Gold Fields Limited · JSE:GFI
Gold Fields — Investor Presentation (February 2017)
19 slides from Gold Fields's investor presentation, February 2017
Slide 1: Delivering on long-term strategic commitments
Delivering on long-term strategic commitments NICK HOLLAND February 2017
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: Trading statement for 12 months to 31 December 2016
Trading statement for 12 months to 31 December 2016 ● EPS expected to be between 160% and 170% (US$0.49 to US$0.52) higher than the loss per share of US$0.31 reported in FY 2015, at a range between US$0.18 and US$0.21 ● HEPS expected to be between 730% and 780% (US$0.29 to US$0.31) higher than the l
Slide 4: Long-term strategic commitments
Long-term strategic commitments
Slide 5: Gold Fields' strategic priorities
Gold Fields’ strategic priorities GROW CASH FLOW AND MARGIN WITH AN INCREASE IN THE GOLD PRICE Focus is on growing cash flow, not ounces COMMITTED TO DELIVERING ON OUR PLANS IN TERMS OF BOTH PRODUCTION AND COSTS Near-mine exploration continues; Ongoing development of orebodies is critical STICK TO D
Slide 6: Growing cash flow with an increasing gold price
Growing cash flow with an increasing gold price Net cash flow 250 2013 2014 2015 H1 2016 2 000 Gold: US$1,386/oz Gold: US$1,249/oz Gold: US$1,140/oz Gold: US$1,220/oz Net cash: (US$232m) Net cash: US$236m Net cash: US$123m Net cash: US$60m 200 1 625 1 329 1 500 1 242 1 182 150 1 372 1 315 1 103 1 09
Slide 7: Delivering on our production and cost plans
Delivering on our production and cost plans Production and costs vs. gold price 700 1800 598 1600 600 557 548 559 556 557 566 535 535 537 496 501 515 1400 500 477 451 1200 400 1000 ‘000 Ounces US$/oz 300 800 600 200 400 100 200 0 0 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2
Slide 8: Improved balance sheet, with flexibility
Improved balance sheet, with flexibility ● Net debt of US$1,029m at 30 September 2016 Net debt (US$m) and Net debt/EBITDA ● Net debt to EBITDA of 1.05x at end-June from 2 000 1.8 1.38x at end-FY15 1 500 1.6 1.4 ● Refinanced US$1,440m credit facilities in June. US$m 1 000 1.2 New facilities amount to
Slide 9: Investment in brownfield exploration in Australia
Investment in brownfield exploration in Australia
Slide 10: Brownfield exploration in Western Australia
Brownfield exploration in Western Australia ● Exploration budget in Western Australia of A$90m – A$100m per annum ● St Ives focus areas: ̵ Expansion of Neptune resource and potential at Invincible South UG ̵ Exploration and multi-year funding to deliver new R&R ● Granny Smith focus areas: ̵ Define R
Slide 11: St Ives: Invincible South resource extension and growth
St Ives: Invincible South resource extension and growth Initial Discovery History: • Discovery hole 1994 (1m @ 0.8g/t Au) • Re-discovered Q1 2012 • 4 of 5 DDH hit ore (14m @3.9 g/t, 12m @ 5.5g/t, 6m @ 2.3g/t, 4m @ 3.0g/t) • Maiden resource 2.3Mt @ 3.3g/t for 246koz Legend Blue = geological structure
Slide 12: Granny Smith (Wallaby): New growth Zones 125-150
Granny Smith (Wallaby): New growth Zones 125-150 Zone 125 15.03m @ 12.22g/t Zone 135 Zone 130 Low grade within intrusive WB3330UD 3.3m @ 3.6g/t Zone WB3401UD 135/135HW 8.95m @ WB3386UD 9.95m @ 4.04g/t 7.42g/t 5.44m @ 8.40m @ 7.07g/t Zone 140 3.69g/t 1.82m @ 10.19g/t Zone 100 Zone 110/120 1.5m @ 7.23
Slide 13: Granny Smith: New growth Northern Fleet
Granny Smith: New growth Northern Fleet Wallaby mine View south across Wallaby open pit and Lake Carey toward Northern Fleet Delivering on long-term strategic commitments, February 2017 13
Slide 14: Agnew: New growth Waroonga North
Agnew: New growth Waroonga North Q2 2016 Advanced exploration EMSD1374W3 780.66-785.36m 6.0m @ 30g/t including 4.7m @ 33.16 g/t Au Drill spacing: 50m along strike, 100m – 150m vertical Delivering on long-term strategic commitments, February 2017 14
Slide 15: Gruyere: adding life in WA
Gruyere: adding life in WA ● Total purchase consideration = A$350m ̵ A$250m paid on deal completion ̵ A$100m payable according to an agreed construction cash call schedule ● Additional 1.5% net smelter royalty on GFL’s share of production after mine production exceeds 2Moz ● Acquisition cost of A$19
Slide 16: Reinvestment in Ghana
North to South view over the Damang complex Reinvestment in Ghana
Slide 17: Summary of Damang Reinvestment Plan
Summary of Damang Reinvestment Plan Investing in a key operating region ● Reinvestment will extend Damang’s life of mine (LOM) by 8 years from 2017 to 2024 ● US$1.4bn in total operating and capital expenditure over LOM ̵ Total project capital of US$341m over LOM ● Will enhance Gold Field’s presence
Slide 18: Operating metrics: Production and cost profile
Operating metrics: Production and cost profile Average annual production of c.225koz and AIC of US$950/oz over LOM Mt Tonnes mined vs. head grade g/t 40 2.50 35 2.00 30 25 1.50 LOM Plan 20 15 1.00 Tonnes mined (Mt) 165 10 0.50 Tonnes milled (Mt) 32 5 0 0.00 Head grade (g/t) 1.65 2017 2018 2019 2020
Slide 19: Investor Relations Contacts Media Contact
Investor Relations Contacts Media Contact Avishkar Nagaser Thomas Mengel Sven Lunsche Tel: +27 11 562 9775 Tel: +27 11 562 9849 Tel: +27 11 562 9763 Mobile: +27 82 312 8692 Mobile: +27 82 315 2832 Mobile: +27 83 260 9279 E-mail: E-mail: E-mail: Avishkar.Nagaser@goldfields.co.za Thomas.Mengel@goldfie