Directors’ Report
42
www.kingsgate.com.au
Your Directors present their report on the Group consisting of Kingsgate Consolidated Limited and the entities it controlled at the end of,  
or during, the year ended 30 June 2013.
Directors
The following persons were Directors of 
Kingsgate Consolidated Limited during the 
whole of the financial year and up to the date of 
this report.
〉〉 Ross Smyth-Kirk  Chairman
〉〉 Peter Alexander Non-Executive Director
〉〉 Craig Carracher Non-Executive Director
〉〉 Peter McAleer Non-Executive Director
〉〉 Gavin Thomas  Executive Director
Principal activities
The principal activities of Kingsgate 
Consolidated Limited are mining and mineral 
exploration in Australia, South East Asia and 
South America. 
Dividends
Dividends paid to members during the financial 
year were as follows:
2013 
$’000
2012 
$’000
Final dividend declared for the year ended 30 June 2012 of  
10 cents per fully paid share paid on 1 October 2012
15,148 6,829
Interim dividend declared for the year ended 30 June 2013 of  
5 cents per fully paid share paid on 12 April 2013
7,591 15,196
Total dividends 22,739 22,025
Review of operations  
and results 
Operational performance
Kingsgate is a gold mining, development and 
exploration company based in Sydney, Australia. 
Kingsgate owns and operates two gold mines, 
the world class Chatree Mine in Thailand and the 
underground Challenger Mine in South Australia. 
In addition, the Company has two advanced 
development projects, the Nueva Esperanza 
Silver / Gold Project, in the highly prospective 
Maricunga Gold / Silver Belt in Chile, and the 
Bowdens Silver Project in New South Wales, 
Australia. From this operating and development 
platform, Kingsgate aims to build value for all 
shareholders.
Group gold production was 199,897 ounces, a 
decrease of 4% on the previous corresponding 
year. The contribution from Chatree was 
133,681 ounces with 66,216 ounces from 
Challenger. 
Chatree gold production was 10% higher than 
the previous corresponding period as a result of 
an increase in throughput from the expanded 
Chatree process plant and access to higher 
grade oxide ore from Q Prospect. 
Challenger gold production was 24% lower than 
the previous corresponding year given additional 
dilution and depletion at Challenger Deeps and a 
shortfall in planned development. This resulted 
in lower ore tonnes from the mine that was 
supplemented by low grade stockpiled ore. 
Following the fall in the gold price a strategic 
review of Challenger was implemented that has 
resulted in a new mine plan to focus primarily on 
the higher grade Challenger West orebody. The 
new mine plan will be implemented during the 
first three months of the 2014 financial year.
A lower gold price and industry wide cost pres-
sures had a negative impact on the underlying 
earnings of the Group which contributed to a 
major impairment to the carrying value of a 
number of Group assets, particularly assets 
relating to the Challenger Gold Operations. 
Impairments totalling $332,808,000 were the 
major contributor to the after tax loss of 
$323,726,000 for the year. 
The development projects continued to advance 
during the year. At Nueva Esperanza, the feasi-
bility work shifted to focus on identifying the 
lowest cost and lowest power consumption 
development alternatives. This included 
reviewing a heap leach process option with 
on-site power generation. Further work is 
expected to be completed in the December 
quarter 2013. At Bowdens, the feasibility work 
has confirmed the optimum process route. 
Completion of the technical feasibility study 
including mine planning, infrastructure and 
metallurgy, and lodging of the Environmental 
Impact Statement (“EIS”) are scheduled for 
2014.
Directors’  
Report