10
Finance Report
www.kingsgate.com.au
Financing Arrangements
Corporate loan facility
Kingsgate has a three year secured loan facility 
with Investec which was amended during the 
year. The amended facility has a limit of $40 
million (30 June 2012: $50 million), of which $20 
million has been drawn down as at 30 June 2013 
(30 June 2012: $40 million). 
Convertible loan facility
Kingsgate has a five year A$35 million convert-
ible loan facility with Investec entered into in a 
prior period to provide funding for the Bowdens 
acquisition. Kingsgate has the option to make a 
prepayment against the facility with an issue of 
Kingsgate shares.
Restructure of corporate loan and  
convertible loan facilities
As indicated previously in the Preliminary Final 
report, at balance date it was the Group’s inten-
tion to restructure and amalgamate these 
facilities in the next financial year. This relates to 
the potential for completion of the Initial Public 
Offering (“IPO”) of Akara on the Stock Exchange 
of Thailand and the updated mine plan for 
Challenger. Any restructure would optimise the 
Group’s anticipated balance sheet liquidity and 
operational cash flows. Accordingly, the Group 
classified the total amount drawn down under 
these facilities of $55 million as a current liability 
at 30 June 2013.
Subsequent to the end of the financial year, the 
Group received from its lenders a credit 
approved term sheet (subject to formal docu-
mentation) for the restructure of the corporate 
loan and convertible loan facilities. Following 
completion of the restructure the total amount 
outstanding will be reduced to $40 million. This 
loan will be provided through a single senior 
corporate facility which will consist of two 
tranches:
〉〉 Tranche one will be a $25 million Akara Pre 
IPO Bond with a maturity date of 31 July 
2015. The current intention is for this 
tranche to be repaid as part of the Akara IPO, 
although at Kingsgate’s election repayment 
can be made by either cash or in Kingsgate’s 
shares.
〉〉 Tranche two is an amortising facility with $5 
million to be repaid during the 2014 financial 
year and the balance of $10 million repaid 
during the 2015 financial year.
Convertible revolving credit facility
The Group also has a three year $25 million 
Convertible Revolving Credit Facility available. 
As at the date of this report the facility is 
undrawn. Under the terms of this facility, 
Kingsgate has the option of repaying any funds 
drawn down under the facility through either 
cash or by issuing ordinary shares. It is intended 
that this facility will be utilised during the 2014 
financial year for corporate and working capital 
purposes. It is the current intention of the 
company to repay any cash drawdown under the 
facility by the issuance of fully paid ordinary 
shares which would rank parri pasu with all 
existing ordinary shares, although this position 
will be reviewed at the appropriate time. The 
number of shares has not yet been determined 
and they will be issued at a 2.5% discount to 
VWAP over a period by reference to the draw 
down date. Shareholder approval is not required.
Multi-currency and syndicated  
loan facilities
Kingsgate’s Thai operating subsidiary, Akara, 
established a six year amortising multi-currency 
loan facility equivalent to US$125 million (fully 
drawn as at period end) and an additional Thai 
Baht denominated working capital facility 
equivalent to US$15 million (undrawn as at year 
end) during the period. The proceeds from these 
borrowings were used to fully repay the 
outstanding balance on the US$100 million Baht 
denominated syndicated loan facility in exist-
ence at the beginning of the period as well as to 
repay part of the corporate loan facility noted 
above. 
Financial Position
Shareholders’ equity at 30 June 2013 was $474 
million (2012: $776 million). The decrease of 
$302 million reflects the year’s loss together 
with dividends paid.
Dividends