Slide 1: Q3 2016 Operating Results and Damang Reinvestment Plan
Q3 2016 Operating Results and Damang Reinvestment Plan KEEPING THE FOCUS DESPITE HIGHER GOLD PRICE Nick Holland 24 October 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: Highlights from Q3 2016
Highlights from Q3 2016 Group attributable equivalent production of 537koz (+2% QoQ, -4% YoY) AISC (US$1,026/oz) and AIC (US$1,038/oz) both tracking below FY16 guidance Net cash flow from operating activities of US$152m in Q3 2016 (2.5x that of H1 2016) Debt balance further reduced during Q3 2016 to
Slide 4: Production and costs
Production and costs 2013 2014 2015 H1 2016 700 1800 Production: 2,022koz Production: 2,219koz Production: 2,159koz Production: 1,044koz AIC: US$1,312/oz AIC: US$1,087/oz AIC: US$1,026/oz AIC: US$1,024/oz 598 1600 600 566 557 548 559 556 557 535 535 537 515 1400 496 501 500 477 451 1200 400 1000 ‘00
Slide 5: Strong focus on cash generation
Strong focus on cash generation 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$60m 200 1,625 1,329 1,500 1,242 1,182 150 1,372 1,315 1,103 1,092 1,265 1,283 1,
Slide 6: West Africa Region
West Africa Region ● Development agreement reached with US$/oz Koz Production AIC the government of Ghana in March 700 1400 2016 600 1200 ̵ A reduction in the corporate tax rate from 35.0% to 32.5%, effective 17 March 2016 500 1000 ̵ A change in the royalty rate from a flat 5% 400 800 of revenue to
Slide 7: Update on Ghana’s politics and economy
Update on Ghana’s politics and economy Political landscape ● Upcoming general elections on 7 December 2016 ● 2 major parties in what is expected to be a closely run election process: National Democratic Congress (NDC) vs. the National Patriotic Party (NPP) John Nana Dramani Akuffo MAHAMA ADDO Macroe
Slide 8: Tarkwa
Tarkwa ● Wits Style Paleoplacer mineralisation ● 20,825 ha of granted tenements with Production (koz) and AIC (US$/oz) significant exploration potential at existing pits 160 149.4 148.6 1,200 144.8 139.5 134.1 and on-site 140 1,000 ● Long life asset with 7Moz reserves 120 800 100 ● Over-the-fence po
Slide 9: Reinvesting to unlock Damang’s potential
Reinvesting to unlock Damang’s potential North to South view over the Damang complex Bird’s eye view of the current Damang complex Q3 2016 Operating Results and Damang Reinvestment Plan, 24 October 2016 9
Slide 10: 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 ● Will enhance Gold Field’s presence in key operating region and result in signif
Slide 11: Study background – Investment case
Study background – Investment case Damang Reinvestment Plan includes Damang Complex & Satellite Pits ● Optionality studies were undertaken during 2015/16. Options considered: Location Plan Huni Damang ̵ Continue mining Saddle Complex Pits ̵ Expansion DPCB • Saddle Plant • DPCB ̵ Care & maintenance J
Slide 12: Mine assumptions
Mine assumptions Resource Models & Geotechnical Assumption are the key drivers of the Mine Design •Gold Fields 90% Ownership •Ghanaian Gov’t 10% • Open Pit Mining Mine Type • Contract Mining operation Price • Gold Fields Guidance Price of $1,200/oz • Latest Contract Mining Costs Assumptions Mining •
Slide 13: Operating metrics: Production and cost profile
Operating metrics: Production and cost profile Average annual production of c.225koz and AIC of US$950/oz over LOM Mt Tonnes mined vs. head grade g/t 40 2.50 35 2.00 30 25 1.50 LOM Plan 20 15 1.00 Tonnes mined (Mt) 165 10 0.50 Tonnes milled (Mt) 32 5 0 0.00 Head grade (g/t) 1.65 2017 2018 2019 2020
Slide 14: Sustaining Capital Expenditure: Overview
Sustaining Capital Expenditure: Overview Outside of waste stripping, the next major capital is the FETSF Project US$m Annual Sustaining Capital 160 140 120 100 80 60 40 20 0 2017 2018 2019 2020 2021 2022 2023 Waste Stripping Pre-development Cost Re-investment Study Mining Processing & FETSF Compensa
Slide 15: Social and fiscal benefits of the Reinvestment Plan
Social and fiscal benefits of the Reinvestment Plan Damang will provide benefits to the local community and Government of Ghana ● Increase in taxes paid to Government, further social benefits for community ● Further investment in local sustainability projects ● A commitment to local employment in th
Slide 16: Unconstrained Damang Case
Unconstrained Damang Case Case will add ~ 2.6Moz for a further project life of 10 years Huni Pit Saddle Pit East Tailings Storage Facility Plant and Crusher/ROM DPCB Pit Far East Tailings Storage Facility Juno 16
Slide 17: 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