Gold Fields Limited · JSE:GFI
Gold Fields — Corporate Update (February 2015)
50 slides from Gold Fields's corporate update, Feb 13, 2015
Slide 1: South Deep: Finding It's Feet
South Deep: Finding It’s Feet SOUTH DEEP SITE VISIT 13 February 2015 Nick Holland, Nico Muller and South Deep Team
Slide 2: Introduction
Introduction NICK HOLLAND Chief Executive Officer
Slide 3: South Deep Gold Mine: A Gold Fields Franchise Asset
South Deep Gold Mine A Gold Fields Franchise Asset ● One of the largest undeveloped ore bodies in the world ̵ 76.2 Moz of Mineral Resources ̵ 38.2 Moz of Mineral Reserves ● A low cost long life mine ̵ +70-year LoM ● High level of confidence in the ore body ● The mine has been built ● Mechanised oper
Slide 4: What did Gold Fields Acquire in 2007?
South Deep Gold Mine What did Gold Fields Acquire in 2007? ● Low resolution in geological block modelling and limited surface exploration drilling ● No robust Life of Mine plan underpinning reserves ● Shaft hoisting capacity limited to 202 ktpm (Main shaft only) ● Metallurgical plant capacity limite
Slide 5: Improved Accuracy and Confidence in Ore Body Modelling
South Deep Gold Mine Improved Accuracy and Confidence in Ore Body Modelling •16 Units •Re-aligned 2005 2008 Subcrop Positions 2010 •16 Units •4 Units •April 2007 Gold •Kriging of •LIB Drilling •Shore Line Fields acquires •16 Units Channel Widths Campaign •16 Units Composite 100% of South •Singular &
Slide 6: De-risking The Ore Body
South Deep Gold Mine De-risking The Ore Body 3D Seismic Surface drilling LIB Drilling Grade Control Survey (Long Inclined Drilling (2007-2013) Boreholes) (2003) (49,536m) (13,023m) 50m x 50m grid ~20m resolution 600m x 600m grid 300m x 300m grid Covers the whole lease Used for facies Used for facies
Slide 7: Mining Grades Versus Reserve Grades
South Deep Gold Mine Mining Grades Versus Reserve Grades Mining Grades (g/t) 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 2010 2011 2012 2013 2014 Actual Mined Grade Reserve Grade Positive Grade Reconciliation South Deep: Finding it's Feet | Nick Holland, Nico Muller and the South Deep Team | Friday, 13 February
Slide 8: Infrastructure Status 2015 vs 2007
South Deep Gold Mine Infrastructure Status 2015 vs 2007 Project Capacity New Capacity Capital* (2007) (2015) (R’m ) New Mine Development - Development Nil 17 km 2,416 - Ore handling capacity 200 ktpm 245 ktpm 489 Twin Shaft Hoisting Capacity 202 ktpm 370 ktpm 868 New Mining Equipment - Fleet upgrade
Slide 9: Infrastructure Status 2015 vs 2007 (Continued)
South Deep Gold Mine Infrastructure Status 2015 vs 2007 (Continued) Project Capacity New Capacity Capital* (2007) (2015) (R’m ) 93 Level Main Workshop Nil 70 Cat 1 machines 33 Equipping Single Accommodation Upgrades Nil 922 single rooms 70 Eskom Power Supply 80 MW 160 MW 51 - Emergency Power Supply
Slide 10: Evolution of Mining Since 2006
South Deep Gold Mine Evolution of Mining Since 2006 1998 2007 2008 2009 2013 2015 • Horizontal • Crush • 96% of current mine • Limited • Destress mechanised destress pillars destressed vs 66% in 2007 • April 2007 mining (Reserve 2.2 Moz) mining Gold Fields mechanised and introduced commences Longhol
Slide 11: 2014 Intervention
South Deep Gold Mine 2014 Intervention ● People Strategy • Short term › Rightsizing of workforce through voluntary separation process • Medium term › Recruit South African Team from limited pool of skills • Long term › Grow South African skills pool through bespoke mechanised mining training ● Fleet
Slide 12: Safety Related Ground Support Intervention
South Deep Gold Mine Safety Related Ground Support Intervention ● Growing momentum in H1 2014 interrupted in May ● Four-month suspension of production for ground support in 2014 ● Knock-on effects into 2015 ̵ Destress ̵ Long-hole open stopes delayed Acceleration of Medium Term People Strategy ● Medi
Slide 13: Observations After First 100 Days
Observations After First 100 Days NICO MULLER Executive Vice President: South Africa Region
Slide 14: Leadership: Structure
South Deep Gold Mine Leadership: Structure Strength and Stability Required South Deep: Finding it's Feet | Nick Holland, Nico Muller and the South Deep Team | Friday, 13 February 2015 14
Slide 15: Leadership: The People
South Deep Gold Mine Leadership: The People Adriaan De Beer Francois Van Heerden Errol Drake VP South Deep Head of Operations Head of Engineering 09 Jan 2015 09 Jan 2015 02 Feb 2015 Masala Mutangwa Andre Marais Edwin Matlapeng Technical Head Head of Projects Head of Safety & Health Building the Team
Slide 16: Leadership: The People (continued)
South Deep Gold Mine Leadership: The People (continued) Blessed Mazibuko Bonny Sebola Ulrich Sibilski Head of Finance Head of Sustainable Development Head of Environment 15 Sep 2014 Tumelo Nkisi Jana Strydom Manie Keyser Head of Human Resources Head of Legal & Compliance Head of Mineral Resource 09
Slide 17: Leadership Resume
South Deep Gold Mine Leadership Resume Appointment Position Qualifications and Experience Date BSc Mining Engineering, 20 years experience in South African mining, underground hard EVP South Africa rock mechanized experience at De Beers, Anglovaal, African Rainbow Minerals (Two 01 Oct 2014 Nico Mull
Slide 18: Geology: Quality Ore Body
South Deep Gold Mine Geology: Quality Ore Body ● Massive, multi-layered (16 reef horizons) ● 38.2 Moz reserve, 70+ years life of mine ● Well developed exploration programme and resource modelling ● High predictability RESOURCE EXTENSION & EXPLORATION DISCOVERY RESOURCE • Massive, multi-layered palae
Slide 19: Schematic Cross Section Through The Ore Body
South Deep Gold Mine Schematic Cross Section Through The Ore Body Proven Mining Methods ● Deep level massive mining ̵ Destress ̵ Drifting, benching, longhole stoping ● Fully mechanised ● Improved safety, productivity and costs ● Destress pilot tests (4.5x4.5m, inclined slot) ● Key constraint : suppo
Slide 20: Drifting and Benching (detail)
South Deep Mining Methods Drifting and Benching (detail) South Deep: Finding it's Feet | Nick Holland, Nico Muller and the South Deep Team | Friday, 13 February 2015 20
Slide 21: Longhole stoping (detail)
South Deep Mining Methods Longhole stoping (detail) South Deep: Finding it's Feet | Nick Holland, Nico Muller and the South Deep Team | Friday, 13 February 2015 21
Slide 22: Horizontal destress with longhole stoping
South Deep Mining Methods Horizontal destress with longhole stoping • Conceptualised reef block with surrounding waste material at a depth of 2,700 m South Deep: Finding it's Feet | Nick Holland, Nico Muller and the South Deep Team | Friday, 13 February 2015 22
Slide 23: Horizontal destress with longhole stoping
South Deep Mining Methods Horizontal destress with longhole stoping • Cut-out for mining method description South Deep: Finding it's Feet | Nick Holland, Nico Muller and the South Deep Team | Friday, 13 February 2015 23
Slide 24: Horizontal destress with longhole stoping
South Deep Mining Methods Horizontal destress with longhole stoping • Sinking of a shaft and development into the target where destressing can start South Deep: Finding it's Feet | Nick Holland, Nico Muller and the South Deep Team | Friday, 13 February 2015 24
Slide 25: Horizontal destress with longhole stoping
South Deep Mining Methods Horizontal destress with longhole stoping • Destressing continuing South Deep: Finding it's Feet | Nick Holland, Nico Muller and the South Deep Team | Friday, 13 February 2015 25
Slide 26: Horizontal destress with longhole stoping
South Deep Mining Methods Horizontal destress with longhole stoping • Destressing continuing South Deep: Finding it's Feet | Nick Holland, Nico Muller and the South Deep Team | Friday, 13 February 2015 26
Slide 27: Horizontal destress with longhole stoping
South Deep Mining Methods Horizontal destress with longhole stoping • Destressing continuing South Deep: Finding it's Feet | Nick Holland, Nico Muller and the South Deep Team | Friday, 13 February 2015 27
Slide 28: Horizontal destress with longhole stoping
South Deep Mining Methods Horizontal destress with longhole stoping • Second destress cut in progress South Deep: Finding it's Feet | Nick Holland, Nico Muller and the South Deep Team | Friday, 13 February 2015 28
Slide 29: Destress cut – mining sequence
South Deep Mining Methods Destress cut – mining sequence 5,0m 2,5m Destress mining dimensions • Establishment of a destress cut South Deep: Finding it's Feet | Nick Holland, Nico Muller and the South Deep Team | Friday, 13 February 2015 29
Slide 30: Destress cut – mining sequence
South Deep Mining Methods Destress cut – mining sequence Accesses ripped to size in the hanging-wall of the destress accesses 5,0m 5,5m 2,5m Enlargement of accesses • Once a sufficient area is destressed the initial destress accessed are enlarged to a height of 5.5m. This allows access for bigger eq
Slide 31: Destress cut – mining sequence
South Deep Mining Methods Destress cut – mining sequence • Continuation South Deep: Finding it's Feet | Nick Holland, Nico Muller and the South Deep Team | Friday, 13 February 2015 31
Slide 32: Destress cut – mining sequence
South Deep Mining Methods Destress cut – mining sequence • Completed destress cut South Deep: Finding it's Feet | Nick Holland, Nico Muller and the South Deep Team | Friday, 13 February 2015 32
Slide 33: Destress cut – destress envelope
South Deep Mining Methods Destress cut – destress envelope • Destressed envelope – stresses reduced from 80 Mpa (insitu) to between 35 and 40 Mpa • Mimics conditions at a depth of 1,200 m below surface (actual 2,700 m below surface) • A destress zone above and below the destress cut is established a
Slide 34: Destress cut – destressed reserves
South Deep Mining Methods Destress cut – destressed reserves • On average every ton of destress mining makes available 7.2 tonnes of targeted reserves • Each destress cut destresses on average 155 Koz of longhole stoping reserves • Longhole stopes accessed from one destress cut South Deep: Finding i
Slide 35: Destressed targets
South Deep Mining Methods Destressed targets Destressed envelope Destress Cut-1 Destress Cut-2 Destress Cut-3 Destress Cut-4 • Detress envelopes describing the what is available for mining (destressed) South Deep: Finding it's Feet | Nick Holland, Nico Muller and the South Deep Team | Friday, 13 Feb
Slide 36: Horizontal destress with longhole stoping
South Deep Mining Methods Horizontal destress with longhole stoping • Third destress cut started • Longhole stoping starts – retreat mining from the outer limits toward the main access South Deep: Finding it's Feet | Nick Holland, Nico Muller and the South Deep Team | Friday, 13 February 2015 36
Slide 37: Horizontal destress with longhole stoping
South Deep Mining Methods Horizontal destress with longhole stoping • Longhole stoping and destressing continuing • Initial longhole stope backfilled South Deep: Finding it's Feet | Nick Holland, Nico Muller and the South Deep Team | Friday, 13 February 2015 37
Slide 38: Development
South Deep Mining Methods Development • The spiral ramp system accesses destress cut at 17m vertical intervals South Deep: Finding it's Feet | Nick Holland, Nico Muller and the South Deep Team | Friday, 13 February 2015 38
Slide 39: Development
South Deep Mining Methods Development • Longhole stoping and destressing continuing • Initial longhole stope backfilled South Deep: Finding it's Feet | Nick Holland, Nico Muller and the South Deep Team | Friday, 13 February 2015 39
Slide 40: Horizontal destress with longhole stoping
South Deep Mining Methods Horizontal destress with longhole stoping • Longhole stoping and destressing continuing • Initial longhole stope backfilled South Deep: Finding it's Feet | Nick Holland, Nico Muller and the South Deep Team | Friday, 13 February 2015 40
Slide 41: Horizontal destress with longhole stoping
South Deep Mining Methods Horizontal destress with longhole stoping • At a steady state a project such as this will produce at an average rate of 46 Ktpm South Deep: Finding it's Feet | Nick Holland, Nico Muller and the South Deep Team | Friday, 13 February 2015 41
Slide 42: Infrastructure Installed
South Deep Gold Mine Infrastructure Installed Infrastructure ● Shaft infrastructure and hoisting capacity (330 ktpm) ● 2009 ramp up capital project ● Ore handling system (220 ktpm – railbound) ̵ Approved R8.4 billion (2009 terms) ● Ventilation and refrigeration capacity to support production ̵ Expen
Slide 43: Trackless Fleet Productivity: Drill Rigs
South Deep Gold Mine Trackless Fleet Productivity: Drill Rigs 90 ● 2014 fleet rationalisation 80 70 Fleet Size Description 60 2013 2014 Var% 50 Drill Rigs 26 11 -58% 81 40 LP Drill Rigs 21 11 -48% 65 60 30 58 Simbas 5 5 0% LHDs 25 16 -36% 20 LP LHDs 25 15 -40% 10 Dump Trucks 20 13 -35% 0 C2011 C2012
Slide 44: Sustainability: Health & Safety
South Deep Gold Mine Sustainability: Health & Safety TIFR ● Continual improvement 40 ● Mechanised mining 35 30 ● 2008 25 ̵ Concluded mining on VCR (conventional) 20 ̵ Phased out conventional destress 15 10 ● 2014 5 ̵ 3 x fatalities related to trackless equipment 0 F2008 F2009 F2010 F2011 C2011 C2012
Slide 45: Sustainability: Charter & SLP
South Deep Gold Mine Sustainability: Charter & SLP ● Social and Labour Plan ● Shared value projects ● HRD commitments Business Development Centre Bakery • Facilitates training and business • Managed and operated by local community opportunities • Easy access – local community / SMME’s SMME Training
Slide 46: Sustainability: Responsible Environmental Stewardship
South Deep Gold Mine Sustainability: Responsible Environmental Stewardship ● Water Management Projects ̵ Storm water separation channels (Q2 2015) ̵ Water treatment capacity increase from 3 ML/day to 5 ML/day (Q2 2015) ̵ Tailings storage facility dust alleviation and run off reduction ̵ Rehabilitati
Slide 47: Delivery and Performance
South Deep Gold Mine Delivery and Performance Historical Ounces Planned 800,000 2014 Events 700,000 ̵ Mine stoppages due to support intervention ̵ Safety stoppages due to 3 x fatalities 600,000 ̵ Fleet reduction ̵ Restructuring 500,000 400,000 300,000 On-going constraints ̵ Knock-on effect of 2014 g
Slide 48: Conclusions
South Deep Gold Mine Conclusions ● The value inherent in South Deep undoubtedly remains • Quality ore body • Installed infrastructure • Proven mining methods & technology • Strong social and environment agenda • Constraints are well documented ● Known weaknesses • Leadership • Management • Design •
Slide 49: The Way Forward
South Deep Gold Mine The Way Forward ● Fix the base Redefine core purpose ● Cash flow ● Organisational design (level 1 complete) Leadership ● Leadership and direction (level 1 complete) ● Vertical penetration ● Support installation ● Management systems ● Backfill ● Planned maintenance Core Strategie
Slide 50: Questions?
Questions? South Deep: Finding It’s Feet SOUTH DEEP SITE VISIT 13 February 2015 Nick Holland, Nico Muller and South Deep Team