Slide 1: The largest gold mining company by attributable reserves
The largest gold mining company by attributable reserves
Slide 2: ...leading the premier division
...leading the premier division The proposed merger will create a new international major… The largest gold mining company by attributable resources
Slide 3: The 2nd largest gold mining company by market capitalisation
The 2 nd largest gold mining company by market capitalisation, on a pro forma basis prior to any market re-rating which may result from the recognition of the benefits expected from the proposed merger
Slide 4: …with a pro forma market capitalisation of US$11 billion
…with a pro forma market capitalisation of US$11 billion …with a compelling equity story Global scale and relevance attractive stock for both gold and other investors access to a greater universe of potential investors Increased index weighting:
Slide 5: Harmony offers a premium to multiples paid on recent comparable transactions
Harmony offers Gold Fields shareholders a premium to multiples paid on recent comparable transactions Comparable transaction analysis (P/NPV)
Slide 6: …a full and fair upfront premium
…a full and fair upfront premium The proposed merger involves no value leakage to third parties Shareholders will retain: existing cash balances and future cash flows to fund capital expenditure, development and pay dividends financial flexibility to allow for optimal allocation of cash resources be
Slide 7: St. Helena (50%)
St. Helena (50%) R60m net investment average unit cost reduction of 27%
Slide 8: Gold Fields and its South African assets saved from lingering death: Randfontein
Gold Fields and its South African assets saved from lingering death Look at what Harmony has done with... ...other acquired assets Randfontein R854m net investment pay-back after 9 quarters average unit cost reduction of 16%
Slide 9: Freegold (50%)
Freegold (50%) R1,416m total investment pay-back after 11 quarters average unit cost reduction of 27%
Slide 10: Gold Fields and its South African assets saved from lingering death: Elandsrand
Gold Fields and its South African assets saved from lingering death Look at what Harmony has done to... Elandsrand R1,053m total investment average unit cost reduction of 16%
Slide 11: ...turn terminal assets back into growth assets
...turn terminal assets back into growth assets previously abandoned reserves turned into growth projects when completed, these projects will produce an aggregate of over 1.5 million higher-grade, lower cost additional ounces per annum
Slide 12: The impact of the Harmony Way gives assets a second lease of life
Gold Fields and its South African assets saved from lingering death The impact of the Harmony Way gives assets a second lease of life... Enlarged group has a balanced portfolio of assets, well-spread across the lifecycle of mines the introduction of the Harmony Way will generate growth within percei
Slide 13: ...leading to a strong, balanced portfolio, well-spread over the lifecycle of mines
...leading to a strong, balanced portfolio, well-spread over the lifecycle of mines …and gives growth to assets through development and re-investment Enlarged group asset portfolio analysis Mines under construction Exploration portfolio Target (SA) Wafi (PNG) Tsepong (SA) Golpu (PNG) Masimong (SA) C
Slide 14: Gold Fields is paying a substantial premium to IAMGold shareholders
Gold Fields is paying a substantial premium to IAMGold shareholders …in favour of IAMGold shareholders Not surprisingly, the proposed IAMGold transaction has been welcomed by IAMGold “this transaction… is highly accretive to us” Joe Conway, CEO of IAMGOLD, 11 August 2004 Gold Fields management itsel
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