For the period ending 30 June 2018
- Following the appointment of a corporate advisor to identify advantageous options to monetise the Nueva Esperanza Project, expressions of interest are currently being sought from interested parties.
- The RCA 151/13 permit was renewed during May 2018, which prescribes the relevant environmental conditions (including water usage) that the project must comply with in order to continue development.
- The Environmental Impact Assessment (“EIA”) for Nueva Esperanza has been completed on time and was submitted to the Chilean regulatory agencies on 29 June 2018.
- As Kingsgate is currently seeking to monetise the Nueva Esperanza Project, work on the Feasibility Study for the Nueva Esperanza Project has been suspended pending the outcome of that process.
Political Risk Insurance (“PRI”) Claim
- In October 2017, Kingsgate commenced proceedings in the New South Wales Supreme Court against Zurich Insurance Australia Ltd, and other named insurers, under a Political Risk Insurance Policy (with a maximum liability of US$200 million) that was held by the Company when the Thai Government expropriated the Chatree Gold Mine in May 2016.
- On 6 July 2018, a Directions Hearing was held in the Supreme Court of New South Wales for the Company’s PRI claim.
- The Court listed the Proceedings for trial, for up to fifteen days commencing on 3 June 2019.
- Kingsgate remains open to achieving a settlement, but in the meantime will continue to prosecute its claim against the insurers in the Supreme Court of New South Wales.
- The Tribunal has adopted a Procedural Calendar which provides that the merits of the TAFTA (“Australia Thailand Free Trade Agreement”) Claim will be heard on 18 November to 29 November 2019.
- THowever, the Tribunal has also ordered that the proceedings are to be kept confidential, except where disclosure is required to fulfil a legal duty.
- Kingsgate remains committed to seeking a settlement of the matter with the Thai Government.
- Cash at 30 June 2018 totaled A$11.2 million.
- Corporate debt at 30 June 2018 is A$15.0 million.
Successful rescue off the Wild Boars soccer team – July 2018:
The Board and Management of Kingsgate Consolidated Limited, would like to join with well-wishers from around the world in congratulating the rescuers, Thai officials, and the international team of supporters on their successful rescue of the 12 boys and their football coach stranded in the flooded Tham Luang cave in the Chiang Rai province for 17 days. Kingsgate offered financial and logistical support in the form of water pumps to assist with the rescue.
We also offer our sincere condolences to the family of Thai ex-Navy SEAL diver Saman Kunan who died a hero during the early stages of the rescue.
We wish the boys and their coach all the very best as their life returns to normal, and we commend the coordination of this truly global rescue, especially the successful outcome.