Slide 1: FY 2016 Results
FY 2016 Results REINVESTING FOR THE FUTURE 16 February 2017
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: FY 2016 results: Salient features
FY 2016 results Salient features FY 2016 FY 2015 Q4 2016 Q3 2016 Attributable gold equivalent production (koz) 2,146 2,159 566 537 All-in costs (US$/oz) 1,006 1,026 941 1,038 Net cash from operating activities (US$m) 294 123 Normalised earnings (US$m) 191 45 Normalised earnings (US$/share) 24 6 Divi
Slide 4: Progress against strategic objectives
Progress against strategic objectives Committed to Stick to Grow cash flow delivering on dividend policy Continue to Continue to Deliver a and margin with our plans in of paying out evaluate value- reduce net sustainable an increase in terms of both 25% - 35% of accretive debt South Deep the gold pr
Slide 5: Strong focus on cash generation
Strong focus on cash generation Net cash flow 250 2013 2014 2015 2016 2,000 Gold: US$1,386/oz Gold: US$1,249/oz Gold: US$1,140/oz Gold: US$1,241/oz Net cash: (US$232m) Net cash: US$236m Net cash: US$123m Net cash: US$294m 200 1,625 1,329 1,500 1,242 1,198 1,182 150 1,372 1,315 1,265 1,103 1,092 1,28
Slide 6: Comfortable balance sheet, with flexibility
Comfortable balance sheet, with flexibility ● Net debt of US$1,166m at 31 December 2016 Net debt (US$m) and Net debt/EBITDA 2,000 1.8 ● Net debt to EBITDA of 0.95x at end-2016 from 1.38x at end-FY15 1,500 1.6 1.4 ● First material debt maturity in June 2019 US$m 1,000 1.2 (previously November 2017) 5
Slide 7: Dividends increase with earnings
Dividends increase with earnings ● We have consistently paid dividends on a semi-annually basis since H2 2013 ● We maintain our dividend policy of paying 25% - 35% of normalised earnings ̵ 2016 payout ratio of 32% Dividend per share (Rc) and % payout Dividend yield 120 40% 2.0% 35% 1.8% 100 30% 1.6%
Slide 8: Gold Fields' M&A strategy
Gold Fields’ M&A strategy Quality: ● The main objective underpinning Asset must Gold Fields’ strategy is to generate improve Group AIC and sustainable cash flow generate a 15% FCF margin at US$1,300/oz ̵ To continue expanding margins and Jurisdiction: distributing cash, the long-term Scale: Asset mu
Slide 9: Investing for the future
Damang pit, Ghana Gruyere, Western Australia South Deep, South Africa Salares Norte, Chile Investing for the future
Slide 10: Investing to sustain free cash flow for the long-term
Investing to sustain free cash flow for the long-term ● In order to sustain and grow free cash flow, investment is necessary ● Focus is on reinvesting in the business to ensure sustainable free cash flow ● Only embark on investments and capital expenditure with excellent potential for paybacks and r
Slide 11: Reinvesting to unlock Damang's potential
Reinvesting to unlock Damang’s potential ● Reinvestment will extend Damang’s life of mine (LOM) Tonnes mined vs. head grade g/t Mt by 8 years from 2017 to 2024 40 2.50 ● Total project capital of US$341m over LOM 35 2.00 ● Average annual production of c.225koz, AISC of 30 US$700/oz and AIC of US$950/
Slide 12: Gruyere adds life and quality in WA
Gruyere adds life and quality in WA LOM Plan First gold Late 2018/early 2019 Life of mine 13 years Annual production (100% basis) 270koz AISC A$945/oz (US$690/oz) AIC A$1,103/oz (US$805/oz) Total capital cost (100% basis) A$507m (US$370m) IRR at A$1,500/oz gold after taking into 6% account acquisiti
Slide 13: Brownfields exploration in Australia in 2016
Brownfields exploration in Australia in 2016 ● A$102m exploration spend in 2016 ● Resources flat, Reserves up +10% (excluding Gruyere) ● Resource and Reserve Growth ̵ Wallaby (Granny Smith) ̵ Invincible (St Ives) ● Emerging Projects ̵ Historic Granny Smith, Goanna, Windich Pits A$28.4m (Granny Smith
Slide 14: Granny Smith – Resource & Reserve growth
Granny Smith – Resource & Reserve growth Wallaby Zone 110-120 Target Description: Extensions to Z120 ore body Results: Zone 120 • WB3686UD: 12.8m @ 13.04g/t • WB3772UD: 3.86m @ 1.98g/t WB3771UD • WB3691AUD: 15.4m @ 14.27g/t 2.14m @ 7.88g/t • WB3773UD: 0.85m @ 4.84g/t WB3703UD • WB3703UD: 7.9m @ 9.59
Slide 15: Granny Smith – Resource & Reserve growth
Granny Smith – Resource & Reserve growth Wallaby Zone 135 Target Description: Infill Z135 to 100x100m Continues to deliver quality resources and future reserve growth Results: Zone 135 WBD039UDW1 • WBD046UDW4: 6.6m @ 3.98g/t • WB3679UDW2: 12.75m @ 18.12g/t 7.16m @ 16.06g/t WB3801UDW1 • WBD039UDW1: 7
Slide 16: Granny Smith – Emerging projects
Granny Smith – Emerging projects Goanna Infill Drilling Target Description: Infill drilling along mineralised structure with the aim to increase resource confidence. Results: • GDDH0054: 4.60m @ 4.11g/t from 155.4m • GDDH0071: 11.9m @ 2.13g/t from 174.10m • GDDH0056: 7.85m @ 4.05g/t from 150.34m • G
Slide 17: Granny Smith – Emerging projects
Granny Smith – Emerging projects Windich Target Description: Extension of Granny Smith-Windich high grade mineralisation Results: •GDDH0112: 18.03m @ 2.77g/t from 232.2m •GDDH0113: 1.41m @ 4.02g/t from 286.31m N •GDDH0112: 3.11m @ 2.99g/t from 261.18m •GDDH0113: 3.84m @ 4.07g/t from 294.6m •GDDH0112
Slide 18: Granny Smith – Emerging projects
Granny Smith – Emerging projects Northern Fleet ● 7.5km of anomalous AirCore and preliminary drill Northern Fleet Overview results ● Potential “new discovery” to support Granny Smith mine Lake Carey East Scamp Dallas LCNAC0777 West 2m @ 1.24g/t LCNAC0778 14m @ 0.32g/t Dallas LCNAC0785 LCNAC0779 4m @
Slide 19: St Ives – Resource & Reserve growth
St Ives – Resource & Reserve growth Invincible Complex (Mids, South & Deep) Target Description: Brecciated mudstone hosted mineralisation (Speedway Fault; +35km strike) Results: Invincible Open Pit Invincible Deeps • 11.30m at 6.55g/t from 853.7m (LD14682W5) Invincible South • 10.90m at 5.40g/t from
Slide 20: Agnew – Emerging projects
Agnew – Emerging projects Waroonga North underground Target Description: Waroonga North UG exploration and in-fill drilling to indicated level Results: • 2m @ 3.67ppm (Panda HW zone) • 0.7m @ 13.13ppm (Triton lode) • 2.2m @ 37.1ppm (Triton lode) Key Observations: • UG drilling is confirming the curr
Slide 21: Salares Norte moving up the value curve
Salares Norte moving up the value curve ● 100% Gold Fields owned gold-silver deposit in the Atacama region of northern Chile ● Mineralisation is contained in a high-sulphidation epithermal system, offering high-grade oxides ● c.100km of drilling completed ● Mineral resources as at 31 December 2016 o
Slide 22: Salares Norte geological model
Salares Norte geological model Modelling of high-grade gold and silver sub-domains OPEN Agua Amarga Brecha Principal High-grade gold High-grade silver Low-grade Scale: 1cm:100m Spatially distinct gold and silver distribution Reinvesting for the future, FY 2016 results, 16 February 2017 22
Slide 23: Regional Review
Gruyere, Western Australia South Deep, South Africa Regional Review
Slide 24: Regional overview
Regional overview Strong cash generation in 2016 Group: FY 2016 Group: Q4 2016 Attributable production 2,146koz Attributable production 566koz AIC US$1,006/oz AIC US$911/oz Mine net cash flow US$444m Mine net cash flow US$132m Ghana Region Att. production: 644koz (32% of group) All in costs: US$1,02
Slide 25: FY 2016: Australia
FY 2016: Australia FY FY Q4 Q3 Production (koz) and AIC (US$/oz) 2016 2015 2016 2016 1200 1200 Production koz 942.4 988.0 239.2 237.3 1000 1000 AIC US$/oz 941 912 913 991 800 800 600 600 ● Improved safety performance: FY 2016 TRIFR of 400 400 9.43 vs. 16.27 in FY 2015 (42% improvement) 200 200 ● FY1
Slide 26: FY 2016: West Africa
FY 2016: West Africa FY FY Q4 Q3 Production (koz) and AIC (US$/oz) 2016 2015 2016 2016 800 1400 Production koz 715.8 753.9 182.8 187.5 700 1200 600 AIC US$/oz 1,020 1,049 989 999 1000 500 800 400 600 ● Focus on safety continues: TRIFR of 0.68 300 200 400 ● Tarkwa – strong cash generator in 2016 100
Slide 27: FY 2016: South America
FY 2016: South America FY FY Q4 Q3 Production (koz) and AIC (US$/oz) 2016 2015 2016 2016 350 900 Au Eq Prod koz 270.2 295.6 81.5 61.2 300 800 700 Au Eq AIC US$/oz 762 777 676 945 250 600 200 500 AU only Prod koz 150.2 158.9 44.6 35.1 150 400 AU only AIC US$/oz 499 718 303 765 300 100 200 50 100 ● St
Slide 28: FY 2016: South Africa
FY 2016: South Africa FY FY Q4 Q3 Production (koz) and AIC (US$/oz) 2016 2015 2016 2016 350 1800 Production koz 290.4 198.0 80.9 69.4 300 1600 1400 AISC US$/oz 1,207 1,490 1,097 1,289 250 1200 200 1000 AIC US$/oz 1,234 1,559 1,122 1,317 150 800 600 100 400 ● Strong safety performance with a TRIFR of
Slide 29: South Deep Rebase Plan
Gruyere, Western Australia South Deep, South Africa Salares Norte, Chile South Deep Rebase Plan
Slide 30: Strategy and Progress
Strategy and Progress Fix the base - Business improvement Total Projects Program 2017 2018 Projects Completed People 9 7 2 - Health and Safety 5 3 2 - Fleet and Fleet Management 11 5 4 2 Infrastructure 16 6 6 4 Mining 15 2 8 5 Mineral Resource Management 10 5 4 1 Financial and Administration 2 1 1 -
Slide 31: Positive operating trends achieved
Positive operating trends achieved metres Development - monthly average m2 Destress - monthly average 700 3,000 600 2,500 20% 500 2,000 400 69% 1,500 300 1,000 200 500 100 - - 2014 2015 2016 2014 2015 2016 Development Linear (Development) Low Profile High Profile tonnes Longhole Stoping - monthly av
Slide 32: A world class orebody
A world class orebody ● Corridors increased from 4 to 6 based on regional pillar changes ● 240m horizontal destress span decreased to CM 180m ● Converted from low (2.2m) to high (5.5m) 1,490 m profile destress stoping. Increased yield pillar VCR width from 2.5m (low profile) to 6.0m (high 610 m NoW
Slide 33: Mine Planning
Mine Planning Longhole Stoping 44% 52% 47% 57% 54% 67% 68% 6 Rigs 8 Rigs 8 Rigs 9 Rigs 9 Rigs 11 Rigs 12 Rigs 15 Stopes 19 Stopes 26 Stopes 26 Stopes 30 Stopes 35 Stopes 35 Stopes 250 235 224 210 192 200 174 153 144 113 160 150 150 110 kt/mth 82 64 80 100 33 24 39 24 35 31 33 50 56 53 64 49 47 43 41
Slide 34: Skills and fleet
Skills and fleet Critical skills Description 2017 2018 2019 2020 2021 2022 Management 22 23 23 23 23 23 Core 4 291 4 142 4 081 4 058 4 023 4 028 Services 1 262 1 276 1 212 1 212 1 212 1 212 SLP 574 574 574 574 574 574 Total 6 149 6 015 5 890 5 867 5 832 5 837 Trackless fleet schedule Description 201
Slide 35: LoM tonnage profile: Average tonnes per month
LoM tonnage profile: Average tonnes per month 300 30 South of Wrench Steady state from (East and West) Current Mine and North of Wrench Destress starts in 2033 ≈ 63 years 2022 ≈ 10 years 250 25 230 Ore Production (kt/mth) 200 20 SoW West Au Production (t) t Au 150 kt/mth 150 15 NoW 100 10 50 5 SoW E
Slide 36: Production profile: Tonnes and ounces
Production profile: Tonnes and ounces ● 2016 saw a step change in production as the base was reset ● Production build up will be much steadier over the next six years as South Deep approaches full production ● Mining from North of Wrench increases from 36% to 73% at full production ● At steady state
Slide 37: Cost and capital profiles
Cost and capital profiles ● Most of the operating expenditure is in the cost base ̵ 70% - 80% of South Deep’s cost base is fixed ● Significant improvement in unit costs as volumes ramp up ● Total growth capital of R2,280m will be spent over the next six years – mainly on underground infrastructure (
Slide 38: Investor Relations Contacts Media Contact
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 72 493 5170 Mobile: +27 83 260 9279 E-mail: E-mail: E-mail: Avishkar.Nagaser@goldfields.co.za Thomas.Mengel@goldfie