Slide 1: Gold Fields – H1 2021 results
Gold Fields – H1 2021 results CHRIS GRIFFITH Chief Executive Officer 19 August 2021
Slide 2: Forward looking statement
Forward looking statement 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 a
Slide 3: 2021 interim results agenda
2021 interim results agenda H1 2021 highlights Chris Griffith Safety and sustainability Chris Griffith Operations Chris Griffith Financials Paul Schmidt Salares Norte update Chris Griffith Conclusion Chris Griffith Gold Fields | H1 2021 results | 19 August 2021 3
Slide 4: Highlights for H1 2021
Highlights for H1 2021 Key developments • Fatality: 1 fatality at South Deep during Q2, Vumile Mgcine Safety • TRIFR: 1.81 in H1 2021 vs. 2.58 for H1 2020 (-30% YoY) • Renewable energy: Construction of 40MW solar plant has commenced at South Deep ESG • Shared value: US$1.9bn in value created for sta
Slide 5: A globally diversified gold miner
A globally diversified gold miner H1 2021 snapshot Gold Fields Group Mines: 9 Projects: 1 Countries: 5 Att. production: 1,104koz AIC: US$1,274/oz Mine net cash flow: US$399m inflow Free cash flow**: US$180m inflow West Africa region Mines: Tarkwa, Damang and Asanko Att. production: 401koz AIC: US$1,
Slide 6: Safety and Sustainability
Wind turbines at Agnew Safety and Sustainability ESG Gold Fields – H1 2021 results CHRIS GRIFFITH Chief Executive Officer 19 August 2021 Chris Griffith
Slide 7: Covid-19 Update
Covid-19 Update (as at 6 Aug 2021) Americas Australia South Africa West Africa Group Tested 94 849 62 23 829 7 660 126 390 Positive 1 942 - 1 757 801 4 500 Negative 92 907 62 22 006 6 859 121 834 Awaiting results - - 56 - 56 Active cases 10 - 37 45 92 In hospital 3 - - 2 5 Recovered 1 929 - 1 705 75
Slide 8: Improving safety performance
Improving safety performance Serious & Severity rate Safety Fatal injuries Serious and fatal injuries & severity rate 30 50 44 ● 1 fatality – Vumile Mgcine, a shaft 45 25 timberman, died from injuries at South Deep 32 40 35 20 30 ● 4 serious injuries during H1 2021 23 30 15 25 ● TRIFR for H1 2021: 1
Slide 9: Making good progress on ESG
Making good progress on ESG ESG Charter ● Work continuing on the development of our ESG strategic priorities with 2030 targets to be released before year-end Renewable energy ● Renewable energy sources at Agnew (16MW wind, 4MW Solar, 18MW gas) and Granny Smith (8MW solar, 35MW gas) now fully impleme
Slide 10: Recognition of our ESG achievements
Recognition of our ESG achievements 2021: 3rd / 70 mining Top 30 Responsible companies Investment Index 2021: 13th / 114 2020: Mining and Resources precious metals sector award (4th year companies running) 2020: “Good performance” 2021: BBB rating in IAR Awards 2021: E 1, S 1, G 1 2020: WDP A 2021:
Slide 11: Operations
Logistics chain store room at South Deep Safety and Sustainability ESG Operations Gold Fields – H1 2021 results CHRIS GRIFFITH Chief Executive Officer 19 August 2021 Chris Chris Griffith Griffith
Slide 12: Group – Solid performance in H1 2021
Group – Solid performance in H1 2021 koz US$/oz Group - production and AIC Production increased 1 400 1 400 1 200 1 000 1 200 1 000 2% YoY 800 800 1,104koz despite c.5% less 600 600 production days 400 400 200 200 0 0 H1 2019 H2 2019 H1 2020 H2 2020 H1 2021 Production AIC Free cash flow margin 21% H
Slide 13: Australia - steady operational performance
Australia - steady operational performance koz Australia region: Production and AIC US$/oz Production decreased 600 1 400 500 400 1 200 1 000 3% 800 300 driven by 5% less production days 600 200 400 100 200 0 0 H1 2019 H2 2019 H1 2020 H2 2020 H1 2021 Production AIC Free cash flow margin H1 2021 H1 2
Slide 14: Australia – LOM visibility greater than 10 years
Australia – LOM visibility greater than 10 years Initial Production Reserve Reserve ● Re-investing A$80-100m/per year in Since exploration Mine Reserve 2020 Multiplier Purchase (Moz)* (Moz)*** **** ● replaced and grown reserves (Moz)** St Ives 2.7 9.1 2.7 4.1x ● Conversion cost at c.A$62/oz (good Ag
Slide 15: West Africa - strong cash generation
West Africa - strong cash generation koz US$/oz West Africa region: Production and AIC 500 1 140 1 120 Production increased 5% 400 1 100 1 080 300 1 060 1 040 200 1 020 driven by increase at Damang 1 000 100 980 960 0 940 H1 2019 H2 2019 H1 2020 H2 2020 H1 2021 Production AIC Free cash flow margin H
Slide 16: Americas – cash positive despite Covid challenges
Americas – cash positive despite Covid challenges koz (Au eq) Americas region: Production and AIC US$/eq oz Production decreased 9% 180 1 400 160 1 200 140 1 000 120 800 Impacted by Covid and slope 100 80 600 instability 60 400 40 20 200 0 0 H1 2019 H2 2019 H1 2020 H2 2020 H1 2021 Production AIC Fre
Slide 17: South Africa - continued operational improvements
South Africa - continued operational improvements koz US$/oz South Africa: Production and AIC Production increased 140 1 800 120 100 1 600 1 400 1 200 27% 80 1 000 Notwithstanding Covid challenges 60 800 600 40 400 20 200 0 0 H1 2019 H2 2019 H1 2020 H2 2020 H1 2021 Production AIC Free cash flow marg
Slide 18: South Deep – encouraging productivity trends
South Deep – encouraging productivity trends t/rig/month Productivity: tons/rig/month m/rig/month Productivity: metres/rig/month 16000 14 708 90 82 14000 12 968 80 72 11 966 12000 70 60 60 10000 50 50 8000 7 040 6 708 40 33 6000 30 4000 20 2000 10 0 0 2017 2018 2019 2020 H1 2021 2017 2018 2019 2020
Slide 19: Finance
Gold bars from the first gold pour at Gruyere Finance Operations Paul Schmidt Chris Chris Griffith 19 August 2021 Griffith
Slide 20: Solid Financial performance
Solid Financial performance Normalised earnings Normalised earnings Free cash flow margin per share 0,6 +33% US$431m 21% 0,5 0,49 +33% YoY 0,4 0,37 0,3 Interim dividend Net debt 0,2 0,1 R2.10/share US$1,097m +31% YoY Net debt to EBITDA 0.49x 0 H1 2020 H1 2021 Gold Fields | H1 2021 results | 19 Augus
Slide 21: Strong internal cash generation
Strong internal cash generation H1 2021 South Deep 28.8 Free Cash flow US$180m Tarkwa 115.1 Damang 66.8 Cerro Corona 27.9 After spending on Salares Norte St Ives 134.9 Agnew 60.5 Granny Smith 50.5 Gruyere 28.4 GFA (114.2) Free cash flow from operations 398.7 Salares Norte (148.2) Mine net cash flow
Slide 22: AIC increase due to capex and exchange rates
AIC increase due to capex and exchange rates AISC +11% YoY US$1,093/oz At 2020 exchange rates: US$1,002/oz (+2% YoY) AIC +20% YoY US$1,274/oz At 2020 exchange rates: US$1,164/oz (+9% YoY) FY 2021 guidance US$1,310-1,350/oz Unchanged Gold Fields | H1 2021 results | 19 August 2021 22
Slide 23: Strong cash flow leads to a healthy Balance Sheet
Strong cash flow leads to a healthy Balance Sheet Available facilities at 30 June 2021 US$m 3500 Net debt to EBITDA 3000 2500 2000 0.49x 1500 down from 0.56x at Dec 2020 1000 500 0 US$ facilities Rand facilities A$ facilities Total facilities Utilised Unutilised Net debt US$m 700 Maturity schedule a
Slide 24: Salares Norte update
Salares Norte plant and camp Salares Norte update Finance Operations Chris Chris Paul Griffith Schmidt Griffith 19 August 2021 Chris Griffith
Slide 25: Salares Norte – very much on track
Salares Norte – very much on track Key developments • Progress: 41.9% at end-June vs. plan of 41.4% • Total project capital to date of US$230m with US$133m spent in H1 2021 Total project • Increased Covid cases and severe weather in June impacted project schedule • Project on track for first product
Slide 26: Salares Norte: progress in pictures
Salares Norte: progress in pictures Gold Fields | H1 2021 results | 19 August 2021 26
Slide 27: Salares Norte: progress in pictures
Salares Norte: progress in pictures Gold Fields | H1 2021 results | 19 August 2021 27
Slide 28: Conclusion
Sunset over lake Lefroy, St Ives Conclusion Finance Operations Chris Chris Paul Griffith Schmidt Griffith 19 August 2021 Chris Griffith
Slide 29: Gold Fields investment case
Gold Fields investment case ● The Gold Fields investment case is compelling for our current shareholders and for new investors looking for exposure to a high quality, cash generative gold business ̵ Simple, pure play gold focus ̵ A well balanced portfolio – stable operations with growth ̵ Geographic
Slide 30: 2021 outlook and guidance
2021 outlook and guidance On the back of a solid H1 2021… FY 2021 Group guidance unchanged ● Attributable equivalent gold production: 2.30Moz – 2.35Moz ● AISC: US$1,020/oz – US$1,060/oz ● AIC: US$1,310/oz – US$1,350/oz ● AIC (excl. Salares Norte): US$1,090/oz – US$1,130/oz Focus areas for H2 2021 ●
Slide 31: Thank You
Damang Pit Thank You Thank you Finance Operations Chris Chris Paul Griffith Schmidt Griffith 19 August 2021 Chris Griffith
Slide 32: Appendix 1: Cost breakdown per region – H1 2021
Appendix 1: Cost breakdown per region – H1 2021 Australia Ghana Peru South Africa Group Salaries & wages 21% 16% 19% 36% 22% Mine contractors 33% 47% 41% 13% 35% Consumable stores 12% 20% 15% 28% 18% Utilities 7% 6% 6% 12% 8% Other 26% 11% 19% 11% 18% Gold Fields | H1 2021 results | 19 August 2021 3
Slide 33: Appendix 2: 5-year Reserve growth in Australia
Appendix 2: 5-year Reserve growth in Australia Note: Gold Fields acquired 50% of Gruyere in 2016 Gold Fields | H1 2021 results | 19 August 2021 33