Slide 1: Building a Sustainable Business at US$1,300/oz
Building a Sustainable Business at US$1,300/oz 2014 BMO Gl Global b l Metals M t l & Mining Mi i C Conference f NICK HOLLAND 23 to 25 February 2014
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 p particular, the forward looking g statements in this document incl
Slide 3: The Transformation Of Gold Fields
The Transformation Of Gold Fields The Journey Started With The Speech To The Melbourne Mining Club What Investors Want Aug 2012 Portfolio Review Aug - Dec 2012 Sibanye Gold Dec - Jan 2012 New Cash Strategy 2013 Business Plan A New Paradigm 15 April p 2013 Gold Price < US$1,300/oz A Fundamental Shift
Slide 4: International Diversification
The Transformation Of Gold Fields International Diversification ● In 2013 Gold Fields transformed its production base 2014 Production Guidance* ̵ Unbundling of Sibanye Gold in South Africa 13% 16% ̵ Acquisition of Yilgarn South assets in Australia 28% 43% ̵ Marginal production stopped in Australia &
Slide 5: Eight Quality Operations in Four Stable Countries
The Transformation Of Gold Fields Eight Quality Operations in Four Stable Countries ● 7 out of 8 mines with AIC lower than gold price ● Gold Only Reserves (US$1,265/oz) ̵ Managed 53 Moz (2012: 59 Moz) ● 8th Mine (South Deep Project) approaching cash break-even ̵ Attributable 49 Moz (2012: 55 Moz) –
Slide 6: A Structural Shift In The Production And Cost Base
The Transformation Of Gold Fields A St Structural t l Shift In I The Th Production P d ti And A d Cost C t Base B $/oz oz 2 100 700 000 1 900 600 000 1 700 500 000 1 500 400 000 1 300 300 000 1 100 200 000 900 700 100 000 500 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012 2012 2012 2012 2013 2013 2013 2013 Gold Pro
Slide 7: US$450 Million Removed From Cost, Capital, Exploration and Projects
The Transformation Of Gold Fields US$450 Million Removed From Cost Cost, Capital Capital, Exploration and Projects in 2013 ● Marginal mining eliminated ̵ St Ives: heap leach operations ̵ Agnew: Rajah and Main lodes ̵ Tarkwa: South heap leach operations ● Corporate, regional and operational structure
Slide 8: 2013 Cost And Production Versus Guidance
The Transformation Of Gold Fields 2013 Cost And Production Versus Guidance 2013 Prod Production ction Versus Vers s G Guidance idance 2013 Costs Versus Guidance (Moz) (US$/oz) 2.5 1600 1,360 2.03 1400 1.92 – 2.00 , 1,240 16% 2 1 83 – 1.90 1.83 1 90 1 146 1,146 1200 1.5 1000 860 860 830 4% 800 1 600
Slide 9: Balance Sheet
The Transformation Of Gold Fields Balance Sheet ● Total outstanding debt US$2.06 billion ● Cash on hand US$325 million ● Net debt US$1.74 billion ● Net debt / EBITDA: 1.53 (Q4 2013 annualised) ● 49% of debt is a 10-year US$ bond (US$1.0bn), no covenants, fixed coupon of 4.875%, maturity 10/2020 ● 35
Slide 10: Operational Challenges Managed
OPERATIONAL CHALLENGES MANAGED
Slide 11: South Deep Project
South Deep Project Positive build-up build up trajectory continues ● 2013 production in line with guidance ̵ Production up 12% to 302 Koz ̵ Destress up 24% to 53,700 m2 ̵ AIC down by 41% from US$2,436/oz in Q4 2012 to US$1,436/oz in Q4 2013 ● Right-sizing of cost base continues ● Build-up review con
Slide 12: South Deep Project: Build-up review concluded February 2014
South Deep Project Build-up Build up review concluded February 2014 Fleet Availability & Utilisation Operator & Ore Handling Technician Infrastructure Skills Destress Step Change Improved Productivity ● Steady state run rate by end of 2017 ̵ 300,000 to 330,000 reef tonnes per month ̵ 650 to 700 Koz
Slide 13: South Deep Project: Progress With Destress Mining
South Deep Project Progress With Destress Mining Destress m² 80 000 Steady State circa 70,000 m2 p.a. 70 000 60 000 Conventionally mined destress voids (pre 2009) Mechanised destress voids 2014 Plan 50 000 2015 Plan 2016 Plan 2017 Plan 40 000 30 000 20 000 10 000 - 2011 2012 2013 Mission Critical De
Slide 14: South Deep Project: Opening Up The Ore Body
South Deep Project Opening Up The Ore Body Nick Holland | Building a Sustainable Business at US$1,300/oz | BMO 2014 Global Metals & Mining Conference | 23 - 25 February 2014 14
Slide 15: Seven-Year Build-up Profile – Reef Tonnes and Ounces
South Deep Project Seven-Year Seven Year Build Build-up up Profile – Reef Tonnes and Ounces 800 000 4500 000 4000 000 700 000 3500 000 600 000 3000 000 500 000 2500 000 Ounces s Tonnes s 400 000 2000 000 300 000 1500 000 200 000 1000 000 100 000 500 000 - - 2013 Actual 2014 2015 2016 2017 2018 2019
Slide 16: Seven-Year Build-up Profile – AIC and Capital
South Deep Project Seven-year Seven year Build Build-up up Profile – AIC and Capital 2 000 250 1 800 1 600 200 1 400 1 200 150 US$ milliion US$/ozz 1 000 800 100 600 400 50 200 - - 2013 Actual 2014 2015 2016 2017 2018 2019 2020 All-in Cost (Lower limit) All-in Cost (Upper limit) Total Capital Nick H
Slide 17: Damang
Damang Significant Improvement in Q4 2013 The Way Forward ● Focussed costs control, reduced cash burn ● 1.1 Moz Mineral Reserves @ US$1,300/oz gold price ● Quality selective mining, reduced dilution ● 6.6 Moz Mineral Resources provide ● Improved plant availability, recoveries and significant g optio
Slide 18: Damang: On-lease Exploration Opportunities
Damang On-lease On lease Exploration Opportunities HUNI SADDLE PIT JUNO PIT NYAME TOMENTO NORTH & DIP EXTENSION 17km AMOANDA CHIDA REX More Than 17 Kilometre Strike Length Nick Holland | Building a Sustainable Business at US$1,300/oz | BMO 2014 Global Metals & Mining Conference | 23 - 25 February 20
Slide 19: Yilgarn South Assets
Yilgarn South Assets A Value Adding Acquisition ● Transition to Gold Fields ownership successfully completed ● 114 000 ounces maiden contribution in Q4 2013 114,000 ● AIC of US$940/oz well below Group average ● 14% reduction in workforce ● Significant restructuring since acquisition ● Further synerg
Slide 20: 2014 Guidance
2014 Guidance Production AISC AIC (Koz) South Deep Project 360 US$1 290/oz US$1,290/oz US$1 350/oz US$1,350/oz Tarkwa 520 US$1,100/oz US$1,100/oz Damang g 165 US$1,240/oz $ , US$1,240/oz $ , Cerro Corona1 290 US$865/oz US$865/oz St Ives 395 A$1,210/oz A$1,210/oz Agnew/Lawlers 260 A$1,170/oz A$1,170/
Slide 21: Conclusions
Conclusions Scorecard: Commitments Made on 22 Aug 2013 Underway Positioned To Make Cash At US$1,300/oz Gold Price Nick Holland | Building a Sustainable Business at US$1,300/oz | BMO 2014 Global Metals & Mining Conference | 23 - 25 February 2014 21