Slide 1: Gold Fields West Africa
Asanko Gold Fields West Africa ALFRED BAKU Executive Vice President and Head of Region May 2019
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: The Operating Environment
The Operating Environment ● The ruling New Patriotic Party (NPP) is in its 3rd year ● Next elections in 2020 ● Permitting takes longer but usually successful ● The 2017-18 campaign to clamp down on illegal mining POLITICAL ENVIRONMENT • Ongoing Political stability • Focus on strengthening existing f
Slide 4: Fastest growing economy in Africa
Fastest growing economy in Africa FX Overview Inflation Rate • 9.2% (Feb 2019) Target: 8.0% BoG Policy Rate • 16% (Feb 2019) 2018/19 Inflation Trend • The USD/GHS reached an all time high of 5.60 in March 2019. Mainly due to market speculation & Ghana’s import led economy • Relief so far in Q1 2019
Slide 5: Ghana is now the largest producer of gold in Africa
Ghana is now the largest producer of gold in Africa • Gold continues to account for over 90% of total mining Gold Production by company revenues 4.65% 4.18% 0.06% • Gold Mining = 8% of national GBP 4.89% • Dependent on its policies, Ghana is well positioned to gain 5.12% 20.19% regional competitive
Slide 6: West Africa Region
West Africa Region Region consists of 2 mines Tarkwa & Damang and a JV, Asanko, all in Ghana 1 Includes 45% of Asanko Gold for August – December 2018 2 TFIFR – Total Recordable Injury Frequency Rate Injuries per 1 million hours worked, including employees and contractors 3 Net cash flow = cash-flow
Slide 7: West Africa Region
West Africa Region WA Gold Produced (Oz) and All-in-cost (AIC) Tarkwa Oz AIC Gold Produced (Oz) & All-in-cost (AIC) 700 1,400 Guidance 600 1,200 West Africa 500 1,000 Oz Gold Produced (Oz) & All-in-cost (AIC) AIC 400 800 900 1,600 Guidance 300 600 800 1,400 200 400 700 1,200 100 200 600 1,000 0 0 50
Slide 8: 25 Years in Ghana
(BMT Fiecos 25 Years in Ghana OUR JOURNEY SO FAR We acquire the 71.1% that We buy AMGOLD's Gold Fields buys the Ranger Minerals held in 18.9% interest in Abosso We buy a 50% stake in Tarkwa Mine from State | Abosso Gold Fields Limited, Gold Fields Ghana signs Gold Fields Limited, ‘We return to the ‘
Slide 9: Our Contribution and Recognition
Our Contribution and Recognition 1. US$1.28 billion Corporate tax and royalties 2. US$107.3 million Dividend payments to the Government Contribution to of Ghana the State 3. US$60 million 4. US$26 million Gold Fields Ghana Foundation spend on Damang Road community development 5. US$266.2 million Amo
Slide 10: Community Development
Community Development Gold Fields Ghana Foundation US$60M invested in our ● 2002: Establishment of Gold Fields Trust Fund communities, their dreams, ● 2004: Registered as Gold Fields Ghana Foundation, a and their future charitable non-profit organization ● Main objective: generate funding for the de
Slide 11: What are the goals we have set?
What are the goals we have set? AIC of US$900/oz for the region Sustaining operations through continued investment and brownfields exploration Meet Production & Cost Guidance Genser Energy Power Project Development Agreement Damang Reinvestment Plan M&A: Identify High Quality Assets 11
Slide 12: Development Agreements
Development Agreements 2015: 2018: 2019: 2016: New DAs Newmont AngloGold (re- Gold Fields Obuasi ??? negotiated) (new) (new) Minerals & Mining Act, 2006 (Act 703): Stability Agreement for a period no more than 15 years Minimum US$500 Million investment for a Development Agreement (no period stated)
Slide 13: Power Purchase Agreement with Genser Energy
Power Purchase Agreement with Genser Energy Aug 2015 - Phase 1 1 Jan 2017– Phase 2 1 Jan 2018 – Phase 3 1 May 2019 – Phase 4 1 Aug 2019 – Phase 5 Commissioning Damang Mine Commissioning Commissioning Final approval Commissioning - 27MW Tarkwa Mine - NG gas pipe line to Tarkwa PPA with Control Panel