Chairman’s Address to Shareholders – 2018 AGM
Chairman’s Address
2018 Annual General Meeting
The year under review has been an eventful one with, unfortunately, much of the work going on behind the scenes.
I’d just like to take a few minutes to recap where we are at the present time.
As you are all aware the Royal Thai Government refused to renew our metallurgical licence and ordered the closure of the very successful Chatree gold and silver mine in Thailand in May 2016. We were given until December 31, 2016 to cease production.
Whilst the order was specifically aimed at the Chatree mine, it was variously reported that all gold mining in Thailand was to cease by this date. The fact that Chatree was the only operating gold mine in Thailand at the time ensured that nobody could be in any doubt as to the discriminatory intent of this action.
The Government has since introduced as legislation a new Mining Act and a new Gold Policy with even more onerous conditions than previously and seemingly a contradiction of many of the statements made at the time of closure.
During 2017 we commenced international arbitration to recover your company’s losses resulting from expropriation of our assets under the Thailand Australia Free Trade Agreement (TAFTA). During the year the Tribunal has been established, and has agreed to sit in Hong Kong (previously Singapore, but this was changed at the Tribunal’s request in the last few days) under Singapore law jurisdiction and established a timetable for the hearing of the matter. The date for the final hearing has been set for November, 2019.
The matter is subject to confidentiality orders by the Tribunal, so I am unable to provide details of how the matter is proceeding, but I can say that the matter is progressing well towards the hearing date…
PDF Download
 |
Download the full Address as a pdf by clicking on the icon |
2018 AGM Results of Meeting
Results of 2018 Annual General Meeting
The Company advised that all the resolutions as set out in the Notice of Annual General Meeting and considered at the Annual General Meeting held on 29 November 2018 were passed on a poll. The Notice of Annual General Meeting was lodged with the Australian Securities Exchange on 18 October 2018.
In accordance with ASX Listing Rule 3.13.2 and Section 251AA of the Corporations Act, details of proxy votes and the votes cast on the poll for each resolution are attached.
This is to advise Chairman’s Address for the Company’s 2018 Annual General Meeting held today is available on the Company’s website at www.kingsgate.com.au.
PDF Download
|
Download the full AGM Results as a pdf by clicking on the icon |
September 2018 Quarterly Report
Quarterly Report
For the period ending 30 September 2018
KEY ISSUES:
Chile:
- 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 response has been positive with a number of interested parties engaging in the requisite due diligence and requesting site visits.
Corporate
- Political Risk Insurance Claim (“PRI”) – 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 201.
- 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.
- TAFTA Claim – 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.
- However, 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.
Financial:
- In May 2018, Kingsgate drew down a $15.0 million Standby Loan Facility (“SLF”) in order to ensure continuing
funding of its activities. - The SLF is on normal commercial terms for a loan of this nature, other than the utilisation fee under the SLF which has been satisfied by the issue of 2,641,003 Kingsgate shares. (See ASX:KCN “Appendix 3B – Issue of Shares” dated 7 May 2018).
- Investec Australia Finance Pty Limited (“Investec”) has agreed to extend the repayment date of its loan to the Company to February 2019, and to increase the Facility Limit from $15 million to $20 million.
- Cash at 30 September 2018 totalled A$1.5 million.
- Corporate debt at 30 September 2018 is A$15.0 million.
PDF Download
|
Download the full Quarterly Report as a pdf by clicking on the icon |
Preliminary Final Report 2018
Preliminary Final Report
For the period ending 30 June 2018
Kingsgate is a gold and silver mining, development and exploration company based in Sydney, Australia. Kingsgate owns the Chatree Gold Mine (“Chatree”) in Thailand. In addition, the Company has an advanced development project; the Nueva Esperanza Gold/Silver Project (“Nueva”), in the highly prospective Maricunga Gold/Silver Belt in Chile.
This report outlines the company’s activities in the period ending 30 June 2018, including comments on Chatree, the Australia – Thailand Free Trade Agreement, the Nueva Esperanza Gold/Silver Project and Regional Exploration. Click below to read the full report.
PDF Download
|
Download the full Quarterly Report as a pdf by clicking on the icon |
June 2018 Quarterly Report
Quarterly Report
For the period ending 30 June 2018
HIGHLIGHTS:
Chile:
- 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.
Corporate
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.
TAFTA
- 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.
Financial:
- 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.
PDF Download
|
Download the full Quarterly Report as a pdf by clicking on the icon |
Update on Political Risk Insurance Claim
Update on Political Risk Insurance Claim
Kingsgate Consolidated Limited (ASX: KCN) (“Kingsgate” or the “Company”) advises that a Directions Hearing was held today in the Supreme Court of New South Wales for the Company’s Claim under its Political Risk Insurance Policy (“PRI Claim”).
The Court listed the Proceedings for trial, for up to fifteen days commencing on 3 June, 2019.
Ross Smyth-Kirk
Executive Chairman
Kingsgate Consolidated Limited
PDF Download
|
Download the announcement as a pdf by clicking on the icon |