Kingsgate Consolidated Ltd (ASX:KCN) has closed out its 2026 financial year with a solid performance at the Chatree gold mine in Thailand, confirming the operation hit its annual production guidance. The company reported a total annual output of 86,078 ounces of gold and 766,009 ounces of silver. During the June quarter, the mine delivered 20,163 ounces of gold, marking the sixth consecutive quarter that production has exceeded the 20,000-ounce threshold. While production dipped slightly compared to the 21,036 ounces recorded in the March quarter, the company significantly outperformed its cost expectations for the year.

"Achieving our FY26 production guidance is another significant milestone for Kingsgate and reflects the consistency of our operations, with Chatree delivering a sixth consecutive quarter of more than 20,000 ounces of gold production. Importantly, we not only met our production targets but materially outperformed our cost guidance, delivering an AISC (pre-royalties) well below the lower end of our guidance range. This demonstrates the quality of the operation and the ongoing focus of our team on operational excellence and cost discipline."

— Jamie Gibson, Managing Director and CEO

Operational focus for the June period included a substantial increase in waste mining, with the strip ratio rising to 3:1 compared to the 2:1 reported in the March quarter. This intensity, driven by the ongoing A-East cutback, is expected to remain elevated into the September 2026 quarter as the company continues development at the A Pit and prepares to restart mining at Q Pit. Progress remains steady at the mine site, with technical specialists overseeing the remediation of Plant #1. The replacement trunnion bearing is en route, and the plant continues to operate in a closed-circuit configuration during the repairs.

The company is also advancing several long-term initiatives. A comprehensive dam safety review for the site's tailings storage facilities is underway, with finalisation expected in the first half of the 2027 financial year. Meanwhile, land acquisition efforts are ongoing to support facility expansion, and the team is working on water management upgrades to improve site flexibility. In terms of regional growth, the company is waiting on final government approvals for exploration licences in the Phichit area. Once these permits are secured in early fiscal 2027, the company expects to launch its next phase of exploration drilling.

Financial discipline remained a feature of the quarterly results, as Kingsgate ended the period with cash, bullion, and doré totaling A$179.2 million. The company also reached a corporate milestone during the quarter, being included in the S&P ASX200 Index following the June rebalancing. Additionally, the company completed the acquisition of royalty and water rights at the Nueva Esperanza site for a total cash consideration of US$15.6 million. These developments, combined with a steady operational rhythm at Chatree, position the company for its next phase of activity as it shifts focus into the upcoming fiscal year.

Read the full announcement: June 2026 Quarterly Report