Kingsgate Consolidated NL (KCN) - On Target for its First Gold Bar in November

• Kingsgate’s Chatree mine in Thailand is well known and after some time attaining all the regulatory requirements, it is now expected to produce its first gold bar by the end of November 2001, following a construction period of almost one year.
• KCN shows a very high sensitivity to Chatree’s gold grades. In our opinion, we believe that there are a number of reasons to suggest that gold grades should be at least 10% higher than expected. If such higher grades are achieved, then at current long-term gold prices of US$270/oz and an A$ exchange rate of US$0.50, the 5%real NPV of the project increases from A$0.87 to A$1.43.
• KCN is in the very fortunate position that it does not pay tax for the first 8 years following its first gold pour, and then has a further 5 years after that at half-tax rates or 15%, under an agreement with the Royal Thai Board of Investment.