Directors’ Report
47
Directors’ Report
〉〉 Tranche one will be a $25,000,000 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 
$5,000,000 to be repaid during the 2014 
financial year and the balance of 
$10,000,000 repaid during the 2015  
financial year.
Subsequent to year-end the Group forward sold 
50,000 ounces of gold over a 12 month period at 
an average price of A$1,435 per ounce to manage 
Australian gold price risk associated with fore-
cast production from the Challenger Mine.
Kingsgate’s Thai subsidiary, Akara Resources 
Public Company Limited (“Akara”) has 
submitted its listing application and draft 
Prospectus to the Thai Securities Exchange 
Commission (SEC) and the Stock Exchange of 
Thailand (SET) for an initial public offering of its 
shares on the SET.
The SEC and SET will review the draft Prospectus 
in the coming months in order to approve the 
listing of Akara. The decision to list Akara will 
depend on market conditions and other factors 
at the time of approval.
No other matter or circumstance has arisen 
since 30 June 2013 that has significantly 
affected, or may significantly affect: 
〉〉 the Group’s operations in future financial 
years;
〉〉 the results of those operations in future 
financial years; or
〉〉 the Group’s state of affairs in future financial 
years.
Likely developments and  
expected results of operations
The outlook for the Group in fiscal year 2014  
is for gold production to be in the range of 
190,000 to 210,000 ounces. At the Chatree 
Mine in Thailand, the expanded plant will result 
in gold production of between 120,000 to 
130,000 ounces and at the Challenger Mine in 
South Australia, following the implementation 
of the new mine plan, production for the year is 
expected to be in the range of 70,000 ounces to 
80,000 ounces of gold.
continued
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Significant progress has been made at Nueva 
Esperanza in Chile. The feasibility work shifted 
to focus on identifying a lower cost and power 
consumption development alternative. This 
included assessing a heap leach process option 
and on-site power generation. Further work is 
expected to be undertaken in the December 
quarter 2013.
The DFS for the Bowdens Silver Project in  
New South Wales is currently expected to be 
completed during the 2014 financial year and,  
in addition, it is also currently anticipated an EIS 
will be lodged shortly thereafter. 
Environmental regulation
The Group is subject to environmental regula-
tion in respect to its gold mining operations and 
exploration activities in Australia, Thailand, 
Argentina, Chile, Peru and PDR Laos. For the year 
ended 30 June 2013, the Group has operated 
within all environmental laws.
Directors’ meetings
The numbers of meetings of the Company’s 
Board of Directors and of each Board Committee 
held during the year ended 30 June 2013, and 
the numbers of meetings attended by each 
Director were:
Director
Board  
Meetings
Audit Committee 
Meetings
Nomination 
Committee 
Meetings
Remuneration 
Committee  
Meetings
A B A B A B A B
R Smyth-Kirk 11 11 2 2 1 1 1 1
P Alexander 11 10 - - - - 1 1
C Carracher 11 11 2 2 1 1 1 1
P McAleer 11 11 2 2 1 1 1 1
G Thomas 11 11 – – – – – –
A: Number of meetings held while in office
B: Meetings attended