Kingsgate Consolidated Limited · ASX:KCN
Kingsgate Consolidated — Investor Presentation (March 2023)
44 slides from Kingsgate Consolidated's investor presentation, Mar 27, 2023
Slide 1: Equity Raising Presentation – March 2023
Equity Raising Presentation – March 2023 1
Slide 2: Disclaimer
Disclaimer Important: You must read the following before continuing. The following notices and disclaimers apply to this presentation (Presentation) and you are therefore advised to read this carefully before reading or making any other use of this Presentation or any information contained in this P
Slide 3: Disclaimer (cont.)
Disclaimer (cont.) Forward looking statements and forecasts Some statements in this Presentation regarding estimates or future events are forward-looking statements. They include indications of, and guidance on, future matters. Forward-looking statements include, but are not limited to, statements p
Slide 4: Disclaimer (cont.)
Disclaimer (cont.) Production Targets and Financial Forecasts derived from the Production Targets (cont.) The Inferred category Mineral Resource estimates at the Chatree Project have not been included in the Ore Reserves or production targets and have not been included when determining the forecast
Slide 5: Investment Overview
Investment Overview Restart successfully de- Thai government remains supportive and has granted all key licenses and approvals to re-commence processing operations at Chatree1 risked and timed with a Plant 2 refurbishment complete, with first gold pour from processing stockpiles having recently
Slide 6: Recent Company Updates
Recent Company Updates Kingsgate has received approval to re-start Chatree Operational Approval from the Department of Industry and Mines (“DPIM”) received and all relevant operating licenses in-place All reagents, including cyanide necessary for processing have been received on site Refurbish
Slide 7: Equity raising details
Equity raising details Kingsgate is undertaking a Placement to raise up to approximately A$49 million and a Share Purchase Plan which is targeting to raise A$10 million Kingsgate is conducting an institutional placement to raise up to approximately A$49 million (“Placement”) Placement offer struct
Slide 8: Timetable and Pro-Forma Capital Structure
Timetable and Pro-Forma Capital Structure Indicative Timetable1 Pro-Forma Capital Structure2 Event Date Shares (m) Cash (A$m) SPP record date 7:00PM AEDT on 24 March 2023 24 March 2023 (unaudited) 221 33 Trading halt and announcement of the Placement Monday, 27 March 2023 Placement 31 46 – 49 Placem
Slide 9: Sources and Uses of Funds
Sources and Uses of Funds Offer proceeds will be used to successfully re-start operations at Chatree and strengthen Kingsgate’s balance sheet as alternative funding sources are secured Plant 2 Commissioning and Outstanding Creditors Sources1 A$m % of Total Repayment of outstanding creditors on ref
Slide 10: Corporate Overview
Corporate Overview
Slide 11: Corporate Summary
Corporate Summary Market Cap1 Share Price1 Shares on Issue Key Assets A$444.9m A$2.01 221.3m CHATREE GOLD PROJECT (Thailand) Cash2 Debt2 Options on Issue3 Metallurgical Processing licence (“MPL”) granted in 2022 A$3.0m A$33.6m 2.5m Study completed and key technical staff appointments made Reso
Slide 12: Board and Management Team
Board and Management Team Experienced Stable Board ROSS SMYTH–KIRK (OAM) – EXECUTIVE CHAIRMAN PETER WARREN – NON-EXECUTIVE DIRECTOR Founding Director of former leading investment firm Clayton Robard Management CFO and Company Secretary of Kingsgate for 6 years until his retirement in 2011 Form
Slide 13: Corporate Strategy 2023 & Beyond
Corporate Strategy 2023 & Beyond On the final stretch to restarting Chatree DPIM approval granted in March 2023 for the restart of operations at Chatree Thai Government is supportive Kingsgate has been granted all metallurgical and mining licences required to operate the mine1 CR3 (a Thai ba
Slide 14: Chatree Mine Operations
Chatree Mine Operations
Slide 15: Overview of Chatree
Overview of Chatree An established gold operation with existing infrastructure preparing to restart Akara, Kingsgate’s wholly owned Thai subsidiary, owns the Chatree gold mine located 280 kilometres north of Bangkok and straddles the Phichit, Petchabun and Phitsanoluk provinces Chatree is an ope
Slide 16: Chatree Infrastructure
Chatree Infrastructure Established infrastructure in close proximity to Mining Leases (“MLs”) Waste Dump Offices and Processing Plants TSF2 TSF1 Waste Dump 16
Slide 17: Operational Outlook
Operational Outlook Initial processing of stockpiles followed by mining and ramp up of throughput Ore will be initially sourced from low grade stockpiles before mining operations recommence in September 2023 Mining operations (as distinct from processing) is subject to approval of a revised mine
Slide 18: Operational Outlook (cont.)
Operational Outlook (cont.) Current LOM supports forecast production target of c.1.0Moz of Gold and 4.3Moz of silver Recovered Gold Initial studies suggest a LOM with a target AISC of 140 ~US$1,255/oz 126 128 123 Stockpiles will be processed until September 2023 120 when mining is targeted to co
Slide 19: Chatree LOM Forecast Physicals
Chatree LOM Forecast Physicals 9-year mine life (based on reserves only) with average gold production target of ~110koz p.a. Key Operational Current LOM Estimates1 Period ~9 years Ore tonnes mined 44.9Mt Average ore mining rate 5.4Mtpa Average Strip Ratio 4.7x Max ore processing rate 5.5Mtpa Average
Slide 20: Project Cost Metrics and Cash Flows
Project Cost Metrics and Cash Flows Low restart capex and average AISC of ~US$1,255/oz targeted over LOM Key Economic Assumptions Indicative total LOM Free Cash Flows of ~US$670m at an Gold price (US$/oz) 1,840 assumed gold price of US$1,840/oz Silver price (US$/oz) 21 Exchange rate (THB:US$) 35 Oth
Slide 21: Exploration Targets
Exploration Targets Kingsgate is pursuing a very aggressive exploration program across the SPLs Circa US$2.5m exploration expenditure planned for calendar year 2023 Kingsgate has been granted 44 SPLs (12 subsequently dropped) and is in the process of applying for a further ~70 SPLs Current exp
Slide 22: Fostering strong Thai Government Relationships
Fostering strong Thai Government Relationships The Thai Government is supportive of the restart as shown by concessions, granting of licences etc. Resetting Government and Community Relationships Growing Social Media presence Kingsgate has worked hard to reset government relationships Social med
Slide 23: Community Relations
Community Relations Establishment of a Community Relations and Development (“CRD”) Program Four Pillar Development Strategy 1 Sustainable Community 2 Educational Opportunities Supporting the local community and Development of students, teachers, Kingsgate’s CRD program is built on the “Four Pillar
Slide 24: Nueva Esperanza
Nueva Esperanza
Slide 25: Background
Background A highly prospective feasibility stage development project LOCATED IN THE MARICUNGA GOLD BELT OF THE ATACAMA REGION OF NORTHERN CHILE Project History Historic silver and gold production pre-Kingsgate Consolidation of district and resources by Kingsgate in 2011 Kingsgate project brea
Slide 26: Nueva Esperanza Overview
Nueva Esperanza Overview Project on care and maintenance and a financial adviser has been appointed to assist with a sale process In July 2020, Laguna Resources Chile granted an Environmental Impact Assessment (RCA – 64/20) approval for the Nueva Esperanza Gold/Silver Project In 2021 water right
Slide 27: Appendix A: Mineral Resources and Ore Reserves
Appendix A: Mineral Resources and Ore Reserves
Slide 28: Mineral Resources and Ore Reserve Statement
Mineral Resources and Ore Reserve Statement As at 30 June 2022 Ore Reserves Information relating to Chatree Ore Reserve estimates is extracted from the ASX: Kingsgate announcement Kingsgate announces 46% increase in Chatree Ore Reserve released 18 May 2022 and is available to view on www.kingsgate.c
Slide 29: Mineral Resources and Ore Reserve Statement (cont.)
Mineral Resources and Ore Reserve Statement (cont.) As at 30 June 2022 Mineral Resources (inclusive of Ore Reserves) Information relating to Chatree Mineral Resource estimates is extracted from the ASX: Kingsgate announcement Kingsgate Mineral Resources and Ore Reserves 2017 released 5 October 2017
Slide 30: Notes to the Ore Reserves and Mineral Resources
Notes to the Ore Reserves and Mineral Resources 1. Rounding errors are apparent. 2. Chatree metallurgical recoveries: 83.3% Au and 38.7% Ag based on metallurgical test work and plant performance. 3. Chatree Mineral Resources are reported at cut-off of 0.30 g/t Au. 4. Chatree Ore Reserves were estima
Slide 31: Competent Persons Statement
Competent Persons Statement The information in this presentation that relates to both the Chatree Mineral Resources, Nueva Esperanza Mineral Resources and Nueva Esperanza Ore Reserves is based on information compiled by Ron James, who is a consultant geologist to the Kingsgate Group. Ron James is a
Slide 32: Appendix B: Key Risks
Appendix B: Key Risks
Slide 33: Key Risks
Key Risks INTRODUCTION This section discusses some of the risks associated with an investment in Kingsgate. Kingsgate's business is subject to a number of risk factors both specific to its business and of a general nature which may impact on its future performance. Before subscribing for New Shares,
Slide 34: Key Risks (cont.)
Key Risks (cont.) Repayment of liabilities (Cont.) No forecast is made of whether those matters will eventuate. The Company's subsidiary Akara Resources Public Company Limited also has received a THB300,000,000 (~US$7,500,000) advance from, its preference shareholder. The preference shareholder has
Slide 35: Key Risks (cont.)
Key Risks (cont.) Production targets and financial forecasts This presentation contains mineral production targets and financial forecasts relating to the Chatree Gold Project, any of which may be inaccurate (or may never eventuate). The feasibility of the Chatree Gold Project and ability of the Com
Slide 36: Key Risks (cont.)
Key Risks (cont.) Laws, government relations and policy The Company and its mining operations are subject to a wide range of laws and government regulations and policies applying in relevant jurisdictions, with respect to matters such as land use, employee health and safety, rehabilitation of mining
Slide 37: Key Risks (cont.)
Key Risks (cont.) Gold and silver prices (Cont.) A decline in the market price of gold or silver below the Company’s projected production costs for a sustained period may have a material adverse impact on the viability of the Company’s operations and projects. Such a decline also could have a materi
Slide 38: Key Risks (cont.)
Key Risks (cont.) Insurance Exploration, development and mining operations on mineral properties involve numerous risks, including unexpected or unusual geological operating conditions, rock bursts, cave-ins, ground or slope failures, fires, floods, earthquakes and other environmental occurrences, p
Slide 39: Key Risks (cont.)
Key Risks (cont.) Geological and geotechnical risk There is a risk that unforeseen geological and geotechnical difficulties may be encountered when developing and mining mineral deposits, such as unusual or unexpected geological conditions, pit wall slips and failures, rock bursts, seismicity and ca
Slide 40: Key Risks (cont.)
Key Risks (cont.) GENERAL RISKS Economic Risks and Market Conditions Changes in the general economic climate in which the Company operates may adversely affect the financial performance and financial position of the Company and the value of the Company's shares regardless of the Company's operating
Slide 41: Key Risks (cont.)
Key Risks (cont.) Unforeseen Expenses While the Company is not aware of any expenses that may need to be incurred that have not been taken into account, if such expenses were subsequently incurred, the expenditure proposals of the Company may be adversely affected. Broader General Risks There are al
Slide 42: Appendix C: International Offer Restrictions
Appendix C: International Offer Restrictions
Slide 43: International Offer Restrictions
International Offer Restrictions This document does not constitute an offer of New Shares of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, in any country outside Austral
Slide 44: International Offer Restrictions (cont.)
International Offer Restrictions (cont.) Singapore This document and any other materials relating to the New Shares have not been, and will not be, lodged or registered as a prospectus in Singapore with the Monetary Authority of Singapore. Accordingly, this document and any other document or materia
Kingsgate Consolidated — Investor Presentation (March 2023) on 6ix