Slide 1: Gold Fields ESG Overview
Gold Fields ESG Overview Sven Lunsche, VP Corporate Affairs September 2016
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: H1 2016 results – Salient features
H1 2016 results Salient features H1 2016 H1 2015 Attributable gold equivalent production (koz) 1,044 1,036 All-in costs (US$/oz) 1,024 1,108 Net cash from operating activities (US$m) 60 1 Normalised earnings (US$m) 103 8 Normalised earnings (US$/share) 0.13 0.01 Dividend (SA cents/share) 50 4 Net de
Slide 4: Regional overview
Regional overview Strong cash generation during H1 2016 Group Production 1,044koz AIC US$1,024/oz Net cash flow* US$60m Ghana Region Production: 346koz (32% of group) All in costs: US$1,052/oz Net cash flow: US$26m inflow Australia Region Production: 466koz (43% of group) All in costs: US$928/oz Net
Slide 5: Production and costs ahead of plan
Production and costs ahead of plan 2013 2014 2015 H1 2016 700 1800 Production: 2,022koz Production: 2,219koz Production: 2,159koz Production: 1,044koz AIC: US$1,312/oz AIC: US$1,087/oz AIC: US$1,026/oz AIC: US$1,024/oz 598 1600 600 566 557 548 559 556 557 535 535 515 1400 496 501 500 477 451 1200 40
Slide 6: Gold Fields Sustainable Development Governance Framework
Gold Fields Sustainable Development Governance Framework External Reporting of Governance SD Framework Non Financial Structures Regional Procedures Performance Data & • Board & Sub • Sustainability & Compliance Information Committees Standards Monitoring • GRI • Exco • Policies & and • DJSI • Risk M
Slide 7: Internal and External Standards and Principles
Internal and External Standards and Principles • ISO 14001 all operations certified • Social and Labour Plans • International Cyanide • Mining Charter (SA only) Management Code: all eligible operations • Group Policies & are compliant Guidelines (aligned to ICMM and UNGC 10 • Carbon Disclosure princ
Slide 8: Top Five Sustainability Priorities until 2020
Top Five Sustainability Priorities until 2020 Energy & Climate Change • Develop risk based climate change adaptation strategies with our host communities and for our operations. • Stabilise energy costs at current levels till 2020 and continue evaluating options for renewable energy and other cost e
Slide 9: 2016 Group Balanced Scorecard
2016 Group Balanced Scorecard 40% Sustainability Component We follow an Integrated Approach Group Balance Score Card is aligned to the risks and integrated into the business Gold Fields ESG Overview | May 2016 9
Slide 10: Achievements – 2015/2016
Achievements – 2015/2016 Ghana: Development Agreement with the Government of Ghana finalised for Tarkwa and Damang: • Corporate tax reduced from 35% to 32.5% with effect from 17 March 2016 • Change in the royalty rate from a flat 5% of revenue to a sliding scale based on the gold price with effect f
Slide 11: IAR 2015: GRI Material Issues – Cluster Score
IAR 2015: GRI Material Issues – Cluster Score Material Issue Score Material Issue Score Health and safety 2.3 Energy and Carbon 4.6 Management Water management 2.7 General Grievance Mechanisms 4.7 Social licence to operate 2.9 Equal Remuneration 5.0 Managing environmental 3.2 Human rights due dilige
Slide 12: Current ESG risks/challenges facing Gold Fields
Current ESG risks/challenges facing Gold Fields Energy, Water and Social Licence ● Loss of “social license” to operate due to community and NGO activism ● Stringent water emissions standards ● Increasing water scarcity ● Integrating social issues into mine closure Around 50% of the Group ● Rising en
Slide 13: Safety management at Gold Fields
Safety management at Gold Fields If we cannot mine safely, we will not mine ● Safety is our number one priority ● Safety culture in the past has been reactive, not proactive Regions Safety Initiatives South Africa ● Safety Strategy: ̵ Compliance ̵ Engineer out risk ̵ Cultural transformation ̵ Stakeh
Slide 14: Safety performance
Safety performance TRIFR improvement from 2015 to H1 2016 is 35% Gold Fields Group TRIFR and FIFR 4,50 4,04 4,00 3,50 3,40 3,00 2,50 2,20 2,00 1,50 1,00 0,50 0,06 0,06 0,00 0,00 2014 2015 H1 2016 Fatality frequency rate Total Recordable Injury Frequency Rate 2014 2015 H1 2016 Fatalities 3 3 0 Gold F
Slide 15: Health management at Gold Fields
Health management at Gold Fields If we cannot mine safely, we will not mine ● Manage both occupational and primary health at all our operations ● Key occupational disease rates at South Deep per 1000 employees: H1 2016 2015 2014 2013 Noise-induced Hearing Loss (NIHL) 0.32 0.68 1.52 0.62 Cardio-respi
Slide 16: Silicosis
Silicosis Seeking a sustainable solution ● 13 May 2016, South Gauteng High Court handed down a judgment granting a certificate entitling former employees of several current or former gold mining companies the right to sue their former employers for damages as a class ● The court also granted certifi
Slide 17: 2015 FY Total Value Distribution = US$2.43 billion
2015 FY Total Value Distribution = US$2.43 billion Underpinned by: • Social licence to operate • Environmental responsibilities • Zero Harm • Regulatory compliance Community Impact: Community Investment US$14 million Host Community workforce employment 10,009 people Host Community procurement US$514
Slide 18: National value distribution by region and stakeholder
National value distribution by region and stakeholder The most important means by which we generate quantifiable value is demonstrated below: 1 South Deep in 2015 did not pay tax as it was in a loss-making position 2 This includes spending from the South Deep Community and Education Trusts In West A
Slide 19: Mining Charter compliance
Mining Charter compliance Gold Fields committed to sustainable transformation ● SA mining industry currently operating under 2014 Mining Charter ● Next version of the Mining Charter currently being negotiated between the Chamber of Mines and the Department of Mineral Resources ● Chamber of Mines see
Slide 20: Community Relations and Shared Value
Community Relations and Shared Value Gold Fields’ Social Performance Framework Gold Fields ESG Overview | May 2016 20
Slide 21: Water and Energy Overview
Water and Energy Overview Regions with Water and Energy Risks Energy Risk Integrated Group Energy and Carbon Strategy: Regional 5-year energy security plans in place. West Africa Increasing energy costs and security of supply South Africa Peru West Africa Water Scarcity Flooding: Rainy season flow u
Slide 22: Gold Fields visible commitments to RE and EE
Gold Fields visible commitments to RE and EE Group strategic renewable energy and energy efficiency commitments ● Aiming for 20% renewable energy generation on average in all new mine developments ● Set 3-year regional carbon emission and energy efficiency targets to 2016 & revised 2020 targets ● Ov
Slide 23: Group Energy Spend
Group Energy Spend Electricity & Diesel costs over the last three years Regional energy spend (US$ million) 200 180 160 140 120 100 76 80 60 42 40 14 10 20 0 Australia South Africa South America West Africa 2014 2015 YTD 2016 Energy spend as % of Group Opex – 2013: 18% 2014: 21% 2015: 22% YTD 2016:
Slide 24: Energy initiatives
Energy initiatives Energy costs and security of energy supply are critical business risks ● 20% of operating cost base (14% of AISC) is energy-linked ● Security of energy supply is a risk at some of Gold Fields operations, particularly in SA and Ghana ● Coal- and diesel-based energy raises CO2 emiss
Slide 25: Management of Tailings Storage Facilities
Management of Tailings Storage Facilities Major review of TSFs following high-profile failures in the industry Status of Gold Fields TSFs: • In September 2014 Gold Fields Corporate office initiated a group wide tailings facility audit, including all 15 operational and 10 dormant TSFs in the group •
Slide 26: Gross closure costs & funding methods
Gross closure costs & funding methods Region % of Group Total (US$) Amount secured (US$) % Secured Funding method Australia 53 186,007,171 0 0 Existing cash resources Environmental trust funds South Africa 8 28,959,038 28,959,038 100% and guarantees Reclamation bonds West Africa 26 91,519,303 64,117
Slide 27: Human Rights
Human Rights ● Human Rights Policy Statement in which we commit to: Not interfering with or curtailing other’s enjoyment of human rights Defending (where possible) o employees and third-parties o individuals and groups (as defined in our Community Policy) against human rights abuses Taking pos
Slide 28: Sustainability - Key Performance Indicators
Sustainability - Key Performance Indicators Key Performance Indicators (excluding Safety) – 3-year trend KPI 2015 2014 2013 Total Value Distribution (US$m) Government, business, employees/contractors, SED and capital providers 2,425 2,650 2,980 SED spending (US$m) 13.7 17.4 17.2 Workforce from host
Slide 29: Thank You
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