Gold Fields Limited · JSE:GFI
Gold Fields — Investor Presentation (November 2014)
17 slides from Gold Fields's investor presentation, November 2014
Slide 1: Sustainable value creation in gold mining
Sustainable value creation in gold mining Presentation to WCOA NICK HOLLAND November 2014
Slide 2: Introduction to Gold Fields
Introduction to Gold Fields World’s 7th largest gold miner H1 2014 Attributable Production • 128-year old SA-based gold miner • JSE-listed (Secondary NYSE listing • Over 10,000 employees 13% South America • 2013 revenue: >$3.5bn 43% West Africa • Market cap: >$2.5bn South Africa 31% Australia 13% Ni
Slide 3: Economic demand from emerging market remains strong
Economic demand from emerging market remains strong … but metal prices have been volatile over the past three years ● Emerging markets continue to be the world’s growth engine – IMF forecasts ● China is leading the way with an envious growth rate of 6.8% by 2018 ● Growth rates in developed markets a
Slide 4: Mining is facing economic and social pressures
Mining is facing economic and social pressures Social license to operate - governments and communities remain antagonistic towards mining Community opposition risks $57bn in mining projects in Peru March 20, 2014 Romanian protests against Rosia Montana gold project Mining in Canada’s September 2012
Slide 5: Gold Fields Risk Register
Gold Fields Risk Register Risk register reflects wide variety of risks facing mining companies ● Gold Fields risk register updated quarterly PWC Oct 2014 E&Y May Nov Top 10 Top 10 Potential risk / opportunity 201 201 SA mining ● Four or our top ten risks are 4 3 mining risks risks financial/operatio
Slide 6: In this operating environment how can we create sustainable value?
In this operating environment how can we create sustainable value?
Slide 7: Focus on shareholder returns
Focus on shareholder returns Equity and debt investors need to return to provide funding to grow the industry ● Capital providers will not return to the sector unless their investments yields a strong return ● The focus needs to be on cash returns and cost controls ● Full transparency over total cos
Slide 8: Establish partnerships with stakeholders
Establish partnerships with stakeholders Job and livelihood multiplier effect is significant Challenge Mitigation Partnership Working and collaborative partnerships between miners, governments, labour and communities Balance Balance long-term growth strategies with short-term fiscal imperatives Tran
Slide 9: Transparency of value distribution to all stakeholders
Transparency of value distribution to all stakeholders Employers, governments, businesses, communities and shareholders benefit Nick Holland - Presentation to WCOA November 2014 9
Slide 10: Enhance the multiplier effects of mining (1)
Enhance the multiplier effects of mining (1) The mining economy has large multiplier effects on growth • GDP growth is essential for governments targeting effective transformation • Growing the mining economy, Mining has especially for resource-rich boosted RSA developing countries, has significant
Slide 11: Enhance the multiplier effects of mining (2)
Enhance the multiplier effects of mining (2) Job and livelihood multiplier effect is significant • Mining punches above its weight with its GDP multiplier effect • One direct mining job supports one indirect job and one impacted job • …in SA, one job supports on ~27x for S. average around nine depen
Slide 12: Sound ESG policies to be maintained and implemented
Sound ESG policies to be maintained and implemented Creating Shared Value with our communities and other stakeholders Moving from philanthropy to systematic creation of shared value, recognising the impact of the GDP multiplier effects Nick Holland - Presentation to WCOA November 2014 12
Slide 13: Shared Value approach to communities
Shared Value approach to communities Shared value as our societal value proposition From… To… • Developing proactive strategies to • Reacting to stakeholder pressure to solve social problems that will increase address social problems Gold Fields profitability • Managing operational issues and • Inte
Slide 14: Case Study – Benefits of Shared Value approach
Case Study – Benefits of Shared Value approach Resolving water supply in remote Peruvian villages benefits the mine and communities Water Issues in Peru could cost hundreds of millions of dollars or represent an opportunity to increase Gold Fields competitiveness while at the same providing benefits
Slide 15: Alignment with integrated reporting
Alignment with integrated reporting Integrated reporting provides an accurate picture of our total value creation Gold Fields was an early adopter of integrated reporting and a pilot company of the IIRC 1. Regulatory compliance: King III principles adopted by the JSE into its Listing Requirements 2.
Slide 16: Conclusion: Sustainable solutions are needed
Conclusion: Sustainable solutions are needed The industry needs to work with stakeholders to grow the mining economy • Long term collaborative partnerships (Miners, Governments, Labour, Communities, Dev. Agencies)… Mining Economy/ • Transparent, integrated reporting to all stakeholders GDP impact •
Slide 17: Thank you
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