Kingsgate revenue soars

PERTH (miningweekly.com) – Gold miner Kingsgate Consolidated has nearly doubled its revenue to $158.2-million for the six months to December 31, compared with $93.1-million in the previous corresponding period, resulting in a 206% increase in profits after tax.

The company on Tuesday reported profits after tax of $21.1-million, compared with a loss of $19.9-million in the previous corresponding period.

Earnings before interest, taxes, depreciation and amortisation for the half-year were up to $61.7-million, compared with $24.1-million in the six months to December 31, 2015.

In the first half of the current financial year, the Chatree mine, in Thailand, produced 89 875 oz of gold, while the previous corresponding period saw 50 746 oz being delivered from Chatree and a further 39 753 oz from the Challenger mine, in South Australia.

The Challenger mine was divested in October 2015.

During the six months under review, Kingsgate received orders from the Thai government to cease operations at the Chatree mine, following a decision that all gold mining in the country cease by December 31.

Chatree was placed on care and maintenance on January 1.

Kingsgate noted on Tuesday that some 4 700 oz of gold sludge was still stored in the Chatree vault, which could not be processed into dore under current Thai authority instructions.