Kingsgate Kingsgate Consolidated Limited Consolidated Limited - - PowerPoint PPT Presentation
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
Consolidated Limited Consolidated Limited
30 August 2006 30 August 2006
With Responsible Low Cost Growth With Responsible Low Cost Growth
2005/06 Full Year Financials –
2005/06 Full Year Financials –
Profit: $16.7m EPS: 19.3c/sh
Up 100% on last year
Revenue: $74.1m
Up 11% on last year
Due to increased gold production & hedge accounting gains on hedge pre-delivery
Dividends: 10c/sh
Up 40% on last year
Maintains high payout ratio of ~50% Due to 10% increase in plant throughput & gold production Total Dividends 79c/share
$63 Million since 2002
Low Cost: US$206/oz
Consistent: Down 3% on last year Average US$145/oz for ~5 years
Production: 140koz
Consistent: Up 11% on last year Growth coming with expansion
Resources: 3.8Moz
Up 45% in M&I Resources to 3.2Moz
Lowest quartile of gold producers for ~5 yrs FY06
140,000 Oz
2008
300,000 to 350,000 Oz
US$247/0z Total Cost
Lowest of ASX producers
US$247/0z Total Cost
Lowest of ASX producers
2001
Resources 1,200,000 Oz
2006
Resources 3,800,000 Oz
1.5 3.0 32 7 9.6 22 18 8.9 212 126,550 2004 - 05
EPS Earnings/Share (A¢/sh)
Operating Cash flow (A$m)
Reserves (Moz gold) Resources (Moz gold) Net Cash (A$m) Dividends (A¢/share) EBITDA (A$m) Profit (A$m) Cash Cost (US$/oz) Gold Produced (oz)
1.8 3.8 10 10 19.3 22 25 16.7 206 140,071 2005 - 06
EPS Earnings/Share (A¢/sh)
Operating Cash flow (A$m)
Reserves (Moz gold) Resources (Moz gold) Net Cash (A$m) Dividends (A¢/share) EBITDA (A$m) Profit (A$m) Cash Cost (US$/oz) Gold Produced (oz)
8.4
(5.0) (0.7) (1.0) (8.7) (6.0) (34.9) 66.8 2004 - 05
Forex & Inventory (A$m)
Finance Cost (A$m)
Profit (A$m) Tax Other (A$m) Hedge Accounting Gain D & A (A$m) Employee Benefits (A$m) Direct Costs (A$m) Revenue (A$m) Forex & Inventory (A$m)
Finance Cost (A$m)
Profit (A$m) Tax Other (A$m) Hedge Accounting Gain D & A (A$m) Employee Benefits (A$m) Direct Costs (A$m) Revenue (A$m)
16.7
(4.4) 7.0 (0.3) (0.9) (7.8) (8.1) (40.3) 74.1 2005 - 06
Source: Global Mining Research Source: Global Mining Research
0% 0% 25% 25% 100% 100% 50% 50% 75% 75%
US$/oz US$/oz
500 500 200 200 400 400 100 100 300 300 600 600
Barrick Newmont Gold Fields Anglo Gold Current Gold Price Current Gold Price
Chatree 2005 FY Chatree 2006 FY Chatree 2004 FY
Cash Cost Curve 2005
On Target:
Production FY06 – 140,071 ozs, just below target Mill throughput – at new nameplate 2.3-2.4 mtpa Gold grade 2.4g/t – on target for FY06 Strip ratio 7.0 – on target for FY06
Costs & pressures
Low costs maintained due:
Cost pressures continue industry wide:
2,100
F o r e c a s t
5.3 220
F o r e c a s t
206 220
Mill Throughput (Ktpa) Mill Throughput (Ktpa)
665 1,671 1,324 1,829 2,350
F o r e c a s t
2,000
01/02 05/06 03/04 02/03 04/05 06/07F
Gold Production (K’ozs) Gold Production (K’ozs)
02/03
154.5
03/04
149.9
04/05
126.6
05/06
140.1
01/02
91.2
06/07F
F o r e c a s t
Head Grade (g/t) Head Grade (g/t)
02/03
3.9
03/04
3.1
04/05
2.4
05/06
2.4
06/07F
Forecast
01/02
5.3
Cash Cost & Realised Price (US$/oz) Cash Cost & Realised Price (US$/oz)
04/05
212
01/02
61
02/03
94
03/04
135
06/07F
F o r e c a s t
05/06
206
308 335 385 401 355
Forecast FY07:
Similar production to FY06
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)
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
60-100% Ownership 55-60% Ownership 100% Ownership
Initial B.O.I. Incentives Interim Selldown of Thai Entity Selldown of Thai Entity COMPLETE
No B.O.I. Incentives
15% Tax 15% Tax 30% Tax 30% Tax ZERO Tax ZERO Tax
Investment Incentive Timetable Investment Incentive Timetable
2003 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
Expertise – Finding & Mining
Low sulphidation epithermal deposit Opened in Nov’01 ~150,000 oz/yr Au Good Infrastructure Grid Power ‘Buy Thai’ policy Workforce:
915 Thai 9 Expatriates
Chatree Chatree
300 Km
Workplace Environment Social
World Best Safety Record
>7M hrs with 1incident
Awards – Women, Training, Safety ISO 9001, OHSAS 18001
“A” Rating RepuTex
Awards – No Environ incidents Tailings Cyanide at levels of coffee Worlds Best Practice ISO14001 Health & Education– schools, water Community managed funds 3D Models show future land use Sustainability/ CSR ratings Only ASX miner with A rating or better – with RIO & BHP
A Model Mine means a Model Future
Clockwise - Revegetating waste; New schools Donations to schools; Women in management ; Water tower Clockwise - Revegetating waste; New schools Donations to schools; Women in management ; Water tower
Chatree North (New ‘A’ Pit) Chatree mine (‘C’ Pit & ‘H’ Pit) Chatree North (New ‘A’ Pit) Chatree mine (‘C’ Pit & ‘H’ Pit)
New High grade zone New High grade zone High grade zone High grade zone A Pit mined at Chatree North. Oxide feed A Pit mined at Chatree North. Oxide feed
Multi pits
Mining in Chatree Nth Hard ore in main C-H pits
Expansion:
Double output >300,000 oz/yr >2Moz/yr silver 5mtpa plant Feasibility study being optimised Duplicate plant (+2.7mtpa) Add silver circuit (Merrill Crowe) Aim - lift silver recoveries from 45% to >70% Ausenco finalising capex & timeframe
Duplicate Plant Add tank farm for silver circuit Duplicate Plant Add tank farm for silver circuit
Chatree North Mining Lease Applications Chatree North Mining Lease Applications Chatree Chatree
Mining Lease ‘A’ Pit Mining Lease ‘A’ Pit
Chatree North Mining Leases
9 Lease Applications Final discussions on Environ Impact Assessment EIA approval key step for granting Not “If” but “When” Lease granting occurs
Chatree North Resource Growth Chatree North Resource Growth
Growth of 1 million
in Chatree & Chatree N Resource drill-out with up to 9 drill rigs High conversion of resources to ore reserves Over 5 million ounces gold potential in Chatree; already defined & mined 4.5 million oz
3.0 Km
Q Q Q K East A & A East K West
Chatree Resource Increase
400 800 1200 1600 2000 2400 2800 3200 3600 4000 4400 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007F 1 2 3 4 5 6 7 8 9 10 11
Exploration Expenditure Exploration Expenditure Mineral Resources Mineral Resources Mining Depletion Mining Depletion
?
,000 oz Gold US$M
3.8Moz Resource M&I Resource: 3.2Moz gold Growth 1Moz/yr >32Moz silver 1.8Moz Reserves Underground upside
Discovered new world - class gold province 39 prospective targets within trucking distance
10 high priority targets 50 leases granted plus 51 leases pending for ~1500km2 Drill ready targets; need land access option agreements
Chatree Chatree
30 Kms
Granted leases Granted leases Leases pending Leases pending
Growth
Profit/Divs
Production
www.kingsgate.com.au
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.