Slide 1: Keeping the focus despite higher gold price
Denver Gold Forum KEEPING THE FOCUS DESPITE HIGHER GOLD PRICE Nick Holland 19 September 2016
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: Gold Fields' strategic objectives over the past 3 years
Gold Fields’ strategic objectives over the past 3 years Focus on free cash flow ̵ Structural shift in cost base ̵ >15% free cash flow at a US$1,300/oz gold price ̵ No marginal mining, no high-grading, maintain cut-off grades ̵ Protect sustainability of ore bodies by investing in development and stri
Slide 4: Objective: Focus on free cash flow
Objective: Focus on free cash flow Net cash flow 250 2013 2014 2015 2 000 Gold: US$1,386/oz Gold: US$1,249/oz Gold: US$1,140/oz Net cash: (US$232m) Net cash: US$236m Net cash: US$123m 1 500 1 499 1 290 1 279 150 1 222 1 186 1 220 1 098 1 000 119 117 122 50 1 60 500 42 US$ million US$/oz -50 0 -500 -
Slide 5: Cost reduction while maintaining capex
Cost reduction while maintaining capex ● c.35% reduction in costs since 2013 g/t Head grade vs. reserve grade 3.0 ● Capex maintained at c.US$300/oz 2.5 ̵ We have continued to spend on development 2.0 and stripping to maintain the integrity of our 1.5 orebodies 1.0 ● We have not high-graded 0.5 0.0 2
Slide 6: Business underpinned by a solid global portfolio
Business underpinned by a solid global portfolio Production and AIC (ex South Deep project) ● Attributable production H1 2016: 904koz (Q2 2016: 453koz) ● AIC H1 2016: US$917/oz (Q2 2016: US$949/oz) ● Net cash flow from international operations H1 2016: US$166m (Q2 2016: US$97m) Equivalent production
Slide 7: Objective: Reboot and deliver South Deep
Objective: Reboot and deliver South Deep ● FY16 guidance updated: Production of 9,000kg Production (koz) and AIC (US$/oz) (289koz) at AIC of ZAR595,000/kg (US$1,310/oz) 90 2 500 77 80 68 ● Low profile destress mining completed in July 70 55 64 2 000 2016 – all future destress mining will employ the
Slide 8: South Deep: Encouraging trends
South Deep: Encouraging trends Destress Long Hole Stoping Production & Contribution Destress HP Destress LP 100 180 90 160 Tonnes (‘000)/Q 80 140 70 Tonnes (‘000)/Q 120 60 100 50 80 40 60 30 20 40 20 23% 36% 37% 36% 36% 42% 33% 10 0 0 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q1 2015 Q2 2015 Q
Slide 9: Objective: Drive brownfields exploration
Objective: Drive brownfields exploration H1 2016 performance FY 2016 Budget A$93m (4 Expenditure: A$52m sites) Drill metres: 347,456 metres on ground Extensive geophysics & modelling – all sites Delivering growth Resource extensions Granny Smith Wallaby Z100, 110, 120 Darlot CDA Oval Agnew FBH and K
Slide 10: Granny Smith (Wallaby): Growth resource extension Zone 100
Granny Smith (Wallaby): Growth resource extension Zone 100 Significant 2016 intersections include: • WB3539UD 1.45m @ 7.41g/t Au • WB3539UD 4.08m @ 6.52g/t Au • WB3595UD 1.55m @ 45.1g/t Au Wallaby Z100 25x25m drill spacing Successful infill drilling Successful extension drilling Zone 90 Q3 Target Ar
Slide 11: Granny Smith (Wallaby): Growth resource extension Zones 110-120
Granny Smith (Wallaby): Growth resource extension Zones 110-120 Significant 2016 intersections include: • WB3516UD 10.6m @ 10.96g/t Au • WB3515UD 8.05m @ 3.81g/t Au Zone 90 • WB3498BUD 3.48m @ 3.33g/t Au • WB3563UD 12.73m @ 6.10g/t Au • WB3598UD 8.72m @ 16.12g/t Au • WB3562UD 16.55m @ 9.30g/t Au Zon
Slide 12: Granny Smith (Wallaby): New growth Zones 125-150
Granny Smith (Wallaby): New growth Zones 125-150 Zone 125 15.03m @ 12.22g/t Zone 135 Zone 130 Low grade within intrusive WB3330UD 3.3m @ 3.6g/t Zone WB3401UD 135/135HW 8.95m @ WB3386UD 9.95m @ 4.04g/t 7.42g/t 5.44m @ 8.40m @ 7.07g/t Zone 140 3.69g/t 1.82m @ 10.19g/t Zone 100 Zone 110/120 1.5m @ 7.23
Slide 13: Granny Smith: New growth Northern Fleet
Granny Smith: New growth Northern Fleet Wallaby mine View south across Wallaby open pit and Lake Carey toward Northern Fleet Denver Gold Forum, Keeping the focus despite higher gold price, 19 September 2016 13
Slide 14: Agnew: New growth Waroonga North
Agnew: New growth Waroonga North Q2 2016 Advanced exploration EMSD1374W3 780.66-785.36m 6.0m @ 30g/t including 4.7m @ 33.16 g/t Au Drill spacing: 50m along strike, 100m – 150m vertical Denver Gold Forum, Keeping the focus despite higher gold price, 19 September 2016 14
Slide 15: Agnew: Barren Lands project area
Agnew: Barren Lands project area Strategy • Identify favourable coarse sandstone host • Along strike from New Holland trend to south • Geophysics and diamond drilling to assist Golden Swan targeting • Initial RC drill program Program • 2 diamond holes for 300m • 8 RC holes for 1,200m Results • Posit
Slide 16: Darlot: Resource extension & new growth
Darlot: Resource extension & new growth CDA Oval Extensional & Resource conversion project Burswood Moses Dacent CDRCD0023 0.3m @ 94.0 g/t Au Denver Gold Forum, Keeping the focus despite higher gold price, 19 September 2016 16
Slide 17: St Ives: Invincible South resource extension and growth
St Ives: Invincible South resource extension and growth Initial Discovery History: • Discovery hole 1994 (1m @ 0.8g/t Au) • Re-discovered Q1 2012 • 4 of 5 DDH hit ore (14m @3.9 g/t, 12m @ 5.5g/t, 6m @ 2.3g/t, 4m @ 3.0g/t) • Maiden resource 2.3Mt @ 3.3g/t for 246koz Legend Blue = geological structure
Slide 18: St Ives: Palaeo-channel project (additional)
St Ives: Palaeo-channel project (additional) From Neptune Neptune Hole ID Length (m) Grade Au g/t Comment (m) APN CD18999 63 5 15.0 Supergene APN WPD3897 61 10 5.5 Supergene CD19089 65 1 32.0 Palaeochannel Argo North Ext TD13177 52 1 30.3 Palaeochannel CD19106 62 1 29.8 Palaeochannel EM EM Survey Su
Slide 19: Objective: Divest non-core assets
Objective: Divest non-core assets Active portfolio management Arctic Platinum Project Finland “The wrong metal” Woodjam British Columbia “The wrong metal” Talas Kyrgysztan “The wrong address” FSE Philippines “Great optionality” Yanfolila Mali Asosa “Not franchise asset” Ethiopia “The wrong address”
Slide 20: Objective: Strengthen balance sheet
Objective: Strengthen balance sheet ● Net debt of US$1,155m at 30 June 2016 Net debt (US$m) and Net debt/EBITDA ● Net debt to EBITDA of 1.05x from 1.38x at end-FY15 2 000 1.8 ● US$148m of Notes bought back in February 2016 at 1 500 1.6 a 12% discount 1.4 US$m 1 000 ● Equity raising of R2.3bn (US$150
Slide 21: Objective: Pay dividends
Objective: Pay dividends ● 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 ● After debt reduction, dividends take priority in terms of allocating cash flow Dividend per share (Rc) and % payout Div
Slide 22: Have we delivered on our strategic objectives?
Have we delivered on our strategic objectives? STRATEGIC OBJECTIVES Focus on free cash flow Reboot and deliver South Deep Drive brownfields exploration Divest non-core assets; no greenfields exploration or projects Strengthen balance sheet Pay dividends Making good progress Denver Gold Forum, Keepin
Slide 23: The way forwards for Gold Fields
The way forwards for Gold Fields Strategic priorities Production: Actual vs. guidance koz 2500 ● Grow cash flow and margin with increase in gold price 2000 ● Committed to delivering on our plans in 1500 terms of both production and costs 1000 ● Continue to reduce net debt – Already 500 close to net
Slide 24: Investor Relations Contacts
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 82 315 2832 Mobile: +27 83 260 9279 E-mail: E-mail: E-mail: Avishkar.Nagaser@goldfields.co.za Thomas.Mengel@goldfie