Slide 1: Building a Sustainable Business At US$1,300/oz Gold Price
Building a Sustainable Business At US$1,300/oz Gold Price Denver Gold Forum Nick Holland 16 September 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: The Transformation of Gold Fields
The Transformation of Gold Fields The Journey Started With The Speech To The Melbourne Mining Club What Investors Want Aug 2012 Portfolio Review Aug - Dec 2012 Sibanye Gold Dec - Jan 2012 New Cash Strategy 2013 Business Plan A New Paradigm 15 April 2013 Gold Price < US$1,300/oz A Fundamental Shift I
Slide 4: Six Strategic Themes: Commitments Made On 22 August 2013
The Transformation of Gold Fields Six Strategic Themes Commitments Made On 22 August 2013 1. 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
Slide 5: AIC Down 30% from US$1,572/oz to US$1,093/oz
The Transformation of Gold Fields AIC Down 30% from US$1,572/oz (Q2 13) to US$1,093/oz (Q2 14) Production and Costs 700,000 1,800 598,000 1,600 600,000 557,000 548,000 1,400 496,000 500,000 451,000 1,200 Ounces US$/oz 400,000 1,000 300,000 800 600 200,000 400 100,000 200 0 0 Q2 2013 Q3 2013 Q4 2013
Slide 6: Competitive AIC Against Peer Group
The Transformation of Gold Fields Q2 2014 AISC and AIC 1,600 1,400 1,200 1,000 US$/oz 800 600 400 200 0 Newcrest Goldcorp Barrick Kinross Gold Fields Newmont Sibanye AngloGoldAshanti AISC AIC Source: JPMorgan Competitive AIC Against Peer Group Nick Holland | Denver Gold Forum | Building a Sustainabl
Slide 7: US$294 Positive Swing In Net Cash Flow
The Transformation of Gold Fields Net Cash Flow1 250 2,000 200 1,372 1,500 1,315 1,265 1,283 1,275 150 1,000 100 65 54 500 50 38 US$ million US$/oz 3.6 0 0 -50 -500 -100 -1,000 -150 -1,500 -200 -250 -229 -2,000 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Net cash flow Gold price 1 Net cash flow from ope
Slide 8: +47% TSR Despite 26% Fall In Gold Price
The Transformation of Gold Fields Creating Value Through Corporate Restructuring (Announced 29 November 2012) 28 Nov 2012 Gold Price 1,800 US$1,719.69/oz 28 November 2012 to 3 September 2014 1,700 1,600 1,500 1,400 1,300 1,200 3 Sep 2014 1,100 US$1,269.40/oz 1,000 Total Shareholder Returns 28 Novemb
Slide 9: No High Grading
The Transformation of Gold Fields No High Grading % Delta YTD g/t vs. Mineral Reserve g/t (LoM) 30 20 10 8 6 4 0 Percent -4 -2 -10 -5 -8 -20 -30 -34 -40 AGNEW DARLOT GRANNY SMITH ST IVES SOUTH DEEP DAMANG TARKWA CERRO CORONA • St Ives stands out due to the higher grade Neptune (~3.41g/t) & Invincibl
Slide 10: Balance Sheet Further Strengthened
The Transformation of Gold Fields Balance Sheet Further Strengthened ● H1 2014 - Net debt reduced by US$100m to US$1,635m ● Net Debt to EBITDA reduced to 1.47X1 ● Maturity date on US$715m of debt extended, on same terms, from November 2015 to November 2017 1 12-month rolling historical average Targe
Slide 11: Active Portfolio Management: Strategic Context
The Transformation of Gold Fields Active Portfolio Management: Strategic Context • Ongoing Strategic Portfolio Review – annual planning & capital allocation process • Test existing assets, brownfields opportunities and M&A targets against Gold Fields’ Franchise Asset objectives: Franchise Strategic
Slide 12: Active Portfolio Management: >15% Free Cash Flow Margin
The Transformation of Gold Fields Active Portfolio Management: >15% Free Cash Flow Margin @ US$1,300/oz gold price Granny Agnew Smith > 15% FCF Margin Cerro Tarkwa Corona South Damang St Ives Deep Restructure Darlot ? Talas Asosa APP Divest Yanfolila Chucapaca Woodjam Active Portfolio Management To
Slide 13: Active Portfolio Management
The Transformation of Gold Fields Active Portfolio Management Arctic Platinum Project Finland Woodjam “The wrong metal” British Columbia “The wrong metal” Talas Kyrgysztan “The wrong address” FSE Phillippines “Great optionality” Yanfolila Mali Asosa “Franchise / hurdle rates” Ethiopia “The wrong add
Slide 14: Alignment of Executive and Senior Management Incentives With Shareholders
The Transformation of Gold Fields Alignment of Executive and Senior Management Incentives With Shareholders ● Short term bonus (Annual) ̵ Based on Board approved annual operational plans and targets ̵ Includes parameters for operational sustainability ● Long term bonus (Three year cycle) ̵ Cash rath
Slide 15: Australia Region
Australia Region
Slide 16: Gold Fields Australia: A Robust Portfolio
Australia Region Gold Fields Australia: A Robust Portfolio Q2 2014 Production and AIC By Mine 300 1,600 256.9 1,372 1,400 250 1,228 1,200 200 1 042 1,010 1,000 US$/oz Koz 150 692 800 600 100 83.4 84.6 66.0 400 50 22.9 200 0 0 Region St Ives Granny Smith Agnew/Lawlers Darlot Production AIC Targeting
Slide 17: Yilgarn South Acquisition: Key Performance Indicators
Australia Region Yilgarn South Acquisition: Key Performance Indicators KPI Unit GFI 9 Months ABX 9 Months Comments Safety TRIFR 7.72 15.51 Actual injuries - 11 under GFI vs 30 under ABX Only mining ore that contributes to the required Ore Processed Kt 1,931 2,274 margin Head Grade g/t 6.29 5.08 As a
Slide 18: Orogenic Ore Bodies: St Ives Case Study
Australia Region Orogenic Ore Bodies Orogenic Ore Bodies St Ives Case Study ● Orogenic deposits are typically discreet, vein-like, structurally controlled, and drill intensive in nature ● Can be large and of good grade June 2002 Reserve 2.3 Moz ● Occur in clusters at different scales, providing mini
Slide 19: St Ives Gold Mine
Australia Region St Ives Gold Mine RESOURCE EXTENSION & EXPLORATION ● Orogenic style of mineralisation DISCOVERY RESOURCE ● 127,556 ha of granted tenements with 4.3 Moz significant exploration potential RESERVE ● Circa 16 Moz discovered and 12 Moz 2.0 Moz • Strong endowment produced since 1980 ~12 M
Slide 20: St Ives Gold Mine: Invincible Discovery
Australia Region St Ives Gold Mine: Invincible Discovery Invincible Mt g/t Au Koz ● Large high grade open pit and potential underground operation Resource* 9.2 4.50 1,329 ● 2.25km strike length Reserve** 3.7 4.09 492 ● Wide mineable zones (up to 20m) ● 2014/15 Drill focus on expanding the open pit a
Slide 21: St Ives Gold Mine: Speedway Trend
Australia Region St Ives Gold Mine: Speedway Trend 1m @ 21.8g/t (49m) ● New under-explored trend 2m @ 8.3g/t (56m) ● Invincible the anchor deposit in the North ● Proven capacity to deliver major deposits 2m @ 24.3g/t (24m) ● Evidence of gold along 22km strike ● Rigorous staged exploration programme
Slide 22: Agnew / Lawlers Gold Mine
Australia Region Agnew / Lawlers Gold Mine RESOURCE EXTENSION & EXPLORATION ● Orogenic style of mineralisation DISCOVERY ● 78,547 ha of granted tenements with significant exploration RESOURCE potential 3.66 Moz ● Circa 11 Moz discovered and 7 Moz produced since 1985 • Extensive exploration pipeline
Slide 23: Agnew/Lawlers: New Holland Exploration Potential
Australia Region Agnew/Lawlers Gold Mine: New Holland Exploration Potential Genesis Open Pit New Holland Open Pit Hidden Secret Open Pit Sheba Potential for deeper lodes?? 1,000m Potential extensions Current target areas Drilled, to be developed New Holland Under Explored - Gets Better! Nick Holland
Slide 24: Agnew/Lawlers: Waroonga Exploration Potential
Australia Region Agnew/Lawlers Gold Mine: Waroonga Exploration Potential Kath Rajah Main South Main North Waroonga North Hauptspalt Yeoman FBH Kim Indicated Resource Link Inferred Resource Pre-resource early stage target Target Zones High Grade Shoots Continue at Depth – Potential Along Strike! Nick
Slide 25: Granny Smith Gold Mine
Australia Region Granny Smith Gold Mine RESOURCE EXTENSION & EXPLORATION ● Orogenic style of mineralisation DISCOVERY ● 61,774 ha of granted tenements with significant exploration RESOURCE potential 3.3 Moz ● >20 Moz mined in the Laverton region including ~ 2.5 Moz RESERVE from Grannny Smith, ~ 8 Mo
Slide 26: Granny Smith: Wallaby Ore Body
Australia Region Granny Smith Gold Mine: Wallaby Ore Body Wallaby Ore Body Mineral Resources • Open Pit – 27.6 Mt @ 1.33g/t for 1.18 Moz Zone 250 • Underground – 8.5 Mt @ 7.54g/t for 2.06 Moz Zone 60 Mineral Reserves • Underground – 4.1 Mt @ 6.34g/t for 838 Koz Zone 70 Zone 80 Current Mining Areas •
Slide 27: Granny Smith: Wallaby Deep Exploration Update
Australia Region Granny Smith Gold Mine: Wallaby Deep Exploration Update: End August 2014 Depth circa 1.8 km Wallaby Gets Better at Depth Nick Holland | Denver Gold Forum | Building a Sustainable Business at US$1,300/oz Gold Price | 16 September 2014 Nick Holland | Denver Gold Forum | Building a Sus
Slide 28: Granny Smith Gold Mine: Targets
Australia Region Granny Smith Gold Mine: Targets • Resource Development and Conversion Wallaby Lease area: 61,700 ha / 660 km2 • Advanced Drilling Keringal • Initial Drilling Jubilee Deep Wedge Shear Hill Side IP Platypus Boomer Northern Fleet Targets (Dallas south, Alabama, Raw Prawn) Tail Pipe (Gr
Slide 29: Granny Smith: Wallaby Growth Potential
Australia Region Granny Smith Gold Mine: Wallaby Growth Potential 2013 MY Resource Wireframes vs 2014 Planned Drilling Zone 60 Zone 250 Zone 70 Zone 70E Z100 Infill and Extensions Resource Drilling Zone 80 Zone 90 Zone 90 Extensions Z100 Step-Out Inferred Resource Drilling Zone 100 Phase 2 – 25m inf
Slide 30: West Africa Region
West Africa Region | Gop | Fiecps
Slide 31: Gold Fields Ghana: Significant Potential Beyond Current Resource Life
West Africa Region Gold Fields Ghana: Significant Potential Beyond Current Resource Life Q2 2014 Production and AIC By Mine 200 1,400 1,282 180 181.3 1,200 160 1,084 1,026 140 1,000 140.7 120 800 US$/oz Koz 100 600 80 60 400 40 40.5 200 20 0 0 Region Tarkwa Damang Production AIC Targeting One Millio
Slide 32: Tarkwa Gold Mine
West Africa Region Tarkwa Gold Mine ● Wits Style Paleoplacer mineralisation RESOURCE EXTENSION & EXPLORATION ● 20,825 ha of granted tenements with significant DISCOVERY exploration potential at existing pits and on-site RESOURCE ● Significant on-site ore reserve extension and new 10.3 Moz exploratio
Slide 33: Damang Gold Mine
West Africa Region Damang Gold Mine RESOURCE EXTENSION & ● Hydrothermal Paleoplacer mineralisation EXPLORATION DISCOVERY ● 25,016 ha of granted tenements RESOURCE 6.6 Moz ● Significant exploration potential on 30 km strike RESERVE 1.1 Moz • Exploration aligned to turnaround length between Tarkwa and
Slide 34: Damang On-lease Exploration Opportunities
West Africa Region Damang On-lease Exploration Opportunities HUNI SADDLE PIT JUNO PIT NYAME TOMENTO NORTH & DIP EXTENSION 17km AMOANDA CHIDA ● Mineral Resources: 6.6 Moz REX ● Mineral Reserves: 1.1 Moz ● Good progress on extensive brownfields exploration potential on 30km strike between Tarkwa and D
Slide 35: South America Region
South America Region @ | Gop | Fiecps
Slide 36: Cerro Corona Copper/Gold Mine
South America Region Cerro Corona Copper/Gold Mine RESOURCE EXTENSION & EXPLORATION ● Cu/Au porphyry mineralisation DISCOVERY RESOURCE ● 2,765 ha of mining concession 3.3 Moz Au 1,124 Mlb Cu RESERVE • 2014 re-logging project to ● Continued outperformance against resource model 2.0 Moz Au better defi
Slide 37: South Africa Region
South Africa Region
Slide 38: South Deep Project
South Africa Region South Deep Project RESOURCE EXTENSION & ● Ground Support Programme EXPLORATION DISCOVERY ̵ Affected majority of production and destress areas RESOURCE ̵ Commenced mid-May 76.2 Moz • Massive, multi-layered palaeoplacer with high ̵ Completed end-September RESERVE predictability • G
Slide 39: Fast-Tracked Critical Interventions
South Deep Project Fast-Tracked Critical Interventions Ground support rehabilitation on track • Completion by end of September as planned Leadership structure transformed • Its all about the people! • Improved safety, culture and productivity - critical to de-risk build-up to full Surplus equipment
Slide 40: Reviewing The Mining Method
South Deep Project Reviewing The Mining Method • International Geotechnical Advisory Board (IGAB) - Industry leading experts from across the globe - Reviewed South Deep’s destress mining methodology over past seven months - Two alternative mining methods identified • Both methods piloted in areas ou
Slide 41: 4X4 Destress Method
South Deep Project 4X4 Destress Method 3m wide crush pillars 2m wide crush pillars 4m x 4m 4mexcavations x 4m excavations 5m x 2.2m excavations New 3mcrush wide pillars crush pillars Old 2m wide crush pillars 3m wide 4.0m Section view Section view 5.0m 4.0m SAD SD SAD 2.2m SAD SD SAD 1. Bigger excav
Slide 42: Inclined Slot Method
South Deep Project Inclined Slot Method ● All development always within the destressed window provided by vertical slots ● Lower cost method ̵ No separate destress ̵ Slots are non-entry, no support required ● Period to commencement of longhole stoping only 6 months (previous design ~3 years) ● Singl
Slide 43: Inclined Slot Method
South Deep Project Inclined Slot Method Inclined slots destress the development required for subsequent destress slots Slot access in destress shadow (4.5m x 4.5m) Rotated view 20m Front view 9m XX Side view Nick Holland | Denver Gold Forum | Building a Sustainable Business at US$1,300/oz Gold Price
Slide 44: Inclined Slot Method With Longhole Stoping
South Deep Project Inclined Slot Method With Longhole Stoping Subsequent slot The destress slot also acts as the slot for the longhole stope 20m(w) x 20m(h) x 15m(l) Rotated view XX Nick Holland | Denver Gold Forum | Building a Sustainable Business at US$1,300/oz Gold Price | 16 September 2014 44
Slide 45: Inclined Slot Method With Longhole Stoping
South Deep Project Inclined Slot Method With Longhole Stoping ● 1Inclined Slot Method Mining Sequence Initial two inclined slots mined destressing the subsequent slot access 2 Project at steady state 3 Completed test project Implementation End 2015 If Pilot Is Successful Nick Holland | Denver Gold F
Slide 46: Conclusions
Conclusions
Slide 47: Conclusions
Conclusions 1. 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 stripping 2. Reboot and deliver South Deep 3.
Slide 48: Building a Sustainable Business At US$1,300/oz Gold Price
Building a Sustainable Business At US$1,300/oz Gold Price Denver Gold Forum Nick Holland 16 September 2014