Slide 1: Gold Fields H1 2018 results
Gold Fields H1 2018 results NICK HOLLAND: CEO 16 August 2018
Slide 2: Forward looking statement
Forward looking statement 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 a
Slide 3: H1 2018 in review
H1 2018 in review ● Strong H1 performance by the international operations ̵ US$190m net cash before project capex ● Damang reinvestment tracking well against plan ● Gruyere remains on track for first production in Q2 2019 ̵ A$329m spent on the project as at end-June 2018 ̵ Final Forecast Capital for
Slide 4: H1 2018 salient features
H1 2018 salient features H1 2018 H1 2017 Q2 2018 Q1 2018 Attributable gold equivalent production (koz)* 994 1,022 504 490 All-in sustaining costs (US$/oz)* 965 967 973 955 All-in costs (US$/oz)* 1,169 1,092 1,187 1,150 Mine net cash flow** 149 108 Project spending*** 192 141 Net cash from operating
Slide 5: Global Footprint
Global Footprint Gold Fields Group Mines: 7 Projects: 2 Att. production: 994koz (H1 2017: 1,022koz) AIC: US$1,169/oz (H1 2017: US$1,092/oz) Mine net cash flow*: US$149m (H1 2017: US$108m) West Africa region Mines: Tarkwa and Damang Att. production: 319koz (H1 2017: 323koz) AIC: US$1,114/oz (H1 2017:
Slide 6: Balance Sheet
Balance Sheet ● Net debt of US$1,393m at 30 June 2018 Net debt (US$m) and Net debt/EBITDA ● Net debt to EBITDA of 1.07x at end-June 2018 from 2 000 2,0 1.03x at end-2017 1 800 1 600 ● First material debt maturity in June 2019 1 400 1,5 1 200 ● Unutilised facilities of US$1.0bn, R3.5bn and A$50m US$m
Slide 7: Tactical hedging
Tactical hedging Protecting cash flow in high capex period – our existing policy ● In line with Group policy to protect cash flow during periods of significant expenditure, Gold Fields has selectively hedged the oil price, Australian dollar gold price, and US dollar gold price for our Ghanaian opera
Slide 8: Asanko JV
EEN Frecos Asanko JV Asanko location GHANA Gold Belt ‘Hastoric Prod: 0 Stator Weaotren = Si Bolt. -----""
Slide 9: Asanko JV
Asanko JV Expanding our Ghana footprint ● Transaction completed on 31 July 2018 ● Gold Fields acquired a 50% stake in Asanko’s 90% interest in the Asanko Gold Mine Esaase reverves: 2.9Moz ̵ Initial payment of US$165m ̵ Deferred payment of US$20m based on an agreed milestone ● Asanko’s published guid
Slide 10: Asanko JV
Asanko JV Organic growth and exploration potential ● Organic growth at Esaase: ̵ Development of Esaase deposit with ore trucking operation commencing early 2019 ̵ Esaase is now fully permitted. Amended Environmental Permit received in June 2018 includes trucking operation ̵ Initial development and t
Slide 11: Damang
Damang ● The Damang reinvestment project continued to track well against plan during H1 2018. ● Total tonnes mined increased 26% YoY to 23.9Mt for the six months ended June 2018 which was slightly ahead of plan. ● Gold produced increased 16% YoY to 89.5koz, driven by higher grade material mined and
Slide 12: Damang Pit Cut Back
Damang Pit Cut Back Gold Fields H1 2018 Results | 16 August 2018 12
Slide 13: Amoanda Pit
Amoanda Pit Down Plunge direction of hydrothermal Extent of Palaeoplacer lithologies S Amoanda Pit 3 Amoanda Pit 4 mineralisation below Amoanda Pit 4 and Tomento East Pit Tomento East N QV QV +Py QV +Py Awaiting results but visible Au, QV +Py quartz veining and sulphide QV +Py QV +Py mineralisation
Slide 14: Gruyere
Gruyere ● Independent third party review of Definitive Estimate including Final Forecast Capital (FFC) cost estimate has been completed ̵ First gold remains on schedule for the June 2019 quarter (in line with guidance issued in April 2018) ̵ FFC now estimated at A$621m (level of accuracy range -2%/+
Slide 15: Gruyere footprint
Gruyere footprint Gold Fields H1 2018 Results | 16 August 2018 15
Slide 16: Gruyere: Progress in pictures
Gruyere: Progress in pictures Birds eye view of the CIL tanks Coarse ore stockpile SAG mill shells Power house is complete Gold Fields H1 2018 Results | 16 August 2018 16
Slide 17: Australia
Australia H1 2018 H1 2017 2018 guidance Att. Production koz 442 444 865 43% of Group managed AIC US$/oz 900 891 1,010 production Net cash flow US$m 86 60 ● Strong H1 2018 with production and costs largely flat ● Net cash generation of US$86m before project capex for Gruyere ● A$40m of the exploratio
Slide 18: Australia exploration: Agnew
Australia exploration: Agnew Exploration & Growth at Waroonga – focus areas Gold Fields H1 2018 Results | 16 August 2018 18
Slide 19: Australia exploration: Agnew
Australia exploration: Agnew Exploration and Growth at New Holland Underground – focus areas Long Section (looking West) Genesis West Lithology NH East Genesis New Holland South North-East Lower Genesis Sheba North South Sheba North Lower Genesis NH Gold Fields H1 2018 Results | 16 August 2018 19
Slide 20: Australia exploration: Agnew
Australia exploration: Agnew Redeemer North (Phase 1) ● Target potential: 1Moz EMSD1627 EMSD1625 ● Select drill results: (EIS Program) EMSD1623 ̵ 19.7m @ 3.08g/t from 330m (incl. 6.5m @ 6.04g/t) EMSD1624 ̵ 15.0m @ 2.74g/t from 301m (incl. 4.43m @ 5.19g/t) Redeemer North ̵ 9.8m @ 2.62g/t from 375m (i
Slide 21: Australia exploration: St Ives
Australia exploration: St Ives Invincible Camp Exploration: 2Moz+ potential Invincible South Jasper ADEX Invincible Deep EXTN 500m Gold Fields H1 2018 Results | 16 August 2018 21
Slide 22: Australia exploration: St Ives
Australia exploration: St Ives Invincible Camp Exploration: Selected drill results INVINCIBLE SOUTH 12.6m @ 6.25g/t Au (237m) 15.4m @ 3.34g/t Au (328m) 14.0m @ 7.98g/t Au (427m) 2.0 m @ 3.90g/t Au (326m) 12.0m @ 7.42g/t Au (332m) 1.2m @ 3.18g/t Au (374m) 5.6m @ 7.00g/t Au (427m) 6.8m @ 45.79g/t Au (
Slide 23: Australia exploration: Granny Smith
Australia exploration: Granny Smith Resource Definition Resource Optimisation Extensional Exploration Zone 250-Z60 Zone 100 25x25m Zone 70 Mine Definition Zone 80 Zone 90 Zone 135 50x50m Zone 250-60 Resource Definition Zone 100 Zone 70 Zone 90-100 West Zone 80 Extensional Zone 110-120 Exploration Zo
Slide 24: Australia exploration: Granny Smith
Australia exploration: Granny Smith Wallaby North: Upper Wallaby extension ● Target potential: 200koz ● Select drill results: ̵ 1.84m @ 8.17g/t Pit Shell ̵ 7.60m @ 4.76g/t ̵ 2.41m @ 3.64g/t ̵ 2.7m @ 8.58g/t ̵ 5.40m @ 9.07g/t including 2.6m @ 16.02g/t ̵ 4.3m @ 5.85g/t and 5.5m @ 20.06g/t 11m @ 4.11g/
Slide 25: South America
South America H1 2018 H1 2017 2018 guidance Au Eq production koz 137 136 280 Au Eq AIC US$/oz 737 677 810 Au only production koz 61 70 145 14% of Group managed Au only AIC US$/oz 197 253 585 production Net cash flow US$m 41 27 ● Cerro Corona ̵ Feasibility study for the life extension to 2030 is prog
Slide 26: West Africa
West Africa H1 2018 H1 2017 2018 guidance 34% of Group managed Att. Production koz 319 323 680 production AISC US$/oz 924 995 944 AIC US$/oz 1,114 1,142 1,100 Net cash flow* US$m 64 74 * Excludes Damang project capital ● Growing region for Gold Fields ̵ Tarkwa: baseload production for the region ̵ D
Slide 27: South Africa
South Africa H1 2018 H1 2017 2018 guidance Att. Production koz 97 119 244 AISC US$/oz 1,699 1,521 1,300 9% of Group managed AIC US$/oz 1,816 1,557 1,400 production Net cash flow* US$m -42 -44 * Excluding project capital ● Tough H1 2018 ̵ Production of 97koz at AIC of R715,373/kg (US$1,816/oz) ̵ Impa
Slide 28: South Africa: Engineering a better solution at South Deep
South Africa Engineering a better solution at South Deep ● Restructuring ̵ S189 process underway ̵ Temporarily suspending mining activities on 87 Level and redeploying mining crews to the 4W corridor ̵ Servicing the eastern part of the mine from the Twin Shafts and staffing the South Shaft operation
Slide 29: Concluding remarks
Concluding remarks ● 18 months into re-investment program – largely on track ● International portfolio continues to generate strong cash (US$190m before project capital in H1 2018) ● Balance sheet remains comfortable, even after project capital and Asanko transaction ̵ Net debt to EBITDA of 1.19x ●
Slide 30: Questions
Questions