Gold Fields Limited · JSE:GFI
Gold Fields — European Gold Forum 2016
27 slides from Gold Fields's conference presentation, Apr 19, 2016
Slide 1: European Gold Forum 2016: Cash positive despite the lower gold price
European Gold Forum 2016 CASH POSITIVE DESPITE THE LOWER GOLD PRICE Nick Holland 19 April 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: Snapshot of Gold Fields
Snapshot of Gold Fields A global gold producer ● Gold Fields is the world’s 7th largest gold producer with 8 As at 12 April 2016 operations in 4 countries Share price (JSE/ADR) R61.71/$4.10 ● In 2015, the company produced 2.2Moz at AISC of US$1,007/oz and AIC of US$1,026/oz, generating net cash flow
Slide 4: Good start to 2016: Highlights from Q1 2016
Good start to 2016: Highlights from Q1 2016 All 8 operations exceeded planned production for Q1 2016 – Group: 515koz AISC (US$961/oz) and AIC (US$986/oz) tracking below FY16 guidance Positive operating trends continue at South Deep Transition to high profile destress mining at South Deep is progress
Slide 5: Steady decrease in all-in costs
Steady decrease in all-in costs 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 600 000 557 000 548 000 559 000 556 000 557 000 566 000 535 000 515 000 1400 496 000 501 000 500 000 477000 451 0
Slide 6: 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$123m 1 500 1 499 1 290 1 279 150 1 222 1 186 1 098 1 000 119 117 122 50 1 500 42 US$ million US$/oz -50 0 -500 -150 -1 000 -
Slide 7: Comfortable balance sheet, with flexibility
Comfortable balance sheet, with flexibility ● Net debt of US$1,380m at 31 December 2015 ● Net debt to EBITDA of 1.38x at end-2015 Net debt (US$m) and Net debt/EBITDA 2 000 1.8 ● Unutilised facilities of US$844m and R2.5bn 1 500 1.6 ● First debt maturity in November 2017 1 000 1.4 US$m 1.2 ● US$148m
Slide 8: Streamlining the portfolio
Streamlining the portfolio Active portfolio management Arctic Platinum Project Finland “The wrong metal” Woodjam British Columbia “The wrong metal” Talas Kyrgysztan “The wrong address” FSE Philippines “Great optionality” Yanfolila Mali Asosa “Not franchise asset” Ethiopia “The wrong address” Chucapa
Slide 9: Operations Overview
OPERATIONS OVERVIEW
Slide 10: Solid global portfolio
Solid global portfolio Production, AIC and net cash flow (ex South Deep) ● Attributable production FY15: 1.96Moz ● AIC FY15: US$944/oz ● Net cash flow from international operations FY15: US$334m Equivalent production (koz) AIC (US$/oz) 600 1 200 500 1 000 400 800 300 600 200 400 100 200 0 0 Q1 2015
Slide 11: Australia Region
Australia Region Production AIC 400 1400 350 1200 300 1000 250 800 US$/oz Koz 200 600 150 400 100 50 200 0 0 2014 2015 2016F 2014 2015 2016F 2014 2015 2016F 2014 2015 2016F St Ives Agnew/Lawlers Darlot Granny Smith Tonnes Grade Gold 2015 2016F (Mt) (g/t) (Moz) Production (koz) 988 900 Resources 62.4
Slide 12: Australia: Exploring the Orogenic Mines
Australia: Exploring the Orogenic Mines Return on the 2015 investment 2016-2017 Focus ● Post depletion reserves largely ● A$86m planned for 2016 unchanged ● Exploration drill drive commenced to ● Increase in Resources of 13% Waroonga North (Agnew) ● Discovery of Invincible South ● Continue to grow t
Slide 13: St Ives: Exploration
St Ives: Exploration Extensional Exploration St Ives Extensional Exploration ● Four Project Areas Worked ● MAP i. Invincible ii. Invincible South iii. Incredible iv. Palaeochannel Project ● Highlights include: i. Significant up-plunge mineralisation at Invincible & Palaeochannel Invincible deeps (11
Slide 14: St Ives: Exploration - Invincible South
St Ives: Exploration Invincible South ● Additional Invincible style shoot located within the Speedway Trend ● Higher grade than previous shoots NW SE ● Pit and underground potential 750m ● Dec 15 Inferred Resource: 1.35Mt @ 8.4g/t for 364koz ● Q1 drilling completed in middle and southern section ̵ M
Slide 15: St Ives: Exploration - Project Generation
St Ives: Exploration Project Generation St Ives Additional Exploration ● Exploration focused on sparsely tested flanks of camp ● 60 target areas to be tested 2016 ● 30km Speedway trend being systematically explored targeting Invincible analogues Retribution ● Reinterpretation of geology and structur
Slide 16: Agnew/Lawlers: Exploration
Agnew/Lawlers: Exploration Waroonga North Target Areas Au g/t Drill intersections 2015/16 Pre-2015 500m Drill drive designed 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 pi
Slide 17: Agnew/Lawlers: Exploration
Agnew/Lawlers: Exploration 200m N New Holland Open Pit ● Accelerated development to open up deposit (commenced Q4 2015) Cinderella North Target ● Incline provides access to drill below Cinderella Cinderella Cinderella and Hidden Secret Incline Cinderella targets Face positions East Target as of end
Slide 18: Granny Smith: Exploration
Granny Smith: Exploration 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 exploration
Slide 19: Granny Smith: Exploration
Granny Smith: 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-up and new progr
Slide 20: Darlot: Exploration
Darlot: Exploration ● Underground ̵ CDA OVAL • Continued success – confirmation & extensions • Progressing to phase 2 ● Surface ̵ Burswood drilling; • New interpretation with follow up drilling required • Moses - positive results- follow up ̵ Waikato • Two programs completed at Waikato-local focus •
Slide 21: West Africa Region
West Africa Region Production AIC 700 1400 600 1200 500 1000 US$/oz Koz 400 800 300 600 200 400 100 200 0 0 2014 2015 2016F 2014 2015 2016F Tarkwa Damang Tonnes Grade Gold 2015 2016F (Mt) (g/t) (Moz) Attributable Production (koz) 754 710 Resources 344 1.34 14.8 AISC (US$/oz) 1,049 990 Reserves 248 1
Slide 22: South America Region: Cerro Corona
South America Region: Cerro Corona ● Cu/Au porphyry mineralisation - 2,765 ha of mining concession Production (koz) and AIC (US$/oz) ● Continued outperformance against resource 90 83.6 1 200 79.2 model 80 1 000 70 66.6 66.2 ● Review of options to increase LoM tailings 62.9 60 800 and waste storage c
Slide 23: South Africa Region: South Deep
South Africa Region: South Deep ● Required leadership in place Production (koz) and AIC (US$/oz) ● Bedding down a performance driven culture 80 2 500 68 ● Skills development strategy developed 70 64 2 000 55 ● Significant improvement in safety performance 60 50 1 500 39 ● Positive production trends
Slide 24: South Deep
South Deep Destress Long Hole Stoping Production & Contribution 90 180 80 160 Tonnes (‘000)/Q 70 140 Tonnes (‘000)/Q 60 120 50 100 40 80 30 60 20 40 10 20 24% 36% 37% 40% 42% 22% 34% 0 0 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 2014 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 2014 2015 Backfill Prod
Slide 25: South Deep: Looking forward
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 maintenanc
Slide 26: 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 27: Investor Relations Contacts
Investor Relations Contacts Avishkar Nagaser Thomas Mengel Francie Whitley Tel: +27 11 562 9775 Tel: +27 11 562 9849 Tel: +27 11 562 9712 Mobile: +27 82 312 8692 Mobile: +27 82 315 2832 Mobile: +27 82 321 7433 E-mail: E-mail: E-mail: Avishkar.Nagaser@goldfields.co.za Thomas.Mengel@goldfields.co.za F