Kingsgate Posts Record AISC Margin with Consistent Chatree Production

• Chatree produces 21,036 ounces gold, fifth consecutive quarter above 20,000 ounces
• Record AISC margin of US$2,613 per ounce driven by strong realised prices
• Cash, bullion and doré rise nearly 19% to A$213.4 million
• Borrowings cut from A$45 million to A$15 million after refinancing
• FY26 production guidance maintained with 65,915 ounces gold YTD

Chatree Delivers Consistent Production and Record Margins

Kingsgate Consolidated (ASX:KCN) has maintained its production momentum at the Chatree Gold Mine, delivering 21,036 ounces of gold and 182,549 ounces of silver in the March quarter. This marks the fifth consecutive quarter surpassing 20,000 ounces of gold, underscoring the operation's reliability and steady output. The mine’s all-in sustaining cost (AISC) pre-royalties came in at US$1,103 per ounce, well below full-year guidance, while the average realised gold price surged 16% quarter-on-quarter to US$4,814 per ounce. These factors combined to produce a record AISC margin of US$2,613 per ounce, the highest Kingsgate has reported to date.

Ore mined increased 6% during the quarter, supported by the commissioning of a new 6030 excavator, expanding fleet capacity. Processing plants continued to outperform, running at an annualised rate of approximately 5.4 million tonnes per annum, exceeding nameplate capacity. Gold recovery remained steady at 83.4%, with silver recovery improving to 61.8%, contributing to the solid production figures and operational efficiency. The mine’s TRIFR stood at 5.2, reflecting ongoing safety management.

Strong Cash Position and Debt Reduction

Financially, Kingsgate strengthened its balance sheet with a 19% increase in total cash, bullion, and doré holdings to A$213.4 million, including A$23.1 million in restricted cash. Available cash and bullion rose to A$190.3 million. The company achieved a net deleveraging of A$31.2 million during the quarter, reducing borrowings from A$45 million to A$15 million following a refinancing deal with Nebari. This refinancing involved drawing down US$10 million under a standby loan facility and repaying US$30 million of existing debt, improving liquidity and flexibility.

The cash build was underpinned by strong operational cash flows of A$74.6 million, supported by aggregate bullion sales of A$173 million. The company also received a modest A$5 million inflow from option conversions. Key cash outflows included corporate and project-related costs, lease payments on mining equipment, and the refinancing transaction.

Operational Costs and Technical Progress

Mining costs per tonne increased slightly to US$3.66, partly due to a 30% jump in diesel prices linked to geopolitical tensions affecting fuel supply chains. Despite this, Kingsgate maintained secure fuel supplies and is expanding on-site reserves to mitigate future risks. Processing costs decreased 12% quarter-on-quarter to US$9.55 per tonne, aided by the absence of mill relinings and reduced consumables. Sustaining capital costs rose due to deferred stripping and the acquisition of the new excavator.

Technical studies advanced across tailings storage, water management, and geotechnical programs. Notably, tailings storage facility (TSF) assessments confirmed capacity through to 2030, with planning for a third facility underway. Water management initiatives include a site-wide water quality program and infrastructure upgrades to support pit deepening. Geotechnical work is addressing rockfall risks ahead of the wet season.

Resource definition drilling continued with nine reverse circulation holes completed around A Pit, alongside geotechnical and water monitoring drilling. Positive reconciliation results show production exceeding modelled gold ounces by 5% this quarter, supporting resource confidence.

Corporate Updates and Community Engagement

Kingsgate appointed Jade Cook as Company Secretary, replacing Stephanie Wen, and welcomed Racquel Kolkert as General Manager, Geology. Kolkert brings over 25 years of global experience, including senior roles at Kinross Gold and Rio Tinto. The company also announced two new independent non-executive directors, Greg Orrell and Kerry Stevenson, strengthening governance.

On the sustainability front, Akara Resources, Kingsgate’s Thai subsidiary, received the CSR-DPIM Continuous Award 2025 for corporate social responsibility. The Chatree mine hosted high-level Thai government delegations, reaffirming its role in supporting national industrial development. Community initiatives included a vibrant market event promoting local economic growth and wellbeing.

Kingsgate declared a 10 cent interim dividend paid in April, reflecting confidence in ongoing cash generation following a record half-year net profit of A$88.1 million. The company remains on track to meet FY26 production guidance of 93,000 to 103,000 gold equivalent ounces, with AISC (pre-royalties) expected between US$1,550 and US$1,750 per ounce.

These results build on Kingsgate’s steady operational and financial progress seen in previous quarters, including a strong cash position and disciplined cost control strong cash reserves and a record profit and dividend declaration earlier this year spectacular half-year profit. The company’s focus on technical studies and resource confidence at Chatree, alongside advancing the Nueva Esperanza project in Chile, positions it for continued operational resilience and growth.

Bottom Line?

Kingsgate’s record AISC margin and robust cash flow provide a strong buffer against rising costs and market volatility, but fuel price pressures and resource extension remain key watchpoints.

Questions in the middle?

• How will rising diesel prices and geopolitical risks impact Kingsgate’s cost structure in coming quarters?
• What progress will Kingsgate make on expanding tailings storage and water management to support pit deepening?
• How might drilling results and technical studies at Nueva Esperanza influence Kingsgate’s medium-term growth strategy?