Gold Fields Limited · JSE:GFI
Gold Fields — BMO Capital Markets Global Metals and Mining Conference 2017
20 slides from Gold Fields's conference presentation, Feb 27, 2017
Slide 1: Reinvesting for the Future
BMO Capital Markets Global Metals and Mining Conference REINVESTING FOR THE FUTURE Nick Holland 27 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: 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 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 ● Net debt to EBITDA of 0.95x at end-2016 from 2 000 1.8 1.38x at end-FY15 1.6 1 500 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: Investing for the future
Damang pit, Ghana Gruyere, Western Australia South Deep, South Africa Salares Norte, Chile Investing for the future
Slide 9: 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 10: 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 11: 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 12: 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 13: 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 BMO Capital Markets Global Metals and Mining Conference, Reinvesting for th
Slide 14: South Deep Rebase Plan
Gruyere, Western Australia South Deep, South Africa Salares Norte, Chile South Deep Rebase Plan
Slide 15: 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 16: 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 17: Life of mine tonnage profile
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 18: 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 19: 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 20: 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 72 493 5170 Mobile: +27 83 260 9279 E-mail: E-mail: E-mail: Avishkar.Nagaser@goldfields.co.za Thomas.Mengel@goldfie
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