kingsgate kingsgate
play

Kingsgate Kingsgate Consolidated Limited Consolidated Limited - PowerPoint PPT Presentation

May 24, 2023 •11 likes •251 views

Kingsgate Kingsgate Consolidated Limited Consolidated Limited 2005/06 Full Year Financials 2005/06 Full Year Financials A Cracker Result A Cracker Result With Responsible Low Cost Growth With Responsible Low Cost Growth

  1. Kingsgate Kingsgate Consolidated Limited Consolidated Limited 2005/06 Full Year Financials – 2005/06 Full Year Financials – A ‘Cracker’ Result A ‘Cracker’ Result With Responsible Low Cost Growth With Responsible Low Cost Growth 30 August 2006 30 August 2006

  2. FY06 - A ‘Cracker’ Result FY06 - A ‘Cracker’ Result Due to increased gold Profit: $16.7m production & hedge EPS: 19.3c/sh accounting gains on hedge pre-delivery Up 100% on last year Due to 10% increase in Revenue: $74.1m plant throughput & gold production Up 11% on last year Maintains high payout Dividends: 10c/sh ratio of ~50% Up 40% on last year Total Dividends 79 c/share $63 Million since 2002

  3. FY06 - A ‘Cracker’ Result FY06 - A ‘Cracker’ Result Lowest quartile of gold Low Cost: US$206/oz producers for ~5 yrs US$247/0z Total Cost Consistent: Down 3% on last year US$247/0z Total Cost Average US$145/oz for ~5 years Lowest of ASX producers Lowest of ASX producers Production: 140koz 300,000 to 350,000 Oz Consistent: Up 11% on last year 140,000 Oz Growth coming with expansion FY06 2008 Resources: 3.8Moz Resources 3,800,000 Oz Resources Up 45% in M&I Resources to 3.2Moz 1,200,000 Oz 2001 2006

  4. Annual Summary Annual Summary 2005 - 06 2004 - 05 Gold Produced (oz) Gold Produced (oz) 140,071 126,550 Cash Cost (US$/oz) Cash Cost (US$/oz) 206 212 Profit (A$m) Profit (A$m) 16.7 8.9 EBITDA (A$m) EBITDA (A$m) 25 18 Operating Cash flow (A$m) Operating Cash flow (A$m) 22 22 EPS Earnings/Share (A¢/sh) EPS Earnings/Share (A¢/sh) 19.3 9.6 Dividends (A¢/share) Dividends (A¢/share) 10 7 Net Cash (A$m) Net Cash (A$m) 10 32 Resources (Moz gold) Resources (Moz gold) 3.8 3.0 Reserves (Moz gold) Reserves (Moz gold) 1.8 1.5

  5. P&L/Income Statement P&L/Income Statement 2005 - 06 2004 - 05 Revenue (A$m) Revenue (A$m) 74.1 66.8 Direct Costs (A$m) Direct Costs (A$m) (40.3) (34.9) Employee Benefits (A$m) Employee Benefits (A$m) (8.1) (6.0) D & A (A$m) D & A (A$m) (7.8) (8.7) Finance Cost (A$m) Finance Cost (A$m) (0.9) (1.0) Forex & Inventory (A$m) Forex & Inventory (A$m) (0.3) (0.7) Hedge Accounting Gain Hedge Accounting Gain 7.0 0 Other (A$m) Other (A$m) (4.4) (5.0) Tax 0 0 Tax 16.7 8.4 Profit (A$m) Profit (A$m)

  6. Global Cash Cost Curve Global Cash Cost Curve US$/oz US$/oz 600 600 Current Gold Price Current Gold Price 500 500 Gold 400 400 Fields Anglo Newmont Gold Barrick Cash Cost Curve 300 300 2005 Chatree 2005 FY 200 200 Chatree 2006 FY 100 100 Chatree 2004 FY Source: Global Mining Research Source: Global Mining Research 0 0 0% 25% 50% 75% 100% 0% 25% 50% 75% 100%

  7. Operational Results Operational Results On Target: Production FY06 – 140,071 ozs, just below target Mill throughput – at new nameplate 2.3-2.4 mtpa Gold grade 2.4g/t – on target for FY06 Strip ratio 7.0 – on target for FY06 Costs & pressures Low costs maintained due: - Grid power, few expats, source materials locally Cost pressures continue industry wide: - Consumables, explosives, cyanide - Diesel fuel subsidy removed fully

  8. Operational Results Operational Results Head Grade (g/t) Mill Throughput (Ktpa) Head Grade (g/t) Mill Throughput (Ktpa) 2,350 5.3 5.3 2,100 2,000 1,829 3.9 1,671 F o r e c a s t F o r e c a s t 3.1 1,324 2.4 2.4 Forecast 665 01/02 02/03 03/04 04/05 05/06 06/07F 01/02 05/06 06/07F 02/03 03/04 04/05 Cash Cost & Realised Price (US$/oz) Gold Production (K’ozs) Cash Cost & Realised Price (US$/oz) Gold Production (K’ozs) 401 385 355 335 308 154.5 149.9 140.1 126.6 F o r e c a s t 206 220 220 212 206 F o r e c a s t 91.2 F o r e c a s t 135 94 61 01/02 02/03 03/04 04/05 05/06 06/07F 01/02 02/03 03/04 04/05 05/06 06/07F

  9. Forecast Forecast Forecast FY07: Similar production to FY06 - from main Chatree pits & A pit at Chatree Nth Costs similar to June Qtr’06, but industry wide cost pressures exist Higher Mill throughput of 2.3-2.4 mtpa Mine plan adjusted due to timing of granting of Chatree North mining leases Greater leverage to gold price as <59,000ozs to be delivered in FY07 to close hedge book Only third of FY07 production hedged (US$317/oz)

  10. Selldown - in Control Selldown - in Control Currently Negotiating Outcome BOI Incentives: 100% ownership to Nov’06 51% “Thai Ownership” from Nov 2006 Selldown- Commercial Deal - KCN control Will meet the BOI guideline of Nov’06 Financial adviser circling Thai investors Fair Value expected for Selldown portion Further Value with IPO on Thai StockEx in 2-3yrs

  11. Selldown & Incentives Selldown & Incentives Investment Incentive Timetable Investment Incentive Timetable 2003 2004 2004 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 2016 2016 2003 100% 60-100% 55-60% Ownership Ownership Ownership ZERO 15% 30% ZERO 15% 30% Tax Tax Tax Tax Tax Tax Interim Initial B.O.I. Selldown of Thai Entity No B.O.I. Selldown of Incentives COMPLETE Incentives Thai Entity

  12. Distinctive Gold Experts Distinctive Gold Experts Expertise – Finding & Mining

  13. Main Asset - Chatree Main Asset - Chatree Low sulphidation epithermal deposit Opened in Nov’01 Chatree Chatree ~150,000 oz/yr Au Good Infrastructure Grid Power ‘Buy Thai’ policy Workforce: 915 Thai 300 Km 9 Expatriates

  14. Community License Community License World Best Safety Record >7M hrs with 1incident Workplace Awards – Women, Training, Safety ISO 9001, OHSAS 18001 Awards – No Environ incidents Environment Tailings Cyanide at levels of coffee Worlds Best Practice ISO14001 Health & Education– schools, water Social Community managed funds 3D Models show future land use Sustainability/ CSR ratings “A” Rating Only ASX miner with A rating or RepuTex better – with RIO & BHP A Model Mine means a Model Future

  15. Community & Workplace Community & Workplace Clockwise - Revegetating waste; New schools Clockwise - Revegetating waste; New schools Donations to schools; Women in management ; Water tower Donations to schools; Women in management ; Water tower

  16. Chatree Gold Mine Chatree Gold Mine A Pit mined at A Pit mined at Chatree North. Chatree North. Oxide feed Multi pits Oxide feed Mining in Chatree Nth Hard ore in main C-H pits New High grade zone New High grade zone High grade zone High grade zone Chatree North (New ‘A’ Pit) Chatree North (New ‘A’ Pit) Chatree mine (‘C’ Pit & ‘H’ Pit) Chatree mine (‘C’ Pit & ‘H’ Pit)

  17. Chatree North Chatree North

  18. Chatree Expansion Chatree Expansion Expansion: Double output >300,000 oz/yr >2Moz/yr silver 5mtpa plant Duplicate Plant Duplicate Plant Add tank farm Add tank farm Feasibility study for silver circuit for silver circuit being optimised Duplicate plant (+2.7mtpa) Add silver circuit (Merrill Crowe) Aim - lift silver recoveries from 45% to >70% Ausenco finalising capex & timeframe

  19. Chatree North Chatree North Leases Leases Mining Lease Applications Mining Lease Applications Chatree North Mining Leases Mining Lease Mining Lease ‘A’ Pit ‘A’ Pit 9 Lease Applications Final discussions on Environ Impact Assessment EIA approval key step for granting Chatree Chatree Not “If” but “When” Lease granting occurs

  20. Chatree North Chatree North Q Resource Growth Resource Growth Growth of 1 million Q ounces gold per annum in Chatree & Chatree N Q Resource drill-out with up to 9 drill rigs 3.0 Km High conversion of resources to ore reserves A & A East Over 5 million ounces gold potential in Chatree; already defined & mined 4.5 million oz K West K East

  21. Resource Increase Resource Increase Chatree Resource Increase 3.8Moz Resource ,000 oz Gold US$M M&I Resource: 4400 11 ? 3.2Moz gold 4000 10 Mining Depletion Mining Depletion 3600 9 Growth 1Moz/yr 3200 8 >32Moz silver Exploration Expenditure Exploration Expenditure 2800 7 2400 6 1.8Moz Reserves 2000 5 Mineral Resources Mineral Resources Underground 1600 4 upside 1200 3 800 2 400 1 0 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007F

  22. Regional Prospects Regional Prospects Discovered new world - Granted leases Granted leases class gold province 39 prospective targets within trucking distance of current gold plant Chatree Chatree 10 high priority targets Leases pending Leases pending 50 leases granted plus 51 leases pending for ~1500km2 Drill ready targets; need land access option 30 Kms agreements

  23. Kingsgate Delivers Kingsgate Delivers Production - Low cost for ~5 yrs Profit/Divs - Consistent & Strong - Unhedged in FY07 Growth - Mine/plant Expansion - Resource growth - World class gold province

More recommend