Gold Fields Limited · JSE:GFI
Gold Fields — Denver Gold Forum 2015
31 slides from Gold Fields's conference presentation, Sep 21, 2015
Slide 1: Denver Gold Forum 2015
Denver Gold Forum 2015 CASH POSITIVE DESPITE THE LOWER GOLD PRICE Nick Holland 21 September 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: Snapshot of Gold Fields
Snapshot of Gold Fields A global gold producer ● Gold Fields is the world’s 7th largest gold producer As at 17 September 2015 with 8 operations in 4 countries ̵ Australia: St Ives; Agnew/Lawlers; Granny Share price (JSE/ADR) R36.80/$2.80 Smith; Darlot ̵ Ghana: Tarkwa; Damang Market capitalisation ($
Slide 4: Highlights of Q2 2015 Results
Highlights of Q2 2015 Results Salient features US$59m swing in net cash flow to US$30m inflow in Q2 2015 (Q1 2015: -US$29m) Attributable gold equivalent production up 7% QoQ to 535koz (Q1 2015: 501koz) All-in costs down 9% QoQ to US$1,059/oz (Q1 2015: US$1,164/oz) Normalised earnings of US$22m (Q1 2
Slide 5: Material reduction in all-in costs
Material reduction in all-in costs Production up 7%, all-in costs down 9%, gold price down 2% 700 000 1800 598 000 1600 600 000 557 000 548 000 559 000 556 000 534000 535 000 496 000 501 000 1400 500 000 477000 451 000 1200 Ounces 400 000 US$/oz 1000 300 000 800 600 200 000 400 100 000 200 0 0 Q4 20
Slide 6: Strong focus on cash generation
Strong focus on cash generation Net cash flow1 2012 2013 2014 2015 250 2 000 1 686 Gold: US$1,386/oz Gold: US$1,249/oz 1 625 Net cash: (US$232 million) Net cash: US$236 million 1 372 1 500 1 315 150 1 265 1 283 1 275 1 265 1 179 1 198 1 174 1 000 65 63 54 54 50 38 30 4 500 US$ million -6 US$/oz -50
Slide 7: Comfortable balance sheet, with flexibility
Comfortable balance sheet, with flexibility Balance sheet ● Net debt of US$1,477m at end-Q2 2015 Net debt (US$m) and Net debt/EBITDA 1 800 1.8 ● Net debt to EBITDA of 1.44x1 at end-Q2 2015 1 750 1 700 1.6 1 650 ● Targeting net debt to EBITDA of 1.0x by end- US$m 1 600 1.4 1 550 2016 1 500 1.2 1 450
Slide 8: Streamlining the portfolio
Streamlining the portfolio 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” Chucapa
Slide 9: Growth – focused on cash flow rather than ounces
Growth – focused on cash flow rather than ounces Not ounces for ounces sake ● Brownfields/near mine exploration rather than greenfields exploration ̵ ~US$100 million budget in 2015 ● Opportunistic M&A ̵ Focus near existing operations to leverage processing infrastucture/synergies ̵ Smaller, bolt-on
Slide 10: Operations Overview
OPERATIONS OVERVIEW
Slide 11: Solid global portfolio
Solid global portfolio Production and AIC (ex South Deep) ● Attributable production Q2 2015: 496koz ● AIC Q2 2015: US$984/oz ● Net cash flow from operations Q2 2015: US$101m Production (koz) AIC (US$/oz) 300 1 300 Spot gold 250 1 100 900 200 700 150 500 100 300 50 100 0 -100 Australia Ghana Peru Aus
Slide 12: Australia Region: A Robust Portfolio
Australia Region Gold Fields Australia: A Robust Portfolio 400 Production AIC 1400 350 1200 300 1000 250 800 US$/oz 200 Koz 600 150 400 100 50 200 0 0 2014 2015 2014 2015 2014 2015 2014 2015 St Ives Agnew/Lawlers Darlot Granny Smith Tonnes Grade Gold 2014 2015F (Mt) (g/t) (Moz) Production 1,031 983
Slide 13: St Ives - Invincible open pit
Australia Region St Ives - Invincible open pit ● Commenced mining late-December 2014 ● Main and North pits are now in ore ● Five excavators in operation ● Production mainstay for open pits for the next four years ̵ Reserve of 5.01Mt @ 3.85g/t for 628koz with further potential upside Dec-14 Jun-15 Pr
Slide 14: St Ives - Exploration budget A$42m
Australia Region St Ives - Exploration budget A$42m KEY TARGET AREAS ● A$7m – Neptune Paleo-channel infill Cave Rocks South West drilling (270koz in reserve) & Trend Dome ● A$10m - Extensional Exploration Developing key camps Eastern ● A$25m - Additional Exploration Causeway Exploring for new deposi
Slide 15: Agnew / Lawlers - 2015 near mine exploration
Australia Region Agnew / Lawlers - 2015 near mine exploration ● FBH infill drilling (350koz in reserve) ● Kath/Waroonga North extensions to Kim ● 600/700 series at Genesis New Holland ● Surface Rigs: 3 DDH + 1 RC active ● UG Rigs: 5 DDH active ● Cinderella feasibility underway and extensional opport
Slide 16: Granny Smith - Wallaby Deposit
Australia Region Granny Smith - Wallaby Deposit 2015 focus on reserve 1,800m replacement and growth Wallaby Southern Corridor Exploration Zone 60 Zone 250 Zone 70 Zone 70E 1.6Moz added to Zone 90 North Step-Out resources in 2014 Zone 80 Exploration Zone 90 Zone 100 Zone 90 N Infill Resource Drilling
Slide 17: Granny Smith - On-lease exploration
Australia Region Granny Smith - On-lease 2014 2015F exploration Drill Type Metres Metres ● Resource Development and Air core - 77,240 Conversion Wallaby RC 4,800 9,930 ● Advanced Drilling DDH 67,800 63,150 Keringal Total 72,600 150,320 ● Initial Drilling Jubilee Deep Wedge Shear Hill Side IP Platypu
Slide 18: Darlot - Exploration targets >300koz
Australia Region Darlot - Exploration targets >300koz CDA Oval- 2016 Mining Opportunity LSL Extensions Darlot Heart CDA Lords Boon West Repeat Chappell - 2016 Mining Target MWS Target King of the Hills Legend MS2 MS3 MS4 Lords South Lower Xx Drilling or to drill Xx Developing Target 0 500 1000 Easte
Slide 19: Darlot - Greenfields exploration, target generation
Australia Region Darlot - Greenfields exploration, target generation Mag. Limb ● 24 drilling targets identified on tenements East. Limb ● Focus on structure and geophysics Yorker ● Limited drilling beyond 250m depth ● Longer lead time projects (+300m depth) Delorian Cluster Googlie ● Delorian, Bounc
Slide 20: Gold Fields Ghana: Significant Potential Beyond Current Resource Life
West Africa Region Gold Fields Ghana: Significant Potential Beyond Current Resource Life 700 Production AIC 1400 600 1200 500 1000 US$/oz 400 800 Koz 300 600 200 400 100 200 0 0 2014 2015 2014 2015 Tarkwa Damang Tonnes Grade Gold 2014 2015F (Mt) (g/t) (Moz) Production 736 760 Resources 344 1.34 14.8
Slide 21: Damang exploration targets 2015
West Africa Region Damang exploration targets 2015: >10km strike to be fully tested • 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 hydrothermal pro
Slide 22: Cerro Corona Copper/Gold Mine
South America Region Cerro Corona Copper/Gold Mine ● Cu/Au porphyry mineralisation - 2,765 ha of mining concession 350 Production AIC 900 ● Continued outperformance against resource model 300 800 700 ● Upgrades to the crushing facility positively 250 600 impacting throughput of increasingly harder o
Slide 23: South Deep: Highlights
South Africa Region South Deep: Highlights ● Core focus currently on getting the basics right 45 Production AIC 2 400 ● Maintain aspiration to achieve cash 40 breakeven by end of 2016 2 000 35 ● Operational performance remains important 30 1 600 US$/oz ̵ Production up 7% QoQ koz 25 1 200 ̵ AIC down
Slide 24: South Deep: Positive trends
South Africa Region South Deep: Positive trends Destress face availability Total destress 70 3 500 60 3 000 50 2 500 No. of ends 40 2 000 m2 30 1 500 20 1 000 10 500 0 0 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Total backfill production Total
Slide 25: Development of business improvement strategy to get the basics right
South Africa Region Development of business improvement strategy to get the basics right ● 68 projects grouped into seven key pillars 1. People (9 projects) 2. Health and safety (5 projects) 3. Fleet (11 projects) Full benefit to 4. Infrastructure (16 projects) be realised in 5. Mining (15 projects)
Slide 26: Progress on getting the basics right
South Africa Region Progress on getting the basics right • All executive team positions have been filled People • c.80% complete on recruitment of critical skills • Improvements in TRIFR (H1 2015: 3.03 vs. H2 2014: Health and Safety 5.10 ) • Acquisition of 27 new category I equipment Fleet • New 93L
Slide 27: South Deep: People
South Africa Region South Deep: People ● All executive team positions have been filled ● Approximately 80% complete on recruitment of critical skills ● New bonus system devised and implemented ● 3-year wage agreement concluded until 2018 ● Mechanised mining training revitalised ● Increased focus on
Slide 28: South Deep: Fleet
South Africa Region South Deep: Fleet ● Significant investment in new Commissioning schedule: Q2 2015 – Q4 2015 fleet ● 27 new Cat 1 machines purchased ̵ 23 of 27 machines delivered ̵ Slinging schedule developed and on track ̵ 20 of 23 of delivered machines are underground ̵ 18 of the 20 machines un
Slide 29: South Deep: Mine Design and Planning
South Africa Region South Deep: Mine Design and Planning ● New mine development recommenced on 100 and 105 levels ● Mining span/pillar span change ̵ Benefits: • Increased stiffness of regional support design • More corridors (4 to 6) • Lower risk mining profile • Impact on reserves not significant ●
Slide 30: Conclusions
Conclusions Well positioned to withstand lower US$ gold price ● We do not need to make any fundamental changes based on the fall in the US$ gold price ̵ Took the pain in 2012 and 2013 ̵ Weaker A$ and ZAR providing some buffer ● Committed to delivering on our plans in terms of both cost and productio
Slide 31: Questions
Investor Relations Contact Avishkar Nagaser Tel: +27 11 562 9775 Mobile: +27 82 312 8692 E-mail: Avishkar.Nagaser@goldfields.co.za Willie Jacobsz Tel: +1 617 535 7545 Mobile: +1 857 241 7127 E-mail: Willie.Jacobsz@goldfields.co.za Francie Whitley Tel: +27 11 562 9712 Mobile: +27 82 321 7433 E-mail: