Kingsgate Consolidated Surpasses 200,000 Ounces of Gold at Chatree Mine Amid Plant 1 Remediation Progress

Chatree Gold Mine Achieves Major Production Milestone Since March 2023 Restart

Kingsgate Consolidated Limited has reached a significant production milestone at its Chatree Gold Mine, having produced in excess of 200,000 ounces of gold and 2 million ounces of silver since operations resumed in March 2023. This cumulative output underscores the mine's operational stability and its capacity to sustain production over multiple years. The milestone marks a critical point in the company’s recovery and operational performance at its flagship asset.

Managing Director and CEO Jamie Gibson stated that exceeding 200,000 ounces of gold production post-restart is "another important milestone for the Company and highlights the quality and resilience of the operation." This affirms Kingsgate’s confidence in Chatree’s consistent output as it continues to enhance and optimise its processing infrastructure. The achievement is notable given ongoing challenges related to Plant 1 remediation, demonstrating maintained production despite reduced processing capacity.

Plant 1 Operating at Half Capacity While Ball Mill Repairs Continue

Kingsgate disclosed that Plant 1 is currently operating at approximately 50% of its nameplate capacity through a modified SAG Mill circuit, processing ore at 120130 wet tonnes per hour. This controlled operation allows the company to sustain production levels while conducting remediation on the Ball Mill. The modified circuit’s dependable performance at this throughput has enabled continued material production during repairs. Additionally, the company has refined its ore feed strategy by selectively processing higher-grade ore to maximise efficiency during this period.

The Ball Mill remediation is progressing as scheduled, including completion of the trunnion lubrication motor overhaul, inspection of critical mill components, and ongoing assembly. The Ball Mill lubrication system has been fully inspected, cleaned, and restored to operational condition. Fabrication of specialised tooling for trunnion refurbishment is underway. Importantly, a spare trunnion bearing has been secured and is being airfreighted from Queensland to Thailand, reflecting active supply chain coordination to expedite repairs.

Collaboration with Metso and Specialist Contractors to Expedite Repairs

Kingsgate continues to collaborate closely with Metso and specialised contractors to safely accelerate the Ball Mill repair process and restore full operation promptly. This partnership with a leading global minerals processing equipment supplier highlights the company’s commitment to efficient and safe remediation. Leveraging external expertise ensures repairs meet high technical and safety standards.

The remediation program involves multiple technical workstreams, including component inspections, equipment refurbishment, and specialised tooling fabrication. Coordination with contractors across locations, including Queensland for spare bearing procurement, demonstrates a geographically distributed supply chain approach. The airfreighting of the trunnion bearing from Queensland to Thailand underscores the logistical complexity and urgency of the project. This operational coordination reflects established timelines and performance targets for Ball Mill restoration.

Uninterrupted Mining and Plant 2 Operations During Remediation

Mining operations at Chatree continue without disruption, and Plant 2 remains fully operational, according to the company update. This separation of operations allows continuous ore extraction and processing despite Plant 1’s reduced capacity during remediation. The ongoing full-scale mining activity confirms that processing capacity, not ore availability, is the current production constraint.

Kingsgate is optimising the modified Plant 1 circuit and selectively processing higher-grade ore to support production during remediation. This strategy indicates sufficient geological flexibility to prioritise higher-grade material, enhancing recovery rates and revenue per tonne processed despite capacity limitations. Management notes that this approach supports cash generation during the Plant 1 repair phase.

Kingsgate’s Asset Profile and Regional Presence

Kingsgate Consolidated Limited operates the Chatree Gold Mine in Thailand, a key gold and silver producing asset. Located in Southeast Asia, Chatree benefits from established mining operations and mineral processing infrastructure. The asset includes multiple processing plants and active mining operations, representing a mature, integrated facility. As the company’s primary producing asset, Chatree’s operational performance is central to Kingsgate’s financial results and cash flow.

The mine’s dual production of gold and silver provides revenue diversification within a single asset. Since restart, 2 million ounces of silver have been produced alongside 200,000 ounces of gold, highlighting silver’s importance in the production mix. This multi-commodity output exposes Kingsgate to both gold and silver price fluctuations, creating a complex revenue profile influenced by global precious metals markets. The company’s geographic focus in Thailand also introduces unique regulatory and operational factors distinct from more diversified mining firms.

Production Capacity and Operational Metrics

Operating Plant 1 at "approximately 50% of nameplate capacity" offers a clear benchmark for understanding the impact of Ball Mill remediation on output. Nameplate capacity reflects design throughput under normal conditions, so operating at half capacity signifies a substantial reduction. However, the company’s ability to reach the 200,000-ounce milestone despite this constraint suggests that stockpiled or higher-grade ore has helped offset reduced capacity. Understanding the gap between nameplate and actual throughput is key for investors assessing the timeline for production normalisation.

The modified SAG Mill circuit’s throughput of 120130 wet tonnes per hour provides a tangible measure of interim Plant 1 capacity. Combined with selective processing of higher-grade ore, this has sustained meaningful production during remediation. As Ball Mill repairs advance, throughput is expected to increase incrementally. The company has not provided a specific timeline for full capacity restoration or Ball Mill return-to-service, so investors should watch for future updates.

Complex Technical Scope of Ball Mill Remediation

The Ball Mill remediation involves complex repairs including motor overhaul, component inspection, lubrication system servicing, and trunnion bearing replacement or refurbishment. Completion of the trunnion lubrication motor overhaul and inspection of key components indicates comprehensive refurbishment beyond routine maintenance. Specialised tooling fabrication for trunnion refurbishment further highlights the bespoke engineering involved. The logistics of sourcing and airfreighting a spare trunnion bearing from Queensland demonstrate the planning required for component availability.

Inspection and cleaning of the lubrication system, with restoration of existing equipment, reflects a mixed approach of replacement and refurbishment aimed at balancing cost and time efficiency. Coordinating multiple technical workstreams—motor overhaul, lubrication servicing, tooling fabrication, and bearing logistics—suggests structured project management to align sequential and parallel tasks toward timely Ball Mill reactivation.

Near-Term Production and Cash Flow Outlook

Producing 200,000 ounces of gold and 2 million ounces of silver while Plant 1 operates at half capacity demonstrates operational resilience. Full restoration of Plant 1 and Ball Mill operations is expected to increase output and improve cash flow. However, no specific return-to-service date or post-restoration production guidance has been provided, requiring investors to monitor future communications for detailed timelines.

Kingsgate’s optimisation of the modified circuit and selective higher-grade ore processing represent tactical responses to capacity constraints. Upon full capacity restoration, ore feed strategies may shift to prioritise throughput over grade, potentially altering production and recovery profiles. The balance between near-term cash generation during remediation and longer-term production normalisation will be critical for shareholder returns. Investors should follow upcoming quarterly and project updates for more precise Ball Mill repair timelines and production forecasts.