Kingsgate Consolidated Limited · ASX:KCN

Kingsgate Consolidated — Shareholder Meeting (November 2013)

46 slides from Kingsgate Consolidated's shareholder meeting presentation, Nov 26, 2013

  1. Slide 1: Cover letter to ASX: CEO's Presentation 2013 AGM

    For personal use only 26 November 2013 Via ASX Online The Manager Company Announcements Office Australian Securities Exchange Dear Sir/Madam, CEO’S Presentation 2013 Annual General Meeting Please find attached CEO’s Presentation from the 2013 AGM, which was held on the 26 of November, 2013. Yours fa

  2. Slide 2: Annual General Meeting 26 November 2013

    For personal use only Kingsgate Consolidated Limited Annual General Meeting 26 November 2013

  3. Slide 3: MD & CEO's Summary

    For personal use only Kingsgate Consolidated Limited MD & CEO’s Summary Annual General Meeting 26 November 2013 Ztä|Ç g{ÉÅtá `tÇtz|Çz W|ÜxvàÉÜ tÇw VXb

  4. Slide 4: 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

  5. Slide 5: Kingsgate's Vision

    Kingsgate’s Vision To be a preferred precious metals company For personal use only Delivering shareholder & stakeholder value through:  Maximising efficient expansion from existing operations and developing high quality precious metal projects  Increasing output, lowering production costs and impr

  6. Slide 6: Kingsgate Today

    Kingsgate Today Geographic and operational diversity For personal use only  Two operating gold mines with growth potential  World class Chatree mine in Thailand  Challenger underground mine in South Australia  Two exceptional, advanced-development silver projects  Nueva Esperanza silver/gold pr

  7. Slide 7: Operating Highlights

    Operating Highlights Year to 30 June 2013 For personal use only  Group gold production 199,897oz  Group total cash costs, US$888/oz (inc royalties US$118/oz) (Chatree US$767/oz Challenger US$1,135/oz)  Chatree Mineral Resources increased by 9% to 4.03Moz and Ore Reserves increased by 13% to 1.82M

  8. Slide 8: Kingsgate vs Gold Price

    For personal use only Kingsgate vs Gold Price US$1750 -5 1700 - 4.5 1600 -4 - 3.5 1500 -3 Kingsgate Gold Price 1400 - 2.5 -2 1300 - 1.5 US$1200 -1 Nov Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov 2012 2013

  9. Slide 9: ASX Gold Companies relative performance

    ASX Gold Companies Relative performance from 1 July 2013 US$ Gold Price For personal use only Oceana Gold Resolute Evolution Newcrest 200 Regis Resources Troy Resources Kingsgate Perseus Silver Lake St Barbara 180 160 140 120 100 80 60 July August September October November 2013

  10. Slide 10: Chatree

    For personal use only Chatree

  11. Slide 11: Chatree Gold Mine in Thailand

    Chatree Gold Mine in Thailand Asian showcase gold mine For personal use only Chatree Gold Mine

  12. Slide 12: Strong Commitment to Thailand

    Strong Commitment to Thailand Control of a major gold province For personal use only Chatree World Class Gold Province Thailand Bangkok Underexplored Thai Gold Belt Phitsanulok Province First mover advantage but need patience & SPLs Phetchabun Province persistence Pending 63 km Chatree 1,200 km2 ten

  13. Slide 13: Chatree – World Class Deposit

    Chatree – World Class Deposit Asian showcase gold mine For personal use only Large open pit, low grade epithermal gold deposit  Long life – Reserves 1.8Moz, Resources 4.0Moz  Currently operating at ~6.2Mtpa @ 0.8g/t Au Chatree  Producing 120,000oz to 130,000oz gold in FY14 Gold Mine  Produced ov

  14. Slide 14: Chatree quarterly production and costs

    Chatree Solid quarter for production and costs For personal use only  Gold production 32,241oz Chatree Quarterly Gold Production and Costs  1,593Kt @ 0.79g/t & 80.1% Oz US$/Oz (1,553Kt @ 1.01g/t & 84.1%) 50,000 1,000  Total cash costs US$807 900 (incl. US$123/oz royalty) 40,000 800  Costs reflec

  15. Slide 15: Chatree - Upside

    For personal use only Chatree - Upside Upside within current mining leases  Incremental expansion potential  Resource extension outside current pit designs  Potential u/g targets through deep 6 km high grade feeder structures  Significant near mine resources identified

  16. Slide 16: Chatree Exploration Upside

    Chatree Exploration Upside 670000mE 690000mE 710000mE 1840000mN Phitsanulok For personal use only Province Upside following grant of SPL’s 1820000mN  40 exploration targets within In Progress application areas  8 would be drill ready Chatree Mining Leases 1800000mN Phichit Province Pending Phetcha

  17. Slide 17: Akara Resources Thai IPO

    For personal use only Akara Resources Thai IPO IPO of Akara Resources on Thai stock exchange  Advisors appointed and IPO documents lodged with Thai authorities  Prospectus registration will be current for 12 months  Timing will depend on a number of factors including valuation metrics and market

  18. Slide 18: Challenger

    For personal use only Challenger

  19. Slide 19: Challenger Gold Mine

    Challenger Gold Mine Underground gold mine in South Australia For personal use only Narrow vein, medium grade u/g gold mine  2013 Resources 2Mt @ 10.7g/t for 750,000oz Reserves 0.5Mt @ 6.8g/t for 102,000oz Challenger Gold Mine  Principally Challenger West  Reserves expected to grow with in-fill d

  20. Slide 20: Challenger Gold Mine: Adapting to lower metal prices

    Challenger Gold Mine Adapting to lower metal price conditions For personal use only  Strategic restructure following gold price uncertainty  New mine plan implemented with transition over the September qtr  Principally focused on the higher grade Challenger West orebody  New mining contract and

  21. Slide 21: Challenger production and costs improving

    Challenger Production and costs improving For personal use only Challenger Quarterly Gold Production and Costs  Gold production 18,545oz Oz 20,000 2,500  Highest production since June Qtr 2012 2,000  129Kt @ 4.67g/t & 95.5% 15,000 (156Kt @ 3.47g/t & 94.4%) 1,500  Higher grade with transition to

  22. Slide 22: Challenger West Development

    Challenger West Development Planned mine development for FY2014 For personal use only

  23. Slide 23: Challenger West Resources

    Challenger West Resources Resource based on strong drill results For personal use only Drill Results

  24. Slide 24: Challenger West Resources: drill density

    Challenger West Resources Resource confidence based on drill density For personal use only

  25. Slide 25: Challenger Deeps

    Challenger Deeps Access remains available for mining in the future For personal use only

  26. Slide 26: Challenger Ground Conditions

    Challenger Ground Conditions Narrow stopes but high grade gold For personal use only Challenger West Challenger West Challenger Main 870 Stope - Panel #1 870 Stope - Panel #2 below 79 Fault 205 Aminus

  27. Slide 27: Nueva Esperanza

    For personal use only Nueva Esperanza Chimberos open pit

  28. Slide 28: Nueva Esperanza: Advanced silver/gold project in Chile

    Nueva Esperanza Advanced silver/gold project in Chile For personal use only  Gold production 209,000oz @ US$720/oz (including US$118/oz royalties)  Revenue A$357 million  EBITDA A$168 million  Profit before tax A$91 million  Net profit after tax A$75 million, up 255%  Earnings per share 52.5 c

  29. Slide 29: Nueva Esperanza: Highly prospective growth project

    Nueva Esperanza Highly prospective growth project Nueva Esperanza Choquelimpie For personal use only Teterita El Tesoro Chimberos San Cristobal Arqueros 5 Kilometres  Consolidated epithermal silver/gold deposits in Maricunga belt in Chile  Feasibility focused on heap leach and on-site power option

  30. Slide 30: Nueva Esperanza Panorama of Prospects

    Nueva Esperanza Panorama of Prospects For personal use only CARACHITA BOULDER C° AMARILLO RIFLE C° BLANCO ARQUEROS ROSA HUANTAJAYA POTOSI GRANDOTE CHIMBEROS TETERITA

  31. Slide 31: Positive preliminary feasibility results

    Nueva Esperanza Positive preliminary feasibility results For personal use only Resources 93.3Moz Silver Eq / 1.6Moz Gold Eq Throughput 3,000,000 tonnes per annum Initial mine life +6 years Annualised production (post ramp up) Silver 6,000,000 – 8,000,000 oz Gold 18,000 – 22,000 oz Estimated start-up

  32. Slide 32: Regional exploration upside

    Nueva Esperanza Highly prospective regional exploration upside For personal use only Three established resources Multiple highly TETERITA prospective targets CHIMBEROS CERRO HUANTAJAYA POTOSI AMARILLO RIFLE High grade intercepts ROSA from historic drilling BOULDER ARQUEROS GRANDOTE CARACHITA CARACHA

  33. Slide 33: Bowdens Silver Project

    Bowdens Silver Project Kingsgate growth project in NSW For personal use only  Gold production 209,000oz @ US$720/oz (including US$118/oz royalties)  Revenue A$357 million  EBITDA A$168 million  Profit before tax A$91 million  Net profit after tax A$75 million, up 255%  Earnings per share 52.5

  34. Slide 34: Bowdens Overview

    For personal use only Bowdens Overview  Epithermal silver deposit with lead and zinc by-products  Large, continuous, near surface deposit hosted in volcanics  Current resource estimate 182.million ounces AgEq (JORC)  Comparable to ~4Moz gold  Established infrastructure and mining workforce

  35. Slide 35: Project timing to reflect market conditions

    Bowdens Silver Project Project timing to reflect market conditions For personal use only Feasibility  Completion of the technical feasibility study including mine planning and infrastructure Study aligned to the finalisation of the EIS in 2014.  Open pit mining with pit optimisation Mining deliver

  36. Slide 36: Outlook

    Outlook  Group gold production for the fiscal year FY2014 is expected to For personal use only be 190,000 to 210,000 ounces gold  Chatree production expected to be 120,000 to 130,000 ounces  Challenger production expected to be 70,000 to 80,000 ounces following restructure  Nueva Esperanza DFS e

  37. Slide 37: Focussed on re-building profitability

    Kingsgate Focussed on re-building profitability For personal use only Solid Production Platform  Gold production: 200,000 ounce FY13 Strong Resource Growth  Grown to over 10 million ounces gold equivalent (AuEq) Project Pipeline – Sequential Developments  Feasibility studies for Nueva Esperanza a

  38. Slide 38: Kingsgate Consolidated Limited

    For personal use only Kingsgate Consolidated Limited Listed: ASX Code: KCN Shares: 152 Million Market Cap: ~A$200M www.kingsgate.com.au

  39. Slide 39: 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

  40. Slide 40: Corporate Social Responsibility

    For personal use only Corporate Social Responsibility Asia’s Showcase Gold Mine  Safety focussed gold mine – 10 years no safety incidents  Zero Environmental Incidents  ISO Standards on all activities  Only mining company granted Social Accountability SA8000 High quality, skilled stable workforc

  41. Slide 41: Corporate Structure

    For personal use only Corporate Structure KINGSGATE 100% 100% 100% 100% Challenger Laguna Res. Kingsgate KCN Capital Gold Operations Chile Bowdens Pty Ltd 49% 49%3 49%2 Phar Mai 51%1 Issara Akara Nueva Bowdens Challenger Exploration Mining Mining Esperanza Silver Gold Mine Limited Limited Limited Pr

  42. Slide 42: Thai Progressive Royalty Rate

    Thai Progressive Royalty Rate High royalty regime at current gold prices For personal use only 20% 15% 10% US$1600/oz 5% 0% Baht/gm 0 400 600 1000 1500 2000 US$/oz 0 385 580 970 1450 1950 US$1.00=Baht 30, Jan 2011.

  43. Slide 43: Chatree Ore Reserves and Mineral Resources

    Chatree Chatree Ore Reserves as at 30 April 2013 (>0.35g/t gold cut-off grade) For personal use only Tonnes Gold Silver Gold Silver AuEq Source Category Grade Grade Contained Contained (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

  44. Slide 44: Challenger Ore Reserves and Mineral Resources

    Challenger Challenger Ore Reserves as at 30 June 2013 For personal use only 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 Tonnes Gold

  45. Slide 45: Nueva Esperanza Mineral Resources

    For personal use only Nueva Esperanza Nueva Esperanza Mineral Resources as at 30 June 2013 (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) Measure

  46. Slide 46: Bowdens Mineral Resources

    Bowdens Bowdens Mineral Resources as at 30 June 2013 (30g/t AgEq cut-off grade) For personal use only 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

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