Kingsgate Revenue Jumps 153% to A$336.7M with Net Profit of A$29.5M
Kingsgate Consolidated Limited reports a robust financial turnaround in FY2025, driven by resumed mining operations and record production at Chatree Gold Mine. Revenue more than doubled, while net profit rebounded to A$29.5 million.
- Revenue jumps 153% to A$336.7 million
- Net profit rebounds to A$29.5 million after prior impairment reversal
- Mining operations recommence with production exceeding capacity
- Gold production hits 74,661 ounces; silver at 625,698 ounces
- No dividends declared despite improved financial position
Financial Turnaround Marks FY2025
Kingsgate Consolidated Limited has delivered a striking financial recovery for the year ended 30 June 2025, posting a 153% increase in revenue to A$336.7 million and a net profit of A$29.5 million. This marks a significant turnaround from the previous year, which included a substantial impairment reversal of A$228 million related to the Chatree Gold Mine. The company’s transition from a mining exploration entity to a producing entity underpins this improved performance.
Operational Resurgence at Chatree
The recommencement of mining operations at the Chatree Gold Mine in Thailand has been pivotal. Production throughput exceeded nameplate capacity, reaching an annualised rate of 5.7 million tonnes. Gold output for FY2025 totaled 74,661 ounces, complemented by 625,698 ounces of silver, achieved at an All-In-Sustaining Cost (AISC) of US$2,024 per ounce. The second half of the year saw a 21% increase in gold production compared to the first half, reflecting successful plant recommissioning and operational efficiencies.
Financial Metrics and Market Position
EBITDA rose sharply by A$109.4 million to A$94.5 million, with the second half of FY2025 showing a 101% increase over the first half. Gross profit doubled in the latter half, boosted by lower costs and stronger precious metals prices. Despite this positive momentum, Kingsgate did not declare any dividends for FY2025 or the prior year, opting instead to strengthen its balance sheet. Net assets improved to A$319.3 million, supported by a disciplined approach to capital management including a modest share buy-back.
Outlook and Strategic Considerations
With no significant events reported post-year-end, Kingsgate appears well positioned to build on its operational restart. The company’s focus remains on optimising production at Chatree while monitoring market conditions for gold and silver. Investors will be watching closely for updates on cost management and potential dividend policy shifts as the company consolidates its producing status.
Bottom Line?
Kingsgate’s FY2025 results signal a new chapter of operational strength, but the absence of dividends keeps investors cautiously attentive.
Questions in the middle?
- Will Kingsgate declare dividends as profitability stabilises?
- How sustainable is the current production ramp-up at Chatree?
- What are the company’s plans for the Nueva Esperanza project in Chile?
