4 Managing Director and CEO’s Report Development Projects Bowdens Nueva Esperanza Financials The Bowdens Project continued to advance  during the year with field programs supporting  the ongoing feasibility and environmental  studies. Sterilisation drilling and additional  metallurgical sampling were undertaken with  the resource evaluation drilling completed in  October 2012. During 2013, the process design and engineering  work for the Definitive Feasibility Study (“DFS”)  progressed to a point where the draft study was  close to completion as at 30 June 2013. The study  encompassed detailed process design based on  using the most recent metallurgical test results,  capital and operating cost estimates, project  water and power supply, infrastructure require- ments and mine optimisation. The preparation for lodgement of an Environ- mental Impact Statement (“EIS”) to the NSW  Department of Planning continues. It is envis- aged that the EIS will be completed and lodged in 2014. Data for flora and fauna, surface water,  groundwater, meteorology, ambient noise and  dust levels are collected routinely. Further inves- tigations of cultural heritage, social-economic  impact, traffic impact, soil type and agricultural  suitability have also been undertaken. With the fall in metal prices in late 2013, work  and expenditure on the DFS and EIS have been  phased to coordinate and synchronise the  timing of the two programs with completion  and lodgement now not expected before  mid-2014. The Nueva Esperanza Project was advanced  during the year with the completion of a draft  feasibility study. This study included a decision  to mine the Arqueros and Teterita portions of  Nueva Esperanza. The study demonstrated that  open pit mining at two million tonnes per year  and processing by milling and agitation leaching  in cyanide was technically feasible, although  high capital and power costs negatively  impacted project economic returns.  As a consequence, feasibility work has tran- sitioned to assess a lower capital cost and lower  power requirement options, namely the poten- tial for heap leach processing. Metallurgical  testwork recently completed demonstrated  that processing of mineralisation from all three  deposits by heap leaching has the potential to  be technically and economically feasible and as  a consequence may become the preferred  alternative for development.  Environmental approval for the original Arqueros  Project was granted in July 2013. Kingsgate made an after tax loss of $323.7  million for the full year to 30 June 2013 compared  to an after tax profit of $75.0 million for the  previous corresponding year. The result for the  year reflected an impairment of $311.9 million  pre-tax ($291.3 million post-tax) against the  Challenger Mine and associated assets and an  impairment of $20.4 million against greenfield  exploration projects in Australia and Thailand. Financial Summary 2013  $000 2012  $000 Total sales revenue  329,282 357,372 EBITDA before significant items  115,845 168,583 (Loss) / profit before tax  (339,615) 91,277 Income tax benefit / (expense)  15,889 (16,271) (Loss) / profit after income after tax  (323,726) 75,006 Dividend declared (¢/share) 5  20 www.kingsgate.com.au