Kingsgate Accelerates Chatree Output, Eyes Chile Growth
Kingsgate Consolidated reports a strong FY25 at its Chatree Gold Mine with 75,000 ounces produced and sets ambitious FY26 targets, while advancing its Chilean project.
- FY25 gold production of ~75,000 ounces at Chatree
- FY26 guidance raised to 85,000–95,000 ounces with improved cost metrics
- Significant ramp-up in cash and bullion holdings to US$55 million
- Ongoing exploration success at Chatree’s South-East Complex
- Strategic options being explored for Nueva Esperanza project in Chile
Operational Momentum at Chatree
Kingsgate Consolidated Limited has delivered a robust operational update for its Chatree Gold Mine in Thailand, marking a pivotal year of growth and consolidation. The company reported a gold production tally of approximately 75,000 ounces for FY25, underscoring a successful ramp-up following the mine’s restart in late 2024. This performance was supported by a newly acquired Caterpillar mining fleet and refurbished processing plants operating 14% above nameplate capacity.
Notably, the mine achieved record all-in sustaining cost (AISC) margins, with a significant improvement from US$331 per ounce in the first quarter to US$1,240 per ounce by the fourth quarter of FY25. This margin expansion reflects operational efficiencies and a favourable gold price environment, positioning Kingsgate well for the year ahead.
Ambitious FY26 Guidance and Financial Strength
Building on this momentum, Kingsgate has set FY26 production guidance between 85,000 and 95,000 ounces of gold, with an AISC forecast of US$1,550 to US$1,750 per ounce. The company anticipates processing throughput above nameplate capacity at both plants, signaling confidence in sustaining and improving operational performance.
Financially, Kingsgate has strengthened its balance sheet, repaying approximately US$12 million in debt during FY25 and increasing total cash and bullion holdings to US$55 million, a 258% increase year-on-year. The company remains unhedged, fully exposed to current elevated gold and silver prices, and maintains a tight capital structure relative to Australian peers.
Exploration and Growth Prospects
Exploration efforts have focused on the near-mine South-East Complex, an extension of the Chatree ore body. Over 30km of reverse circulation and 4km of diamond drilling have yielded promising results, including high-grade intercepts such as 8 meters at 20.02 grams per tonne gold. An updated resource and reserve estimate, including an inaugural resource for the South-East Complex, is expected before the end of 2025, potentially underpinning future production growth.
Meanwhile, Kingsgate is advancing its Nueva Esperanza development project in Chile’s Maricunga gold-silver belt. The company is actively exploring strategic options to unlock value from this pre-feasibility stage asset, including potential joint ventures, a separate listing, or sale. This diversification reflects Kingsgate’s ambition to broaden its growth pipeline beyond Thailand.
Sustainability and Community Engagement
Kingsgate continues to emphasize sustainability and strong community relations in Thailand, maintaining a 98% Thai workforce and engaging extensively with local communities through environmental initiatives and health programs. This commitment supports operational stability and social license to operate in a geopolitically sensitive region.
Bottom Line?
Kingsgate’s operational strides and strategic initiatives set the stage for a transformative 2026, but execution risks and commodity volatility remain key watchpoints.
Questions in the middle?
- How will exploration results from the South-East Complex impact Kingsgate’s long-term mine plan?
- What strategic path will Kingsgate choose for the Nueva Esperanza project amid rising silver prices?
- Can Kingsgate sustain its improved AISC margins amid potential cost pressures and geopolitical risks?
