Kingsgate signals strong operational progress at Chatree

Australia-listed Kingsgate Consolidated has provided an upbeat update on the ongoing ramp-up of its Chatree gold mine, in Thailand, reporting significant operational improvements and its highest monthly gold production since the restart of operations in March last year.

Mining productivity at Chatree surged in October, with the company increasing the proportion of ex-pit ore feed to the plant at 64%. This compares with just 34% in the previous quarter, when the majority of ore processed came from lower-grade long-term stockpiles.

The improved ore mix, along with other operational efficiencies, has driven an increase in gold production.

Despite these operational gains, Kingsgate expressed concern over the recent volatility in the company’s share price, which the company says did not reflect the fair value of its assets.

"While our focus remains firmly on the efficient and safe ramp-up of operations at Chatree, and the progress to date is pleasing, it does not consider that the current share price reflects the fair value of the assets held by the company,” said Kingsgate.

In response to the disconnect between the market value and operational progress, the board has committed to a range of strategies to ensure that the true value of the company is recognised. This might include a review of capital management options to enhance shareholder value.

Kingsgate previously said that, in the 2025 financial year, the company will produce between 80 000 oz and 90 000 oz of gold, and between 500 000 oz and 600 000 oz of silver, for gold-equivalent production of 86 000 oz to 97 000 oz at an all-in sustaining cost (AISC) of $1 650/oz to $1 800/oz.