This gold producer is up 40% in a month but says there's a record year ahead

Kingsgate is forecasting a strong year of production from its mine in Thailand.

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Gold producer Kingsgate Consolidated Limited (ASX: KCN) is predicting a year of record gold production and cash flow from its Chatree mine in Thailand, in a year it is characterising as a "consolidation" period.

The company's shares are already up more than 40% since early August, changing hands for $3.16 on Thursday, up 2.1% on the day.

In an investor presentation released to the ASX on Thursday, the company said it expected to produce between 85,000 and 95,000 ounces of gold this financial year – a record for the project – at an all-in sustaining cost of US$1550-US$1750 per ounce, before royalties.

This compares with the current gold price of US$3649.28 per ounce.

Kingsgate said it also had more than 1200km2 of exploration potential across 17 tenements within 20km of the Chatree mine and a "robust" exploration program planned for the next field season.

It was also planning an updated resource and reserve estimate for Chatree, as well as an inaugural resource estimate for the south east complex at Chatree, before the end of 2025.

New project potential

As well as its ongoing operations in Thailand, the company said it had also increased its focus on its Nueva Esperanza project in Chile.

Kingsgate said that project was a "prospective pre-feasibility stage development project located in the highly-endowed Maricunga gold/silver belt of the Atacama region of Chile''.

The company said it was currently "exploring all options to advance the project and unlock value for shareholders, including a separate listing, joint venture or sale''.

Kingsgate was also recently named for upcoming inclusion in the S&P/ASX 300 Index (ASX: XKO).

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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