Slide 1: South Deep Project Investors Presentation – 18 February 2014
South Deep Project Investors Presentation – 18 February 2014
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 DNA
Gold Fields DNA To Be The Global Leader In Sustainable Gold Mining Safety Responsibility Honesty Respect Innovation Delivery A Safe, Winning, The Most Trusted A Quality Portfolio Of Mines And Superior Productive Team And Valued Mining Partner Growth Assets Returns On Gold Sustainable Cash Generation
Slide 4: Agenda
Agenda Time Activity Responsible Person 07h30 – 07h40 Arrive at South Deep, Twin Garry Mills Shaft Safety Boardroom, General Manager: South Deep welcome and refreshments 07h40 – 07h55 Overview Kgabo Moabelo - MD SA Region Nick Holland – CEO Gold Fields 07h55 – 08h30 Presentation Garry Mills 08h30 –
Slide 5: Overview
a a) z W 4 Overview
Slide 6: Overview – Why South Deep will deliver
Overview Why South Deep will deliver World class ore body Robust and achievable plan More time spent on identifying and analysing key constraints affecting the mine’s performance – put plans in place to mitigate or minimise future impact Currently at critical stage of capital development – e
Slide 7: Overview – Build-up review concluded February 2014
Overview Build-up review concluded February 2014 Fleet Availability & Utilisation Operator & Ore Handling Technician Infrastructure Skills Destress Step Change Improved Productivity • Steady state run rate by end of 2017 300,000 to 330,000 reef tonnes per month 650 to 700koz of gold p.a. Minin
Slide 8: Overview – South Deep Score Card
Overview South Deep Score Card Rating 2013 Rating 2014 Health and Safety Infrastructure HME availability De-stress Productivity Quality and Compliance to plan Ounces produced Cost Leadership and FCF margin Skilled, engaged and mobilised workforce Operating model (4x4) KM South Deep Investors Visit,
Slide 9: Executive Summary
Executive Summary
Slide 10: Health and Safety
Health and Safety TIFR LDIFR 40 25 35.3 21.29 35 20 30 25 15 20 16.7 14.6 10 15 11.6 12.5 12.76 10.3 5.78 10 5 2.8 2.4 2.3 1.95 1.57 5 0 0 F2008 F2009 F2010 F2011 C2011 C2012 C2013 F2008 F2009 F2010 F2011 C2011 C2012 C2013 SIFR FIFR 1.2 8 6.66 0.93 6 0.8 4 2.11 0.4 2 1.1 1.03 0.98 0.12 0.84 0.07 0.6
Slide 11: Executive Summary – What we achieved
Executive Summary What we achieved Q4 2013 Q3 2013 Q2 2013 Q1 2013 2013 2012 Destress m2 14,500 15,000 14,100 10,100 53,700 43,350 Gold Production koz 79 82 78 63 302 270 AISC US$/oz 1,399 1,448 1,558 1,823 1,541 1,732 AIC US$/oz 1,436 1,599 1,894 2,225 1,763 2,308 2013 results Gold production up
Slide 12: Critical Key Drivers for Success
Executive Summary Critical Key Drivers for Success Grade Management • Flexibility and Compliance to plan Productivity Improvement • Development • De-stress • Rigs and Simbas • Proper manning and resourcing • Housekeeping Machine Availability and Utilisation • Engineer out the workshop constraints Ke
Slide 13: Executive Summary – Best Practice and focus areas
Executive Summary Best Practice What will we focus on World-class ore body Right sizing and Maintaining our Fleet Planned Maintenance Significant investment in the mine ~$4 Roadway conditions billion General maintenance management In-house training Mechanised training centre Up skilling arti
Slide 14: Ore body and the Mineral Reserves
Ore body and the Mineral Reserves
Slide 15: Ore body well understood
Ore body well understood Resource models have evolved significantly in last 3 years Key initiatives to increase confidence: 3D seismic survey Surface drilling campaign over last 6 years 30m x 30m UG grade control drilling programme Total of 16 reef horizons LIB drilling ongoing below curre
Slide 16: Geology and Mining Targets
Geology and Mining Targets Subcrop 240m 240m 240m 240m 4-West (4W) 3-West (3W) 2-West (2W) 1-West (1W) WEST C4 C3 C2 C1 EAST VCR 2m VCR MB MI 120m MA ED EC Target package: 1.5–35m 40-70m 20-60m 20-30m Steady State Ton 40kT/m 75kT/m 50kT/m 40kT/m rate: Managed Tonnes (Mt) Grade (g/t) Gold (‘000 oz) C
Slide 17: Infrastructure
Infrastructure
Slide 18: Overview – building a world class mine
Overview – building a world class mine Capital Projects Progress Key Infrastructure Projects Completed : On Budget and On Time 2010 2011 2012 2013 2014E 2015E Status Commission machines 4 and 5 94 Level Refrigeration Plant Phase1 commissioned : sufficient coolth available with 100 and 105 Level BACs
Slide 19: Mining Profiles
Mining Profiles
Slide 20: Mining Profiles – Destress square metres
Mining Profiles Destress square metres (Excl. crush pillars) 80 000 70 000 60 000 50 000 40 000 30 000 20 000 10 000 0 C2013 C2014 C2015 C2016 C2017 C2018 C2019 C2020 Planned excavated 2013 Actual excavated MK South Deep Investors Visit, 18 February 2014 Page 20
Slide 21: Destress mining in the four corridors
Destress mining in the four corridors Conventionally mined destress voids (pre 2009) Mechanised destress voids 2014 Plan 2015 Plan 2016 Plan 2017 Plan 4W 3W 2W 1W MK
Slide 22: Mine Design
Mine Design old conventional destress Conventionally mined destress voids (pre 2009) Mechanised destress voids 2014 Plan Mechanised destress cut 2015 Plan 2016Access Plan ramp in the shadow of the cut above 2017 Plan New orepass Destress shadow down to the ramp elevation Advancing cross-cut in the s
Slide 23: Mining Methods: Combined
Mining Methods: Combined 3D View of planned mining Drifts Long hole stoping Drives De-stress Stope Drives De-stress Stope Access Drives MK South Deep Investors Visit, 18 February 2014 Page 23
Slide 24: Mining Profiles – Reef tonnes split per mining method
Mining Profiles Reef tonnes split per mining method 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% C2013 C2014 C2015 C2016 C2017 C2018 C2019 C2020 Destress Accesses and drifts Longhole stopes and benches 2013 Destress 2013 Accesses and drifts 2013 Longhole stopes and benches MK South Deep Investors Vis
Slide 25: Mining Profiles – Ounces
Mining Profiles Ounces MK South Deep Investors Visit, 18 February 2014 Page 25
Slide 26: Mining Profiles – All-in Costs and Capital
Mining Profiles All-in Costs and Capital BM South Deep Investors Visit, 18 February 2014 Page 26
Slide 27: Our Employees
Our Employees Employ ~5,155 people on operation – full production will employ ~5,400 people (including working cost contractors, excluding capital contractors) State-of-art training facilities World class medical facilities Five-year housing strategy Wellness programme − “24 hours in the l
Slide 28: Procurement – Shared Value
Shared Value (SV) The Two-Pronged Shared Value Initiative will Help South Deep Fill Critical Gaps and Reduce Cost while Enhancing Community Welfare through Math and Science Skills and Future Jobs South Deep Benefits Community Benefits Competitive local Procurement More competitive local suppliers ca
Slide 29: Sustainable Development
Sustainable Development Social and Environmental Management Maintain our Social License to Operate - Social and Labour Plan Community Development – South Deep Education and Community Trusts Environmental Management Programme - Management of environmental aspects in line with latest legislative
Slide 30: Conclusion
Conclusion Positioning for increased productivity and flexibility De-risking & Build-up Triggers Debottlenecking GM South Deep Investors Visit, 18 February 2014 Page 30
Slide 31: South Africa South Deep Project – End
South Africa South Deep Project End