Slide 1: 'Akwaaba' - Welcome: Gold Fields West Africa
‘Akwaaba’ - Welcome Gold Fields West Africa Alfred Baku Executive Vice President and Head of Region 17 May 2015
Slide 2: Forward looking statements
Forward looking statements 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
Slide 3: Regional Leadership Team
Gold Fields West Africa Regional Leadership Team Alfred Baku – EVP & Head of West Africa • Over 20 years of international mining experience in Ghana and Australia • Worked as General Manager of both the Tarkwa & Damang mines • Holds an MSc in Mining Engineering and a Statutory Mine Manager’s certifi
Slide 4: Regional Leadership Team
Gold Fields West Africa Regional Leadership Team Michiel van der Merwe - General Manager, Tarkwa Gold Mine • Responsible for Tarkwa Mine’s overall strategic direction, leadership and management • Over 19 years experience in mining and metallurgy • Holds a B.Eng Metallurgy (Extractive) Marcus Brewste
Slide 5: Regional Leadership Team
Gold Fields West Africa Regional Leadership Team Serge Nitiema - VP Exploration & Business development • Responsible for the Organic Growth & Business Development initiatives within the Region. • Over 23 years experience in the mining industry • Joined Gold Fields in 2007 • Holds a PhD in Structural
Slide 6: Ghana Site Visit - Itinerary
Ghana Site Visit - Itinerary DATE ACTIVITY TIME DATE ACTIVITY TIME 17 May Group Dinner & Regional Overview 19h30 Depart Tarkwa to Damang 06h30 Best Western Hotel Fly to Takoradi – travel to Tarkwa 06h00 Breakfast at Damang 07h30 Drive from Takoradi to Tarkwa 08h20 Presentation and Safety Briefing 08
Slide 7: History of mining in Ghana
Gold Fields West Africa History of mining in Ghana • Long history of mining, especially for gold • Gold from West Africa traded to Europe at least as early as the 10th century • Most of this gold came by Sahara caravan, one of the original sources being the Ghana empire • Major minerals currently be
Slide 8: Ghana - Political Overview
Gold Fields West Africa Ghana - Political Overview John Dramani Mahama Ghana Nana Akuffo Addo Sitting President seeking Contested results of last 2nd term in 2016 election in Supreme Court Growth in FDI • IMF bailout • Economically savvy • Reduce wage bill Political stability • Business oriented • R
Slide 9: 2014 Macroeconomic Performance
Gold Fields West Africa 2014 Macroeconomic Performance Performance of the GHS against 13% major currencies Inflation Rate (Dec) 17% 12.10% US$/GHS Performance: Mining & Quarrying Subsector Growth Rate 6.90% Overall Fiscal Budget Deficit 8.80% (% of GDP) 9.50% 7.10% GDP Growth Including oil 6.90% Mon
Slide 10: Peer Comparison: 2014 Total Ounces Produced & All in Cost/oz
Gold Fields West Africa Peer Comparison: 2014 Total Ounces Produced & All in Cost/oz 600 1 800 550 1 600 500 1 530 1 400 450 Gold Produced Oz ‘000 1 252 400 1 200 1 175 All in Cost/Oz 350 1 068 1 020 1 000 300 849 800 250 200 600 150 423 400 100 200 50 177 243 442 472 261 558 178 287 0 - Anglo - Ang
Slide 11: Overview
Gold Fields West Africa Overview ● Gold Fields operates 2 mines in Ghana: ̵ Tarkwa & Damang ● Host to world-class gold deposits and a premier mining destination. ● Gold Fields has a strong presence in the region, with the Tarkwa and Damang mines being configured to deliver value and provide or deliv
Slide 12: Overview Damang
Gold Fields West Africa Overview Damang ● 4.1Moz Produced at the Damang Mine from 1998 to 2014 ● 9.7Moz Produced at the Tarkwa Mine from 1994 to 2014 ● One of the largest private sector employers in Ghana, employing approximately. 6,100 people (including contractors). ● Over 50% of the employees at
Slide 13: Our Strategic Journey
Gold Fields West Africa Our Strategic Journey Catalysts for Change: • Reduction in Gold Price Now • Tightened Fiscal Regime (2011/2012) • Reduced confidence in the industry Fastest decline in gold prices in 30 years Portfolio Optimised Operations Fiscal: Capital allowances on a Review straight line
Slide 14: Change Beckons - The transformation of Gold Fields West Africa
Gold Fields West Africa Change Beckons - The transformation of Gold Fields West Africa Why the need for change? • High AIC • Low prevailing gold price • Need for a Fit for purpose, low cost operating model Cash Strategy - Building a Sustainable Business in line with our Strategic Vision • Free cash
Slide 15: Impact of Power Purchase Agreement with Genser Energy
Gold Fields West Africa Impact of Power Purchase Agreement with Genser Energy ►Power to be delivered in phases 31 May 2015 - Phase 1 1 Jan 2016 – Phase 2 1 Jan 2018 – Phase 3 ►Potential to lower power price by ~30%. ►Reduction of 15% in LOM processing cost Commissioning of Commissioning of Commissio
Slide 16: Building a Sustainable Business in line with our Strategic Vision
Gold Fields West Africa Building a Sustainable Business in line with our Strategic Vision Tarkwa Mine Damang Mine A World Class Mine A Remarkable turnaround Tarkwa Expansion Project 6 (TEP6) project Dedicated project team > increase in cancelled reserves & mine life New Management Team & innovation
Slide 17: The effect of the change in strategy is seen in our results
Gold Fields West Africa The effect of the change in strategy is seen in our results to date…. West Africa Region Production & AIC 1800 250 1600 1400 200 Maintained 1200 Production 150 1000 Overall 800 100 reduction in 600 AIC 400 50 200 Improved 0 0 stakeholder Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2013 2013 2
Slide 18: Our Strategic Vision: Million Attributable Ounces @ US$1,000/oz
Gold Fields West Africa Our Strategic Vision: 1 Million Attributable Ounces @ US$1,000/oz in 3 Years with 0 LTI’s Underpinned by these 4 key Pillars Business People Social Licence to Financial Optimisation Operate Plant Optimisation (sweating our existing assets) Sustainable assets at/above 15% marg
Slide 19: Ghana Foundation
Gold Fields West Africa Gold Fields Ghana Foundation ● Gold Fields Trust Fund set up in 2002, the first in Ghana’s Mining Industry ● 2004: changed to Gold Fields Ghana Foundation & legally registered as a charitable organization ● Main objective of the Foundation: generate funding for the developmen
Slide 20: Our Contribution & Recognition
Gold Fields West Africa Our Contribution & Recognition ● 2011 to 2014: Financial contribution to Government: ̵ Corporate income tax: USD384Million; ̵ Royalties: USD248Million; ̵ Capital expenditure: over USD1Billion ● Consistent Recognition for our endeavours: Year Nature Awarded by 2010 Gold Fiel
Slide 21: Gold Fields West Africa - Challenges
Gold Fields West Africa - Challenges Cash Flow Business Process Reengineering, Cost leadership & Cost containment Power Fiscal Policy Power rationing and IPP Investment Agreement with Genser Energy Negotiations Sharing the benefits Social Licence to Operate Shared Value Initiative Stakeholder engage
Slide 22: 'Medaase' - Thank you
‘Medaase’ - Thank you