June 2014 Quarterly Report Presentation

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# June 2014 Quarterly Report Presentation

Source: https://www.kingsgate.com.au/wp-content/uploads/2024/07/KCN-June-Quarter-2014-Presentation.pdf
Published: 2014-06-30T00:00:00+00:00
Fetched: 2026-05-12T15:19:47.837+00:00
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## Content

# June 2014 Quarterly Report Presentation
Kingsgate Consolidated Limited
June 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
• Strong Group operating performance with quarterly gold
production 55,450oz at total cash cost of US$857/oz
• Record annual gold production of 209,500oz, at the top-end of the
guidance range of 190,000oz to 210,000oz
• Chatree produced 36,475oz of gold at US$631/oz and Challenger
produced 18,975oz at US$1,291/oz.
• Retail component of capital raising completed in mid-April with
funds received of A$30.9M (gross).
• Mine plan optimisation and additional testwork underway to
support the positive Nueva Esperanza DFS.
• Encouraging gold exploration results at Sayabouly in Lao PDR with
5.0m @ 6.7g/t gold and 4.0m @ 6.7g/t gold in trenching.
• Geoff Day appointed CEO and will join Kingsgate in Sept Qtr.
All-in Sustaining Cost
Chatree Challenger Group
Gold Sales oz 40,686 19,375 60,062
Adjusted Total Cash Costs
US$/oz 672 1,266 864
(incl royalties and bi-product)
Sustaining Capex US$/oz 124 7 86
Exploration Expense US$/oz - - -
Corporate and Admin Costs^ US$/oz - - 76
All-in Sustaining Cost (June Qtr) US$/oz 796 1,273 1,026
All-in Sustaining Cost (March Qtr) US$/oz 923 1,355 1,126
Based on gold sales in the June Qtr 2014
* Includes underground mine development.
^ Corporate and Admin costs have been allocated 73% : 27 % between operating assets
and development projects.
Chatree
Strong June Quarter
June Quarter 2014 Chatree Quarterly Gold Production
 Gold production 36,475oz Ounces US$/Oz
 1,599kt @ 0.90g/t & 79.5% 50,000
(1,556kt @ 0.81g/t & 77.7%)
 Grade reflects access to high grade 40,000 750
areas in A Pit Stage 2.
30,000
 Recovery in-line with LOM of 80.5% 500
 Total cash costs US$631 20,000
(incl.US$120/oz royalty) 250
10,000
 Annual production of 134,546oz
0 0
 Strong final quarter delivered Jun 13A Sep 13A Dec 13A Mar 14A Jun 14A
above upper guidance of 130,000oz
 Full year guidance for FY2015 Gold Production Total Cash Cost
 130,000oz to 140,000oz
Challenger
Challenger Quarterly Gold Production
and "All-In" Costs
June Quarter 2014
Ounces US$/Oz
 Gold production 18,975oz
25,000 2,500
 126Kt @ 4.80g/t & 96.8%
(110Kt @ 5.05g/t & 96.1%) 20,000 2,000
 Localised dilution delivering lower
grade 15,000 1,500
 Total operating costs US$1,291
10,000 1,000
(incl.US$50/oz royalty)
 Costs include mine development
5,000 500
expenditure
 Annual production of 74,954oz 0 0
Jun 13A Sep 13A Dec 13A Mar 14A Jun 14A
 Full year guidance for FY2015
 65,000oz to 75,000oz Gold Production Opex + Mine Development
Challenger Exploration
Challenger Matrix Lode
Drillhole locations with preliminary logging results
• Awaiting full assay results
Nueva Esperanza
Development schedule
Project  DFS completed with positive results
 Addendum (DIA) to approved EIA lodged
Schedule  DIA approval expected within 6 months
 Optimisation studies for mining, metallurgy
Current Work and infrastructure
Program  Exploration drilling of high grade gold
targets at Chimberos and satellite prospects
Nueva Esperanza Upside
Highly prospective regional exploration
Extensive
hydrothermal
alteration footprint
Three established
resources
TETERITA
Multiple highly CHIMBEROS
prospective targets CERRO HUANTAJAYA POTOSI
AMARILLO RIFLE ROSA
Exploration drilling to BOULDER ARQUEROS GRANDOTE
focus historic high
CARACHITA
grade gold intercepts
CARACHAPAMPA
Bowdens
Project timing to reflect market conditions
 Major elements of the DFS largely
completed.
Feasibility Study  Power and water options identified
but not yet finalised
 Environmental monitoring and on-
Environmental going field data recording
Impact Statement  EIS work anticipated to be completed
and submitted by end calendar 2014
Regional Exploration
Encouraging results at Sayabouly in Lao PDR
High grade quartz veins
extended in follow-up
trenching.
New channel sample results
include:
• 5m @ 6.7g/t gold
• 4m @ 7.5g/t gold
Zones of quartz-sulphide
coincide with IP anomalies
Further trenching later in
the year as a pre-cursor to New results
drilling
Balance Sheet
 Cash and bullion/dore of A$74.2M at 30 June 2014
(Cash of A$64.1M and bullion/dore of A$10.1M)
 The cash includes A$30.9M (gross) that was received in mid-April
from the retail component of the capital raising.
 Continued focus on optimising facilities over time, particularly in
conjunction with Akara IPO and funding development projects.
Akara Debt  US$105M multi currency amortising loan
facility, with quarterly payments to Nov ‘18
Facilities  Undrawn US$15M working cap facility
 A$25M Akara Resources PCL Pre-IPO Bond
Kingsgate (maturity 31 July 2015)
Debt Facilities  A$10M amortising corporate loan facility
(matures over FY2015 financial year)
Outlook
• Group gold production for the fiscal year FY2015 is
expected to be 195,000 to 215,000 ounces gold.
• Chatree production expected to be 130,000 to
140,000 ounces.
• Challenger production expected to be 65,000 to
75,000 ounces.
• Nueva Esperanza optimisation work to continue while
EIA addendum is under review by the authorities.
• Bowdens EIS and DFS work aligned for completion in
2014.
• Focus remains on initiatives to lower costs and
maximise shareholder returns.
Kingsgate Consolidated Limited
Shares: 224 Million Market Cap: ~A$200 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)
Tonnes Gold Silver Gold Silver AuEq
Source Category Grade Grade Contained Contained
(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

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