Slide 1: Q4 and FY 2015 Results
Q4 and FY 2015 Results CASH POSITIVE DESPITE THE LOWER GOLD PRICE Nick Holland 18 February 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: Salient features
Q4 and FY 2015 Results Salient features Net cash flow from operating activities of US$47m (FY15: US$123m) Attributable gold equivalent production up 2% QoQ to 566koz (FY15: 2,159koz) All-in costs down 2% QoQ to US$942/oz (FY15: US$1,026/oz) Normalised earnings of US$15m (FY15: US$45m) Final dividend
Slide 4: Steady decrease in all-in costs
Steady decrease in all-in costs Q4 2015: production up 2%, all-in costs down 2%, gold price flat 2013 2014 2015 700 000 1800 Production: 2,022koz Production: 2,219koz Production: 2,159koz AIC: US$1,312/oz AIC: US$1,087/oz AIC: US$1,026/oz 598 000 1600 600 000 566 000 557 000 548 000 559 000 556 000
Slide 5: Strong focus on cash generation
Strong focus on cash generation Net cash flow 250 2013 2014 2015 2 000 Gold: US$1,386/oz Gold: US$1,249/oz Gold: US$1,140/oz Net cash: (US$232m) Net cash: US$236m Net cash: US$123m 1 625 1 372 1 500 1 315 1 275 150 1 265 1 283 1 265 1 179 1 198 1 174 1 103 1 092 75 1 000 65 63 54 54 47 50 38 30 4 50
Slide 6: Comfortable balance sheet, with flexibility
Comfortable balance sheet, with flexibility Balance sheet ● Net debt of US$1,380m at 31 December 2015 Net debt (US$m) and Net debt/EBITDA 2 000 1.8 ● Net debt to EBITDA of 1.38x at end-Q4 2015 1.6 1 500 ● Unutilised facilities of US$844m and R2.5bn 1.4 US$m 1 000 1.2 ● First debt maturity in Novembe
Slide 7: South Deep business performance
Q4 2015: South Deep Business performance Q4 Q3 Production (koz) and AIC (US$/oz) 2015 2014 2015 2015 80 2 500 68 70 Production koz 68.1 54.9 198.0 200.5 2 000 55 60 AISC US$/oz 1,095 1,404 1,490 1,548 50 49 1 500 36 39 AIC US$/oz 1,156 1,431 1,559 1,732 40 30 1 000 20 • Required leadership in place
Slide 8: Key factors underpinning performance improvements
Q4 2015: South Deep Key factors underpinning performance improvements Key Pillars ● 98% of critical skills appointed 1. People ● Business improvement implementation 2. Safety and health capacity established 3. Mechanised Fleet 4. Infrastructure ● Fleet renewal 5. Mining ● Infrastructure upgrade and
Slide 9: Safety, physical conditions and secondary support
Q4 2015: South Deep Safety, physical conditions and secondary support • 59% reduction in total injuries (68 vs167) Total Injuries (nr) • Injury free days increasing (38 in Q4 2015) 250 228 • UG physical conditions improving 200 167 • Increase in secondary support installation 150 • Increase in backf
Slide 10: Physical conditions
Q4 2015: South Deep Physical conditions Before After Poor footwall water control Correct roadway conditions Poor support quality Correct support installation Focus on continuous improvement Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 2016 10
Slide 11: Positive trends
Q4 2015: South Deep Positive trends Destress Face Availability Long Hole Stoping Production & Contribution 90 160 80 140 Number of Ends 70 120 Tonnes (‘000)/Q 60 100 50 80 40 60 30 20 40 20 24% 36% 37% 40% 22% 34% 10 0 0 Q1 2015 Q2 2015 Q3 2015 Q4 2015 2014 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2015 2014
Slide 12: Pillar layout - previous
Q4 2015: South Deep Pillar layout - previous Crush Pillar Layout (10m length x 2.5 wide x 2.7 high) 3W 10m 2W 1W 2.5m 10m • 240m x Spans & 60m x pillars 4W • 4 x Corridors 3W 1W 2W • Regional & local crush pillar design • High closure rates experienced (250mm/m) • Excavation stability risk • Convent
Slide 13: Regional pillar layout - optimised
Q4 2015: South Deep Regional pillar layout - optimised Crush Pillar Layout (10m length x 4.5m wide x 5m high) 3W 2W 1W 4.5m 10m 4W • 180m x Spans & 60m x Pillars • 6 x Corridors 3W • Regional pillar with larger local crush pillar design 2bW 1aW • System stiffness improves 2aW 1bW • Reduced closure r
Slide 14: Destress cut access
Q4 2015: South Deep Destress cut access Main Access Drive (MAD) Access destress cut • Access drive is mined into the base of reef Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 2016 14
Slide 15: Destress cut sequencing
Q4 2015: South Deep Destress cut sequencing Main Access Drive (MAD) Stope Access Drives (SAD) Destress cut establishment Stope Drives (SD) • Break away Stope Access Drive (SAD) • Stope Drives (SD) broken away from SAD Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 20
Slide 16: Destress cut sequencing
Q4 2015: South Deep Destress cut sequencing Main Access Drive (MAD) Stope Access Drives (SAD) Grow cut Stope Drives (SD) • SDs broken away at 9m intervals • Backfill SD to confine crush pillars Stope Drives (SD) Backfilled Active Mining Face Cash positive despite the lower gold price, Q4 and FY 2015
Slide 17: Destress cut sequencing
Q4 2015: South Deep Destress cut sequencing Main Access Drive (MAD) Stope Access Drives (SAD) Advance destress cut to establish stoping Stope Drives (SD) • Develop SAD’s to 180m span • Continue destress cut development to 3 1 x SADs reach 180m span 2 • Setup for long hole stoping 3 3 x SADs @ 180m 1
Slide 18: Destress cut sequencing
Q4 2015: South Deep Destress cut sequencing Main Access Drive (MAD) Stope Access Drives (SAD) Stoping phase Stope Drives (SD) • Long hole stoping commence when 3 x Long hole stope SADs to final length -19 months • Longhole stopes of 15m (w) x 20m (h) retreat mined • Destress cut mined to footprint &
Slide 19: Destress cut sequencing
Q4 2015: South Deep Destress cut sequencing Final stope Stoping phase; primary and secondary extraction • Longhole stopes sequentially mined primaries and secondary's 1 • Primary stopes backfilled prior to 9 2 10 secondary stope mining Primary stope • Final extraction, the area above the 3 main acce
Slide 20: Low profile destress cut and stoping
Q4 2015: South Deep Low profile destress cut and stoping 15m 77m • Long hole stoping • Primary source of reef mining 3 17m High profile support Mechanical installation • Hanging wall ripping (5.0m height) 5m 2 • Primary & secondary support Low profile support Manual Installation • LP destress (2,5m
Slide 21: High profile destress cut and stoping
Q4 2015: South Deep High profile destress cut and stoping 15m 77m • Long hole stoping • Primary source of reef mining 2 20m High profile support Mechanical Installation 5.0m • HP destress (5,0m height) 1 • Primary & secondary support YEAR-1 YEAR-2 YEAR-3 YEAR-4 YEAR-5 YEAR-6 YEAR-7 1 High profile de
Slide 22: Destress profile 2015
Q4 2015: South Deep Destress profile 2015 Low profile destress High profile destress • Destress Stoping • Stoping width up from 2.5 to 5.0m 90-1W • Backfill placement critical • Early results positive • Long term evaluation important 95-3W • 3,604m2 HP De-stress done from Jul 2015 95-2W 95-1W 100-4W
Slide 23: Destress profile to completion of LP Q1 2018
Q4 2015: South Deep Destress profile to completion of LP Q1 2018 Low profile destress High profile destress 90-1W 95-3W 95-2W 95-1W 100-4W 100-1aW 100-3W 100-2bW 100-2aW 100-1bW Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 2016 23
Slide 24: Fleet
Q4 2015: South Deep Fleet Infrastructure Skills Enhancements 95L workshop Artisan & Operator training Rebuild & Replacement program Stores optimisation Supervisor Mechanised mining Fleet Conversion to HP Underground working conditions OEM Maintenance Planned Maintenance System Increase CAT 1 Fleet E
Slide 25: Level workshop commissioned
Q4 2015: South Deep 93 Level workshop commissioned Effective infrastructure will improve fleet maintenance and performance Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 2016 25
Slide 26: People / Skills / Organisational culture
Q4 2015: South Deep People / Skills / Organisational culture Employee Satisfaction Barometer (Q4 2015) 12% 6% Strongly Satisfied Experienced leadership team in place 30% Satisfied Quality 143 of 146 core positions filled Business Improvement team established Strongly Dissatisfied Dissatisfied 52% 47
Slide 27: Looking forward
Q4 2015: South Deep Looking forward BASICS MINING METHODS ASSET MANAGEMENT • Strong focus on basic • High profile destress stoping • Engineering skills operational requirements development program remain • Seismic risk correlation to continues increased production • Operating conditions • Planned ma
Slide 28: Solid global portfolio
Solid global portfolio Production and AIC (ex South Deep) ● Attributable production Q4 2015: 498koz (FY15: 1.96Moz) ● AIC Q4 2015: US$912/oz (FY15: US$944/oz) ● Net cash flow from international operations Q4 2015: US$86m (FY15: US$334m) Equivalent production (koz) AIC (US$/oz) 600 1 200 500 1 000 40
Slide 29: Australia: Exploring the Orogenic Mines
Australia: Exploring the Orogenic Mines Return on the 2015 investment 2016-2017 Focus ● Post depletion reserves expected to be ● A$86m planned for 2016 largely unchanged ● Exploration drill drive to commence to ● Resources expected to increase Waroonga North (Agnew) between 10% and 15% ● Continue to
Slide 30: St Ives
Q4 2015: St Ives Q4 Q3 Production (koz) and AIC (US$/oz) 2015 2014 2015 2015 120 1 200 Production koz 100.4 83.6 371.9 361.7 98.7 100.4 100 93.0 83.6 1 000 89.2 AIC US$/oz 836 879 969 1,164 80 800 60 600 ● Q4 2015: 20% increase in production due 40 400 to increase in tonnes and higher grade 20 200 ●
Slide 31: St Ives: Invincible South
Q4 2015: St Ives Invincible South ● Additional Invincible style shoot located within the Speedway Trend ● Higher grade than previous shoots ● Initial Resource of 1.4 Mt @ 6.9 g/t (312koz) defined to a depth of 400m, open down plunge ● Pit and underground potential ● Q4 intercepts: NW SE ̵ 19.1m at 1
Slide 32: St Ives: New exploration fronts
Q4 2015: St Ives New exploration fronts ● Exploration focused on sparsely tested flanks of camp ● 30km Speedway trend being systematically explored targeting Invincible analogues ● 21 new targets advanced in exploration pipeline ● Reinterpretation of geology and structure in an area of shallow cover
Slide 33: Agnew/Lawlers
Q4 2015: Agnew/Lawlers Q4 Q3 Production (koz) and AIC (US$/oz) 2015 2014 2015 2015 80 1 200 73.2 Production koz 65.7 57.5 236.6 270.7 70 65.7 59.6 1 000 57.5 AIC US$/oz 828 1,025 959 990 60 53.8 800 50 40 600 ● Q4 2015: Production up 14% QoQ due to 30 400 continued recovery from the challenging 20 g
Slide 34: Agnew/Lawlers: Waroonga North
Q4 2015: Agnew/Lawlers Waroonga North Target Areas Au g/t Drill intersections 2015/16 Pre-2015 500m Drill drive design to test multiple targets on the way to Waroonga North and expedite production Figure: Waroonga Complex looking east, orthogonal to Emu shear. 2015/2016 exploration drilling piercing
Slide 35: Agnew/Lawlers: Cinderella
Q4 2015: Agnew/Lawlers Cinderella 200m N New Holland ● Accelerated development to open Open Pit up deposit (commenced Q4 2016) ● Incline provides access to drill below Cinderella Cinderella and Hidden Secret North Target targets Cinderella Cinderella ● Drilling plan to grow reserves Incline Cinderel
Slide 36: Darlot
Q4 2015: Darlot Q4 Q3 Production (koz) and AIC (US$/oz) 2015 2014 2015 2015 30 2 000 Production koz 24.6 25.4 78.4 83.6 25.4 24.6 1 800 25 1 600 AIC US$/oz 817 906 1,057 1,222 1 400 20 17.4 15.5 1 200 15 1 000 ● Q4 2015: Production lower QoQ, but much 11.2 800 10 improved H2 600 400 ● 2015 explorati
Slide 37: Darlot: Exploration update – Assay highlights
Q4 2015: Darlot Exploration update – Assay highlights Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 2016 37
Slide 38: Granny Smith
Q4 2015: Granny Smith Q4 Q3 Production (koz) and AIC (US$/oz) 2015 2014 2015 2015 90 1 000 82.1 78.5 Production koz 72.4 82.1 301.1 315.2 80 72 74.6 72.4 900 70 800 AIC US$/oz 787 699 764 809 700 60 600 50 500 ● Q4 2015: Planned lower grades mined 40 400 30 resulted in 12% QoQ decrease in 300 20 200
Slide 39: Granny Smith: Wallaby
Q4 2015: Granny Smith Wallaby Wallaby Underground • Over 63km diamond core drilled in Zone 250 2015 - 48km in plan for 2016 Zone 60 Zone 70 Zone 80 • Further extensions to Z100, Z110 and Current vertical extent of mine development Z120 expected in 2016 Zone 90 Current vertical extent • Deep explorat
Slide 40: Granny Smith: Regional exploration
Q4 2015: Granny Smith Regional exploration Aircore Drilling Completed 2015 – max Au • Major evaluation of regional lease holding commenced in 2015 • Over 56km of aircore drilled in 2015 – returning an abundance of anomalous intersections and highlighting several new areas of interest. 96km of follow
Slide 41: Tarkwa
Q4 2015: Tarkwa Q4 Q3 Production (koz) and AIC (US$/oz) 2015 2014 2015 2015 180 1 400 156.2 Production koz 144.8 149.4 586.1 558.3 160 133.1 149.4 144.8 1 200 135.8 140 AIC US$/oz 799 872 970 1,068 1 000 120 100 800 ● Q4 2015: Continued good cost 80 600 60 performance, with AIC down 8% QoQ 400 40 ●
Slide 42: Damang
Q4 2015: Damang Q4 Q3 Production (koz) and AIC (US$/oz) 2015 2014 2015 2015 60 1 600 Production koz 42.9 44.4 167.8 177.8 47.8 44.4 1 400 50 41.5 42.9 1 200 AIC US$/oz 1,361 1,272 1,326 1,175 39.0 40 1 000 ● Q4 2015: Challenging quarter with 30 800 600 production and costs weaker QoQ 20 400 ● Strugg
Slide 43: Cerro Corona
Q4 2015: Cerro Corona Q4 Q3 2015 2014 2015 2015 Production (koz) and AIC (US$/oz) Au Eq Prod koz 66.2 79.2 295.6 326.6 90 84.6 83.6 1 200 79.2 80 Au Eq AIC US$/oz 1,073 731 777 702 1 000 70 66.6 66.2 AU only Prod koz 36.8 44.0 158.8 150.8 60 800 AU only AIC US$/oz 1,285 747 718 316 50 600 40 30 400
Slide 44: Conclusions
Conclusions Strategic priorities ● Cash flow and margin – Make money at current prices ● Committed to delivering on our plans in terms of both production and costs ̵ Near-mine exploration continues ̵ Ongoing development of orebodies is critical ● Continue to reduce net debt – Targeting net debt/EBIT
Slide 45: Investor Relations Contacts
Investor Relations Contacts Avishkar Nagaser Francie Whitley Tel: +27 11 562 9775 Tel: +27 11 562 9712 Mobile: +27 82 312 8692 Mobile: +27 82 321 7433 E-mail: E-mail: Avishkar.Nagaser@goldfields.co.za Francie.Whitley@goldfields.co.za