Kingsgate Consolidated Ltd.

Kingsgate Consolidated Ltd. is a junior gold and silver producer headquartered in Sydney, Australia, operating primarily in Chile and Asia. The company's portfolio consists of 2 projects, comprising 1 operating mine and 1 development project. Key assets include Chatree and Nueva Esperanza. The company's business model integrates mining, development, and exploration, with a focus on achieving operational resilience through a dual-plant processing configuration. This setup allows for enhanced flexibility and throughput, demonstrated by one plant operating 21% above its nameplate capacity while the second plant was brought online. The operational approach includes processing substantial low-grade stockpiles, reflecting a strategy to maximize value from previously extracted materials during the ramp-up phase. Management is executing a strategy to re-establish the enterprise as a premier mid-tier producer by leveraging its existing infrastructure and technical capabilities. The organization's competitive positioning is supported by its ability to efficiently manage a multi-plant setup and its focus on systematic operational improvements. This integrated model, combining production with aggressive exploration, is designed to underpin long-term, sustainable growth and value creation for shareholders.

Strategic priorities center on ramping up operations to achieve steady-state production and executing an aggressive near-mine and regional exploration program to expand the resource base. A key objective is to identify new opportunities with significant long-term exploration upside. The organization plans to unlock value from its advanced development project through monetization or a joint venture partnership, allowing for capital reallocation to core activities. Management's approach involves a continuous assessment of viable project opportunities that could offer value-enhancing synergies. Operational strategy is focused on increasing production volumes, improving the grade of processed ore, and enhancing recovery rates to drive efficiency and profitability. The long-term goal is to re-establish the company as a premier mid-tier producer, underpinned by the financial and operational success of its primary asset, which will enable future growth initiatives.

Executive leadership is headed by an Executive Chairman with over 44 years of experience in investment management across the minerals sector and a Managing Director & Chief Executive Officer with a background in corporate strategy and government advisory roles in mining portfolios. The board of directors consists of 4 members, including 2 non-executive directors, and governs through Audit, Nomination, and Remuneration committees. The governance framework is aligned with ASX Corporate Governance Council principles and has been actively updated, with recent reviews of the Code of Conduct, Anti-Bribery and Corruption Policy, and Whistleblowing Policy. A new Conflict of Interest Policy was approved in July 2024, and the company is preparing its first Modern Slavery Statement. This demonstrates a commitment to strengthening governance practices and ensuring transparent, ethical business conduct across all levels of the organization as it expands its operational capacity.

The organization's sustainability efforts are structured around a four-pillar strategy encompassing community, education, health, and water. Specific initiatives in fiscal year 2024 included planting approximately 15,000 trees, recycling around 160 tonnes of waste, and conducting free annual health checks for over 450 local residents. The company maintains 16 water filtration stations and operates its primary site on a nil-release basis, with water quality regularly monitored at 24 surface and 76 groundwater sampling locations. Dust, noise, and vibration levels are also tracked by independent consultants to ensure compliance with regulatory thresholds. In terms of workforce, over 80% of employees are hired from local communities. Workplace safety is a core focus, evidenced by a low total recordable injury frequency rate of 1.6 per million hours worked and the establishment of an Occupational Safety and Health Committee.

The corporate structure includes the key operational subsidiary Akara Resources Public Company Limited, which features a unique arrangement with a preference shareholder, Nucharee Sailasuta, who is also a non-executive director of the parent company. This related-party relationship extends to a mining services contract with LotusHall Mining Heavy Engineering Construction Co., Ltd, where the preference shareholder serves as Managing Director. In fiscal year 2024, LotusHall provided $9,337,000 in services. The company also has a financing relationship with the preference shareholder, who provided advances totaling 300,000,000 Thai baht. Major institutional shareholders as of September 2024 include HSBC Custody Nominees (9.13%), BNP Paribas Noms Pty Ltd (7.84%), and Citicorp Nominees Pty Limited (7.58%). The company has also entered into significant financing agreements, including a US$35 million senior secured term facility with Nebari Gold Fund 1, LP and Nebari Natural Resources Credit Fund II, LP, secured in July 2024.