability of KSN to achieve its production expectations or meet operating and capital expenditure estimates on a timely basis cannot be assured. The operations and assets of KSN, as with any other mining operations, are subject to a number of uncertaint
Slide 41: Key risks
Key risks (19) Development, Rehabilitation and Mining Risks When KSN conducts exploration and feasibility studies on potential projects, the commercial viability of any such endeavours is based upon estimates of the size and grade of relevant resources or reserves, location of infrastructure and oth
Slide 42: Key risks
Key risks (22) Laws and Authorisations KSN's operations will be subject to various laws and plans, including those in respect of mining, prospecting, development permit and licence requirements, industrial relations, environment, land use, royalties, water, native title and cultural heritage, mine s
Slide 43: Key risks
Key risks (25) Insurance Arrangements KSN maintains insurance arrangements to protect against certain risks with such scope of coverage and amounts as determined by KSN's board and management, although its insurance policies may not be sufficient to cover all of the potential risks in respect of its
Slide 44: Key risks – placement and issue of shares
Key risks – placement and issue of shares (1) General Risks Associated with an Investment in Shares There are general risks associated with investments in equity securities. No assurances can be given that the New Shares will trade at or above the price at which they are issued. None of KSN, its dir
Slide 45: Key risks – placement and issue of shares
Key risks – placement and issue of shares (3) Allocation of New Shares and Dilution Risk It is intended that certain eligible institutional shareholders may be able to participate in the Placement. For this purpose, an eligible institutional existing holding will be estimated by reference to KSN’s b
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