Key Highlights

• Kingsgate reported FY2026 Revenue of $596.4 million, up from $336.7 million a year earlier, and EBITDA of $343.5 million, a Margin of 57.6 per cent.

• Gold sold was 86,125 ounces at an average of US$4,176 per ounce and silver sold was 739,238 ounces at US$61.28 per ounce.

• Chatree processed 5.47 million tonnes of ore at 0.60 grams per tonne of gold, against 5.42 million tonnes at 0.53 grams per tonne in FY2025.

• That comprised $85.6 million of unrestricted cash, $36.7 million of bullion in the safe, $30.9 million of bullion receivables from the refiner and $26.0 million of restricted cash.

Why would a gold miner that has just reported record Earnings still be reviewing Options for a separate silver-gold project on the other side of the world? Kingsgate Consolidated's (ASX:KCN) FY2026 results, released on 31 August 2026 for the year ended 30 June 2026, help answer that. The company's Chatree gold and silver mine in Thailand produced encouragingly and generated cash, which has let management repay most of its borrowings while it studies the Nueva Esperanza project in Chile and considers a possible separate ASX listing for it.

The central development: a step-change in earnings

Kingsgate reported FY2026 revenue of $596.4 million, up from $336.7 million a year earlier, and EBITDA of $343.5 million, a margin of 57.6 per cent. Net profit after tax was $277.9 million, compared with $29.5 million in FY2025, and Basic Earnings Per Share were 106.2 cents.

It is important to read these numbers carefully. EBITDA includes a $68.6 million Impairment Reversal on Nueva Esperanza, which is non-cash and not a measure of Mining performance. Operating cash inflow of $225.7 million is a cleaner indicator of what the mine itself generated.

How Kingsgate makes money

Kingsgate's revenue comes almost entirely from Chatree, where its Subsidiary Akara mines and processes ore to produce gold and silver doré. In FY2026 Chatree poured 86,078 ounces of gold, compared with 74,661 ounces in FY2025, and 766,009 ounces of silver, compared with 625,698 ounces. Gold sold was 86,125 ounces at an average of US$4,176 per ounce and silver sold was 739,238 ounces at US$61.28 per ounce.

All-in sustaining cost (AISC) was US$2,123 per ounce. Silver by-product revenue complicates a straight cost comparison, and these calculations are ours rather than company figures, so treat them as indicative only and check the company's own revenue split.

Operating performance

Chatree processed 5.47 million tonnes of ore at 0.60 grams per tonne of gold, against 5.42 million tonnes at 0.53 grams per tonne in FY2025. Gold recovery was 83.0 per cent and silver recovery 60.7 per cent. Plant availability fell to 93.7 per cent from 95.7 per cent. Total material moved was 22.1 million tonnes, including 6.1 million tonnes of ore, giving a stripping ratio of 2.6 to one.

Operational upgrades included a new expanded run-of-mine Facility completed in December 2025 and a new Caterpillar 6030 excavator operational in February 2026. Stockpiles at 30 June 2026 were 4.27 million tonnes at 0.42 grams per tonne, containing about 57,679 ounces of gold.

Balance sheet and Shareholder returns

Total cash and bullion was $179.2 million at 30 June 2026. That comprised $85.6 million of unrestricted cash, $36.7 million of bullion in the safe, $30.9 million of bullion receivables from the refiner and $26.0 million of restricted cash. Borrowings fell to $25.7 million from $63.7 million, mainly through repayment of the term loan, and Lease liabilities were $40.1 million.

Kingsgate declared a final Dividend of 10 cents per share, unfranked, totalling about $26.6 million, with the Record Date on 21 October 2026 and payment on 11 November 2026. An Interim Dividend of the same size was paid on 10 April 2026. Unfranked dividends carry no Australian tax credit, which may matter to some holders.

Growth, Q Pit and Nueva Esperanza

Net investing outflow for the year was $90.2 million, including $62.1 million of exploration, evaluation and development spending covering construction of a second tailings storage facility (TSF2), deferred stripping and Nueva Esperanza royalties and water rights. Pre-stripping continues at Q Pit and at the A East cutback.

Nueva Esperanza is a pre-feasibility-stage silver-gold project in Chile's Atacama region. It acquired royalties and water rights in May 2026 and is running a strategic review that includes a possible separate ASX listing. No timing has been disclosed, and a pre-feasibility project carries real uncertainty about whether it becomes an operating mine.

Sector and competitive position

Kingsgate is a single-asset producer in a mid-sized gold sector, which makes it more concentrated than most Australian peers. The arbitration against Thailand under the Free Trade Agreement was terminated on 29 December 2025 with no award or settlement.

Risks and what to monitor

The directors' report lists Commodity price and currency exposure (US dollar and Thai baht), access to capital, political, regulatory and permitting risk in Thailand and Chile, resource and reserve estimate uncertainty, operating and insurance risks, and community and environmental matters. Reliance on one mine concentrates all of these.

Plant availability slipped during the year, and the safety record, with a total recordable injury frequency rate of 7.05, is worth watching.

Dates and events ahead include the 11 November 2026 dividend payment, the Nueva Esperanza drilling and strategic review, a shareholder vote at the next Annual General Meeting on performance rights for Executive Chairman Ross Smyth-Kirk and CEO Jamie Gibson, and the next quarterly report.