Kingsgate Consolidated (KCN) H2 2024 earnings summary

Executive summary

• Achieved near full operational capacity at Chatree Gold Mine after an eight-year hiatus, with both processing plants now operating above nameplate capacity and mining activities resumed in A Pit as of May 2024.

• Total FY2024 production was 37,015 ounces of gold and 460,356 ounces of silver, with Plant #2 operating 21% above design throughput and Plant #1 commissioned in June 2024.

• Net profit after tax reached $199.8 million, driven by a $228.7 million impairment reversal for Chatree, reflecting improved operational outlook and higher gold prices.

• Secured a US$35 million term facility to support ramp-up and repaid previous debt, maintaining strong funding for ongoing operations.

Financial highlights

• Sales revenue for FY2024 was $133.1 million, up from $27.3 million in FY2023, reflecting the ramp-up at Chatree.

• EBITDA was $213.8 million, compared to $11.1 million in FY2023.

• Basic earnings per share rose to 77.5 cents from 2.06 cents year-over-year.

• Direct mining and processing costs totaled $126.4 million, with gold sold at an average price of US$2,084/oz.

Outlook and guidance

• Targeting steady-state production at Chatree of 95,000–120,000 ounces of gold per annum.

• Focused on increasing ore grade and recovery rates as higher-grade ore from A Pit is accessed.

• Plans to monetize or joint venture the Nueva Esperanza project in Chile, with updated resource estimates expected in FY2025.