Slide 1: Financial Results for the Year to 30 June 2012
Kingsgate Consolidated Limited Financial Results for the Year to 30 June 2012 30 August 2012
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: Record Financial Year
Record Financial Year Record Net profit before tax, up 413% to $91M Record Net profit after tax, up 255% to $75M Record EBITDA of $168m, an increase of 129% Strong EPS of 52.5cps, an increase of 181% Final dividend of 10cps, unfranked (Total 20cps for the year) Record gold sales volume u
Slide 4: Operating Highlights
Operating Highlights Record Group pold production 208,760oz up 85% on FY2011 Group Total Cash Costs, US$720/oz (inc royalties) (Chatree US$618/oz Challenger US$862/oz) Chatree North expansion in final stages of optimisation operating ~6.2Mtpa Challenger West exploration delivering results
Slide 5: Income Statement
Income Statement Income Statement A$ Million : FY 2012 FY2011 Change % Sales revenue 357.3 172.4 +107 Cost of sales (238.8) (113.7) +110 Gross Profit 118.6 58.7 +102 Exploration (1.9) (2.4) (21) Group admin (19.3) (17.8) +8 Other income / (expenses) 1.6 0.9 +78 Forex 1.3 (15.8) Business acquisition
Slide 6: Earnings by Operation
Earnings by Operation EBITDA PBIT 16% 36% 64% 84% Chatree Challenger Chatree Challenger
Slide 7: Income Statement
Income Statement Effective tax rate 18%. TAX Chatree plant 2 BOI tax privileges begin post optimisation. Finance costs of $9.4M (2011, $1.7M) mainly Finance Costs reflect interest expensed on the Akara debt facility. Royalties Gold sales up 78% and ave higher gold price.
Slide 8: Key Cashflow Items
Key Cashflow Items Inventory Lower at $8.1M (2011, $23.9M) reflecting value Movements of net stockpile movements. Decreased to $7.1M (2011, $9.4M) reflecting Deferred Stripping continued mining above the life of mine strip ratio. Higher capex reflecting Chatree Plant 2 and Capex TSF #2, and addition
Slide 9: Chatree Operations
Chatree Operations 121,372oz up 59% on prior year. Strong Operational 5,116Kt @ 0.90g/t (2,533Kt @ 1.1g/t) Performance C North high grade zone completed Chatree total cash costs US$460/oz Total Cash Costs (before US$158/oz royalty). US$618/oz Higher costs for consumables and royalties. Thru’put of 6
Slide 10: Challenger Operations
Challenger Operations 644.6Kt @ 4.55g/t (683.9Kt @ 4.70g/t) Gold Production Stope availability fell behind due to 87,388oz development shortfall. Total Cash Costs Total cash costs US$800/oz US$862/oz (before US$62/oz royalty) Challenger West stope (800 level) in-line Challenger with expectations. De
Slide 11: Challenger Strategy
Challenger Strategy Turning around the operation Contractor Underperforming Understand the Development shortfall mainly due to poor issues equipment availability lack of experienced operators. Site responsible for business unit. Implementing Additional KCN experienced people in mine change managemen
Slide 12: Challenger Exploration Upside
Challenger Exploration Upside E Challenger Challenger W Ventilation Shaft Pit West Pit M3 Zone 1.3m @ 47.5g/t M3 1.0m @ 29.8g/t Challenger West 1000m 2.1m @ 15.8g/t Challenger West 800 Level stope 1.0m @ 71.8g/t 0.6m @ 28.6g/t 1.0m @ 11.8g/t 800 Challenger meets expectations West South East Zone 2.0
Slide 13: Nueva Esperanza
Nueva Esperanza Teterita metallurgical work underway. Resource Two drillholes completed at Chimberos. Evaluation Camp reduced for winter . Integrated mine for Arqueros and Teterita completed and under review. Feasibility Study Ausenco appointed to take feasibility through to definitive stage. Enviro
Slide 14: Nueva Esperanza Upside
Nueva Esperanza Upside Highly prospective regional exploration Three established resources TETERITA Multiple highly prospective targets CHIMBEROS CERRO HUANTAJAYA POTOSI AMARILLO RIFLE ROSA High grade gold intercepts BOULDER ARQUEROS GRANDOTE from historical drilling CARACHITA CARACHAPAMPA
Slide 15: Bowdens Silver Project
Bowdens Silver Project Resource definition drilling continuing. Drill Program Geotech and metallurgical drilling completed. Feasibility study well advanced. Feasibility Study Environmental baseline work continuing. Data collected will add to previous work. Detailed surface geological mapping Geology
Slide 16: Bowdens Upside Potential
Bowdens Upside Potential A B A B C D C D Resource drilling continues to intersect mineralisation outside current resource Assays include 45m @ 117.8 AgEq and 40m @ 96.1 AgEq
Slide 17: Outlook for FY2013
Outlook for FY2013 Group gold production 200,000oz to 220,000oz. Gold Production First half year to be weaker than second half year. Chatree gold production 120,000oz to 130,000oz Chatree Higher throughput at lower grade. Metallurgical licence expected after verification complete. Challenger gold pr
Slide 18: Delivering on its Growth Strategy
Delivering on its Growth Strategy Geographic and operational diversity in Asia/pac Chatree Gold Mine Nueva Esperanza Challenger Bowdens Silver/gold Project Gold Mine Silver Project
Slide 19: Kingsgate Consolidated Limited
Kingsgate Consolidated Limited Shares: 151 Million Market Cap: ~A$750M ASX: KCN www.kingsgate.com.au