Kingsgate. Consolidated Limited. Annual General Meeting 2005

Transcription

1 Kingsgate Consolidated Limited Annual General Meeting 2005

2 Chairman s Address Ross Smyth-Kirk Kingsgate s 2005 Annual Report

3 CEO s Summary Gavin Thomas Kingsgate s 2005 Annual Report

4 A Distinctive Gold Company Focus on Production Profit Growth

5 Distinctive Results Production Cash Cost Discovery Costs Growth Strategy Increasing, Low cost Lowest Quartile World s lowest Organic Exploration Net Profit Margin High & Consistent

6 Growth & Return Increasing Production Profile 150,000 Oz 300,000 to 350,000 Oz Total Returns Focus Dividend 69 c/share Today 2008 Organic Growth Reserves 807,000 Oz Reserves 1,840,000 Oz

7 Increasing Production Profile Gold Experts - Finding & Mining Successful exploration team Unmatched expertise in S E Asia Experienced, efficient, safe miner Selective mining - low cost Expertise - a transferable asset

8 Total Returns Focus Strong Balance Sheet -No Debt High Dividend Payout Ratio ~50% A$4 A$3 Kingsgate Share Price Tight Share Structure - High growth leverage A$2 Jan 05 Jul 05 Today

9 Organic Growth Reserve Doubled in 15 months Discovery cost US$ 12 / ounce gold Resource Doubled in 12 months Discovery cost US$ 7 / ounce gold Continuing Growth over next few years World class gold province confirmed Enables continued rapid, low cost growth

10 A Distinctive Gold Miner

11 Chatree Location Sealed Road Access Bangkok 3.5 hours Power Line 1 Km Employees: 234 Thailand 9 Expatriates 465 Contractors Chatree Phuket 300 Km

12 Kingsgate 2004/5 Snapshot A$ 8.7 million 7 c / share 125,550 Nil Nil 1.83 M tonnes Net Profit Earnings Gold Poured Lost Time Injuries Environmental Incidents Ore Treated

13 Annual Summary Gold Produced (oz) Cash Cost (US$/oz) Profit (A$M) EBITDA (A$M) Operating Cash flow (A$M) EPS Earnings/Share (A /sh) Dividends (A /share) Net Cash (A$M) Resources (Moz gold) Reserves (Moz gold) , ,

14 Operational Performance Mill Throughput (Ktpa) Head Grade (g/t) 665 1,324 1,671 1,829 2,100 F o r e c a s t Forecast 2001/02 02/03 03/04 04/ /06F 2001/02 02/03 03/04 04/ /06F Cash Cost & Realised Price (US$/oz) Gold Production (K ozs) F o r e c a s t F o r e c a s t 2001/02 02/03 03/04 04/ /06F 2001/02 02/03 03/04 04/ /06F

15 Chatree Gold Mine New mining lease Proposed A Pit Current mining lease boundary Chatree mine ( C Pit & Plant) looking north to Chatree North (proposed A Pit)

16 Plant Expansion Pebble/Scats Crusher Oct Dec 05, 2.35mtpa SAG Mill Dec 03, 1.8mtpa 2,400 2,000 Original Plant Nov 01, 0.9mtpa 1, Annualised Throughput Completion due December 05

17 Operational Excellence Proven Excellence in Operating Team Award Winning/World Class Safety Record ONE incident only in 5 yrs (construction & production) >4 million hours worked LTI free Amongst best performance internationally Environmentally Compliant Operation Tailings Dam to Nevada standards Thailand s showcase mining operation ISO Standard Accredited & Audited ISO 9001 (quality) & ISO (environmental) OHSAS (safety) Sustainability A Rating Reputex Survey Only ASX Gold Miner with A rating

18 Global Cash Cost Performance US$/oz 500 Global Cash Cost Curve Current Gold Price Gold Fields 300 Barrick Newmont Anglo Gold Placer Chatree 2005 FY Chatree 2004 FY 0 0% 25% Source: Global Mining Research 25% 50% 75% 100%

19 Resources & Ore Reserves 4, ' Ozs Gold 3,000 2,000 1,000 Ore Reserves Doubled (+ Mine Depletion) In 15 mths US$ Million Sep Ore Reserves Mineral Resources Mine Depletion Exploration $/yr

20 Chatree & Chatree North Future: One semi-continuous multi-pit Resources: Currently 52 million tonnes Potentially million tonnes Reserves: Reserves doubled in 15 mths Lowest discovery cost globally US$12/oz (reserve) Growth: Expl budget US$9m/yr; 8 rigs CHATREE NORTH MLA s 1 Mile K West C-H Pit A Pit Chatree 1.0 Kilometre S Pit Tailings Storage Facility Q Pits Priority Target Area A East Proposed Pits K East D Pit CHATREE ML s

21 New Mining Lease Chatree North MLA Chatree

22 Organic Growth Chatree North North Chatree Large Pit Potential 3 4 Kms long Potential for 5 Mozs Proposed Proposed Pits Pits Chatree Chatree

23 Discovery Record The last eighteen months

24 Resistivity Anomalies Chatree North Ore blocks Optimized pit on current resources Stars: >0.02 ppm Au in bedrock contact AC/RC drillholes 600m

25 Chatree North - a growing resource Q A and A East 2.7km K West K East

26 Greenfields: 39 new regional Au prospects discovered Discoveries based on: Regional mapping Stream sediment geochemistry Airborne TEM Aeromagnetics Soil sampling 10 km Chatree Mine 75km

27 Exploration Drilling 2002/03: 35,000m RC + DD 2003/04: 53,000m RC + DD 2004/05: 119,000m RC + DD 115,000m Air Core 2005/06: 118,000m RC + DD (Budget) 83,000m Air Core USD 9.3M Budget ~70% Drilling

28 Exploration Leases Before Mid Exploration Leases (SPL s) Coverage ~5km 2 October New Exploration Leases (SPLA s) Chatree March-April 2004 Airborne survey flown October Exploration Lease Applications (SPLA s) Coverage ~1500km2 Refining targets constantly 25 Kms

29 Regional Prospects Discovered potential new world-class gold province 39 prospective targets within economic distance of current gold processing plant Chatree Includes 26 new targets 10 high priority targets 30 Kms

30 Selldown - under Kingsgate Control Favourable Investment Incentives: 100% ownership for 5 years (applied for 3 yr extension) 8 year tax holiday plus 5 years half tax 51% Thai Ownership by November 2006 Thai-Australian Free Trade Agreement 60% Australian ownership allowed post Jan 2005 Selldown will be a Commercial Transaction Fair Value expected for Selldown portion Currently Negotiating Outcome

31 Selldown - Current Incentives Investment Incentive Timetable % Ownership % Ownership 49-60% Ownership ZERO Tax 15% Tax 30% Tax Initial B.O.I. Incentives Selldown of Thai Entity Selldown of Thai Entity COMPLETE No B.O.I. Incentives

32 New Mining Lease & Expansion Chatree North Mine Lease Application well advanced; anticipate granting in CY05 Major Drive on Increasing Reserves/Resources Large potential to increase near-mine reserves/resources Gold mineralisation identified for > 25 km Plant Expansion Decision Scoping Study completed to double plant production Plant upgrade expected 2006; governed by lease granting Feasibility study to be completed soon after lease granted

33 Timely Opportunities - Goldstar Rationale Low cost option to review emerging gold producer A$2.4m for key 19.7% shareholding Walhalla - High grade gold veins oz/t historically Similar low discovery cost/oz to Chatree Benefits Potential for low capex, high margin operation Diversify Kingsgate s perceived geopolitical risk Opportunities & acquisitions continually assessed

34 South America - Exploration Chatree-style Gold Targets Paleocene & Miocene Belts in Chile, Peru & Argentina; Jurassic in Argentina Land acquisition & evaluation Field mapping & geochemical sampling Utilize local expertise

35 Production, Profit & Growth Reliable Gold Producer ~150,000 oz/yr Expansion - Mill Throughput to 2.35mtpa, up 30%, by Dec 05 Low cash costs maintained ~US$220/oz Rapid Resource/Reserve expansion >1 million oz/yr Resource $US$7/oz Strong Dividend commitment Strong financial capacity; Cash & No Debt Future expansion potential >300,000 oz/yr

36 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.