4
Managing Director and CEO’s Report
www.kingsgate.com.au
Development Projects
Bowdens
The Bowdens Project continued to advance 
during the year with field programs supporting 
the ongoing feasibility and environmental 
studies. Sterilisation drilling and additional 
metallurgical sampling were undertaken with 
the resource evaluation drilling completed in 
October 2012.
During 2013, the process design and engineering 
work for the Definitive Feasibility Study (“DFS”) 
progressed to a point where the draft study was 
close to completion as at 30 June 2013. The study 
encompassed detailed process design based on 
using the most recent metallurgical test results, 
capital and operating cost estimates, project 
water and power supply, infrastructure require-
ments and mine optimisation.
The preparation for lodgement of an Environ-
mental Impact Statement (“EIS”) to the NSW 
Department of Planning continues. It is envis-
aged that the EIS will be completed and lodged  
in 2014. Data for flora and fauna, surface water, 
groundwater, meteorology, ambient noise and 
dust levels are collected routinely. Further inves-
tigations of cultural heritage, social-economic 
impact, traffic impact, soil type and agricultural 
suitability have also been undertaken.
With the fall in metal prices in late 2013, work 
and expenditure on the DFS and EIS have been 
phased to coordinate and synchronise the 
timing of the two programs with completion 
and lodgement now not expected before 
mid-2014.
Nueva Esperanza
The Nueva Esperanza Project was advanced 
during the year with the completion of a draft 
feasibility study. This study included a decision 
to mine the Arqueros and Teterita portions of 
Nueva Esperanza. The study demonstrated that 
open pit mining at two million tonnes per year 
and processing by milling and agitation leaching 
in cyanide was technically feasible, although 
high capital and power costs negatively 
impacted project economic returns. 
As a consequence, feasibility work has tran-
sitioned to assess a lower capital cost and lower 
power requirement options, namely the poten-
tial for heap leach processing. Metallurgical 
testwork recently completed demonstrated 
that processing of mineralisation from all three 
deposits by heap leaching has the potential to 
be technically and economically feasible and as 
a consequence may become the preferred 
alternative for development. 
Environmental approval for the original Arqueros 
Project was granted in July 2013.
Financials
Kingsgate made an after tax loss of $323.7 
million for the full year to 30 June 2013 compared 
to an after tax profit of $75.0  million for the 
previous corresponding year. The result for the 
year reflected an impairment of $311.9 million 
pre-tax ($291.3 million post-tax) against the 
Challenger Mine and associated assets and an 
impairment of $20.4 million against greenfield 
exploration projects in Australia and Thailand.
Financial Summary
2013  
$000
2012 
$000
Total sales revenue 329,282 357,372
EBITDA before significant items 115,845 168,583
(Loss) / profit before tax (339,615) 91,277
Income tax benefit / (expense) 15,889 (16,271)
(Loss) / profit after income after tax (323,726) 75,006
Dividend declared (¢/share) 5 20