Gold Fields Limited · JSE:GFI
Gold Fields — FY2020 Earnings Presentation
23 slides from Gold Fields's earnings presentation, Feb 18, 2021
Slide 1: Gold Fields FY 2020 results
Gold Fields FY 2020 results Nick Holland: CEO 18 February 2021
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: FY 2020 highlights
FY 2020 highlights ● Covid-19 impact largely contained – c.80koz of lost production (4% of original guidance) ● Attributable production of 2,236koz in 2020 vs. 2,195koz in 2019 (+2% YoY) ● Mine net cash flow of US$868m ● Net cash flow of US$631m – net of interest and Salares Norte expenditure ● Norm
Slide 4: Covid-19 update
Covid-19 update Group + Americas Australia South Africa West Africa Group Galiano Tested 52 409 17 13 483 5 573 71 482 72 230 Positive 1 150 - 995 560 2 705 2 829 Negative 51 246 17 12 370 4 988 68 621 69 245 Waiting Results 13 - 118 25 156 156 Active cases 45 - 30 80 155 170 In Hospital 1 - 1 3 5 5
Slide 5: A globally diversified gold miner
A globally diversified gold miner FY 2020 results Gold Fields Group Mines: 9 Projects: 1 Countries: 5 Att. production: 2,236koz AIC: US$1,079/oz Mine net cash flow: US$868m inflow Net cash flow**: US$631m inflow West Africa region Mines: Tarkwa, Damang and Asanko Att. production: 787koz AIC: US$1,06
Slide 6: Delivering on strategy
Delivering on strategy ● Have delivered on key strategic projects ̵ Gruyere: low cost, long life mine ahead of plan ̵ Damang: Delivered the reinvestment plan ahead of schedule, now in the heart of the orebody ̵ South Deep: Restructuring has reset the culture, notable productivity improvements ● Main
Slide 7: Focusing on Salares Norte and organic growth
Focusing on Salares Norte and organic growth ● Focus is now on delivering Salares Norte – next 18 months define success ̵ In construction, production expected in Q1 2023 ̵ Construction of plant and pre-stripping has commenced ● Brownfields opportunities across the portfolio: ̵ St Ives: life extensio
Slide 8: Gold Fields’ strategic ESG priorities
Gold Fields’ strategic ESG priorities Strategic Priorities Objectives Strategic Intent Partnering to ensure the Elimination of fatalities, 1. Zero fatalities and serious injuries at our operations safety, health and well- serious injuries, illnesses 2. Eliminate vehicular incidents by implementing a
Slide 9: Strong cash generation in FY 2020
Strong cash generation in FY 2020 ● Strong cash generation Capital expenditure ̵ Mine cash flow: US$868m in 2020 1 000 vs. US$414m in 2019 800 600 ̵ Net cash flow: US$631m in 2020 vs. 400 US$249m in 2019 200 ● De-geared faster than expected – 0 2013 2014 2015 2016 2017 2018 2019 2020 c.US$1bn over 2
Slide 10: Balance sheet
Balance sheet ● Net debt of US$1,069m at end-December 2020 (end-2019: US$1,664m) ̵ Net debt (excl leases) was US$640m (end-2019: US$1,331m) ● Net debt to EBITDA of 0.56x at end-December 2020 ● Unutilised facilities (committed and uncommitted) of US$1,117m, R4,035m and A$240m ● US$887m in cash on the
Slide 11: Salares Norte update
Salares Norte update ● Engineering progress 97.2% at end-December (plan: 90.0%) ● Construction progress 15.6% at end-December (plan: 9.9%) ● Total project progress 27.0% at end-December (plan: 24.4%) ● Camp Phase I completed during Q3 2020 Now have 1,650 bed capacity ● Camp Phase II construction com
Slide 12: Salares Norte progress
Salares Norte progress Salares Norte camp Plant site Pre-stripping the pit HME workshop FY 2020 results | 18 February 2021 12
Slide 13: Growing R&R ex-SA
Growing R&R ex-SA December 2020 December 2019 Managed Attributable Managed Attributable Gold equivalent 149.1Moz 116.0Moz 148.7Moz 115.7Moz Resources Gold equivalent 56.1Moz 52.1Moz 55.2Moz 51.3Moz Reserves Att. Au equivalent Reserves: Dec-2020 Att. Au equivalent Reserves: Dec-2019 Highlights: Ameri
Slide 14: Gold Fields’ Mineral Reserve growth
Gold Fields’ Mineral Reserve growth Six year track record (gold only managed net of depletion) -4.5Moz correction to South Deep offset by maiden Salares Norte 3.48Moz Reserve. 9% Reserve Growth over 5 years net of Depletion FY 2020 results | 18 February 2021 14
Slide 15: Organic growth potential
Organic growth potential ● Tarkwa: Step out potential from existing pits ● Damang: Main Damang pit and the greater lease ● Australia: ̵ Invincible complex plus historically mined areas ̵ Greater Agnew ̵ Granny Smith at depth (Z150) ̵ Gruyere – further pit extension, potential underground to be evalu
Slide 16: Regional overviews
Regional overviews KEG Fiecvs
Slide 17: Australia
Australia 2020 2019 Att. Production koz 1,017 914 AIC US$/oz 957 986 44% of Group managed A$/oz 1,388 1,418 production Net cash flow* US$m 498 139 Att. Gold equivalent Reserves Moz 7.5 6.9 * Net cash flow excludes Gruyere project capital for 2019 ● 11% year-on-year increase in gold produced driven b
Slide 18: Peru
Peru 2020 2019 Au Eq production koz 207 293 Au Eq AIC US$/oz 1,119 810 Au only production koz 119 156 9% of Group managed Cu only production kt 25 31 production Au only AIC US$/oz 715 472 Net cash flow US$m 84 86 Att. Gold equivalent Reserves Moz 6.6 7.0 ● Cerro Corona was significantly impacted by
Slide 19: West Africa
West Africa 2020 2019 Production koz 862 840 37% of Group managed AISC US$/oz 1,027 942 production AIC US$/oz 1,060 1,039 Net cash flow* US$m 290 184 Att. Gold equivalent Reserves Moz 6.4 6.5 * Net cash flow includes Damang project capital and redemption of Asanko preference shares Production and co
Slide 20: South Africa
South Africa 2020 2019 Att. Production koz 227 222 AISC US$/oz 1,237 1,259 AIC US$/oz 1,260 1,259 10% of Group managed Net cash flow US$m 34 15 production Att. Gold equivalent Reserves Moz 31.5 29.8 ● 1 Fatality during H1 2020: Mr. Abel Magajane ● Q2 2020 severely impacted by Covid-19 related restri
Slide 21: Outlook
Outlook KEG Fiecvs
Slide 22: 2021 outlook and guidance
2021 outlook and guidance 2021 Group guidance ● Attributable equivalent gold production: 2.30Moz – 2.35Moz ● AISC: US$1,020/oz – US$1,060/oz ● AIC: US$1,310/oz – US$1,350/oz ● AIC (excl. Salares Norte): US$1,090/oz – US$1,130/oz ● Total capex: US$1,177m (Sustaining: US$538m, Non-sustaining: US$639m)
Slide 23: Thank You
Thank You QUESTIONS AND ANSWERS