Business Description:
Kingsgate Consolidated Limited (KCN) is a gold producer and exploration company. The company owns and operates the Chatree Gold Project, located in central Thailand. Through the acquisition of Dominion Mining, KCN is also operator of the Challenger gold project as well as numerous smaller projects.

Strategy Analysis:
KCN's strategy is to explore, own, develop and operate high quality precious metals projects and become a mid-tier gold producer. Following the development of the Chatree gold mine, KCN will develop further high quality projects, in South East Asia, Australia and South America. In Thailand the strategy is to expand and explore within the mine lease, locate satellite deposits within trucking distance of the Chatree mine and, locate new deposits within the Thai gold belt. Kingsgate Consolidated reported NPAT down 71% to $21.15m for the year ended 30 June 2011. Revenues from ordinary activities were $173.35m, down 2% from last year. Gold revenue decreased by 5% to $156.0m and group silver revenue increased by 56% to $16.0m. The decrease in gold revenue is due to lower gold production from Chatree largely offset by the five months production contribution from Challenger, and a higher gold price. Diluted EPS was 18.6 cents compared to 74.5 cents last year. Net operating cash flow was $34.03m compared to $46.47m last year. The final dividend declared was 5 cents, taking the full year dividend to 15 cents compared with 35 cents last year. Gold production for the full year to 30 June 2012 is expected to be in the range of 240,000 to 260,000oz.