Gold Fields Limited · JSE:GFI
Gold Fields — Mines and Money London 2017
28 slides from Gold Fields's conference presentation, Nov 30, 2017
Slide 1: The Gold Mine of the Future
The Gold Mine of the Future Nick Holland, CEO Gold Fields Mines and Money, London, 30 November 2017
Slide 2: Content
CONTENT 1) Gold Fields Overview 2) Challenges facing the gold industry 3) Trends impacting the gold industry of the future 4) Future operating practices and technologies 5) How Gold Fields is tackling these challenges 6) Gold Fields examples 7) Future organisational, people and governance practices
Slide 3: Overview of Gold Fields
Overview of Gold Fields Attributable reserves Group: FY 2016 West Africa; Australia; Attributable production 2,146koz 7.0Moz 5.8Moz Americas; AIC US$1,006/oz 1.3Moz Mine net cash flow US$444m South Africa; 34.1Moz Ghana Region 2 mines Att. production: 644koz (32% of group) All in costs: US$1,020/oz
Slide 4: Where are we today? The gold industry has faced headwinds
WHERE ARE WE TODAY? The Gold Industry has faced a number of headwinds over the past decade Geological inflation1 is driving double-digit cost inflation Today it takes an average of 18 years from discovery to first production versus 10 years a decade ago The average grade of gold mined has fallen 3%p
Slide 5: What does the future look like?
WHAT DOES THE FUTURE LOOK LIKE? The industry has to change the way it operates What does In the future, mining will the future look like? have to operate differently from today 4
Slide 6: Companies need to adapt to key technology and socio-economic trends
WHAT DOES THE FUTURE LOOK LIKE? Companies need to adapt to key technology and socio-economic trends TECHNOLOGY TRENDS SOCIO-ECONOMIC TRENDS Artificial Intelligence, Big Data & What does the Miners need to adapt to these changes to be sustainable: Analytics Changing nature of work future look Fix the
Slide 7: A new recipe is needed for gold mining to be viable
WHAT DOES THE FUTURE LOOK LIKE? A new recipe is needed for gold mining to be viable Different operational, governance, people and organisational metrics are needed ▪ Converting outstanding conventional mining practices to mechanisation & automation ▪ Embracing digital mining and full integration of
Slide 8: The gold industry of the future has four focus areas
WHAT DOES THE FUTURE LOOK LIKE? The gold industry of the future has four focus areas Operating practices & technology Talent and leadership Partnerships ▪ New exploration trends ▪ More technical skills – ▪ Governments – provide strong analytics and decisions appropriate regulatory framework ▪ Mechan
Slide 9: How are we tackling these challenges at Gold Fields
Operating Practices & Technology What does How are we tackling the future look like? these challenges at Gold Fields 8
Slide 10: Gold Fields' Information & Technology strategy and goals
OPERATING PRACTICES & TECHNOLOGY Gold Fields’ Information & Technology strategy and goals Delivering future state (>7 years) Transformational Phase (5-7 Years) Foundational Phase (1-2 years) Our end goal: A fully autonomous mine, where human risks are removed, with minimal environmental impact. Looi
Slide 11: Partnering with OEMs will become increasingly critical
TECHNOLOGY PARTNERS Partnering with OEMs will become increasingly critical in future to harness best-of-class technologies Many OEMs are pioneering automated and remote controlled equipment OEMs ▪ Computer algorithm automatically Co-operation with detects patterns in exploration data Exploration ind
Slide 12: Partnering with technology companies to drive operational change
TECHNOLOGY PARTNERS Partnering with technology companies to drive operational change will become increasingly critical and common Gold Fields has established partnerships with… Business Science Corporation, Amazon, NewTrax, FTP Solutions, NextGenOpX, IoT.Nxt, Trimble …to implement technological adva
Slide 13: Current technology applications at Gold Fields – case studies
Operating Practices & Technology What does Current technology the future look like? applications at Gold Fields – case studies 12
Slide 14: What we are currently implementing (Horizon 1)
OPERATING PRACTICES & TECHNOLOGY Gold Fields – What we are currently implementing (Horizon 1) 13
Slide 15: Aerial and surface drones have improved our exploration efforts
Exploration Aerial and surface drones at Australian and Ghanaian mines have improved our exploration efforts and aerial mapping Different types of drone equipment Gold Fields uses different drone - Trimble aerial drones technologies to: Capture high resolution aero-magnetic data particularly over sa
Slide 16: Remote rock breaking at South Deep
DATA MANAGEMENT Remote rock breaking at South Deep South Deep has installed surface remote rock breaking equipment A remote controlled hydraulic arm breaks the rock that has been transferred from the stopes to the ore pass system It is too dangerous to do this manually – significant safety and produ
Slide 17: Fleet management system at St Ives, Australia
MINING Fleet management system at St Ives, Australia St Ives has: How the system works Weekly Plan Replaced semi-automated fleet management system with a Wenco Fleet Real Time Data Management System (started in 2016) This project includes: ▪ Upgraded data communication network Mine Control ▪ Trucks
Slide 18: Destress mining at South Deep
MECHANISATION & AUTOMATION Destress mining at South Deep ▪ Optimal extraction of orebody through bulk mining methods in de- Safer, production stressed zone operations ▪ Replicates ~1,200m stress conditions at ~2,600m below surface ▪ Allows mechanised bulk mining at depth ▪ Preconditioning of destres
Slide 19: Ground penetrating radar, South Deep, South Africa
MINING Ground penetrating radar, South Deep, South Africa Sub-Surface Profiler (Reutech) South Deep has: Replaced borehole cameras and other observational methods used to determine the effectiveness of preconditioning blasts South Deep now uses ground penetrating radar in the form of a Reutech Sub-S
Slide 20: Ore sorting at Agnew, Australia
PROCESSING Ore sorting at Agnew, Australia Steinert ore sorting equipment Agnew concept phase project Working with Steinert to improve sorting of underground stope material This will sort underground stope material based on quartz content: ▪ Remove diluting material with no quartz ▪ Retain lower ton
Slide 21: People, Leadership, Partnerships & Governance
People, Leadership, Partnerships & Governance What does the future look like? 20
Slide 22: The gold industry of the future has four focus areas
PEOPLE, LEADERSHIP, PARTNERSHIPS & GOVERNANCE The gold industry of the future has four focus areas Operating practices & technology Talent focus and leadership Partnerships ▪ New exploration trends ▪ More technical skills – ▪ Governments – contributing strong analytics and decisions equity ▪ Mechani
Slide 23: The workforce will be highly skilled, specialised and trained
PEOPLE The workforce will be highly skilled, specialised and trained Today Tomorrow ▪ Manual, non-specialised ▪ Automated machinery frontline work requiring specialists ▪ Decision making ▪ Mine-wide, real-time information limited and information available for Miners not real-time decision making ▪ M
Slide 24: Role of the CEO and organisational design will be different
LEADERSHIP Role of the CEO and organisational design will be different Shareholders Government Communities • Manage expectations on returns • Facilitate private public • Shared value • Operational accountability partnerships • Socio-economic upliftment • Operational transparency • Support infrastruc
Slide 25: New partnership models in developing countries
PARTNERSHIPS New partnership models in developing countries will focus on joint ownership, risk management and shared benefits ▪ Contributing equity position ▪ Policy certainty and competitive rates ▪ Partners in infrastructure development Governments ▪ Shift from re-active concessions to pro-active
Slide 26: We will need to focus on responsible and transparent operations
GOVERNANCE We will need to focus on responsible and transparent operations ▪ Investors will require real-time operational, financial and Operational sustainability data transparency ▪ Transparent cost and earnings reporting ▪ Evolving and more stringent corporate governance Corporate standards gover
Slide 27: Mining companies will need to follow global standards of reporting
GOVERNANCE Mining companies will need to follow global standards of reporting since investors are demand more transparency and clearer mandates Future non-negotiables – Adherence to leading reporting frameworks. These include: Is a global standard to Focuses on communicating promote payments to crit
Slide 28: The gold industry needs to proactively shape its own future
CONCLUSION The gold industry needs to proactively shape its own future Continue on the mechanisation, automation and digitisation journey Work with OEMs and tech companies to gain access to world- class technology Partner with other mining firms to share risks and achieve economies of scale Work wit