Kingsgate Boosts Gold Output 15%, Cuts Costs 13% in March Quarter

Operational Performance and Cost Efficiency

Kingsgate Consolidated Ltd’s March 2025 quarterly report highlights a continued upward trajectory in production and cost management at its Chatree Gold Mine in Thailand. Gold output rose 15% quarter-on-quarter to 20,628 ounces, marking the fourth consecutive quarter of growth. Silver production also remained strong at 161,523 ounces.

Crucially, the company achieved a 13% reduction in all-in sustaining costs (AISC) to US$1,839 per ounce, resulting in a record AISC margin of US$1,036 per ounce. This margin reflects the gap between the average realised gold price of US$2,875 per ounce and the cost base, underscoring improved operational efficiencies and favourable market conditions.

Processing and Mining Advances

The Chatree processing plants exceeded expectations by operating at an annualised rate of approximately 5.5 million tonnes, 10% above their combined nameplate capacity. This increase in throughput was supported by a 23% rise in ore mined to 1.34 million tonnes, with mill feed now predominantly sourced directly from the pit rather than stockpiles.

Operational enhancements included the successful completion of a Blast Movement Technology trial, which uses sensor-equipped balls to track blast movement and optimise ore control. Following the trial’s success, this technology is now implemented on an ongoing basis, promising further reductions in ore loss and dilution.

Exploration Momentum

Exploration drilling intensified in the Chatree South-East Complex and Chang Puek Prospect, with six rigs completing over 14,000 metres of reverse circulation and diamond drilling. Significant gold intercepts were reported across multiple zones, reinforcing the potential for resource expansion. The company is progressing towards an inaugural resource estimate for the South-East Complex, signaling a strategic focus on extending mine life and value.

Financial Strength and Capital Management

Financially, Kingsgate strengthened its position with a 36% increase in available cash and bullion to A$59.5 million. The company also made its first repayment on the US$35 million Nebari loan facility and fully repaid a preference shareholder loan earlier in the year. The board remains committed to prudent capital management, with share buybacks and dividends under consideration pending liquidity and compliance factors.

Corporate and Community Engagement

Kingsgate’s corporate social responsibility efforts were recognised with the 2024 DPIM award from Thailand’s Department of Primary Industries and Mining. The company also hosted official visits from Australian and Thai government representatives, reinforcing its role as a significant Australian investor in Thailand. Community initiatives, such as the Thap Khlo Charity Run, further demonstrate Kingsgate’s commitment to sustainable and socially responsible operations.

Outlook and Strategic Projects

Production guidance for FY25 remains at the lower end of 80,000 to 90,000 ounces, with a weighting towards the second half of the year. The company expects the robust AISC margin to continue, supported by spot gold prices exceeding US$3,300 per ounce. Meanwhile, the Nueva Esperanza project in Chile advanced with geochemical sampling and preparatory work for resource updates, reflecting Kingsgate’s diversified growth strategy.