Slide 1: Q4 2014 and FY14 Results
Q4 2014 and FY14 Results DELIVERING ON THE STRATEGY Nick Holland 12 February 2015
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: Salient features
Salient features Q4 2014 Full year 2014 ● Attributable production: 556koz ● Attributable production: 2.22Moz ● AISC: US$1,023/oz (excl. South Deep: ● AISC: US$1,053/oz (excl. South Deep: US$963/oz) US$1,000/oz) ● AIC: US$1,047/oz (excl. South Deep: ● AIC: US$1,087/oz (excl. South Deep: US$975/oz) US
Slide 4: The Transformation of Gold Fields
The Transformation of Gold Fields Strategic Imperatives 1. Focus on Free Cash Flow ̵ Structural shift in cost base ̵ >15% free cash flow margin at a US$1,300/oz gold price ̵ No marginal mining and high-grading, maintain cut-off grades ̵ Protect sustainability of ore bodies by investing in developmen
Slide 5: How we scored on key deliverables in 2014
How we scored on key deliverables in 2014 Cost Control & Production 15% FCF Margin Safety @ US$1,300/oz Increased Reduce net debt momentum at Pay Dividends by $200m in 2014 4 South Deep Disposal of non- core assets Q4 2014 and FY14 Results | Nick Holland | 12 February 2015 5
Slide 6: The Transformation of Gold Fields: Production and Costs
The Transformation of Gold Fields AIC down 35% from US$1,621/oz (Q4 2012) to US$1,047/oz (Q4 2014) Production and Costs 700,000 1800 598,000 1600 600,000 557,000 548,000 559,000 556,000 534000 1400 496,000 500,000 477000 451,000 1200 Ounces US$/oz 400,000 1000 300,000 800 600 200,000 400 100,000 200
Slide 7: The Transformation of Gold Fields: Net Cash Flow
The Transformation of Gold Fields Net Cash Flow1 250 2013 2014 2,000 Gold: US$1,386/oz Gold: US$1,249/oz 1,686 Net cash: (US$232 million) Net cash: US$236 million 1,625 1,372 1,500 1,315 150 1,265 1,283 1,275 1,265 1,179 1,000 65 63 54 54 50 38 4 500 US$ million -6 US$/oz -50 0 -45 -500 -150 -1,000
Slide 8: Strengthening of the Balance Sheet
The Transformation of Gold Fields Strengthening of the Balance Sheet ● Net debt reduced by US$282m to US$1,453m ● Net debt to EBITDA reduced to 1.3x1 ● Maturity date on US$715m of debt extended, on same terms, from Nov 2015 to Nov 2017 ● Targeting net debt to EBITDA of 1.0x by 2016 Net debt (US$m) a
Slide 9: Utilisation of Cash: A Dividend-first Policy
The Transformation of Gold Fields Utilisation of Cash A Dividend-first Policy ● H1 2014 Dividend: R0.20 per share ● H2 2014 Dividend: R0.20 per share ● Total 2014 Dividend: R0.40 per share Dividend per share (Rc) and % payout 25 40% 35% 20 30% 15 25% 20% 10 15% 10% 5 5% 0 0% H1 2013 H2 2013 H1 2014
Slide 10: South Deep: Finding its feet
SOUTH DEEP: Finding its feet
Slide 11: South Deep
South Deep Q4 Q3 Production (koz) and AIC (US$/oz) 2014 2013 2014 2014 90 2,500 79.4 Production koz 48.5 41.7 200.5 302.1 80 70 2,000 AISC US$/oz 1,640 1,790 1,548 1,541 59.2 60 51.1 48.5 1,500 AIC US$/oz 1,789 1,912 1,732 1,763 50 41.7 40 1,000 • 2014 heavily impacted by 4-month ground support 30 p
Slide 12: South Deep: 2014 Intervention
South Deep 2014 Intervention ● People Strategy • Short term › Rightsizing of workforce through voluntary separation process • Medium term › Recruit South African Team from limited pool of skills • Long term › Grow South African skills pool through bespoke mechanised mining training ● Fleet Availabil
Slide 13: South Deep: Ground Support Intervention
South Deep Safety Related Ground Support Intervention ● Growing momentum in H1 2014 interrupted in May ● Four-month suspension of production for ground support in 2014 ● Knock-on effects into 2015 ̵ Destress ̵ Long-hole open stopes delayed Acceleration of Medium Term People Strategy ● Medium and lon
Slide 14: South Deep: The Way Forward
South Deep The Way Forward: Short-term Objectives ● Address the skills shortage ̵ Internal skills development deemed an imperative ● Stop the cash burn ̵ Move to break-even in 2016 ̵ Optimise entire mine ̵ No more major capital required • ZAR1.7bn project capital remaining from original budget - to
Slide 15: International Operations Review: Strong performance across portfolio
INTERNATIONAL OPERATIONS REVIEW: Strong performance across portfolio
Slide 16: Solid international portfolio
Solid international portfolio All regions generating cash at current gold price Production (koz) AIC (US$/oz) 300 1300 Spot gold 250 1100 900 200 700 150 500 100 300 50 100 0 -100 Australia Ghana Peru Australia Ghana Peru Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 201
Slide 17: St Ives
St Ives Q4 Q3 Production (koz) and AIC (US$/oz) 2014 2013 2014 2014 120 1,600 Production koz 93.0 88.7 361.7 402.7 99.1 96.6 1,400 100 88.7 93.0 AIC US$/oz 860 1,149 1,164 1,218 83.4 1,200 80 1,000 60 800 • Improved quarter, with production up 5% and 600 AIC down 25% 40 400 • Challenging year - impa
Slide 18: St Ives – Project Generation: Highly Prospective Corridor
St Ives – Project Generation: Highly Prospective Corridor Speedway Corridor Exploration Targets ● Poorly Explored Trend ● Proven to be Able to Deliver Major Deposits ● Multiple Programmes Undertaken at all Milestone Levels (1-4) ● Evidence of Gold Along 22km Strike Length ● Rigorous Staged Explorati
Slide 19: Agnew/Lawlers
Agnew/Lawlers Q4 Q3 Production (koz) and AIC (US$/oz) 2014 2013 2014 2014 80 73.6 72.2 73.2 1,200 Production koz 73.2 72.2 270.7 215.6 70 66.0 59.2 1,000 AIC US$/oz 979 953 990 919 60 800 50 • Strong quarter rounds off a good year 40 600 30 • 2014 cost and production guidance 400 20 exceeded 200 10
Slide 20: Agnew – Waroonga Maintains High Potential Extensional Opportunities
Agnew – Waroonga Maintains High Potential Extensional Opportunities Robust Reserve Secured at FBH-Link – Additional Targets to be Tested in 2015 FBH-Link Probable Reserve: 1,19Mt at 9.1 g/t for 348 koz Q4 2014 and FY14 Results | Nick Holland | 12 February 2015 20
Slide 21: Darlot
Darlot Q4 Q3 Production (koz) and AIC (US$/oz) 2014 2013 2014 2014 25 22.9 22.9 22.3 1,600 Production koz 15.5 22.3 83.6 19.7 19.7 1,400 20 AIC US$/oz 1,433 1,224 1,222 1,132 1,200 15.5 15 1,000 800 • Despite a difficult Q4 2014, exceeded 10 600 production targets for the year 400 • Remains in a cha
Slide 22: Granny Smith
Granny Smith Q4 Q3 Production (koz) and AIC (US$/oz) 2014 2013 2014 2014 84.6 85.6 90 1,000 78.5 Production koz 78.5 85.6 315.2 62.2 80 900 70 66.5 800 AIC US$/oz 868 792 809 888 62.2 60 700 600 50 500 • Record production for year - exceeded all 40 400 30 expectations 300 20 200 • Significantly outp
Slide 23: Granny Smith – Wallaby Underground Continues to Grow
Granny Smith – Wallaby Underground Continues to Grow Wallaby Deposit 2015 Focus On Reserve Replacement and Growth 1,800m Wallaby Southern Corridor Exploration Zone 60 Zone 250 Z Zone 70 Zone 70E Zone 90 North Step-Out Zone 80 Z Exploration Zone 90 Zon Zone 100 Zone 90 N Infill Resource Drilling Zone
Slide 24: Tarkwa
Tarkwa Q4 Q3 Production (koz) and AIC (US$/oz) 2014 2013 2014 2014 180 1,200 160.0 Production koz 133.1 139.2 558.3 632.2 160 145.2 140.7 139.2 1,000 140 133.1 AIC US$/oz 1,142 1,096 1,068 1,291 120 800 100 600 • Transition to CIL only, completed in 2014, 80 including expansion of the plant to treat
Slide 25: Damang
Damang Q4 Q3 Production (koz) and AIC (US$/oz) 2014 2013 2014 2014 60 1,400 Production koz 47.8 42.8 177.8 153.1 47.8 1,200 50 45.4 46.7 42.8 AIC US$/oz 1,082 1,245 1,175 1,558 40.5 1,000 40 800 30 600 • Excellent quarter – evidence of success of 20 turnaround plan 400 10 200 • 2014 production and c
Slide 26: Damang Exploration Targets: >10km strike to be fully tested
Damang Exploration Targets: >10km strike to be fully tested Exploration Projects for 2015 • Exploration program tailored to fit Damang’s turnaround Saddle ‘Bridge’ strategy • Replace and grow reserves by extensions to active pits and known ore deposits Juno South & • Exploration to target hydrotherm
Slide 27: Cerro Corona
Cerro Corona Q4 Q3 2014 2013 2014 2014 Production (koz) and AIC (US$/oz) AU eq Prod koz 84.6 84.7 326.6 316.7 90 84.7 84.6 500 79.2 80.5 80 76.8 450 AU eq AIC US$/oz 682 718 702 714 70 400 AU only Prod koz 41.2 39.9 150.8 159.5 60 350 300 AU only AIC US$/oz 468 245 316 206 50 250 40 200 30 150 • Bea
Slide 28: Conclusions
Conclusions Group 2015 Guidance ● Attributable production (gold equivalent): 2.20Moz ● AISC: US$1,055/oz ● AIC: US$1,075/oz ● Exchange rates: ZAR11.50 = US$1.00; US$0.80 = A$1.00 Five Strategic Priorities ● South Deep – The top priority ● Cash flow and margin – Make money at current prices ● Dividen