Kingsgate Consolidated Limited · ASX:KCN
Kingsgate Consolidated — 2008 BMO Capital Markets Global Resources Conference
19 slides from Kingsgate Consolidated's conference presentation, Feb 26, 2008
Slide 1: ASX cover letter: BMO Global Resources Conference presentation
For personal use only ABN 42 000 837 472 26 February 2008 (19 pages including cover) Manager, Company Announcements Australian Stock Exchange Limited Level 4, 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam, 2008 BMO Capital Markets Global Resources Conference Please find attached a 18 page presenta
Slide 2: Gold Production Growth from Asia's Showcase Mine
Kingsgate For personal use only Consolidated Limited Gold Production Growth from Asia’s Showcase Mine 25 February 2008
Slide 3: Disclaimer
Disclaimer Forward Looking Statements: For personal use only Thesematerials These materialsinclude includeforward forwardlooking lookingstatements. statements.Forward Forwardlooking lookingstatements statementsinherently inherentlyinvolve involvesubjective subjective judgment&&analysis judgment anal
Slide 4: Who is Kingsgate?
Who is Kingsgate? (ASX:KCN) For personal use only Thai focus Thai focus –– Chatree Chatree Mine Mine 86-150,000oz/yr since 86-150,000oz/yr since 2001 2001 ~300,000oz/yr rate ~300,000oz/yr rate -- Expansion Expansion Chatree Chatree World Class World Class Gold Gold Belt Belt 1.6 Moz
Slide 5: Future Production Growth
Future Production Growth ~300,000* For personal use only Higher Grade Higher Grade Oz with Lease with Lease Granting Granting Expansion Complete* .. 100,000- 140,000 140,000 Oz Oz 65,000- 86,000 86,000 Oz Oz 05/06 06/07 07/08F* 08/09F* ~09/10F* * production levels beyond June 08 dependent on timing
Slide 6: New Leases – Re-valuation
New Leases – Re-valuation For personal use only Final Signature Final Signature needed: needed: Mine Lease Mine Lease Applications Applications New Govt New Govt && new new Minister Minister –– supportive supportive of of Foreign Foreign investment & investment & growth growth >1.6 Moz >1.
Slide 7: New Thai Govt
For personal use only New Thai Govt New democratically New democratically elected elected govt govt Stated support Stated support for for investment investment Policy to Policy to promote promote gold gold mining mining New Cabinet New Cabinet last last week week Industry Minister
Slide 8: Profitable; Positive Cashflow
For personal use only Profitable; Positive Cashflow HY08 Profit US$26m Profit up Profit up substantially: substantially: $3m $3m HY07 HY07 Sale of Sale of Andean Andean stake: stake: US$40m US$40m HY08 Revenue US$30m Lower production production && grade grade Lower Offset by Offset by higher higher
Slide 9: Paying Our Way
Paying Our Way 900 only Spot Gold Spot Gold Price Price 800 US$/oz Cash Costs & Gold Price US$/oz US$/oz use 700 c e personal d P r i Unhedged Gol Unhedged Margin Margin 600 Hedge Delivered Hedge Delivered Gold Price Gold Price US$/oz US$/oz Chatree Chatree 500 Cash Costs Cash Costs For US$/oz US$/o
Slide 10: Chatree Cash Costs/t - Stable
Chatree Cash Costs/t - Stable Chatree Total Costs US$/t = Mining, Milling, Admin, Credits only 150% Cost Pressures Percentage Change 3 yrs Percentage Change 3 yrs 60% use Oil Price 35% 30% For personal Thai Baht vs USD 14% Chatree Cash Costs US$/t 0% Cash Costs US$/t 40 * Peers: 10 mines 1.5-3mtpa.
Slide 11: Mining Areas – Current
For personal use only Mining Areas – Current A A H Cutback H Cutback H West H West C-H C-H
Slide 12: Mining Areas – With Leases
For personal use only Mining Areas – With Leases Q Q A A A East A East K K C-H C-H Model ~5 years after lease granting
Slide 13: Mining Areas FY08
Mining Areas FY08 Chatree North Chatree North Lease Apps Lease Apps For personal use only Chatree Exploration Q Pits Q Pits Tenement Chatree Exploration Mining Areas Mining Areas A Pit A Pit Tenement In New In New Leases Leases K East K East H Cutback H Cutback H West H West C-H Pit Pit C-H D Pit D
Slide 14: Expansion – with Leases
Expansion – with Leases 55 Million Million tpa tpa treatment treatment plant plant (commission (commission Mid Mid ’09*) ’09*) For personal use only ~300,000 oz/year ~300,000 oz/year rate rate from from Late Late ’09* ’09* Mills partly Mills partly paid; paid; Ausenco Ausenco engineering en
Slide 15: Excellent Track Record
For personal use only Excellent Track Record World’s Safest World’s Safest Gold Gold Mine Mine No other No other gold gold mine mine with with better better ISO standards ISO standards Only mining Only mining company company granted granted Social Accountability Social Accountability SA8
Slide 16: Near-Mine: Potential Deposits
Near-Mine: Potential Deposits For personal use only Resistivity Resistivity Anomalous Anomalous Zones Zones Geophysics shows Geophysics shows potential potential for for new deposits new deposits near near Chatree Chatree Mine Mine Chatree Chatree 14 14 North North Resistivity shows Resistivit
Slide 17: New Discovery Potential Phitsanulok Province
New Discovery Potential Phitsanulok Province For personal use only Resistivity Resistivity World class World class gold gold province province Granted Anomalous Anomalous Zones Zones 550 sq. 550 sq. mile mile explor’n explor’n leases leases 40 prospective 40 prospective targets targets Chatr
Slide 18: Kingsgate: Value + Re-rating
For personal use only Kingsgate: Value + Re-rating Price Targets: Price Targets: A$4-7.50/sh A$4-7.50/sh Re-Rating Trading at Trading at $4/sh $4/sh Sub-NPV, assuming Sub-NPV, assuming lease lease grant grant with Mining Leases Well below Well below ASX ASX peers peers ENTERPRISE VALUE per GOLD RESE
Slide 19: Kingsgate Consolidated Limited
For personal use only Consolidated Limited
Kingsgate Consolidated — 2008 BMO Capital Markets Global Resources Conference on 6ix