Kingsgate Consolidated - Chatree Gold Mine Ramp Up Update - 12 November 2024
KCN (KCN) Share Update November 2024 Monday 11th
Kingsgate Consolidated Reports Significant Progress at Chatree Gold Mine
Kingsgate Consolidated Limited (ASX: KCN) has released an update on the ramp-up of operations at its Chatree Gold Mine in Thailand, highlighting significant improvements in productivity and operational efficiencies.
Instant Summary:
- Highest monthly gold production since March 2023 restart.
- 64% of ore processed from ex-pit sources, up from 34% last quarter.
- Processing plants operating above nameplate capacity with 95.8% availability.
- Successful trials of carbonaceous ore processing with high recovery rates.
- Dewatering of A Pit North ahead of schedule.
- Minestar Edge software rollout to enhance productivity and reduce costs.
Operational Improvements
Kingsgate Consolidated has reported a significant increase in mining productivity at the Chatree Gold Mine, with October marking the highest monthly gold production since operations resumed in March 2023. This achievement was driven by increasing the proportion of ex-pit ore feed to 64%, compared to 34% in the previous quarter.
The processing plants at Chatree are operating well above their nameplate capacity of five million tonnes per annum, with an impressive availability rate of 95.8% and a utilisation rate of 97%. These figures underscore the operational efficiencies achieved by the company.
Metallurgical Advancements
Recent metallurgical studies have demonstrated the successful processing of higher-grade zones of carbonaceous ore. Approximately 72,000 tonnes of this ore were processed with excellent recovery results, confirming that it can be blended with other ores without impacting recovery rates.
This advancement simplifies mining operations and reduces costs, contributing to the overall efficiency of the Chatree operations.
Future Initiatives
Looking ahead, Kingsgate plans to commission a new cyanide isotainers system next month, alongside new cyanide analysers and a WAD analyser for tailings. These upgrades are expected to enhance control over cyanide consumption and reduce costs per tonne of ore processed.
Additionally, the regional exploration field season has commenced to evaluate significant exploration targets near Chatree, potentially expanding the mine's resource base.
The operational improvements and successful trials at Chatree are likely to positively impact Kingsgate's stock, as they enhance productivity and reduce costs. The increased gold production and efficient processing capabilities position the company well for future growth. However, recent share price volatility suggests that the market has yet to fully recognize these advancements.
Investor Reaction:
Analysts may view the update positively, given the operational efficiencies and increased production. However, the recent volatility in Kingsgate's share price could lead to cautious optimism among investors, pending further clarity on capital management strategies.
Conclusion:
Investors should closely monitor Kingsgate's ongoing operational improvements and upcoming initiatives at Chatree. The company's focus on enhancing productivity and reducing costs could lead to long-term value creation, making it a potentially attractive investment opportunity.