Slide 1: Investor Day December 2011
Investor Day December 2011 rm =? SU 4, Zr, oA ¥) e fh IGovp| Fiecps ¢, ‘}) =
Slide 2: Agenda
Agenda I. Opening Remarks Nick Holland Chief Executive Officer II. Growth and International Projects Tommy McKeith EVP: Growth & International Projects III. Technology & Innovation Tim Rowland EVP: Group Technical Service Coffee break Regional Overviews O IV. South Africa Peter Turner EVP: South Afr
Slide 3: 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 4: Market Overview - The Macro Environment
Market Overview - The Macro Environment
Slide 5: Macro trends impacting the world today
Macro trends impacting the world today Shorter term Financial Instability Sociopolitical Instability Sustained market & Fiscal and political currencyy volatility y instability y Natural disasters Emerging Markets Sustainability Social Norms Advancing Technology Growing influence and Enviro
Slide 6: Two-thirds of the global economy remains turbulent
Two-thirds of the global economy remains turbulent World GDP by Growth Risk Level (2011 – 2012) 100% RoW 90% Other India South Africa Australia Russia 80% Canada Brazil Other Japan: Massive disruption and cost of major 70% United Kingdom earthquake Japan 60% China: Concerns over weakening demand
Slide 7: Future of the Eurozone now at risk
Future of the Eurozone now at risk Sovereign debt crisis: Greece, Italy, Ireland, Spain Eurozone Debt to GDP Ratio (%, 1991 – 2011E) % 100 and Portugal 90 Emergency bailouts by the EU and IMF in return 80 70 for implementing austerity measures 60 Ongoing fears of Greece defaulting led to the E
Slide 8: Lackluster global growth underpinned by BRICS
Lackluster global growth underpinned by BRICS Change in Real GDP (2007A – 2015E) 12% 10% 8% 6% 4% 2% 0% -2% -4% -6% 6% 2007 2008 2009 2010 2011E 2012E 2013E 2014E 2015E World USA EU 27 BRICS ___________________________ Source: Economic Intelligence Unit - Nov 2011 8
Slide 9: Emerging markets expected to account for ~50% of world GDP
Emerging markets expected to account for ~50% of world GDP in the next 20 years World GDP (nominal US$) 100% Argentina 90% 80% Indonesia 70% Mexico 60% 50% Saudi Arabia 40% Turkey 30% 20% 10% 0% 2000 2010 2020E 2030E Advanced BRICS Other G20 Emerging Other Emerging/High Risk ________________________
Slide 10: Increased fiscal demands
Increased fiscal demands South Africa Ghana Australia Peru ANC exploring Government “Mineral Resource New mining tax different royalties increased Rent Tax Tax” on coal regime approved in possibilities to 5% in March and iron ore (gold September 2011 2011 excluded) Carbon tax Changes to
Slide 11: Input cost pressures
Input cost pressures Electricity Price Increases (2011 = 100) Commodity prices Cumulative electricity price increases (2001 – 2012F) Indexed prices (2001=100) 1000 600 900 500 800 700 400 600 500 300 400 200 300 200 100 100 0 0 001 002 003 004 005 006 007 008 009 010 2012F 001 002 003 004 005 006 00
Slide 12: Social attitudes are changing dramatically
Social attitudes are changing dramatically Dramatic change of attitude to worker safety Copiapó: p p 33 rescued Panama Canal: 27,500 deaths Community activism can stop mines Growing demands for sustainability 5 Earths needed to support developed-world lifestyle for all 12
Slide 13: Market Overview - The Gold Market
Market Overview - The Gold Market
Slide 14: Strong demand for gold, driven by China and India
Strong demand for gold, driven by China and India Total gold demand by region (tonnes) 4 500 India China Other 4 000 3 500 YTD 3 000 2 500 2 000 1 500 1 000 500 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 Q1-Q3 2011 India & China % Total 22% 23% 24% 26% 28% 30% 28% 29% 39% 46% Demand ____________
Slide 15: Growing EM affluence driving demand for gold jewellery
Growing EM affluence driving demand for gold jewellery World GDP (nominal US$) Tonnage growth in jewellery (2010 vs 2009, % change) 100% 80 90% 70 80% 60 70% 50 60% 40 50% 30 40% 20 30% 10 20% 0 10% -10 0% 2000 2010 2020E 2030E -20 Advanced -30 UK India Turkey Egypt Italy UAE USA China Russia Taiwan
Slide 16: Central banks returning to net buyers
Central banks returning to net buyers “Central banks, especially in emerging markets, Central bank net gold demand (tonnes) have been diversifying their gold reserves. We would expect this to continue as gold can have a 400 positive impact on smoothing the risk-return profile of reserve portfolios.”
Slide 17: Emerging economies still behind advanced economies in gold reserves
Emerging economies still behind advanced economies in using gold as part of their reserves Gold reserves a % of total reserves (30 September 2010) 40 30 20 10 0 Advanced Developing Asia Central and Middle East and Sub-saharan Africa economies Eastern Europe North Africa Likely to fuel further demand
Slide 18: Three-fold increase in ETF volumes in 5 years
Three-fold increase in ETF volumes in 5 years Small in relation to total global funds under management Cumulative q quarterly y total global g ETF holdings g (tonnes) ( ) 2500 2000 1500 1000 500 0 2004 2005 2006 2007 2008 2009 2010 2011 __________________________ Source: World Gold Council, Gold inv
Slide 19: Fundamentals and sentiment supportive
Fundamentals and sentiment supportive Total gold demand 2010 (thousands of tonnes) 4.5 4.1 4.0 2% 9% Continued purchases by Central banks 3.5 11% Continued growth in ETFs ETFs, all investments in 3.0 gold only 1% of all assets under management 2.5 28% No sign of changes to technology demand 2.
Slide 20: Primary gold supply struggles to meet this demand
Primary gold supply struggles to meet this demand ____________________________________________________ Note: *Mine p production net of p producer hedging; g g Supply pp y excludes net central bank movements; Major j p producers includes: Barrick, Newmont, Newcrest, Gold Fields, AngloGold g Ashanti,
Slide 21: World gold discovery trends
World gold discovery trends ___________________________________ yp 1.Includes by-product g gold; excludes brownfield discoveries; Source: GFL/MinEx Consulting g 2. 3 year rolling average; excludes deposits <1Mozs or where gold is a by-product representing less than <50% of revenue; Source: GFL/MinEx
Slide 22: Gold industry faced with rising costs
Gold industry faced with rising costs Peer Group Total Cash Outflow - US$/oz (quarterly Q1 2005 to Q3 2011) 1 600 O Operating ti C it l Capital Oth Other 1 400 1 200 1 000 800 600 400 200 - Q1 2005 Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011 ____________________________________________ Source: C
Slide 23: Industry average NCE for the Sept 2011 quarter US$1,371/oz
Industry average NCE for the Sept 2011 quarter US$1,371/oz Peer group NCE quarter ending September 2011 (US$/oz) 1 800 NCE 1,669 1 600 1,548 1,493 1,436 1 342 1,342 1,371 , 1 400 1,212 1,173 1 200 1,094 1 000 800 600 400 200 0 Company 1 Company 2 Gold Fields Company 3 Peer Company 4 Company 5 Compan
Slide 24: Fundamentals for gold continue to be positive
Fundamentals for gold continue to be positive US monetary base (YoY % change)1 Gold has regained its status as an asset class 209% World monetary base likely to increase further, creating room for future inflation Physical demand for gold driven by growing affluence in emerging economies Con
Slide 25: Strategic Framework
Strategic Framework IGovp| Fiecps
Slide 26: To be the global leader in sustainable gold mining
To be the global leader in sustainable gold mining 25% NCE margin target for existing assets Optimise O ti i Reserve replacement and growth Our Assets Business process re-engineering 5Moz in production or in development by 2015 Increase geographical diversification Grow No N M&A H Heroic
Slide 27: 5Moz in production or in development by 2015
5Moz in production or in development by 2015 Continue to improve the quality of the portfolio as measured by NCE per ounce APP FSE Yanfolila Damang Super pit Super-pit Chucapaca 5Moz in production or in South Deep development C tB Current Base** 3.5Moz 2011 2015 Target ______________________ * Actua
Slide 28: Executive Team – Structured to deliver
Executive Team – Structured to deliver Nick Holland Chief Executive Officer Jimmy Dowsley Paul Schmidt Michael Fleischer Zakira Amra Peter Turner Peet van Corporate Chief Financial General Investor Relations South Africa Schalkwyk Development Officer Counsel & Corporate West Africa Affairs Tommy McK
Slide 29: Group Progress
Group Progress yy Srey 1) 2, os e fh SN ¢, ‘}) =
Slide 30: Optimise our Operations: Achievements since 2008
Optimise our Operations: Achievements since 2008 Material infrastructure rehabilitation at South African operations p Savings from Business Process Re-engineering Owner mining conversion and contractor rationalisation g target NCE margin g of 25%* Replacing and growing reserves at internationa
Slide 31: NCE margin of 29% in Q3 2011 exceeds target
NCE margin of 29% in Q3 2011 exceeds target Cost containment allowing the higher gold price to be delivered to the bottom line US$/oz 1800 Gold Price Total Cash Cost NCE 1600 29 29% % 1400 21 21% 1200 % 1000 800 600 400 Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep 2008 2008 2008 2009 2009
Slide 32: Replacing and growing reserves at international operations
Replacing and growing reserves at international operations Overall discovery cost of ~US$33/oz Moz 22.5Moz (15.3)Moz 35 Exploration1 Total mined Invested in exploration: US$752m 30 25 16.5Moz Dec ‘10 Attributable 20 Reserves 9.0Moz 9 0Moz 15 Total (1.8)Moz Acquired Divested 10 2.1Moz N = 13 N= 13 63
Slide 33: Grow Gold Fields: Achievements since 2008
Grow Gold Fields: Achievements since 2008 Growing international portfolio and profitability Creating a more geographically balanced portfolio Develop a growth pipeline in support of the target of 5Moz1 Minority buy-outs in Ghana2 and Peru3 Option to acquire 60% interest in Far Southeast (Philippines
Slide 34: Improving size & profitability of international portfolio
Improving size & profitability of international portfolio ‘000 ounces 2 000 45% 1 800 40% 1 600 35% 1 400 30% 1 200 25% 1 000 20% 800 15% 600 10% 400 5% 200 0% 0 -5% 5% 2008 2009 2010 2011 nine months annualised International production*(LHS) International NCE Margin (RHS) __________________________
Slide 35: Gold Fields determined to offset decline in South African production
Gold Fields determined to offset decline in South African production South African gold industry production1 Gold Fields Production2 (2008 – 2011) (2008 – 2010) ‘000 ounces ‘000 ounces 6 000 4 000 South Africa International 3 500 5 800 3 000 5 600 2 500 5 400 2 000 1 500 5 200 1 000 5 000 500 4 800
Slide 36: Increasing international diversification
Increasing international diversification 9 months to Sept 2011 2008 Production1 2015 Production Target2 Production1 19% 2% 18% 20% 40% 11% 49% 18% 62% 20% 21% 20% South Africa West Africa Australia South America 2015 Production Target2 South Africa Region Australasia Region West Africa Region South
Slide 37: 2008 Project Portfolio
2008 Project Portfolio Arctic Platinum Project Finland Yanfolila Mali South Deep South Africa Producing Asset Development Project 37
Slide 38: 2011 Project Portfolio
2011 Project Portfolio Strong growth pipeline to support target of 5Moz# by 2015 Arctic Platinum Pre-Feasibility • 12Moz 2PGE + Au Yanfolila resource Drilling • Scoping Study confirms Platsol® • Potential for 200kozpa process starter project • Exploration and • Scoping study amenability in 2012 dete
Slide 39: Secure Our Future: Achievements & Awards
Secure Our Future: Achievements & Awards If we cannot mine safely, we will not mine Old order d mineral i l rights i ht off allll S South th Af African i mines i converted t d tto N New O Order d Mining rights p g an integrated Implementing g sustainable development p framework Joint 1st in Ernst
Slide 40: Safety - Our top priority
Safety - Our top priority If we cannot mine safely, we will not mine South Africa Fatalities Engineering outEngineering Risk out risk Roof bolting, netting and support Pre-conditioning of stope faces Centralised blasting State of the art seismic monitoring system Auto couplers on locomotiv
Slide 41: Secure Our Future
Secure Our Future Energy reduction best proxy for carbon reduction Methane gas flare at the Beatrix mine Beatrix Methane Project registered by United Nations Framework Convention on Climate Change (UNFCCC) as a carbon credit project p j Numerous energy efficiency projects rolled out in partnersh