March 2014 Quarterly Report Presentation

Extracted Document Text

This is a readable excerpt of the EGM normalized Markdown text. It helps search engines and researchers understand PDF, filing, or company-document content while the original source remains authoritative.

# March 2014 Quarterly Report Presentation

Source: https://www.kingsgate.com.au/wp-content/uploads/2024/07/2014-04-29-KCN-March-Quarter-2014-Presentation-Final.pdf
Published: 2014-03-31T00:00:00+00:00
Fetched: 2026-05-12T15:19:53.667+00:00
Source artifact: bffc1ad2-7834-4263-93a1-6393137856bc
Normalizer input: text

## Content

# March 2014 Quarterly Report Presentation
Kingsgate Consolidated Limited
March 2014
Quarterly Report
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, the company.
Actual results and developments may vary materially from that expressed in these materials. The types of uncertainties which
are relevant to the company may include, but are not limited to, commodity prices, political uncertainty, changes to the
regulatory framework which applies to the business of the company & general economic conditions. Given these uncertainties,
readers are cautioned not to place undue reliance on such forward looking statements.
Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations under
applicable law or any relevant stock exchange listing rules, the company undertakes any obligation to publicly update or revise
any of the forward looking statements, changes in events, conditions or circumstances on which any such statement is based.
Some statements in this presentation regarding estimates or future events are forward looking statements. They involve risk
and uncertainties that could cause actual results to differ from estimated results. Forward looking statements include estimates
of future production, cash and total costs per ounce of production, reserve and mineralized material estimates, capital costs,
and other estimates or prediction of future activities. They include statements proceeded by words such as “believe,”
“estimate,” “expect,” “intend,” “will,” and similar expressions. Actual results could differ materially depending on such things
as political events, labour relations, currency fluctuations and other general economic conditions, market prices for Kingsgate
Consolidated Limited products, timing of permits and other government approvals and requirements, changes in operating
conditions, lower than expected ore grades, unexpected ground and mining conditions, availability and cost of materials and
equipment, and risks generally inherent in the ownership and operation of mining properties and investment in foreign
countries.
March Quarter - Highlights
• Solid Group operating performance with quarterly gold
production in line with expectations at 48,725oz
• Strong June Quarter expected to deliver full year guidance
• Chatree produced 31,609oz of gold at US$805/oz and Challenger
produced 17,116oz at US$1,293.
• Balance sheet strengthened following capital raising. Institutional
component of A28.5M (gross) completed in quarter. Retail
component of A$30.9M (gross) completed in April.
• Nueva Esperanza definitive feasibility study completed and
confirms robust project economics.
• CEO search well advanced.
All-in Sustaining Cost
Chatree Challenger Group
Gold Sales oz 30,813 17,403 48,216
Adjusted Total Cash Costs
US$/oz 731 1,297* 951
(incl royalties and bi-product)
Sustaining Capex US$/oz 165 58 127
Exploration Expense US$/oz - - -
Corporate and Admin Costs^ US$/oz - - 48
All-in Sustaining Cost (March Qtr) US$/oz 923 1,355 1,126
* Includes underground mine development.
^ Corporate and Admin costs have been allocated 73% : 27 % between operating assets
and development projects.
Chatree
 Gold production 31,609oz Chatree Quarterly Gold Production
and Costs
 1,556Kt @ 0.81g/t & 77.7% Ounces US$/Oz
(1,487Kt @ 0.93g/t & 80.3%) 50,000 1,000
 Total cash costs US$805
40,000
(incl.US$102/oz royalty) 750
 Grade reflects current mix of A Pit 30,000
ore and stockpiled ore. 500
 Recovery reflects lower grade ore 20,000
and met. characteristics of current
250
ore blend 10,000
 Mining of waste impacted by low
0 0
excavator availability. Mar 13A Jun 14A Sep 13A Dec 13A Mar 14A
 Initiatives to address low excavator
availability being undertaken in Gold Production Total Cash Cost
concert with our mining contractor
 Strong June quarter expected
Challenger
 Gold production 17,116oz Challenger Quarterly Gold Production
and "All-In" Costs
 110Kt @ 5.05g/t & 96.1%
(141Kt @ 4.64g/t & 95.9%) Ounces US$/Oz
 Lower available stope and 25,000 2,500
development ore
 Lower dilution delivering higher 20,000 2,000
grade
15,000 1,500
 Recovery reflects higher grade
 Total operating costs US$1,293 10,000 1,000
(incl.US$49/oz royalty)
 Unit costs reflect lower 5,000 500
production
 Costs include mine development 0 0
expenditure Mar 13A Jun 13A Sep 13A Dec 13A Mar 14A
 Full year guidance maintained
Gold Production Opex + Mine Development
at 70,000oz to 80,000oz.
Nueva Esperanza – Heap Leach
DFS delivers robust results
Resources 93.3Moz Silver Eq / 1.6Moz Gold Eq
Throughput 3,000,000 tonnes per annum
Initial mine life +6 years
Annualised production (post ramp up)
Silver 6,430,000oz
Gold 17,500 oz
Initial capital cost (incl. US$10M contingency) US$140 million
Average metallurgical recovery
Silver (ave across three ore bodies) 70%
Gold (Arqueros and Chimberos) 75%
Average strip ratio 5.1:1
Ave. operating cost (after royalties gold credits) US$11.44/oz AgEq
Ave. operating cost (after royalties silver credits) US$687oz AuEq
 Assumptions: Silver US$20/oz Gold US$1,300/oz A$/US$ 0.90
Nueva Esperanza
Development schedule
Development  DFS completed with positive results
 Addendum (DIA) to approved EIA lodged
Schedule  DIA approval expected within 6 months
 Order long lead items
Current Work  Vaue engineering of capital and operating
Program costs
 Limited twin hole drilling at Arqueros
 Detailed design and EPCM considerations
 Project funding planned from various sources
Financing  Project debt or mezzanine finance
 Operating cashflow
 Introduction of strategic or minority
partners
 Strategic initiatives (eg Akara IPO)
Bowdens
Project timing to reflect market conditions
 Major elements of the DFS largely
completed.
Feasibility Study  Sterilisation drilling confirms no
mineralisation under proposed plant
site
 Environmental Monitoring Plan in
preparation.
Environmental
 On-going recording of field
Impact Statement environmental aspects
 EIS work anticipated to be completed
in 2014
Capital Raising
Sources ($M) Uses ($M)
Institutional Placement 14.7 Repay corporate debt 19.0
Institutional Entitlement Nueva Esperanza Pre-
13.8 5.0
Offer development capex
Retail Entitlement Offer 30.9 Bowdens DFS and EIS capex 4.0
Working capital / general
11.2
corporate purposes
Gross Proceeds 59.4 Sub Total 39.2
Development Capex, in particular
20.2
Nueva Esperanza
Total 59.4
Outlook
• Group gold production for the fiscal year FY2014 is
expected to be 190,000 to 210,000 ounces gold.
• Chatree production expected to be 120,000 to
130,000 ounces.
• Challenger production expected to be 70,000 to
80,000 ounces.
• Nueva Esperanza project work to continue.
• Bowdens EIS and DFS work aligned for completion in
2014.
• Focus remains on strategies to lower costs and
maximise shareholder returns.
Kingsgate Consolidated Limited
Shares: 217 Million Market Cap: ~A$217 Million
ASX: KCN
www.kingsgate.com.au
Appendix
General Disclaimer:
The information contained in this presentation is for informational purposes only and does not constitute an offer to issue, or arrange to issue
securities or other financial products. The information contained in this presentation is not investment or financial product advice and has been
prepared without taking into account the investment objectives, financial situation or particular needs of any person. To the maximum extent
permitted by law, none of Kingsgate Consolidated Limited, its directors, employees or agents, nor any other person accepts any liability including
without limitation any liability arising out of fault or negligence for any loss caused from the use of the information contained in this presentation.
No representation or warranty, express or implied, is given as to the accuracy, completeness or correctness, likelihood of achievement or
reasonableness of any forecasts or other forward looking statements.
Competent Persons Statements:
In this report, information concerning Thailand operations relates to Exploration Results, Mineral Resources and Ore Reserve estimates is based on
and fairly represents information compiled by the following Competent Persons: Ron James, Brendan Bradley Kevin Woodward and Suphanit
Suphananthi who are employees of the Kingsgate Group. All except Brendan Bradley are members of The Australasian Institute of Mining and
Metallurgy; Brendan Bradley is a member of the Australian Institute of Geoscientists. These people qualify as Competent Persons as defined in the
Australasian code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2012 edition) and possess relevant
experience in relation to the mineralisation of being reported herein as Exploration Results, Mineral resources and Ore reserves. Each Competent
Person has consented to the Public reporting of these statements and the inclusion of the material in the form and context in which it appears.
In this report, the information concerning Challenger operations that relates to Exploration Results, Mineral Resources and Ore Reserves estimates
is based on and fairly represents information compiled by Stuart Hampton and Luke Phelps who are full-time employees of the Kingsgate Group.
Both are members of The Australasian Institute of Mining and Metallurgy. These persons have sufficient experience that is relevant to the
mineralisation and type of deposit under consideration and to the activity that they are undertaking to qualify as Competent Persons as defined in
the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Paul Androvic and Tim
Benfield consent to the inclusion in the report of the matters based on their information in the form in which it appears.
The information in this report that relates to Bowdens and Nueva Esperanza Mineral Resource estimation is based on and fairly represents work
completed by Jonathon Abbott who is a full-time employee of MPR Geological Consultants and a member of the Australian Institute of Geoscientists
and Mr Ron James. Mr Abbott and Mr James have sufficient experience that is relevant to the style of mineralisation and type of deposit under
consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code
for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Abbott and Mr James consent to the inclusion in the report of the
matters based on his information in the form and context in which it appears.
www.kingsgate.com.au
Chatree
Chatree Ore Reserves as at 30 April 2013 (>0.35g/t gold cut-off grade)
Gold Silver Gold Silver
Tonnes Grade Grade Contained Contained AuEq
Source Category
(million) (g/t) (g/t) (Moz) (Moz) (Moz)
From Pits Proven 45.4 0.87 7.8 1.27 11.39
Probable 14.8 0.78 6.0 0.37 2.86
Stockpiles 9.3 0.58 9.3 0.17 2.78
Chatree Total Total 69.5 0.81 7.6 1.82 17.04
Chatree Mineral Resources as at 30 April 2013 (>0.3g/t gold cut-off grade)
Tonnes Gold Silver Gold Silver AuEq
Source Category Grade Grade Contained Contained
(million) (g/t) (g/t) (Moz) (Moz) (Moz)
From Pits Measured 92.8 0.72 6.60 2.15 19.7
Indicated 49.8 0.64 4.69 1.02 7.51
Inferred 45.7 0.58 3.81 0.85 5.60
Chatree Total Total 188.3 0.66 5.42 4.03 32.8
Competent Persons Statement. Information in this presentation relates to Exploration Results, Mineral Resou

[Excerpt trimmed for readability. Open the original source for the complete filing or document.]