Slide 1: Corporate Presentation February-March 2016
Corporate Presentation February-March 2016
Slide 2: Disclaimer
Disclaimer 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, the company. Actual results
Slide 3: Kingsgate in 2016
Kingsgate in 2016 Renewal and re-focus New CEO – Greg Foulis (June 2015) Back to basics approach Success and capability is epithermal gold in the Pacific Rim Core capabilities are explore, develop and produce Chatree and Nueva Esperanza are big epithermal systems Kingsgate will grow from the two bea
Slide 4: Kingsgate Today
Kingsgate Today ASX Listed: Enterprise Value ~ A$182 M Market Cap ~ A$110 M as @ 25 Feb16 Net debt ~ A$72 M* Key Assets: Chatree Gold Mine (Thailand) Production Average 130,000 Koz /year Resources 3.9 Moz AuEq Reserves 1.2 Moz AuEq Nueva Esperanza Project (Chile) Status New PFS due March 2016 Produc
Slide 5: Snapshot
Snapshot Total Shareholder Composition 2% 1% 1% 3% Institutional Corporate Information – as at 25 February 2016 Unanalysed ASX Listed (ASX 300) KCN 18% Retail Share Price A$0.49 Corporate 49% Issued Shares 223.6M Related Party Market Cap A$110M Broker Cash Balance (available) A$35M* Custodian 26% To
Slide 6: Macro backdrop
Macro backdrop Renewed interest in gold and silver Gold versus Junior Gold Mining Equities (ETF) 5 Year Chart Signs the 3 to 5 year gold down cycle is ending 40% Increasing global financial market volatility 20% Concerns on global growth and interest rate 0% tightening from the US Fed -20% Investors
Slide 7: Kingsgate performance re-cap
Kingsgate performance re-cap Kingsgate Scorecard Financial Year 2013 2014 2015 1st Half 16 Comments Chatree (Koz) 133.7 134.5 125.1 50.7 Chatree production skew to 2nd Half 16 Operations Challenger (Koz) 66.2 75.0 80.2 39.6 Mine disposal 3rd Q FY16 KCN Production (Koz) 199.9 209.5 205.2 90.3 Steady
Slide 8: Australia – portfolio rationalisation
Australia – portfolio rationalisation Challenger Gold Mine Divestment at completion of production 15 March 2016 Strong performance of ~50Koz gold in FY16 Solid FY16 cashflow contribution Purchaser taking on full rehabilitation liabilities Bowdens Silver Project Selling 85% interest for A$20M cash ($
Slide 9: Nueva Esperanza, Chile – a great address
Nueva Esperanza, Chile – a great address Chile – a premier jurisdiction Favoured mining investment destination Ranked 13 in Fraser Institute mining survey Worlds largest copper producer Ranked 14 in global gold production Maricunga Belt - new discoveries Defined total gold resources of >100 Moz AuEq
Slide 10: Nueva Esperanza – A Flagship Project
Nueva Esperanza – A Flagship Project History Historic bonanza silver production pre-Kingsgate Consolidation of tenements and resources by Kingsgate in 2011 Extensive feasibility work completed 2012-14 Gold discoveries in 2014 and 2015 Nueva Esperanza Status Teterita Resources 1.9 Moz AuEq Chimberos
Slide 11: Nueva Esperanza – Optimisation Summary
Nueva Esperanza – Optimisation Summary The Optimisation Study blends historic elements and new updates Completed to a Pre-Feasibility Level in conjunction with Ausenco Full results will be released in March 2016 The Study aims to deliver: Pre-Feasibility 2 Mtpa Initial 10 year Life First 5 years Stu
Slide 12: Nueva Esperanza, Chile - Checklist
Nueva Esperanza, Chile - Checklist Investment checklist 100% ownership Favourable mining investment jurisdiction Grid Power Skills to explore, build, operate Options Optimisation Study - PFS completed Viable economics 100Kozpa AuEq open pit operation Nueva Initial permitting in place
Slide 13: Nueva Esperanza, Chile – Exploration
Nueva Esperanza, Chile – Exploration FY16 Program Regional scale baseline work Regional bedrock drilling Prospect RC drill campaigns 13
Slide 14: Nueva Esperanza – FY16 Plan
Nueva Esperanza – FY16 Plan Technical work streams -> enhance economics Completed - Optimisation study (PFS level) – viable project Initiate Feasibility work streams Technical, environmental & CSR inputs for permitting Permitting -> derisking Submit permit modifications 3rd Quarter calendar 2016 E
Slide 15: Chatree Gold Mine, Thailand
Chatree Gold Mine, Thailand Proven track record Discovered, developed, expanded Highly efficient mining of low grade epithermal gold Chatree Produced over 1.8 Moz gold Outstanding safety and environmental record Operating Cashflow Bangkok FY15 production: 125 Koz, EBITDA A$71M Thai FY16 budget: 125-
Slide 16: Chatree Gold Mine – Performance
Chatree Gold Mine – Performance Financial Year 2011 2012 2013 2014 2015 A highly efficient gold mine Production - Chatree An experienced operating team Ore mined (‘000 bank cubic metres) 2,352 1,947 2,709 2,378 1,831 Ore mined (‘000 tonnes) 5,301 4,986 7,051 6,176 4,768 High volume – Ore treated (‘0
Slide 17: Chatree Gold Mine – FY16
Chatree Gold Mine – FY16 A Cash Generator Production is skewed towards second half given the cutback of Pit A. Key operating initiatives for FY16 include: Mining fleet roster changes implemented to achieve higher daily operating hours per machine. Milling initiatives to achieve higher and more consi
Slide 18: Chatree Gold Mine – Pit A Cutback
Chatree Gold Mine – Pit A Cutback A major cutback of Pit A is progressing with better grades being accessed in the second half FY16. 18
Slide 19: Chatree – CSR & Regulatory
Chatree – CSR & Regulatory Direct Benefits to Community Health & Environment International certifications (ISO) include: OHSAS18001 (Health & Safety); ISO14001 (Environment); SA8000 (Social Accountability) Community 99% of 1000 strong workforce are Thai 65% of staff from surrounding villagers Signif
Slide 20: Chatree – Thailand Regulatory
Chatree – Thailand Regulatory Government Mining Policy The Thai government continues to consider a New Gold Policy The policy is reinvigorate exploration and investment Chatree Review The 30 day Minister of Industry Review of Chatree is continuing The review was initiated in October 2015 to consider
Slide 21: Chatree Gold Mine – Exploration Optionality
Chatree Gold Mine –Exploration Optionality Country, Regional, Local Thailand Exploration Potential Thailand is the worlds 6th largest consumer of gold Thai government is evaluating its commitment to mining Kingsgate is a leader in modern gold exploration and mining in Thailand Kingsgate has over 50k
Slide 22: Kingsgate – Investment Opportunity
Kingsgate – Investment Opportunity Core capabilities in-house Explore, develop, build and operate World class mine at Chatree +6.0 Moz gold mineralised system (produced and in-situ) 15 year operating history Cash generator with 7 year reserve life Flagship project in Nueva Esperanza – 1.9 Moz AuEq A
Slide 23: Thank you
Kingsgate Consolidated Limited Thank you
Slide 24: Appendix – Competent Persons Statement
Appendix Competent Persons Statement – Nueva Esperanza The information in this report that relates to exploration results and data quality is based on and fairly represents information compiled by Mr Ron James who is a member of the Australasian Institute of Mining and Metallurgy and a full time emp
Slide 25: Mineral Resource and Ore Reserve Statement as at 30 June 2015
Mineral Resource and Ore Reserve Statement as at 30 June 2015 25
Slide 26: Board of Directors
Board of Directors Ross Smyth-Kirk Sharon Skeggs Executive Chairman Non-Executive Director Investment Management Marketing and Change Management • 40+ years experience in investment management • 35+ years experience in marketing and change and mining management in Australia the UK and Asia. • Former
Slide 27: Senior Management
Senior Management Greg Foulis Ronald James Chief Executive Officer GM – Exploration & Resource Development Mining and Financial Markets Gold Exploration • 30+ years experience in mining and financial markets • 30+ years experience in gold exploration & mining • Previously SVP Business Development fo
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