Gold Fields Limited · JSE:GFI

Gold Fields — Merrill Lynch 13th Annual Sun City Conference 2012

48 slides from Gold Fields's conference presentation, Mar 29, 2012

  1. Slide 1: Merrill Lynch 13th Annual Sun City Conference

    Merrill Lynch 13th Annual Sun City Conference 28 – 29 March 2012

  2. 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

  3. Slide 3: Overview

    Overview ace fete Ga) 1Govp| Fievcps

  4. Slide 4: What Gold Fields Offers Today

    What Gold Fields Offers Today A Quality Reserve 80.6 million ounces of reserves1 Solid Production Base 3.5 million ounces per annum2 Geographical Diversification 51:49 (RoW3:SA) production split (2011) Robust Free Cash Flow US$752 million4 (2011) Strong Growth Pipeline Targeting 5Moz5 by 2015 Conser

  5. Slide 5: Gold Fields at a Glance

    Gold Fields at a Glance FINLAND Arctic Platinum Project MALI Vancouver Yanfolila Denver Beijing PHILIPPINES PERU GHANA Far South East Cerro Corona Tarkwa Chucapaca Damang AUSTRALIA Agnew Lima SOUTH AFRICA St Ives Johannesburg KDC Perth South Deep Santiago Beatrix Offices Mines Exploration Projects G

  6. Slide 6: Replacing and growing the Mineral Reserve position

    Replacing and growing the Mineral Reserve position Headline numbers1 – Mineral Reserve as at 31 December 2011 Moz 80.6Moz 82 Attributable Reserves 80 76.7Moz 78 Attributable Reserves 76 74 72 3.9Moz 7.8Moz Depletion Additions 70 68 Bar 1 Category 2 Category 3 Category 4 31 December 2010 31 December

  7. Slide 7: Mineral Reserve

    Mineral Reserve Diversifying the composition of the portfolio over time Dec 2006 Attributable AuEq Reserve Dec 2011 Attributable AuEq Reserve (93.8Moz) (80.6Moz) 0% 3% 7% 5% 8% 11% 23% 46% 15% 4% 33% 45% KDC & Beatrix SRD & TSF * South Deep West Africa South America Australasia _____________________

  8. Slide 8: Increasing international diversification

    Increasing international diversification 2008 Production1 2011 Production1 2015 Production Target2 19% 2% 18% 20% 40% 10% 49% 18% 62% 20% 22% 20% South Africa West Africa Australia South America 2015 Production Target2 South Africa Region Australasia Region West Africa Region South America Region ~

  9. Slide 9: Improving size & profitability of international portfolio

    Improving size & profitability of international portfolio ‘000 ounces 2 500 37% 40% 32% 35% 2 000 30% 26% 25% 1 500 20% 15% 1 000 1,989 1,977 1,802 10% 1,516 5% 500 -2% 0% 0 -5% 2008 2009 2010 2011 International production (LHS) * International NCE Margin (RHS) ______________________________________

  10. Slide 10: Notional cash expenditure (NCE) explained

    Notional cash expenditure (NCE) explained Disciplined approach to managing the all-in cost for the Group, and for each operation ƒ NCE includes NCE margin breakdown (US$/oz) • Operating costs 1800 • Growth and sustaining capital expenditure 1600 • Brownfields exploration NCE 490 471 margin 1400 318

  11. Slide 11: NCE margin expansion

    NCE margin expansion Q4 2011 NCE margin of 28 % exceeds long-term target US$/oz 1800 Gold Price Total Cash Cost NCE 1600 29 % 28% 1400 21 21% % 1200 1000 800 600 400 Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011

  12. Slide 12: Financial Overview

    Financial Overview ace fete Ga) 1Govp| Fievcps

  13. Slide 13: F2011 Highlights

    F2011 Highlights 97% increase in NCE1 margin per ounce to US$396/oz against a 29% increase in the US$ gold price Cash Flow (US$m) ƒ Attributable production of 3.49 million gold 2 500 equivalent ounces Operating cash flow 2 165 Free cash flow 2 000 ƒ 47% increase in operating profit to 1 692 US$2.9bn

  14. Slide 14: Leverage to the gold price

    Leverage to the gold price Gold Price (US$/oz) Operating Cash Flow (US$m) 1 800 2 500 1 600 1 400 81% 2 000 141% 1 200 1 500 1 000 800 1 569 2 165 1 000 600 400 865 500 898 200 0 0 2008 2011 2008 2011 EBITDA (US$m) Net Earnings (US$m) 3 500 1 200 3 000 1 000 2 500 154% 800 205% 2 000 600 1 500 2 924

  15. Slide 15: Conservative balance sheet and debt strategy

    Conservative balance sheet and debt strategy Balance sheet positioned for growth Net debt (US$m) & Net debt:EBITDA ratio* (times) ƒ Low gearing 3 500 0.90 Net Debt (LHS) ƒ Strong liquidity position 0.80 3 000 EBITDA (LHS) ƒ Robust cash flow generation Net Debt:EBITDA (RHS) 0.70 2 500 0.60 ƒ Conserva

  16. Slide 16: Peer Comparison

    Peer Comparison ace fete Ga) 1Govp| Fievcps

  17. Slide 17: Key performance and financial metrics

    Key performance and financial metrics m’ Oz m’ Oz Production (Moz)1 Reserves (Proven and Probable) (Moz)2 160 9 8 140 7 120 S&P Moody’s 6 100 5 80 Barrick A- Baa1 4 7.7 139.9 60 3 5.2 98.8 2 4.3 40 80.6 79.1 75.6 Newmont BBB+ Baa1 3.5 2.7 64.7 62.6 1 2.5 2.5 20 0 0 Goldcorp BBB+ Baa2 Newcrest BBB+ B

  18. Slide 18: Key leverage metrics

    Key leverage metrics m’ Oz Net Debt (US$m)1 m’ Debt/EBITDA Net Oz 2 (x) 12 000 1.6 1.3 10 624 10 000 1.2 8 000 S&P Moody’s 6 000 0.8 0.6 0.5 0.5 4 000 2 553 0.3 1 376 1 303 1 164 0.4 Barrick A- Baa1 2 000 0 0 Newmont BBB+ Baa1 -2 000 -133 -765 -0.4 Goldcorp BBB+ Baa2 Newcrest BBB+ Baa2 AngloGold BBB

  19. Slide 19: Operations Review

    Operations Review ace fete Ga) 1Govp| Fievcps

  20. Slide 20: South Africa Region: Overview

    South Africa Region: Overview Sound cost control ƒ Q4 production of 434koz (Q3: 428koz) at a total cash Contribution to Group EBITDA Q4 2011 cost of US$882/oz and NCE of US$1,276/oz ƒ BPR1 savings of R835 million mitigated mining inflation US$375m | 43% Rest of Group increases US$502m − Cost increas

  21. Slide 21: West Africa Region: Overview

    West Africa Region: Overview Operationally sound ƒ Q4 production1 of 220koz (Q3: 234koz) at a total Contribution to Group EBITDA Q4 2011 cash cost of US$659/oz and NCE of US$1,071/oz US$232m | 26% ƒ BPR savings of US$43 million for the year Rest of Group US$645m ƒ Commissioned secondary crusher at T

  22. Slide 22: Australasia Region: Overview

    Australasia Region: Overview Solid performance at St Ives and Agnew Contribution to Group EBITDA Q4 2011 ƒ 2% increase in production to 172koz in Q4 (Q3: 169koz) at a total cash cost of US$741/oz and NCE of US$177m | 20% US$1,283/oz Rest of Group US$700m ƒ Songvang open pit mining ramped up ƒ Transi

  23. Slide 23: South America Region: Overview

    South America Region: Overview Highest margin operation Contribution to Group EBITDA Q4 2011 ƒ Q4 production1 of 80koz (Q3: 94koz) at a total cash US$94m | 11% cost of US$489/oz and NCE of US$719/oz − Decline in gold equivalent production mainly due to lower copper/gold price ratio Rest of Group US$

  24. Slide 24: Growth Projects

    Growth Projects Estee fete Ga) 1Govp| Fievcps

  25. Slide 25: Creating a globally diversified portfolio

    Creating a globally diversified portfolio Arctic Platinum Creating a globally diversified portfolio Pre-Feasibility Producing Asset • 12Moz 2PGE + Au Development Project resource • Scoping Study Exploration Project confirms Platsol® process • Exploration and amenability in 2012 Woodjam JV Exploratio

  26. Slide 26: Growth Projects: 2012 Objectives

    Growth Projects: 2012 Objectives SOUTH DEEP (South Africa) ƒ Capital infrastructure programme continues to meet key delivery dates ƒ Ramp up to 700koz run rate expected by the end of 2015 ƒ Vent shaft deepening project remains on track for commissioning in the Q3 2012 ƒ Plant expansion from 220ktpm

  27. Slide 27: Growth Projects: 2012 Objectives

    Growth Projects: 2012 Objectives FAR SOUTHEAST PROJECT (Philippines) ƒ Acquired 40% of Far Southeast ƒ Complete initial resource estimate in H2 2012 ƒ FTAA expected in H2 2012 (decision to exercise option for remaining 20% and final payment of US$110m) ƒ Pre-feasibility anticipated to commence in H2

  28. Slide 28: South Deep Project

    South Deep Project World class project management Forecast production build-up (koz) ƒ Capital infrastructure programme on track 800 700 ƒ Ramp up to 700koz run rate end 2015 600 500 ƒ Project capital development achieved 105% of 400 planned metres for the year 300 200 ƒ Improvement in de-stress min

  29. Slide 29: Chucapaca Project: Location

    Chucapaca Project: Location Chucapaca Project in southern Peru Cerro Corona PERU Lima Chucapaca Project Mining Concessions Chucapaca Project Gold Fields 12,700Ha 94,100Ha Buenaventura 18,400Ha 29

  30. Slide 30: Chucapaca Project: Resource pit shell

    Chucapaca Project: Resource pit shell September 2011 Mineral Resource Model and Open Pit Shell (7.6Moz Aueq*) CCP10-137 E W CCP11-274 62.2m at 5.23g/t Au ~70% of Resource 25.8m at 2.00g/t Au from 409.4m from 619.8m Section 950W in the Indicated Section 1100W Category 7.6Moz Aueq* 450 m CCP11-289 g/t

  31. Slide 31: Chucapaca Project: Exploration potential

    Chucapaca Project: Exploration potential Good exploration potential in the district... W E Titan Geophysics – Deep Search Ground IP ~ 2km Canahuire C° Chucapaca Agani CCP11_414 16m @ 0.6g/t Au 0 2km …Canahuire – one of numerous targets that have potential 31

  32. Slide 32: Chucapaca Project: 2012 Objectives

    Chucapaca Project: 2012 Objectives Indicative delivery timeline 2011 2012E 2013E 2014E 2015E 2016E Chucapacaˣ 400 to 600kozpa Aueq Explore* Develop^ Construct# 2012 Objectives ƒ Complete feasibility study during H2 2012 ƒ Submit EIA H2 2012 ƒ Development decision targeted for end 2012 ______________

  33. Slide 33: Damang Super-pit Project: Ghana

    Damang Super-pit Project: Ghana Resource and Pre-feasibility targeted for H1 2012 ƒ 2.1Moz Reserve for total Damang property (31 Dec 10) ƒ Damang Pit Reserve 1.1Moz ƒ Other pit reserves of 0.83Moz ƒ Combine Huni, Juno and Damang pits as a Super-pit ƒ Conceptual model generated by cut and paste of gr

  34. Slide 34: Damang Super-pit Project: Pit shell

    Damang Super-pit Project: Pit shell Proof of concept drilling demonstrated robust exploration target Juno Damang Huni 121.6m at 1.74 g/t Au 180m at 2.42 g/t Au 605.4m at 0.63 g/t Au 408.4m at 0.52 g/t Au 408 270m at 0.95 g/t Au 425.4m at 0.71 g/t Au 348.8m at 1.1 g/t Au 143.8m at 3.93 g/t Au 188.6m

  35. Slide 35: Damang Super-pit Project: 2012 Objectives

    Damang Super-pit Project: 2012 Objectives Indicative delivery timeline 2011 2012E 2013E 2014E 2015E 2016E Damang Super-pitˣ 400 to 500kozpa Au Explore* Develop^ Construct# 2012 Objectives ƒ Updated resource model expected in Q2 2012 ƒ Complete pre-feasibility study in H2 2012 ƒ Ongoing engagement wi

  36. Slide 36: Far Southeast Project: Philippines

    Far Southeast Project: Philippines High quality gold-copper porphyry with significant upside potential ƒ Option to acquire 60% interest ƒ Acquired 40% of Far Southeast Far Southeast Project Area ƒ Decision to exercise option for the remaining 20% and final payment of US$110m expected in H2 2012 ƒ 88

  37. Slide 37: Far Southeast Project: Geology and resource potential

    Far Southeast Project: Geology and resource potential NW SE Enargite Prod: 1938 - 98 Prod: 1997 to present 1,600m 41Mt @ 3.3g/t Au 18Mt @ 7.71g/t Au 700 Drilling level Far Southeast Au-Cu Porphyry Exploration Target*: 500m 900Mt at 0.77g/t Au and 0.54% Cu 100 m (52Moz eq) (c/o ~0.8g/t Aueq^) -200 m

  38. Slide 38: Far Southeast Project: A world-class deposit

    Far Southeast Project: A world-class deposit Gold versus Copper Grade (deposit size in Aueq ounces - scaled by bubble size) 1.60 1.40 Production Feasibility Undeveloped Exploration Gold Fields 1.20 Andash High grade trend 1.00 Gold grade (g/t) Hunchun Cerro Corona Far Southeast 0.80 Bystrinskoye Gra

  39. Slide 39: Far Southeast Project: 2012 Objectives

    Far Southeast Project: 2012 Objectives Indicative delivery timeline 2011 2012E 2013E 2014E 2015E 2016E Far Southeastˣ 4 to 25Mtpa ore Explore* Develop^ Construct# 2012 Objectives ƒ Underground drilling to recommence in March 2012 ƒ Complete initial resource estimate in H2 2012 Awaiting Picture ƒ FTA

  40. Slide 40: Arctic Platinum Project (APP), Finland

    Arctic Platinum Project (APP), Finland Detailed scoping study completed Q4 2011 Significant PGE-Cu-Ni Deposits Layered Intrusive Complexes Barents ƒ Platsol® demonstrated as a technically viable Sea process Norway ƒ Improved overall project recoveries ƒ On site production of saleable metals Kevitsa

  41. Slide 41: APP Resource expansion & metallurgical test work

    APP Resource expansion & metallurgical test work 21,867m completed out of 40,000m drilling programme 2012 exploration to focus on proving up resource potential of the Suhanko Extension deposits A A’ Suhanko North SUHANKO EXTENSIONS Tuumasuo Konttijärvi SUHANKO PROJECT Ahmavaara Vaaralampi 41

  42. Slide 42: Arctic Platinum Project: 2012 Objectives

    Arctic Platinum Project: 2012 Objectives Indicative delivery timeline 2011 2012E 2013E 2014E 2015E 2016E Arctic Platinum 300 to 400kozpa 2PGE+Au Explore* Develop^ Construct# 2012 Objectives ƒ Aim to complete drilling on Suhanko North ƒ Platsol® amenability tests on new resources ƒ Resource upgrade a

  43. Slide 43: Yanfolila Project: Mali

    Yanfolila Project: Mali Komana scoping study ƒ Scoping a 1Moz to 1.5Moz starter project ƒ 100,506m RC and DD drilled in 2 years ƒ Good targets within 25km radius of the Komana deposits ƒ Multiple ore sources feeding a central 3Mtpa to 4Mpta CIL plant ƒ Kabaya South ƒ Solona 25km ƒ Sanioumale West ra

  44. Slide 44: Yanfolila Project: 2012 Objectives

    Yanfolila Project: 2012 Objectives Indicative delivery timeline 2011 2012E 2013E 2014E 2015E 2016E Yanfolilaˣ 180 to 250kozpa Au Explore* Develop^ Construct# 2012 Objectives ƒ 48,000 meters of additional drilling planned for H1 2012 ƒ Resource upgrade and optimisation during H2 2012 ƒ Commence pre-f

  45. Slide 45: 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 Current Base* Yanfolila Damang Super-pit Chucapaca 5Moz either in production South Deep or in development 3.5Moz 2011 2015 Target ______________________ * Actual product

  46. Slide 46: Appendix

    Appendix ace fete Ga) 1Govp| Fievcps

  47. Slide 47: Damang Exploration Target Statement

    Damang Exploration Target Statement Damang Superpit Project, Ghana – Exploration Target Statement The Damang Gold Mine (Abosso Goldfields Ltd) is one of Gold Fields two operating mines in south west Ghana, and currently produces approximately 220-240koz per annum. Following the acquisition (June 201

  48. Slide 48: Far Southeast Exploration Target Statement

    Far Southeast Exploration Target Statement Far Southeast Au-Cu Project, Philippines – Exploration Target Statement The Far Southeast Project (FSE) is an advanced exploration program being conducted by Far Southeast Gold Resources Inc. to investigate and evaluate Au-Cu mineralisation associated with

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