Slide 1: H1 2016 Results
H1 2016 Results KEEPING THE FOCUS DESPITE HIGHER GOLD PRICE Nick Holland 18 August 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: H1 2016 results: Salient features
H1 2016 results Salient features H1 2016 H1 2015 Q2 2016 Q1 2016 Attributable gold equivalent production (koz) 1,044 1,036 529 515 All-in costs (US$/oz) 1,024 1,108 1,061 986 Net cash from operating activities (US$m) 60 1 Normalised earnings (US$m) 103 8 Normalised earnings (US$/share) 0.13 0.01 Div
Slide 4: Regional overview
Regional overview Strong cash generation during H1 2016 Group Production 1,044koz AIC US$1,024/oz Net cash flow* US$60m Ghana Region Production: 346koz (32% of group) All in costs: US$1,052/oz Net cash flow: US$26m inflow Australia Region Production: 466koz (43% of group) All in costs: US$928/oz Net
Slide 5: Production and costs ahead of plan
Production and costs ahead of plan 2013 2014 2015 H1 2016 700 1800 Production: 2,022koz Production: 2,219koz Production: 2,159koz Production: 1,044koz AIC: US$1,312/oz AIC: US$1,087/oz AIC: US$1,026/oz AIC: US$1,024/oz 598 1600 600 566 557 548 559 556 557 535 535 515 1400 496 501 500 477 451 1200 40
Slide 6: Open pit mining cost performance
US$/t 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 A$/t Jun-14 Cerro Corona 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 Sep-14 Dec-14 Mar-12 Mar-15 Jun-12 Jun-15 Sep-12 Mining costs per tonne at open pits Sep-15 Dec-12 Dec-15 Mar-13 Mar-16 Jun-13
Slide 7: 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$123m 1,500 1,499 1,290 1,279 150 1,222 1,186 1,220 1,098 1,000 119 117 122 50 1 60 500 42 US$ million US$/oz -50 0 -500 -150
Slide 8: Comfortable balance sheet, with flexibility
Comfortable balance sheet, with flexibility ● Net debt of US$1,155m at 30 June 2016 Net debt (US$m) and Net debt/EBITDA ● Net debt to EBITDA of 1.05x from 1.38x at end-FY15 2,000 1.8 ● US$148m of Notes bought back in February 2016 at 1,500 1.6 a 12% discount 1.4 US$m 1,000 ● Equity raising of R2.3bn
Slide 9: H1 2016: Group sustainable development performance
H1 2016: Group sustainable development performance ● No fatalities recorded in H1 2016 ● 35% YoY decrease in TRIFR H1 2016 H1 2015 Q2 2016 Q1 2016 ● Climate change: FIFR Rate 0.00 0.08 0.00 0.00 ̵ Successful auction of carbon credits in Australia TRIFR Rate 2.24 3.47 2.41 2.05 ̵ Gold Fields is leadi
Slide 10: Energy initiatives
Energy initiatives Energy costs and security of energy supply are critical business risks ● 20% of operating cost base (14% of AISC) is energy- linked ● Cost and security of energy supply is a risk at some of Gold Fields operations, particularly in SA and Ghana ● Coal- and diesel-based energy raises
Slide 11: Operational review
Operational review Sono larry
Slide 12: H1 2016: South Africa
H1 2016: South Africa H1 H1 Q2 Q1 Production (koz) and AIC (US$/oz) 2016 2015 2016 2016 90 2,500 77 80 Production koz 140.0 75.0 76.5 63.6 68 2,000 70 64 55 AISC US$/oz 1,229 1,912 1,268 1,183 60 1,500 50 39 AIC US$/oz 1,257 2,020 1,293 1,215 40 1,000 30 20 500 10 ● Strong safety performance with a
Slide 13: South Deep: Encouraging trends
South Deep: Encouraging trends Destress Long Hole Stoping Production & Contribution Destress HP Destress LP 100 180 90 160 Tonnes (‘000)/Q 80 140 70 Tonnes (‘000)/Q 120 60 100 50 80 40 60 30 20 40 20 23% 36% 37% 36% 36% 42% 33% 10 0 0 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q1 2015 Q2 2015 Q
Slide 14: Transition to high profile destress
Transition to high profile destress HP & LP destress completed as at July 2016 Low profile destress High profile destress 90-1W 95-3W 95-2W 95-1W 100-4W 100-1aW 100-3W 100-2bW 100-2aW 100-1bW Keeping the focus despite higher gold price, H1 2016 Results, 18 August 2016 14
Slide 15: Solid global portfolio
Solid global portfolio Production and AIC (ex South Deep) ● Attributable production H1 2016: 904koz (Q2 2016: 453koz) ● AIC H1 2016: US$917/oz (Q2 2016: US$949/oz) ● Net cash flow from international operations H1 2016: US$166m (Q2 2016: US$97m) Equivalent production (koz) AIC (US$/oz) 1200 1200 1000
Slide 16: H1 2016: Australia
H1 2016: Australia H1 H1 Q2 Q1 Production (koz) and AIC (US$/oz) 2016 2015 2016 2016 300 1,200 249 263 241 Production koz 466.1 476.4 240.7 225.4 250 235 1,000 225 AIC US$/oz 928 990 950 904 200 800 150 600 ● Improved safety performance: H1 2016 TRIFR of 100 400 7.53 vs. 16.27 in H1 2015 ● FY16 prod
Slide 17: Commitment to exploration investment
Commitment to exploration investment H1 2016 deliverables Full Year Budget A$93m (4 Expenditure A$52m (Year to Date) sites) Drill metres = 347,456 metres on ground Extensive geophysics & modelling – all sites Delivering growth Resource extensions Granny Smith Wallaby Z100, 110, 120 Darlot CDA Oval A
Slide 18: Granny Smith (Wallaby): Growth resource extension Zone 100
Granny Smith (Wallaby): Growth resource extension Zone 100 Significant intersections include: • WB3539UD 1.45m @ 7.41g/t Au • WB3539UD 4.08m @ 6.52g/t Au • WB3595UD 1.55m @ 45.1g/t Au Wallaby Z100 25x25m drill spacing Successful infill drilling Successful extension drilling Zone 90 Q3 Target Area Zo
Slide 19: Granny Smith (Wallaby): Growth resource extension Zones 110-120
Granny Smith (Wallaby): Growth resource extension Zones 110-120 Significant intersections include: • WB3516UD 10.6m @ 10.96g/t Au • WB3515UD 8.05m @ 3.81g/t Au Zone 90 • WB3498BUD 3.48m @ 3.33g/t Au • WB3563UD 12.73m @ 6.10g/t Au • WB3598UD 8.72m @ 16.12g/t Au • WB3562UD 16.55m @ 9.30g/t Au Zone 100
Slide 20: Granny Smith (Wallaby): New growth Zones 125-150
Granny Smith (Wallaby): New growth Zones 125-150 Zone 125 15.03m @ 12.22g/t Zone 135 Zone 130 Low grade within intrusive WB3330UD 3.3m @ 3.6g/t Zone WB3401UD 135/135HW 8.95m @ WB3386UD 9.95m @ 4.04g/t 7.42g/t 5.44m @ 8.40m @ 7.07g/t Zone 140 3.69g/t 1.82m @ 10.19g/t Zone 100 Zone 110/120 1.5m @ 7.23
Slide 21: Granny Smith: New growth Northern Fleet
Granny Smith: New growth Northern Fleet Wallaby mine View south across Wallaby open pit and Lake Carey toward Northern Fleet Keeping the focus despite higher gold price, H1 2016 Results, 18 August 2016 21
Slide 22: Agnew: Resource extension & new growth Waroonga North
Agnew: Resource extension & new growth Waroonga North Q4 2015 Emerging Target Drill spacing: 100m along strike, 100m – 150m vertical Keeping the focus despite higher gold price, H1 2016 Results, 18 August 2016 22
Slide 23: Agnew: New growth Waroonga North
Agnew: New growth Waroonga North Q2 2016 Advanced exploration EMSD1374W3 780.66-785.36m 6.0m @ 30g/t including 4.7m @ 33.16 g/t Au Drill spacing: 50m along strike, 100m – 150m vertical Keeping the focus despite higher gold price, H1 2016 Results, 18 August 2016 23
Slide 24: Agnew: Barren Lands project area
Agnew: Barren Lands project area Strategy • Identify favourable coarse sandstone host • Along strike from New Holland trend to south • Geophysics and diamond drilling to assist Golden Swan targeting • Initial RC drill program Program • 2 diamond holes for 300m • 8 RC holes for 1,200m Results • Posit
Slide 25: Agnew: Himitsu and Cinderella South
Agnew: Himitsu and Cinderella South EMSD1443 • 6 diamond holes for 1,662m 0.4m @ 28g/t from 140m • Cinderella lodes to the 0.4m @ 16.9g/t from 153m 0.4m @ 195g/t from 163m south along coarse sandstone EMSD1440 • Extension to Himitsu 180 1m @ 2.2g/t from 20m lode 0.6m @ 3.7g/t from 63m • South holes
Slide 26: Darlot: Resource extension & new growth
Darlot: Resource extension & new growth CDA Oval Extensional & Resource conversion project Metzke Burswood Moses Dacent CDRCD0023 0.3m @ 94.0 g/t Au Keeping the focus despite higher gold price, H1 2016 Results, 18 August 2016 26
Slide 27: St Ives: Invincible South resource extension and growth
St Ives: Invincible South resource extension and growth Initial Discovery History: • Discovery hole 1994 (1m @ 0.8g/t Au) • Re-discovered Q1 2012 • 4 of 5 DDH hit ore (14m @3.9 g/t, 12m @ 5.5g/t, 6m @ 2.3g/t, 4m @ 3.0g/t) • Maiden resource 2.3Mt @ 3.3g/t for 246koz Legend Blue = geological structure
Slide 28: St Ives: Palaeo-channel project (additional)
St Ives: Palaeo-channel project (additional) From Neptune Neptune Hole ID Length (m) Grade Au g/t Comment (m) APN CD18999 63 5 15.0 Supergene APN WPD3897 61 10 5.5 Supergene CD19089 65 1 32.0 Palaeochannel Argo North Ext TD13177 52 1 30.3 Palaeochannel CD19106 62 1 29.8 Palaeochannel EM EM Survey Su
Slide 29: H1 2016: West Africa
H1 2016: West Africa H1 H1 Q2 Q1 Production (koz) and AIC (US$/oz) 2016 2015 2016 2016 250 1,200 Production koz 345.5 372.5 164.4 181.1 197.7 181.1 193.8 187.6 1,000 200 AIC US$/oz 1,052 1,156 1,072 1,028 164.4 800 150 ● Focus on safety continues: TRIFR of 0.66 600 ● Development Agreement concluded
Slide 30: H1 2016: South America
H1 2016: South America H1 H1 Q2 Q1 Production (koz) and AIC (US$/oz) 2016 2015 2016 2016 90 83.6 1,200 79.2 Au Eq Prod koz 127.5 150.2 64.6 62.9 80 1,000 70 66.2 64.6 Au Eq AIC US$/oz 728 666 750 709 62.9 60 800 AU only Prod koz 70.5 78.1 35.7 34.8 50 600 AU only AIC US$/oz 489 423 599 386 40 30 400
Slide 31: Conclusions
Conclusions Strategic priorities ● Grow cash flow and margin with increase in gold price ● 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 – Already close to net
Slide 32: Investor Relations Contacts
Investor Relations Contacts Media Contact Avishkar Nagaser Thomas Mengel Sven Lunsche Tel: +27 11 562 9775 Tel: +27 11 562 9849 Tel: +27 11 562 9763 Mobile: +27 82 312 8692 Mobile: +27 82 315 2832 Mobile: +27 83 260 9279 E-mail: E-mail: E-mail: Avishkar.Nagaser@goldfields.co.za Thomas.Mengel@goldfie