Slide 1: Gold Fields FY 2017 results
Gold Fields FY 2017 results NICK HOLLAND: CEO Reinvesting for the future
Slide 2: Forward looking statement
Forward looking statement Certain statements in this document constitute “forward looking statements” within the meaning of Section 27A of the US Securities Act of 1933 and Section 21E of the US Securities Exchange Act of 1934. In particular, the forward looking statements in this document include a
Slide 3: 2017: The year in review
2017: The year in review ● Achieved our production and cost guidance ● Building two new mines and completing a project feasibility study ̵ Will extend life at lower cost ̵ Funded from operational cash flow ● Salares Norte ̵ Significant discovery ̵ 167km of drilling completed ̵ Growing and getting be
Slide 4: FY 2017 salient features
FY 2017 salient features FY 2017 FY 2016 Q4 2017 Q3 2017 Attributable gold equivalent production (koz) 2,160 2,146 546 567 All-in sustaining costs (US$/oz) 955 980 959 906 All-in costs (US$/oz) 1,088 1,006 1,115 1,032 Mine net cash flow* 441 452 Project spending** 326 55 Net cash from operating acti
Slide 5: Exceeding guidance for 5 years
Exceeding guidance for 5 years Gold Fields has met or exceeded both production and cost guidance for the past five years Production (koz) AIC (koz) 2500 1400 1200 2000 1000 1500 800 1000 600 400 500 200 0 0 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Actual Guidance Actual Guidance Gold Fields
Slide 6: Limiting cash outflow
Limiting cash outflow ● The Group also generated more cash than expected in 2017: ̵ Largely net cash neutral (US$2m outflow) in 2017 despite spending US$273m in project capital expenditure (Damang, Gruyere and South Deep) and an additional US$53m on Salares Norte 500 450 441 115 400 350 17 309 81 30
Slide 7: Balance Sheet
Balance Sheet ● Net debt of US$1,303m at 31 December 2017 Net debt (US$m) and Net debt/EBITDA 2,000 2.0 ● Net debt to EBITDA of 1.03x at end-2017 1,500 1.5 from 0.95 at end-2016 US$m 1,000 1.0 ● First material debt maturity in June 2019 500 0.5 ● Unutilised facilities of US$1.2bn, R1.7bn 0 0.0 and A
Slide 8: Reinvesting for the future
Reinvesting for the future KeGmiel Fievvos
Slide 9: Damang Reinvestment
Damang Reinvestment ● The Damang reinvestment project commenced on 23 December 2016 and got off to a strong start Damang Complex West Wall ● The project is tracking well against plan. During 2017: ̵ Total tonnes mined were 40Mt vs. the original project schedule of 33Mt ̵ Gold produced of 144koz was
Slide 10: Gruyere
Gruyere ● Early work began in December 2016 with Gold Fields taking operatorship on 1 February 2017 ● Project construction schedule remains unchanged ̵ As at end-December 2017, both engineering progress and construction progress were in-line with budget at 72% and 32%, respectively ̵ On track for fi
Slide 11: Gruyere continued
Gruyere continued ● Bulk earthworks contract awarded to MACA Civil in May 2017 ̵ The 28km Gruyere main access road and sealed airstrip have been completed, while the pit and tailings storage facility (TSF) areas were cleared during Q4 2017 ̵ Construction of the TSF embankment walls is scheduled for
Slide 12: South Deep
South Deep The Rebase plan remains the goal ● 2017 impacted by a challenging Q1 – two fatalities and three falls of ground ● H2 performance much better than H1 – production increased 36% HoH ● Orebody is well understood and performs in line with the block model estimate ● Geotechnical design and min
Slide 13: South Deep
South Deep Targeting North of Wrench Current mine North of Wrench ● Mining method: Scattered and selective ● Mining method: Bulk, non-selective mechanised mining remnant mining ● Infrastructure: Tailored to mining method. ● Infrastructure: Legacy. Rail bound transport Trackless with transport of ore
Slide 14: Salares Norte
Salares Norte ● The feasibility study for Salares Norte is on track for completion by the end of 2018. Maiden reserve expected to be declared ● Interim results of the feasibility study indicate the following project metrics: ̵ Resource of 23.3Mt at 4.9g/t Au and 66.0g/t Ag for 4.3Moz gold equivalent
Slide 15: Salares Norte
Salares Norte District potential 6. Conversion BP to Reserve AA 5. Conversion to Indicated Resource 4. Conversion to Inferred Resource Pircas, Rio Baker 3. Drill Target Definition Aster 2, Aster 3, Helada, Pedernales, 2. Anomaly Piedra Definition District Mapping, Surface Geochemistry, 1. Project Ai
Slide 16: Tactical hedging
Tactical hedging Protecting cash flow in high capex period – our existing policy ● In line with Group policy to protect cash flow during periods of significant expenditure, Gold Fields has selectively hedged the oil price, Australian dollar gold price, and US dollar gold price for our Ghanaian opera
Slide 17: 2018 outlook and guidance
2018 outlook and guidance 2018 Group guidance ● Attributable equivalent gold production: 2.08Moz – 2.10Moz ● AISC: US$990/oz – US$1,010/oz ● AIC: US$1,190/oz – US$1,210/oz (includes project capital of US$105m at Damang, US$145m at Gruyere and US$36m at South Deep, as well as US$83m at Salares Norte)
Slide 18: Regional overview
Regional overview KeGmiel Fievvos
Slide 19: Global Footprint
Global Footprint Gold Fields Group Mines: 7 Projects: 2 Att. production: 2,160koz AIC: US$1,088/oz Mine net cash flow*: US$441m West Africa region Mines: Tarkwa and Damang Att. production: 639koz AIC: US$1,119/oz Net cash flow*: US$179m inflow Americas region Mine: Cerro Corona (Peru) Att. productio
Slide 20: Australasia
Australasia 2016 2017 2017 guidance Att. Production koz 942 935 910 42% of Group AIC US$/oz 941 948 977 managed production Net cash flow US$m 256 187 ● FY 2017 production and costs both beat guidance not withstanding the loss of Darlot’s contribution in Q4 2017 ● The region generated net cash flow o
Slide 21: Australia exploration
Australia exploration Regional exploration highlights St Ives: Granny Smith: Agnew: ● Total of 225,665m drilled in 2017 ● Total of 226,889m drilled in 2017 ● Total of 194,910m drilled in 2017 ● US$29m spent on exploration ● US$19m spent on exploration ● US$21m spent on exploration (extension and add
Slide 22: Australia exploration
Australia exploration St Ives: exploring the Speedway trend 20km Gold Fields FY 2017 results | Nick Holland | 14 February 2018 22
Slide 23: Australia exploration
Australia exploration St Ives: expanding Invincible Target Description: Brecciated mudstone hosted mineralisation Selected drill results: Invincible Deeps Invincible South Invincible Far South • LD81611W16: 5.35m at 2.46g/t Au (725.1m) • LD82638: 10.22m at 9.18g/t Au (222m) • LD81645: 7.5m at 14.18
Slide 24: Australia exploration
Australia exploration Granny Smith: expanding Zone 135 Exploration success: ● 1.83Moz new Reserves defined over the last three years ● Reserve growth every year since 2007 (after mining depletion) Zone 135 ● 2017 resource conversion program is upgrading resource confidence and de-risking the mine pl
Slide 25: Australia exploration
Australia exploration Agnew: Waroonga North continues to grow at depth Target Description: Down-plunge extension of Waroonga North mineralisation; multiple sub-parallel quartz lodes Selected results: • EMSD1561: 8.4m @ 1.7 g/t Au (1447.9m ) • EMSD1561W1: 7.75m @ 3.47 g/t Au (1391.25m ) • EMSD1561W2:
Slide 26: Peru
Peru 2016 2017 2017 guidance Au Eq production koz 270 307 290 Au Eq AIC US$/oz 762 673 780 Au only production koz 150 159 152 14% of Group Au only AIC US$/oz 499 203 620 managed production Net cash flow US$m 77 117 ● The region generated net cash flow of US$117m in FY2017 vs. US$77m in FY 2016 ● Pos
Slide 27: South Africa
South Africa 2016 2017 2017 guidance Att. Production koz 290 281 315 AISC US$/oz 1,207 1,340 1,220 12% of Group AIC US$/oz 1,234 1,400 1,290 managed production Net cash flow US$m 12 -60 ● Challenging Q1 2017, but production recovered through the rest of the year, with production in H2 2017 increasin
Slide 28: West Africa
West Africa 2016 2017 2017 guidance Att. Production koz 644 639 617 32% of Group managed production AISC US$/oz 1,020 958 1,018 AIC US$/oz 1,020 1,119 1,193 Net cash flow* US$m 100 64 *2017 includes Damang project capital of US$115m ● Damang reinvestment off to a strong start in 2017 ̵ Total tonnes
Slide 29: Thank you
Thank you QUESTIONS AND ANSWERS