Kingsgate Surges with Record AISC Margin and 20,000+ Ounces Gold at Chatree
Kingsgate Consolidated Ltd reported a robust June quarter with Chatree Gold Mine maintaining gold production above 20,000 ounces and achieving a record All-in Sustaining Cost margin of US$1,240 per ounce. Operational efficiencies and exploration progress position the company well for FY26.
- Chatree produced 20,278 ounces of gold and 166,807 ounces of silver in Q4 FY25
- Record AISC margin of US$1,240 per ounce achieved with average gold price of US$3,280
- Ore mined increased 24%, processing plants running 14% above capacity
- Cash and bullion rose 16% to A$69 million, total FY25 cash and bullion up 258%
- Exploration drilling at Chatree South-East Complex advancing inaugural resource estimate
Strong Production and Cost Performance
Kingsgate Consolidated Ltd closed FY25 on a high note with its Chatree Gold Mine in Thailand delivering a second consecutive quarter exceeding 20,000 ounces of gold production. The June quarter saw 20,278 ounces of gold and 166,807 ounces of silver produced, reflecting steady operational momentum.
Crucially, the mine achieved a record All-in Sustaining Cost (AISC) margin of US$1,240 per ounce sold, underpinned by an average realised gold price of US$3,280. Despite an AISC of US$2,040 per ounce this quarter, the margin improvement from US$331 in Q1 FY25 signals effective cost management and pricing leverage.
Operational Efficiencies and Capacity Gains
Operationally, Kingsgate ramped up ore mined by 24% to 1.67 million tonnes, while processing plants exceeded their nameplate capacity by 14%, running at an annualised rate of approximately 5.7 million tonnes. Gold recovery remained solid at nearly 80%, with plant availability consistently high at 94.7%.
These gains were achieved alongside a focus on safety, with the mine maintaining a Total Recordable Injury Frequency Rate (TRIFR) of 1.75 and receiving recognition from the Thai Department of Health for employee health initiatives.
Financial Strength and Capital Management
Financially, Kingsgate strengthened its position with available cash and bullion increasing 16% during the quarter to A$69 million, and total cash and bullion up more than 258% for FY25 to A$84 million including restricted cash. The company also reduced its Nebari loan balance by A$5.7 million and initiated a share buyback program, acquiring over 1.19 million shares worth A$2.3 million, reflecting confidence in its balance sheet and commitment to shareholder returns.
Exploration Progress and Growth Prospects
Exploration drilling continued apace at the Chatree South-East Complex, with 130 holes completed to inform an inaugural resource estimate expected later this year. Significant high-grade intercepts were reported across multiple zones, including standout results such as 8 meters at 20.02 grams per tonne gold and 15 meters at 5.14 grams per tonne gold.
Beyond Thailand, Kingsgate is advancing its Nueva Esperanza gold-silver project in Chile, with extensive geochemical sampling underway to define targets for future drilling.
Outlook and Strategic Focus
Managing Director Jamie Gibson highlighted that the strong finish to FY25 positions Kingsgate well for FY26, with ongoing efforts to optimise operations and accelerate cost reductions. The company is also actively engaging with the Thai government on regulatory matters and monitoring geopolitical developments, while maintaining its commitment to sustainability and community engagement around Chatree.
Bottom Line?
Kingsgate’s operational gains and exploration advances set the stage for a pivotal FY26, but currency and geopolitical factors warrant close watch.
Questions in the middle?
- How will Kingsgate update its FY26 production and cost guidance following the A-West ramp closure?
- What impact will Thai Baht currency fluctuations have on future operating costs and margins?
- When will the inaugural resource estimate for Chatree South-East Complex be released, and how might it affect mine life?
