Slide 1: It's not about ounces, it's about cash!
It’s not about ounces Its about cash! African Mining Indaba Cape Town 5 February 2013 Nick Holland Chief Executive Officer
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: Investors expect us to deliver leverage to the gold price
Investors expect us to deliver leverage to the gold price However, we have not met their expectations… Note: Data indexed to 13 January 2006; index made up of 8 major gold producers’ total return indexes weighted by market capitalisation; Major Gold producers defined as: AngloGold Ashanti, Barrick,
Slide 4: Strategic response
Strategic response It is not about ounces at any costs. Its about cash! • Review portfolio to optimise cash generation Focus on cash • Understand and manage all-in costs – Notional Cash Expenditure (NCE) 1 generation and pay- back • Prioritise low risk high return brownfields growth opportunities •
Slide 5: Portfolio Review: Unbundling Sibanye Gold
Portfolio Review Unbundling Sibanye Gold Shareholders Gold Fields International Limited GFIMSA Tarkwa KDC Damang Beatrix St Ives Service Entities Agnew Cerro Corona Other subsidiaries and Investments Two Independent Companies Gold Fields Limited | African Mining Indaba| 5 February 2013 Page 5
Slide 6: Rationale for Unbundling Sibanye Gold
Portfolio Review Rationale for Unbundling Sibanye Gold Create fit-for-purpose, sustainable, long-life operations Install a specialist, dedicated and focussed management team Ring-fence SA cash flows for SA projects and dividends Reverse declining production trends Optimise extraction of reserves & r
Slide 7: GFI Post Sibanye Gold Unbundling
Portfolio Review GFI Post Sibanye Gold Unbundling FINLAND Arctic Platinum Project MALI Vancouver Yanfolila Denver Beijing PHILIPPINES PERU GHANA Far South East Cerro Corona Tarkwa Chucapaca Damang AUSTRALIA Agnew Lima St Ives Johannesburg Perth Santiago SOUTH AFRICA South Deep Offices Mines Explorat
Slide 8: Understand and Manage All-in Costs (NCE)
Portfolio Review Understand and Manage All-in Costs (NCE) New GFI Excluding South Deep New GFI Including South Deep 15% 28% 35% 22% NCE NCE NCE Margin NCE Margin Margin Margin Targeting a 25% NCE Margin Gold Fields Limited | African Mining Indaba| 5 February 2013 Page 8
Slide 9: Review Portfolio for Cash Generation
Portfolio Review Review Portfolio for Cash Generation • Corporate Office and Regional structures rationalised Group • Exploration spend halved to US$80 million p.a. • Owner mining conversion completed St Ives • High cost heap leach operation closed • Low grade Main and Rajah ore bodies stopped Agnew
Slide 10: Prioritise Low Risk, High Return Brownfields Growth Opportunities
Portfolio Review Prioritise Low Risk, High Return Brownfields Growth Opportunities Tarkwa Tarkwa Expansion Phase 6 (TEP6) Damang Optimise extraction of 10 Moz ore body Sulphides Expansion Project Cerro Corona Oxides Project Low Risk Strategy To Grow Cash Generation Machine Gold Fields Limited | Afri
Slide 11: Pursue Greenfields Projects Only For Superior Returns
Portfolio Review Pursue Greenfields Projects Only For Superior Returns Construction Decision (+ve feasibility study) Chucapaca 1 Indicated and Inferred Resources FS (+ve pre-feasibility study) APP Far Southeast 4 Damang Yanfolila GFI Target Confirmed Resource Development (+ve scoping study) Talas 3
Slide 12: Pursue Greenfields projects only if they offer attractive returns
Portfolio Review Pursue Greenfields projects only if they offer attractive returns Peru Chucapaca Project • Start small if possible • Advance only projects with attractive returns Philippines Far South East Project • Enforce stringent stage gates Finland Arctic Platinum Project • Where appropriate d
Slide 13: South Deep Project – South Africa
South Deep Project – South Africa Deliver South Deep Landmark Union Agreement on new Operating Model – 2 October 2012 Production build-up to run-rate of 700 Koz by end of 2015 De-stress development increased 75% year on year. Self-funding by end of 2013 Keyprocess Section 189 Infrastructur
Slide 14: Tarkwa Gold Mine - Ghana
Tarkwa Gold Mine - Ghana Resources: 15.1 Moz Reserves: 10.3 Moz As at 31 December 2011 • World class open pit operation – circa 700 Koz p.a. • Expensive South heap leach stopped • TEP 6 brownfields growth opportunity * Q4 2012 production estimated based on annualised results for the nine months to S
Slide 15: Damang Gold Mine - Ghana
Damang Gold Mine - Ghana Resources: 10.0 Moz Reserves: 3.4 Moz As at 31 December 2011 • A mine in transition – 180 Koz p.a. • Immediate focus on restoring margin to 20% p.a. • Requires recapitalisation to optimise extraction of 10.0 Moz Resource * Q4 2012 production estimated based on annualised res
Slide 16: Cerro Corona Gold Mine - Peru
Cerro Corona Gold Mine - Peru Resources: 7.7 Moz Au equivalent Reserves: 6.1 Moz Au equivalent As at 31 December 2011 • Most profitable mine in Group - 320 Koz p.a. • Sulphide expansion opportunity • Oxides project * Q4 2012 production estimated based on annualised results for the nine months to Sep
Slide 17: St Ives Gold Mine - Australia
St Ives Gold Mine - Australia Resources: 5.3 Moz Reserves: 2.8 Moz As at 31 December 2011 • Owner mining conversion completed – Fleet paid for • High cost heap leach stopped • Significant exploration potential * Q4 2012 production estimated based on annualised results for the nine months to Septembe
Slide 18: Agnew Gold Mine - Australia
Agnew Gold Mine - Australia Resources: 3.8 Moz Reserves: 1.3 Moz As at 31 December 2011 • Low grade mining at Main and Rajah stopped, mine right sized • Focus on high grade Kim lode • Significant exploration upside * Q4 2012 production estimated based on annualised results for the nine months to Sep
Slide 19: International Diversification
International Diversification A more balanced portfolio Gold Fields Gold Fields Before Unbundling Post Unbundling Production1 (managed) C2012 C20162 RSA – South Deep RSA - Sibanye Australia West Africa South America Reserves3 (managed) 1 Based on annualised managed gold equivalent production for nin
Slide 20: Strong Dividend Policy
Strong Dividend Policy Dividend Prioritised – 25% to 35% of Normalised Earnings Source: Bloomberg, Company results Dividend yield calculated based on dividend declared for 2011 divided by average share price for 2011 Leading Dividend Payer In Peer Group Gold Fields Limited | African Mining Indaba| 5
Slide 21: Conclusion
Conclusion A smaller, more focussed, yet solid platform for growth Focus on cash generation and a superior return on all funds invested Cash generation takes priority over production targets Dividends have first call on cash flows – 25% to 35% of normalised earnings Judiciously advance only low-risk