Slide 1: Gold Fields FY 2018 results
Gold Fields FY 2018 results NICK HOLLAND: CEO Approaching the inflection point
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: 2018 was an eventful year for Gold Fields
2018 was an eventful year for Gold Fields South Deep: Six week strike starting on 2 November and ending on 18 December. 1092 employees exited the business through the restructuring process Tarkwa: Transitioned to contractor mining and still met production and cost guidance Damang: Outperformed produ
Slide 4: Performance relative to guidance
Performance relative to guidance ● Gold Fields has outperformed cost guidance for six consecutive years ● 2018 production was 96% of original guidance despite the South Deep strike Production (koz) AIC (US$/oz) 2500 1400 1200 2000 1000 1500 800 1000 600 400 500 200 0 0 2013 2014 2015 2016 2017 2018
Slide 5: Limiting cash outflow during reinvestment phase
Limiting cash outflow during reinvestment phase ● Net cash outflow in 2018 was contained despite significant project expenditure ̵ Net cash outflow of US$132m in 2018 includes US$277m in project capital expenditure (Damang, Gruyere and South Deep) and US$64m of Salares Norte expenditure ‐132 # Mainl
Slide 6: Growth through reinvestment funded largely by internal cash flow
Growth through reinvestment funded largely by internal cash flow Capital expenditure 900 800 700 600 Net cash 500 outflow limited 400 300 to US$134m 200 over 2017 and 100 0 2018 despite 2013 2014 2015 2016 2017 2018 2019f having spent Sustaining capital Project capital US$502m in project capital Net
Slide 7: Balance Sheet
Balance Sheet ● Net debt of US$1,612m at 30 December 2018 Net debt (US$m) and Net debt/EBITDA ̵ Included US$165m paid to Asanko at end‐July 2018 2 000 2,0 1 800 ● Net debt to EBITDA of 1.45x at end‐December 2018 1 600 1,5 from 1.03x at end‐December 2017 1 400 1 200 US$m ● Maturity of the US$380m te
Slide 8: Tactical hedging
Tactical hedging Protecting cash flow in high capex period ● During 2017 and 2018, Gold Fields ran successful hedging programs that protected our cash flow and balance sheet The following hedges are in place for 2019: ● Remaining oil hedge ̵ Australia: 30 million litres at an equivalent Brent Crude
Slide 9: A globally diversified gold miner
A globally diversified gold miner Australia, West Africa, South America, South Africa Gold Fields Group Mines: 8 Projects: 2 Countries: 5 Att. production: 2,036koz AIC: US$1,173/oz Mine net cash flow*: US$334m West Africa region Mines: Tarkwa, Damang and Asanko Att. production: 680koz AIC: US$1,098/
Slide 10: Growing R&R ex-SA
Growing R&R ex‐SA December 2018 December 2017 Managed Attributable Managed Attributable Gold equivalent 140.5Moz 108.2Moz 148.6Moz 115.6Moz Resources Gold equivalent 54.0Moz 50.3Moz 54.9Moz 50.8Moz Reserves Highlights: Att. Au equivalent Reserves: Dec‐2018 Att. Au equivalent Reserves: Dec‐2017 Ameri
Slide 11: Global exploration highlights
Global exploration highlights Global exploration programme to grow Reserves further Australia Ghana ● Granny Smith ● Tarkwa ̵ Have grown the Resource by 4.5Moz and the ̵ Palaeoplacer extensions: additional strike potential of Reserve by over 2.5Moz since acquiring the asset 3km – 5km ̵ Focus is now
Slide 12: ESG Highlights in 2018
ESG Highlights in 2018 Safety ● South Deep recorded one fatality during 2018 (2017: three), which was a vehicle related incident ● Group TRIFR improved 24% YoY to 1.83 in 2018 from 2.42 in 2017, our lowest ever rate Community ● 25% of our Value Distribution of US$2.71bn in 2018 was to our host commu
Slide 13: Approaching the inflection point
Approaching the inflection point
Slide 14: Approaching the inflection point
Approaching the inflection point Gold Fields will turn free cash flow positive in 2019 ● There should be an inflection in free cash flow generation in 2019 ̵ Project capital decreases significantly (US$143m budgeted for 2019 (excluding Asanko) vs. US$290m spent in 2018) ̵ The business is expected to
Slide 15: Damang Reinvestment
Damang Reinvestment ● The project exceeded expectations in 2018 (following a strong start in 2017): ̵ Total tonnes mined were 45.9Mt vs. the project schedule of 41.5Mt ̵ Gold produced of 181koz was 13% higher than guidance of 160koz ̵ Project capital of US$125m on top of the US$115m spent in 2017 ̵
Slide 16: Amoanda extension potential
Amoanda extension potential ● Amoanda has been a positive addition to the Tomento greater Damang complex East Pit ̵ 300koz – 400koz has been mined from Amoanda to date ● It is situated along the same trend as the main Damang Pit ● Further extension along strike of 1.6km towards the North ̵ This is a
Slide 17: Gruyere
Gruyere ● Slight delay to project completion and an increase in the final forecast capital (FFC) cost estimate announced during 2018 ̵ First gold is expected to be poured during the June 2019 quarter (previously the March 2019 quarter) ̵ FCC estimate is now A$621m (previously A$532m), which includes
Slide 18: Salares Norte
Salares Norte Maiden Reserve declared in an attractive mining jurisdiction ● The feasibility study for Salares Norte completed and peer reviewed (Brecha Principal and Agua Amarga) ● Maiden Reserve declared: 21.1Mt at 5.1g/t gold and 57.9g/t silver for 3.5Moz of gold and 4.0Moz of gold equivalent ● K
Slide 19: Brecha Principal and Agua Amarga Deposits
Brecha Principal and Agua Amarga Deposits Agua Amarga Brecha Principal Gold Fields FY 2018 results | Nick Holland | 15 February 2019 19
Slide 20: Salares Norte: District potential
Salares Norte District potential Gold Fields FY 2018 results | Nick Holland | 15 February 2019 20
Slide 21: Salares Norte
0 100 200 300 400 500 600 700 0 500 1000 1500 2000 2500 Year 1 Year 1 Year 2 Year 2 Year 3 Year 3 Year 4 Year 4 Year 5 Year 5 Year 6 Year 6 Tonnes treated (kt) Ounces produced (koz) Year 7 Year 7 Year 8 Year 8 Year 9 Year 9 Gold Fields FY 2018 results | Nick Holland | 15 February 2019 Year 10 Year 1
Slide 22: Asanko JV: Expanding our Ghana footprint
Asanko JV: Expanding our Ghana footprint ● Transaction completed on 31 July 2018 ● Gold Fields acquired a 50% stake in Asanko’s 90% interest in the Asanko Gold Mine ̵ Initial payment of US$165m, deferred payment of US$20m ● Organic growth at Esaase: ̵ Development of Esaase deposit with ore trucking
Slide 23: Asanko JV: Esaase
Asanko JV: Esaase Gold Fields FY 2018 results | Nick Holland | 15 February 2019 23
Slide 24: South Deep
South Deep Significant reduction in cost footprint ● Significant events in 2018 ̵ Q1 impacted by two labour restructurings which took place in Q4 2017 and Q1 2018 and a change in shift arrangements ̵ Production rates were slowed by the intersection of geological features in the high‐grade corridor 3
Slide 25: South Deep
South Deep Key enablers ● Accelerate backfill placement ● More robust and timely ground support ● Improved drill and blast to improve mining recovery and design compliance ● Fixed infrastructure maintained for long term delivery ● Improved fleet availability and utilisation ● Flatter organisational
Slide 26: 2019 outlook and guidance
2019 outlook and guidance 2019 Group guidance ● Attributable equivalent gold production: 2.13Moz – 2.18Moz ● AISC: US$980/oz – US$995/oz ● AIC: US$1,075/oz – US$1,095/oz (includes project capital of US$69m at Damang, US$74m at Gruyere and Salares Norte expenditure of US$57m) Focus areas for 2019 ● S
Slide 27: Member of the ICMM
Member of the ICMM Committed to responsible and sustainable mining Catalyst for change ● ICMM is a CEO‐led international organisation that advocates responsible and sustainable mining Sustainable development framework ● 10 sustainability principles and 7 position statements ‐ ethical business practi
Slide 28: Thank you
Thank you QUESTIONS AND ANSWERS