Kingsgate Consolidated Limited · ASX:KCN
Kingsgate Consolidated — Shareholder Meeting (November 2006)
29 slides from Kingsgate Consolidated's shareholder meeting presentation, Nov 15, 2006
Slide 1: Welcome AGM 2006
Kingsgate Consolidated Limited Welcome AGM 2006
Slide 2: Chairman's Address
Kingsgate Consolidated Limited Chairman’s Address 15 November 15 November 2006 2006 Ross Smyth-Kirk, Ross Smyth-Kirk, Chairman Chairman
Slide 3: Re-election: Mr Peter McAleer
Re-election: Mr Peter McAleer That Mr Peter McAleer, a Director of the Company retiring by rotation in accordance with the Company’s Constitution and the ASX Listing Rules and, being eligible and having signified his candidature for the office, be re-elected as a Director of the Company: For : 30,42
Slide 4: Directors' Remuneration Report
Directors’ Remuneration Report To consider and, if thought fit, to pass the following ordinary resolution: That the Directors’ Remuneration Report for the year ended 30 June 2006 is adopted for the purposes of the Corporations Act 2001. For : 28,702,171 Against : 2,717,143 Abstained : 73,905 Discret
Slide 5: CEO's Summary
Kingsgate Consolidated Limited CEO’s Summary 15 November 15 November 2006 2006 Gavin Thomas, Gavin Thomas, CEO CEO
Slide 6: Risk Issues Diminishing
Risk Issues Diminishing The Coup ?- No impact Thai Politics Delays in caretaker govt being resolved now Business as Usual Selldown Large debt/equity funds for expansion Completion scheduled Satisfies BOI next week requirements EIA close to signing, Lease delays then procedural EIA signing- milestone
Slide 7: A Solid Financial Year
A Solid Financial Year Consistent production Production Among lowest costs 140,000oz @US$206/oz 30% inc in throughput Consistently profitable Profitable 50% dividend ratio $16.7m, up 99% Only 59,000oz hedged Growth Resources Continued gold growth 3,800,000 Oz Resources ~1Moz/yr inc. resource 1,200,0
Slide 8: Annual Results Summary
Annual Results Summary 2005 - 06 2004 - 05 Gold Produced (oz) (oz) 140,071 126,550 Cash Cost (US$/oz) (US$/oz) 206 212 Profit (A$m) (A$m) 16.7 8.9 EBITDA (A$m) (A$m) 25 18 Operating Cash flow (A$m) (A$m) 22 22 EPS Earnings/Share (A¢/sh) (A¢/sh) 19.3 9.6 Dividends (A¢/share) (A¢/share) 10 7 Net Cash
Slide 9: Solid Results, Low Cost, Expansion, Discoveries
Solid Results US$/oz 600 Cash Cost Curve 2005 Low Cost 400 Newmont Gold Fields Barrick Production US$206/oz 200 Discovery US$7/oz Chatree 2006 FY 0% 50% 100% Expansion 300,000 Oz Finalising capital costs 140,000 Oz 2M Oz Ag FY06 2008 Discoveries High grade zones found High grade Undergnd A pit expan
Slide 10: Corporate Social Responsibility
Corp. Social Responsibility Worked >7m hrs 1 LTI Workplace Thai Workplace Awards World’s safest gold mine Women in Mgmt Awards No reportable incidents Environment Cyanide levels like coffee One of World’s best School construction Social Water provision Education& health focus Health safety training
Slide 11: Chatree Gold Mine
Chatree Gold Mine A Pit, A Pit, Chatree Chatree North North Ultimate Current mining lease boundary Pit Profile High Grade Underground Development Potential Main C-H Main C-H Pit Pit Processing Plant Processing Plant 2.35mtpa 2.35 mtpa
Slide 12: Chatree Gold Mine
setatree Gold Mine J
Slide 13: Operational Results
Operational Results Mill Throughput Mill Throughput (Ktpa) (Ktpa) Head Grade Head Grade (g/t) (g/t) 2,350 5.3 2,100 2,000 5.3 1,829 1,671 3.9 Forecast Forecast 1,324 3.1 2.4 2.4 Forecast 665 01/02 02/03 03/04 04/05 05/06 06/07F 01/02 02/03 03/04 04/05 05/06 06/07F Cash Cost Cash Cost && Realised Rea
Slide 14: Chatree Main Pit
KS Chatree Main Pit Kingsgate See Limited
Slide 15: Chatree Main Pit
KS Chatree Main Pit Kingsgate See Limited
Slide 16: High Grade Underground
High Grade Underground C Pit - Underground Mining Potential Planned Portals Underground High Grade C Pit 80 g/t
Slide 17: Chatree Expansion
Chatree Expansion Expansion: Double output >300,000 oz/yr >2Moz/yr silver 5mtpa plant Feasibility study being optimised Duplicate plant (+2.7mtpa) Add silver circuit (Merrill Crowe) Aim - lift silver recoveries from 45% to >70% Ausenco finalising capex & timeframe
Slide 18: Chatree North Mining Lease Applications
Chatree Mining Lease Mining Lease Applications Applications North 9 Lease Applications Final discussions on Mining Lease Mining Lease Enviro. Impact Assessment ‘A’ Pit ‘A’ Pit EIA approval key step & close to granting Procedural, post EIA Not “If” but “When” Chatree Chatree Lease granting occurs
Slide 19: Chatree North
Chatree North A Hill A Hill A East A East 30m @ 30m @ 16 16 g/t g/t Au Au feeder feeder zone zone higher higher grade grade underground underground 12m @ 12m @ 32 32 g/t g/t Au Au + + 320 320 g/t g/t Ag Ag potential potential
Slide 20: Chatree North - A Pit
KG Ghatree North - A Pit Kingsgate Consolidated Limited
Slide 21: Growing Resources and Exploration Expenditure
Growing Resources (Moz) (US$m) 4.5 Moz 3.8Moz Gold, 32Moz Silver Exploration Expenditure 4 12 ~1 Moz / yr for 3 yrs 3.8 Moz Potential for 5-10 Mozs 3 9 Gold 2 6 1 3 - 2001 2002 2003 2004 2005 FY2006 Additional Mineral Resources Mine Depletion (cumulative) Ore Reserves Annual Exploration Expenditure
Slide 22: Further Resource Growth
Further Ling Ling Resource Volcanic Volcanic Complex Complex Growth Geophysics shows growth beyond Chatree Chatree Nth 23 High success rate of km discovery Chatree Chatree Chatree 65% of geophysical Volcanic Volcanic anomalies mineralized Complex Complex 23 Km strike length & expanding
Slide 23: Comparable Geologic Setting
Comparable Geologic Setting Nicaragua, Central America from Space Shuttle Cu rr en tC ha tr ee -s ty le vo lc an ic be l t
Slide 24: Volcanic Centres
Volcanic Centres Intrusion below Chatree Nine similar Volcanic Centers Generation of Epithermal & Porphyry style targets Advanced Exploration >10Moz potential
Slide 25: Regional Prospects
Regional Prospects 675,000mE 700,000mE Phitsanulok Granted Granted World class gold province Leases Leases 40 prospective targets 1,825,000mN Granted 5 Drill ready targets Land access option Chatree Chatree agreements underway 100 Leases 1,800,000mN km Leases 50 leases granted Phichit pending pendin
Slide 26: Selldown
Selldown Selldown – completion scheduled next week Satisfies Thai BOI requirements Large debt/equity package, predominantly debt, to fund expansion All Thai sourced funding 2nd stage of selldown at IPO in 2-3yrs Kingsgate remains operator of Chatree mine
Slide 27: Undervalued! All Metrics
Undervalued! All metrics Upside: Valuation Macquarie $6/sh Goldman JBWere $7/sh Consensus 30% higher Other Brokers $6-9/sh Sino: ~$600m Mkt Cap Below Peers Forecast’08: 130-300koz PanAust: $360m Mkt Cap <50% of peers Forecast’08: 60koz & 18kt Cu Rapid resource growth Huge Upside New Chatrees drill-r
Slide 28: Kingsgate Delivers
Kingsgate Delivers Production - Low cost for ~5 yrs Profit - Consistent - Unhedged end FY07 Growth - Mine/plant Expansion - Rapid Resource Growth - World Class Gold Province
Slide 29: 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,
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