Gold Fields Limited · JSE:GFI
Gold Fields — Conference Presentation (2010)
28 slides from Gold Fields's conference presentation, 2010
Slide 1: Introduction to growth strategy and exploration talk
IamnotgoingtogivetheGoldFieldscorporatepresentationtoday.InfactI am only going to talk about elements of our growth strategy and exploration amonlygoingtotalkaboutelementsofourgrowthstrategyandexploration. IfthereisanyonewantingtoknowmoreabouttheGoldFieldsproduction machineIwillgladlyansweryourquest
Slide 2: Forward looking statements
Althoughlimited,Iwillbemakingsomeforwardlookingstatements,that g g g mightnotturnoutexactlythewayIhavepredicted. Ihopeyoumanagetoreadandadsorbthesestatements? 2
Slide 3: Gold discoveries over the last 60 years
Thebarsinthisgraphtotalsthequotedresourceandproductionouncesof g p q p golddiscoveries,includingbyͲproductgold,forthelast60years.Wehave alsoaddedanestimateofnewdiscoveries,withoutdefinedresources,found inthelast6to7years. WeseeatrendofincreasingdiscoverytoapeakinthemidͲ1980’sandthena steady decline
Slide 4: Discovered ounces versus world gold production
Toanswerthisquestionweneedtolookattheproportionofdiscovered q p p ouncesthateventuallygetmined. Historicallyweestimateabout60to80%ofalldiscoveredresourceounces willbemined. Inthisgraphwehavecolouredthebarsbyincreasingconversiontomined In this graph we have coloured the bars by increasing conversion
Slide 5: Discoveries by stage of development
Thistrendisamplifiedwhenweexaminethisgraph. p g p Thebarsinthegrapharecodedbystageofdevelopmentfromproductionand constructioninthebluestofeasibilityandexplorationinthegreens.Thered colouring arediscoveriesthathavebeenstalledindefinitely. Hereyoucanseesomeprojects,discovered20yearsago,arestillinfeasi
Slide 6: Gold price and exploration investment
Thisgraphshowsthegoldprice,theredline,andexplorationinvestment g p g p p categorisedintograssroots,latestageandnearminefunding. Theindustryexperiencedaquantumshiftinfundingafterthe1980’s.This coincidedwiththeeraofcheapcreditandtheentranceofrisktolerant investorsthatspawnedthejuniorexplorer. Overthis
Slide 7: Rising cost of discovery
Giventhetrendofreducingdiscoveredouncesandincreasedinvestmentitis g notsurprisingthatdiscoverycostsarerising. Inthisgraphwecanseethatthecostofdiscoveryhasincreasedfrom $6.80/ozinthe1950’s,to$10/ozin1980to$52/ozin2008. Thistrendisunderplayingthefactthatthegoldpriceoverthattimehas This trend is underp
Slide 8: Junior explorers versus majors discovery performance
Welookedindetailatthe17yearsfrom1992to2008.Thisperiodcapturedtwofull i investmentfundingcycleswithtroughsoflessthan$2billionandpeaksofmorethan$4 f di l ih h fl h $2 billi d k f h $ billion. Whatwesawwasthatthejuniorexplorerreceivedabout56%oftheindustry’sinvestment butdiscoveredlessresourceouncesthan
Slide 9: Gold Fields growth strategy through exploration
GoldFieldsspottedthistrendsometimeagoandstarteditscurrentgrowth p g g strategyabout3Ͳyearsago. Thecompetitionfornewqualityprojectsisintense.Also,duetothelackof newprojectslargercompaniesareacquiringmoreandmoremarginalprojects withtheexpectationofhigherpricesinthefuture.Withthelackofnew discoveries i
Slide 10: Exploration programme results and discoveries
Ourexplorationprogrammeisfocusedondeliveringourregionalgrowthtargetsof 1Mozproductionperyearfromeachregion. Ourcommitmenthasyieldedresults: AnewdiscoverywithourpartnersBuenaventurainsouthernPeru– called Chucapaca.Injust18ͲmonthsfromthediscoveryholeintheCanahuiredepositwe announcedaninitialresourceof
Slide 11: Chucapaca joint venture location
IamnotgoingtogothrougheachprojectherebutthoughtIwouldtalkbriefly g g g g p j g y aboutChucapaca. GoldFieldsholds51%andBuenaventuraholds49%ofa12,700Hajoint venture.It’sthegreentenements.InadditiontothisGoldFieldsowns outrightanumberofadditionaltenementsshowninred. TheareaislocatedinsouthernPerumostly
Slide 12: Canahuire drilling and resource
Wehavecompletedover22,000mofdiamonddrillingontheCanahuire p g discoveryanddefinedaresourceof5.6Mozeq. Initialscopingstudieshaveshownthatthedepositisamenabletoopenpit miningandthatwecanextractthemetalseconomically.Thishasgivenus sufficientconfidencetostartinͲfillandextensionaldrillingwiththegoalof co
Slide 13: Canahuire resource blocks and high grade shoot
Inthisgraphicweareshowingallblocksintheresourceabove1g/t.Theblue g p g g isthewhittlepitwefloatedandasyoucanseethemajorityofthe mineralisationoptimises. Thereisahighgradeshootplunginggentlytothewestwherewehadsomeof ourbestdrillresults40m@7g/tand120m@8g/t.Itsopentothewestand there is good potential t
Slide 14: Discoveries by country risk ranking
Thisgraphshowsdiscoveredresourceouncesinthebarscolourcodedbyour g p y internalcountryranking. Theredishighrisk,goldmoderateandbluelowrisk. Lowriskareasalsotendtobethemorematureortraditionalminingareas e g Australia and Canada e.g.AustraliaandCanada. Fromthisdataitisclearthatthenewdiscoveriesinthelas
Slide 15: Australian discoveries and exploration investment
Asyoucanseeverylittletogetexcitedaboutsince1993whenbothCadiaand SunriseDamwerediscovered. Thereisadistinctlackofnewlydiscoveredouncesinthelast20years notwithstandingthevigorousexplorationinvestmentaveragingabout$650million peryear. Asdiscussedearlieralotofthisexplorationinvestmenthasgonetorevitalise
Slide 16: Risk capital diverted to other commodities
Hereyoucanseetheriskcapitalhasbeendivertedtoothercommoditiesand y p investorsareclearlylosinginterestingoldexploration. Wecan’tkeepondoingthesamethingit’sclearlynotworking. 16
Slide 17: Gold Fields exploration investment in Australia
GoldFieldshasmaintainedarobustandincreasingexplorationinvestmentin g p Australia.Wefocusonnewexplorationatbothournearmineandgreenfields progarmmes. Lastfinancialyearweinvestednearly$60million. WiththiscommitmentwehavebeenabletojustifytheLefroyMillatStIves With this commitment we have been able to ju
Slide 18: St Ives gold camp
StIves– southofKambaldajustdowntheroadfromhereisaworldclassgold j g camp.Therehasbeenover10MozproducedfromStIvesandwehaveover5 millionouncesinresource. Withthishistoryitisincrediblethatwecanstillmakesignificantnew discoveriessuchastheArgoͲAthenacampjustover5kmfromourmill– shown in the box showninthe
Slide 19: Argo-Athena camp
TheArgoͲAthenacampcomprisesanumberofmineralised g p p shearsina25km2 areaandalreadyhasaknownanddefinedendowmentofover3.5Moz. ContrarytoourpreviousexplorationmodelthebestmineralisationatAthena andHamletishostedintheParinga basalt.Thishasopenedupsignificant opportunitytodiscovermorelodes. Thisdiscover
Slide 20: Athena decline and orebody development
NowIcanreportthatthedeclineandorebodydevelopmentisonͲtrackfora p y p DecemberstartͲup. Theundergrounddefinitiondrillingshownhereismostlycompleteandweare openinguptheorebodywhichisdeliveringrobustwidthsandgrades. 20
Slide 21: Hamlet inferred resource and drilling
ThenextcabofftherankisHamlet. Weannounceda1MozinferredresourceinMayandwearecurrentlyinfill drillinganddrillingdownͲplungebeneaththeresource. Theorebodyisclearlyopeninthatdirectionwith8m@10g/t,7m@7g/tand 12m @ 8g/t 12m@8g/t. Hopefullynextyearwewillbeabletoshowdevelopmentintothisorebody anddescribethe
Slide 22: Agnew mine
Agnewisthesilentandconsistentperformer. g p Theminehasreservesandresourcesinexcessof3.5Moz.Thisyearwehave drilledtheextensionofKim,beneaththetheWaroongaopenpit,and extendedthemineralisationbyanother500mto1,200mbelowsurface. Wearestillintheprocessofcompletingtheresourcewhichwillhopefully We are still
Slide 23: Kim extension drilling and greenfields portfolio
HereyoucanseethenavidrillingcompletedtoextendKimtodepth. y g p p ThedrillshavenowmovedtotheMainNorthLodedrillͲout. GoldFieldsnearmineexplorationstrategyatbothStIvesandAgnew– has replacedandinfactgrownourreserves– soourstrategytogrowthrough exploration isworking. explorationͲ is working MovingtoourAu
Slide 24: Clancy Exploration joint ventures
GoldFieldsgrubͲstakedjuniorexplorerClancyexplorationLtdbackin2004so g j p y p thattheycouldfinishadataprocessingandmodellingexerciseovertheEast LachlanOrdovicianArcs.Thesearcsarehosttoanumberofsignificant depositsincludingCadiaͲRidgeway,NorthparkesandCowal. AfterthedataprocessingClancyandGoldFieldsg
Slide 25: Hidden Cu-Au porphyry target
OurtargetisahiddenCuͲAuporphyry. g p p yy Beingamatureregion,outcroppingmineralisationhasmostlybeenfollowed up,andwearechallengedbyhavingtoexplorebeneath20Ͳ140mof transportedcover. Weareusingasmuchscienceaswecanandusingasystematicaggressive W i h i d i i i approach.Weareconstrainingtheprogrammetothe
Slide 26: Myall JV Au-Cu anomaly
OneareaforfollowͲupisattheMyallJV.Herewehavedefineda3by3km p y y AuͲCuanomalywhichiscoincidentwithmagneticandgravityanomalies. Wehavealreadyidentifiedporphyryalterationandmineralisationandwewill nowdrillͲtesttheprioritytargets. Thisishighrisk– This is high risk – highrewardexplorationwhichthroughper
Slide 27: Delemarian project in South Australia
TheDelemarian projectisanexampleofusingtheexcellentgovernment p j p g g datasetstogenerategenuinegreefieldstargets. HereGoldFieldshasstakeda12,000km2 tenementpackageinSouth Australia. ThetargetisaworldclasssedimenthostedorogenicdepositlikeTelferunder The target is a world class sediment hosted oroge
Slide 28: Closing remarks and questions
SowiththatIwouldliketothankyouforyourattentionandIwouldbehappy y y ppy totakeanyquestions. Iwanttoleaveyouwiththefollowing: Ifwearetostemorevenreversetheobserveddeclineingolddiscoveries; governments junior and major company’ss,aswellas,investorsneedtowork governments,juniorandmajorcompany as well as