Key Highlights

• Kingsgate announced its FY26 results on 31 August 2026.

• Revenue rose 77% to A$596.4 million, compared with A$336.7 million in FY25.

• EBITDA rose 264% to A$344 million, and net profit after tax rose 843% to A$278 million.

• Chatree produced 86,078 ounces of gold and 766,009 ounces of silver in FY26, and the company said both exceeded the previous year's levels.

Why Kingsgate's record year matters

What explains Kingsgate Consolidated's (ASX:KCN) sharp swing to record earnings, and what has to go right from here? The short answer is that its Chatree gold and silver mine in Thailand produced more metal in FY26, the company reported far higher revenue and profit, and it has since given production guidance for FY27 that is lower than last year's output. Investors are therefore weighing a encouraging result against a cautious production range and some operational hiccups.

Kingsgate announced its FY26 results on 31 August 2026. Revenue rose 77% to A$596.4 million, compared with A$336.7 million in FY25. EBITDA rose 264% to A$344 million, and net profit after tax rose 843% to A$278 million. The company's statements, do not break the revenue increase into price and Volume effects, so that split is not quantified here.

What the company does

Kingsgate is a gold and silver producer. Its operating asset is the Chatree mine in Thailand, which sells gold and silver. It also owns the Nueva Esperanza silver-gold project in Chile, which is in the development and study stage and is not yet producing.

Revenue therefore depends on ounces sold and on the prevailing gold and silver prices, both of which can swing widely. Costs, including mining, processing and royalties, determine how much of that revenue becomes profit.

FY26 operating performance

Chatree produced 86,078 ounces of gold and 766,009 ounces of silver in FY26, and the company said both exceeded the previous year's levels. Both processing plants ran above nameplate capacity. A new run-of-mine Facility was completed and a new excavator commissioned to raise Mining rates.

All-in sustaining cost was US$2,123 per ounce for the year. That is a key measure of cost discipline, but it is a company-defined metric and not directly comparable across all producers.

The reported profit included a A$68.6 million Impairment Reversal relating to Nueva Esperanza, which is a non-cash accounting item.

The silver contribution deserves attention. With 766,009 ounces produced, silver adds a second revenue stream alongside gold, though in ounce terms it is far smaller in value.

The September 2026 quarter

The Quarterly Report for the period ended September 2026, published in late October, showed Chatree output of 14,802 ounces of gold and 187,925 ounces of silver.

The quarter was not without problems. Chatree's Plant 1 suffered a mechanical failure in July, causing a temporary processing interruption. The plant has been restored. Kingsgate is pursuing an insurance claim, with most proceeds expected in 2027. The timing and size of any recovery are uncertain.

Other developments included:

• an A$11 million purchase of 86 hectares of land in Thailand to support Chatree's long-term expansion;

• a 31% rise in Nueva Esperanza silver Ore Reserves and a 37% rise in gold Ore Reserves, extending reserve life to more than 12 years;

• the first drilling program at Nueva Esperanza in nine years;

• a new gold and silver sales agreement intended to deliver faster payment and lower refining fees.

Guidance, Dividend and strategy

For FY27, Kingsgate guided to Chatree production of 75,000 to 85,000 ounces of gold and 650,000 to 750,000 ounces of silver. The midpoint is below FY26's gold output of 86,078 ounces, so the company is not forecasting growth in the near term. Mining at the new Q Pit is intended to feed higher-grade ore to the mill as material movement ramps up.

Chatree's expansion plans appear tied to the land purchases and to Q Pit. If the pit delivers the higher grades management expects, unit costs could benefit, but that is an expectation rather than a reported outcome, and mining plans often change as drilling and operating experience accumulate.

A dividend of 10 cents per share, unfranked, was declared for FY26, with payment due in November 2026. Reports describe it as the final dividend, following an interim paid in April.

Management has also flagged further value from Chatree, from advancing or monetising Nueva Esperanza, and from assessing new gold and precious metal projects.

Index membership and sector backdrop

The index provider announced that Kingsgate would be added to the S&P/ASX 200 ahead of trading on 22 June 2026, as part of the June quarterly review. Index inclusion can broaden the Shareholder base, but it says nothing about future returns.

Precious metals producers are heavily influenced by gold and silver prices, currency movements and local operating costs. Kingsgate competes for investor Capital with a wide field of ASX-listed gold miners, many of which are larger or more diversified. Its concentration in a single producing asset is both a resilience, in management focus, and a vulnerability.

Risks and what to watch

The main risks are as follows:

• falling gold or silver prices, which would hit revenue and margins quickly;

• operational disruption at Chatree, as the Plant 1 failure showed;

• regulatory, political and permitting risk in Thailand, where the mine operates;

• cost Inflation lifting all-in sustaining costs from US$2,123 per ounce;

• execution and funding risk at Nueva Esperanza, a project that remains in the study phase;

• a lower FY27 production range than FY26 output.

Upcoming items include the November dividend payment, progress at Q Pit, the insurance claim, drilling results from Chile and any outcome from the strategic review. Investors should read the company's original announcements before drawing takeaways.