https://www.kingsgate.com.au/wp-content/uploads/2013/08/QR-Icon.png 80 80 Simon Pierce https://www.kingsgate.com.au/wp-content/uploads/2015/05/KCN_WebLogo_SMALL.png Simon Pierce2016-07-29 16:34:092018-04-30 10:54:51June 2016 Quarterly Report
- On 10 May 2016, the Thai Minister for Industry decided, following a Cabinet meeting, that the Metallurgical Licence for the Chatree Gold Mine would be extended only until the end of 2016, rather than for a further three to five year period as was expected.
- As the Metallurgical Licence is critical to the continued operation of the Chatree Gold Mine, all operations must cease by 31 December 2016.
- Due to ongoing uncertainty with respect to the remaining tenure of the Chatree Gold Mine, Kingsgate shares remain voluntarily suspended from trading.
- There is the potential for a substantial impairment to the carrying value of the Chatree Gold Mine, subject to a final review and audit that will be in the order of US$175 million, which highlights the magnitude of the impact of the Thai Government’s decision to prematurely close the mine.
- Kingsgate continues to push for clarity and remedies to the situation in Thailand.
- Kingsgate has a bright future in Chile being a jurisdiction that welcomes and respects foreign investment.
- Kingsgate is pushing ahead with its 100% owned Nueva Esperanza Project in Chile, and US$3 million has been committed to exploration in FY17.
- Completion of the sale of the Bowdens Silver Project for a total of A$25 million, of which A$20 million has now been received, with the remaining A$5 million to be paid by 30 September 2016.
- Cash and bullion/doré totaled A$55.2 million (March quarter: A$49.8 million), comprising cash of A$47.5 million (including restricted cash of A$11.2 million) and bullion/doré of A$7.7 million.
- Debt facilities of A$86 million comprise a A$10 million corporate facility and an A$76 million equivalent loan facility against Chatree.