Gold Fields Limited · JSE:GFI
Gold Fields — BMO Capital Markets Global Metals and Mining Conference 2016
22 slides from Gold Fields's conference presentation, Feb 29, 2016
Slide 1: Cash positive despite the lower gold price
BMO Capital Markets Global Metals and Mining Conference CASH POSITIVE DESPITE THE LOWER GOLD PRICE Nick Holland 29 February 2016
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: Q4 and FY 2015 Results: Salient features
Q4 and FY 2015 Results Salient features Net cash flow from operating activities of US$47m (FY15: US$123m) Attributable gold equivalent production up 2% QoQ to 566koz (FY15: 2,159koz) All-in costs down 2% QoQ to US$942/oz (FY15: US$1,026/oz) Normalised earnings of US$15m (FY15: US$45m) Final dividend
Slide 4: Steady decrease in all-in costs
Steady decrease in all-in costs Q4 2015: production up 2%, all-in costs down 2%, gold price flat 2013 2014 2015 700,000 1800 Production: 2,022koz Production: 2,219koz Production: 2,159koz AIC: US$1,312/oz AIC: US$1,087/oz AIC: US$1,026/oz 598,000 1600 600,000 557,000 548,000 559,000 556,000 557,000
Slide 5: Strong focus on cash generation
Strong focus on cash generation Net cash flow 250 2013 2014 2015 2,000 Gold: US$1,386/oz Gold: US$1,249/oz Gold: US$1,140/oz Net cash: (US$232m) Net cash: US$236m Net cash: US$123m 1,625 1,372 1,500 1,315 1,275 150 1,265 1,283 1,265 1,179 1,198 1,174 1,103 1,092 75 1,000 65 63 54 54 47 50 38 30 4 50
Slide 6: Comfortable balance sheet, with flexibility
Comfortable balance sheet, with flexibility Balance sheet ● Net debt of US$1,380m at 31 December 2015 Net debt (US$m) and Net debt/EBITDA 2,000 1.8 ● Net debt to EBITDA of 1.38x at end-Q4 2015 1.6 1,500 ● Unutilised facilities of US$844m and R2.5bn 1.4 US$m 1,000 1.2 ● First debt maturity in Novembe
Slide 7: South Deep: Business performance
South Deep Business performance Q4 Q3 Production (koz) and AIC (US$/oz) 2015 2014 2015 2015 80 2,500 68 70 Production koz 68.1 54.9 198.0 200.5 2,000 55 60 AISC US$/oz 1,095 1,404 1,490 1,548 50 49 1,500 36 39 AIC US$/oz 1,156 1,431 1,559 1,732 40 30 1,000 20 • Required leadership in place 500 10 •
Slide 8: South Deep: Key factors underpinning performance improvements
South Deep Key factors underpinning performance improvements Key Pillars ● 98% of critical skills appointed 1. People ● Business improvement implementation 2. Safety and health capacity established 3. Mechanised Fleet 4. Infrastructure ● Fleet renewal 5. Mining ● Infrastructure upgrade and maintenan
Slide 9: South Deep: Positive trends
South Deep Positive trends Destress Face Availability Long Hole Stoping Production & Contribution 90 160 80 140 Number of Ends 70 120 Tonnes (‘000)/Q 60 100 50 80 40 60 30 20 40 20 24% 36% 37% 40% 22% 34% 10 0 0 Q1 2015 Q2 2015 Q3 2015 Q4 2015 2014 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2015 2014 2015 Back
Slide 10: South Deep: People / Skills / Organisational culture
South Deep People / Skills / Organisational culture Employee Satisfaction Barometer (Q4 2015) 12% 6% Strongly Satisfied Experienced leadership team in place 30% Satisfied Quality 143 of 146 core positions filled Business Improvement team established Strongly Dissatisfied Dissatisfied 52% 47 x Artisa
Slide 11: South Deep: Looking forward
South Deep Looking forward BASICS MINING METHODS ASSET MANAGEMENT • Strong focus on basic • High profile destress stoping • Engineering skills operational requirements development program remain • Seismic risk correlation to continues increased production • Operating conditions • Planned maintenance
Slide 12: Solid global portfolio
Solid global portfolio Production and AIC (ex South Deep) ● Attributable production Q4 2015: 498koz (FY15: 1.96Moz) ● AIC Q4 2015: US$912/oz (FY15: US$944/oz) ● Net cash flow from international operations Q4 2015: US$86m (FY15: US$334m) Equivalent production (koz) AIC (US$/oz) 600 1,200 500 1,000 40
Slide 13: Australia: Exploring the Orogenic Mines
Australia: Exploring the Orogenic Mines Return on the 2015 investment 2016-2017 Focus ● Post depletion reserves expected to be ● A$86m planned for 2016 largely unchanged ● Exploration drill drive to commence to ● Resources expected to increase Waroonga North (Agnew) between 10% and 15% ● Continue to
Slide 14: St Ives: Invincible South
St Ives Invincible South ● Additional Invincible style shoot located within the Speedway Trend ● Higher grade than previous shoots ● Initial Resource of 1.4 Mt @ 6.9 g/t (312koz) defined to a depth of 400m, open down plunge ● Pit and underground potential ● Q4 intercepts: NW SE ̵ 19.1m at 12.1 g/t A
Slide 15: St Ives: New exploration fronts
St Ives New exploration fronts ● Exploration focused on sparsely tested flanks of camp ● 30km Speedway trend being systematically explored targeting Invincible analogues ● 21 new targets advanced in exploration pipeline ● Reinterpretation of geology and structure in an area of shallow cover growing
Slide 16: Agnew/Lawlers: Waroonga North
Agnew/Lawlers Waroonga North Target Areas Au g/t Drill intersections 2015/16 Pre-2015 500m Drill drive design to test multiple targets on the way to Waroonga North and expedite production Figure: Waroonga Complex looking east, orthogonal to Emu shear. 2015/2016 exploration drilling piercing points i
Slide 17: Agnew/Lawlers: Cinderella
Agnew/Lawlers Cinderella 200m N New Holland ● Accelerated development to open Open Pit up deposit (commenced Q4 2016) ● Incline provides access to drill below Cinderella Cinderella and Hidden Secret North Target targets Cinderella Cinderella ● Drilling plan to grow reserves Incline Cinderella ● Firs
Slide 18: Darlot: Exploration update – Assay highlights
Darlot Exploration update – Assay highlights BMO Global Metals and Mining Conference, Nick Holland, 29 February 2016 18
Slide 19: Granny Smith: Wallaby Underground
Granny Smith Wallaby Wallaby Underground • Over 63km diamond core drilled in Zone 250 2015 - 48km in plan for 2016 Zone 60 Zone 70 Zone 80 • Further extensions to Z100, Z110 and Current vertical extent of mine development Z120 expected in 2016 Zone 90 Current vertical extent • Deep exploration drill
Slide 20: Granny Smith: Regional exploration
Granny Smith Regional exploration Aircore Drilling Completed 2015 – max Au • Major evaluation of regional lease holding commenced in 2015 • Over 56km of aircore drilled in 2015 – returning an abundance of anomalous intersections and highlighting several new areas of interest. 96km of follow-up and n
Slide 21: Conclusions: Strategic priorities
Conclusions Strategic priorities ● Cash flow and margin – Make money at current prices ● Committed to delivering on our plans in terms of both production and costs ̵ Near-mine exploration continues ̵ Ongoing development of orebodies is critical ● Continue to reduce net debt – Targeting net debt/EBIT
Slide 22: Investor Relations Contacts
Investor Relations Contacts Avishkar Nagaser Francie Whitley Tel: +27 11 562 9775 Tel: +27 11 562 9712 Mobile: +27 82 312 8692 Mobile: +27 82 321 7433 E-mail: E-mail: Avishkar.Nagaser@goldfields.co.za Francie.Whitley@goldfields.co.za
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