Kingsgate Powers Ahead with 150% Ore Mined Surge and Gold Output Growth

• 150% increase in ore mined at Chatree Gold Mine
• 13.4% growth in gold production, third consecutive quarter
• Updated Mineral Resources and Ore Reserves statement boosts reserves
• All-in Sustaining Cost (AISC) at US$2,125/oz, impacted by lower head grade
• Ongoing efficiency initiatives expected to improve production and reduce costs

Operational Momentum at Chatree

Kingsgate Consolidated Limited has reported a robust December 2024 quarter, highlighted by a remarkable 150% increase in ore mined at its Chatree Gold Mine in Thailand. This surge in mining activity underpins a 13.4% increase in gold production to 17,936 ounces, marking the third consecutive quarter of production growth for the company.

The ramp-up in mining was facilitated by the full delivery of a new Caterpillar fleet, enabling material movement to reach levels aligned with the company's guidance. Notably, the volume of waste mined also increased by 126%, reflecting the intensified operational tempo.

Production and Cost Dynamics

Gold sales for the quarter stood at 17,314 ounces, with silver sales at 133,544 ounces, achieved at average prices of US$2,664 per ounce for gold and US$30.71 per ounce for silver. Despite the production gains, the All-in Sustaining Cost (AISC) was reported at US$2,125 per ounce, slightly elevated due to a lower head grade than previously forecasted.

Importantly, Kingsgate has implemented updated Mineral Resources and Ore Reserves models focused on the A-Pit area, which have been in use since January 2025. These models have improved the accuracy of tonnage and grade forecasts, setting the stage for anticipated increases in grade performance and throughput in the coming quarters.

Challenges and Strategic Responses

The quarter was not without challenges. A grade control software issue identified in mid-2024 led to misclassification of ore and waste, impacting production efficiency. Kingsgate is actively assessing commercial remedies for this matter. Consequently, the company now expects production to be at the lower end of its guidance range, with AISC at the higher end.

To address these issues, Kingsgate has prioritized a series of efficiency and cost reduction initiatives, particularly targeting the processing value chain. These efforts, combined with the mining ramp-up, are expected to significantly improve AISC and production metrics in future quarters.

Exploration and Growth Prospects

Exploration activities continued at the Chatree South-East Complex and the Singto Prospect, with significant gold intercepts confirming mineralization continuity and potential extensions. The company plans to undertake further drilling in 2025 to support an inaugural resource estimate for the South-East Complex.

Meanwhile, progress at the Nueva Esperanza project in Chile remains steady, with geochemical studies identifying new targets and ongoing engagement with Chilean government and industry stakeholders to advance the project.

Corporate and Community Engagement

Leadership changes include the permanent appointment of Bob Kennedy as General Manager Operations, who is spearheading operational improvements at Chatree. Kingsgate also continues to foster strong community relations through educational programs and development funds supporting local health and infrastructure projects.

Investor relations activities included participation in the Zurich Precious Metals Forum and hosting site visits for major shareholders, reinforcing transparency and engagement.

Bottom Line?

Kingsgate’s operational ramp-up and resource model updates position Chatree for growth, but watch for grade control fixes and cost pressures ahead.

Questions in the middle?

• How will Kingsgate resolve the commercial impact of the grade control software errors?
• What is the timeline and expected impact of the efficiency initiatives on AISC and production?
• How might fluctuating gold prices influence Kingsgate’s revised guidance and profitability?