Gold Fields Limited · JSE:GFI
Gold Fields — Technical Presentation (July 2014)
64 slides from Gold Fields's technical presentation, Jul 14, 2014
Slide 1: Gold Fields Australia Site Visit: Agnew/Lawlers Gold Mine
Gold Fields Australia Site Visit: Agnew/Lawlers Gold Mine JASON SANDER General Manager 14th July 2014
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 p particular, the forward looking g statements in this document incl
Slide 3: Agnew/Lawlers Gold Mine: Location
Agnew/Lawlers Gold Mine Location ● Map of site/tenement position • Located in the Eastern Goldfields Province of the ● Show pits, plants, shafts etc Archaean aged Yilgarn Craton ● Size of tenements etc • 1,020km NE by sealed road from Perth • 380km north by sealed road from Kalgoorlie • Full mining
Slide 4: Location and tenements
Agnew/Lawlers Gold Mine Location • Agnew Mill (EMU Mill) located 25 km SW of Leinster • Waroonga underground mine located adjacent to the Agnew Mill 2500m 5000m • New Holland underground mine located 2km NW of Agnew Mill • 78,547ha granted tenements (Including Lawlers purchase of ~27,000ha) Leinster
Slide 5: History
Agnew/Lawlers Gold Mine History 1894 Patrick Lawlers’ prospecting party finds gold 1896 Lawlers town site gazetted 1904 Waroonga Mine opened 1936 Agnew town site gazetted 1976 WMC p purchases Waroonga g Leases and Emu Mine 1984 Forsayth NL purchases Great Eastern Lease Modern open pit mining commenc
Slide 6: Historical Production
Agnew/Lawlers Gold Mine Historical Production Agnew mined 2828.2mt 2mt @ 5 5.0g/t 0g/t Au for 4.4 Moz since commercial production commenced in 1987 to December 2013 Lawlers mined 17.1mt @ 4.1g/t Au for 2.3 Moz since commercial production commenced in 1985 to December 2013 ~7 Moz Produced To Date – 1
Slide 7: Historical Production
Agnew/Lawlers Gold Mine Historical Production Lawlers District: 1894 - 2013 Tonnes Grade Ounces Lode Kt g/t Moz Pre 1985 951 12.9 0.39 Agnew 28 158 28,158 50 5.0 4 56 4.56 Lawlers 17,058 4.1 2.27 Total 46,167 4.9 7.23 Waroonga/New Holland: 1894 - 2013 Tonnes Grade Ounces Lode Kt g/t Moz Pre 1985 359
Slide 8: Replacement of Reserves
Agnew/Lawlers Gold Mine Replacement of Reserves Typical Regenerative Orogenic Geology Gold Fields Australia Site Visit: Agnew/Lawlers Gold Mine | Jason Sander | July 2014 8
Slide 9: Replacement of Reserves: Lawlers Reserves and Production
Agnew/Lawlers Gold Mine Replacement of Reserves Lawlers Reserves and Production 14 1.4 1.2 1.0 Million Ounces 0.8 0.6 0.4 0.2 0.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Reserve Production Cumulative Production Reserve @ 06/13 Typical Regenerative Orogenic Geology Gold Field
Slide 10: Management Team
Agnew/Lawlers Gold Mine Management Team Jason Sander General Manager Dave Mike Mead Neil Lester Peter Johansen Amanda Swart Thornton Dayna Dankbaar Sustainable Engineering & Mineral Business Mining HR Applications Superintendent Development Processing Resources Manager Superintendent Manager Manager
Slide 11: Management profiles
Agnew/Lawlers Gold Mine Jason Sander – General Manager Dave Thornton – Mining Manager • B Eng (Mining) (Hons) • Commenced with Gold Fields in 2005. In Agnew • B. Eng. (Mining Eng.) GM role since Dec 2013. • At Agnew since October 2013. • Prior work history with • Prior work history with Barrick at T
Slide 12: Management Team
Agnew/Lawlers Gold Mine Amanda Swart – Business Applications Dayna Dankbaar – HR Superintendent Superintendent • Diploma of Accounting • B. Mngt. (HR) • 8 months at Agnew • 3yrs 9mths at Agnew • Previously Commercial Manager • Prior work experience in Australia Leighton Contractors, Admin Supt with
Slide 13: What did we buy?
To be the global leader in sustainable gold mining What did we buy?
Slide 14: Acquisition of Lawlers Gold Mine: What Did We Buy?
Agnew/Lawlers Gold Mine Acquisition of Lawlers Gold Mine: What Did We Buy? POSITIVES CHALLENGES ● A strong strategic fit with Agnew and GFA ● Embedding full value from consolidating the sites ● A team of good and focussed operators ● Introducing Gold Fields operating franchise and DNA ● A mature and
Slide 15: Resources & Reserves and Main Ore Bodies
Agnew/Lawlers Gold Mine Resources & Reserves and Main Ore Bodies G Genesis i Open O Pit New Holland Open Pit Mineral Resource (@ A$1,570/oz): 19.2Mt @ 5.93g/t for 3.66Moz Hidden Secret Open Pit Mineral Reserve (@ A$1,370/oz): 4.2Mt @ 7.05g/t for 0.95Moz 200 Series 500 Series 600/700 Series Sheba War
Slide 16: Site and Infrastructure
Agnew/Lawlers Gold Mine Site and Infrastructure Agnew (EMU) Processing Plant • 600kW Jaw crusher • 1.2Mtpa 1 2Mtpa CIL • Cyanide Code Compliant • In-pit TSF (5km away) Waroonga UG Agnew Paste Plant • Dry tails designed Aran plant commissioned in 2008 • Average production rate of 110m3/hr with a maxi
Slide 17: Other Site Infrastructure
Agnew/Lawlers Gold Mine Other Site Infrastructure Leinster airport Leinster Gold Fields Australia Site Visit: Agnew/Lawlers Gold Mine | Jason Sander | July 2014 17
Slide 18: Why did we buy Lawlers?
To be the global leader in sustainable gold mining Why did we buy Lawlers?
Slide 19: Our Due Diligence View
Agnew/Lawlers Gold Mine Our Due Diligence View ● What did we see overall? ̵ Two side by side operations with different mining methods that can be streamlined into one multi-mine operation ● Can meet GFI key metric of 15% FCF margin at a gold price of US$1,300/oz ̵ Closing down the Lawlers Processing
Slide 20: Our Due Diligence View
Agnew/Lawlers Gold Mine Our Due Diligence View Genesis Open Pit New Holland Open Pit Hidden Secret Open Pit Sheba Potential for deeper lodes?? Potential extensions Current target areas Drilled to be developed Drilled, New Holland Under Explored - Gets Better! Gold Fields Australia Site Visit: Agnew/
Slide 21: Our existing View of Agnew
Agnew/Lawlers Gold Mine Our existing View of Agnew Agnew’s s potential Kath Rajah Main South Main North Waroonga North Hauptspalt Yeoman FBH Kim Indicated Resource Link Inferred Resource Pre-resource early stage target Target Zones High Grade Shoots Open at Depth – Potential Along Strike! Gold Field
Slide 22: What have we done since the acquisition?
What have we done since the acquisition?
Slide 23: Strategic Focus: Delivering Results
Agnew/Lawlers Gold Mine Strategic Focus: Delivering Results ● Synergies realised ̵ Lawlers Processing facility placed on care and maintenance at end of October 2013 ̵ Downsized the workforce and kept the highest performers ̵ Lawlers Camp placed on care and maintenance and employees now in Leinster ●
Slide 24: Synergies from acquisition
Agnew/Lawlers Gold Mine Synergies from acquisition (in-place (in place and planned) Synergy Overall Impact Utilization of equipment between mines – Cost savings, reduced capital spend truck, loader, production drilling Closure of Lawlers Mill Significant cost saving - $7.8Mpa (processing cost alone
Slide 25: New Holland: Leveraging Improved Production and AIC
Agnew/Lawlers Gold Mine New Holland: Leveraging Improved Production and AIC ● Equipment rationalisation enabled significant Capex and Opex savings. p ● Removed the Barrick corporate requirement q for surface support pp all development p headings. g Along g with efficiency y improvements enabled the
Slide 26: Waroonga: Leveraging Improved Production and AISC
Agnew/Lawlers Gold Mine Waroonga: Leveraging Improved Production and AISC ● Introduction of in-pit haulage at both New Holland and Waroonga ● Significant reduction in capital development per level in the Lower Kim South area 2013 Original Design Final July Design Reduction in development achieved th
Slide 27: Recent Performance
Agnew/Lawlers Gold Mine Recent Performance f • Focus on free cash flow and growing the margin • No ounces for ounces sake, no marginal mining • Optimised contractor vs owner mining • Site specific cost savings and business process re-engineering Gold Fields Control Gold Fields Australia Site Visit:
Slide 28: Key Metrics
Agnew/Lawlers Gold Mine Key Metrics KPI’s Unit Q4 2013 Q1 2014 Safety LTI’s 0 0 Ore mined - UG kt 267 266 Mined grade - UG g/t 7.32 6.91 Ore processed kt 349 294 Head grade g/t 6.52 6.35 Recovery % 91 5 91.5 94 6 94.6 Gold sold koz 73.6 59.2 Revenue US$m 94.5 76.1 Operating cost US$m 41.8 41.2 Opera
Slide 29: Processing
To be the global leader in sustainable gold mining Processing
Slide 30: Processing Plant
Agnew/Lawlers Gold Mine Processing Plant • Contract crushing -1.3 Mtpa tertiary crushing plant • 2 stage ball milling circuit consists of closed primary ball mill (1.2 MW) and closed secondary ball mill (1.1 MW) • Throughput 1.3 Mtpa • Leach feed of p80 106 to 125 microns • Gravity circuit of two 30
Slide 31: Milling, Gravity Circuit and Gold Recovery
Agnew/Lawlers Gold Mine Milling Gravity Circuit and Gold Recovery Milling, Nameplate Capacity: 1.20Mtpa 1 20Mtpa Ball mill 1 feed size (P80): 8mm Grind size (P80): 106 -125 m Ball mill 1 charge: (80mm balls) Ball mill 2 charge: (50mm balls) Gold Fields Australia Site Visit: Agnew/Lawlers Gold Mine
Slide 32: Tailings Storage Facility
Agnew/Lawlers Gold Mine Tailings Storage Facility • In-pit TSF3 commenced in 2004 in the old Redeemer pit and underground • Current capacity 4.5 Mt (as at June 2014) • Currently investigating additional Life of Mine TSF options. Gold Fields Australia Site Visit: Agnew/Lawlers Gold Mine | Jason Sande
Slide 33: Processing - Grade
Agnew/Lawlers Gold Mine Processing - Grade Gold Fields Australia Site Visit: Agnew/Lawlers Gold Mine | Jason Sander | July 2014 33
Slide 34: Processing - Recovery
Agnew/Lawlers Gold Mine Processing - Recovery Gold Fields Australia Site Visit: Agnew/Lawlers Gold Mine | Jason Sander | July 2014 34
Slide 35: Mining - Underground
To be the global leader in sustainable gold mining Mining - Underground
Slide 36: Waroonga Underground
Agnew/Lawlers Gold Mine Waroonga Underground Mineral Resources : • 10.31Mt @ 6.20g/t for 2,055koz Mi Mineral l Reserves: R • 2.96Mt @ 7.47g/t for 712koz Overview: ̵ One underground mine, accessed by one portal ̵ Main focus is the higher grade Kim orebody ̵ Utilise longhole open stoping combined with
Slide 37: Waroonga Underground
Agnew/Lawlers Gold Mine 255,000 Waroonga Underground • Decline accessed Waroonga Pit • Full Contract Mining • Longhole open stoping with paste fill • Steeply dipping discrete orebodies. 6,900,000 6,900,000 255,000 300m Access Drives Vent Infrastructure Developed Areas Historical Stopes Future Mining
Slide 38: Waroonga Underground: Stope Sequence
Agnew/Lawlers Gold Mine Waroonga Underground Mining Methods –Stope Sequence - M Front transition ● Transition to the M Front commenced in Q1 with the southern side completed ● Northern extent due to transition in Q3 50m 100m Gold Fields Australia Site Visit: Agnew/Lawlers Gold Mine | Jason Sander |
Slide 39: New Holland Underground
Agnew/Lawlers Gold Mine New Holland Underground Mineral Resources: • 2.22Mt @ 8.78g/t for 627koz Genesis Pit Mineral Reserves: • 1.18Mt @ 6.27g/t for 237koz O Overview: i ̵ One underground mine, accessed by two portals which are in separate pits New Holland Pit ̵ Main focus is the Genesis 500 series
Slide 40: New Holland Underground
Agnew/Lawlers Gold Mine 255,000 New Holland Underground Genesis Pit New Holland Pit 690m Oblique view facing North West 6,900,000 6,900,000 200mV 250mH 255,000 75-80% Extraction New Holland Underground: • Decline accessed with 2 Portals • Full owner mining • Utilise longhole open stoping combined wi
Slide 41: OHS & Sustainability
To be the global leader in sustainable gold mining OHS & Sustainability
Slide 42: Key Safety Metrics
Agnew/Lawlers Gold Mine Key Safety Metrics Target Gold Fields Australia Site Visit: Agnew/Lawlers Gold Mine | Jason Sander | July 2014 42
Slide 43: Safety Initiatives in 2014
Agnew/Lawlers Gold Mine Safety Initiatives in 2014 ● Vital Behavior's initiated in Q2 (Safety Culture Program) ● Standardisation and increased communication of Agnew’s Injury Management p ● Internal Compliance Schedule Tracking– g QQuarterlyy (bonus ( parameter) p ) ● Diesel Particulate monitoring h
Slide 44: Agnew Gold Mine – Environment and Community
Agnew Gold Mine – Environment and Community Key Projects for 2014 Item Detail Actions • Existing g Emu bore-field extraction volumes have been optimised across all bores Project 1 Water Security • Water management plans to include the additional water now available from Lawlers bore-fields and pits
Slide 45: Agnew Gold Mine: Human Resources
Agnew Gold Mine Human Resources Description 2013 2014 Employees in service 302 285 Contractors 261 281 TE+C 563 566 Tonnes mined/ TE+C 234 251 Oz Sold / TE+C 43 35 *TE+C (Total number of employees plus Total number of Contractors) Gold Fields Australia Site Visit: Agnew/Lawlers Gold Mine | Jason San
Slide 46: Top Five Priorities
Agnew/Lawlers Gold Mine Top Five Priorities ● Focus on costs ● Kim South replacement g endowment p ● Turning potential of combined site to account - Life of Mine extension ● Paste Plant management ● Safety management on combined Agnew / Lawlers site Gold Fields Australia Site Visit: Agnew/Lawlers Go
Slide 47: Mine Geology
To be the global leader in sustainable gold mining Mine Geology
Slide 48: Regional Geology
Agnew/Lawlers Gold Mine 245,000 250,000 255,000 260,000 265,000 270,000 275,000 Regional Geology / 6,930,000 6,930,000 Agnew_Geology Felsic Granite ● Situated in northern portion of Norseman-Wiluna Greenstone F 0 2,500 5,000 7,500 10,000 6,925,000 6,925,000 Sediment Meters Belt Siltstone 6 6 Sandsto
Slide 49: Geology and Mineralisation
Agnew/Lawlers Gold Mine Geology and Mineralisation Agnew_Geology Felsic Granite High potential for Sediment further extensions Siltstone or repeat lodes Sandstone Conglomerate Mafic Mafic Intrusive Dolerite Mafic Volcanic Basalt Ultramafic Gold Fields Australia Site Visit: Agnew/Lawlers Gold Mine |
Slide 50: Geology and Mineralisation
Agnew/Lawlers Gold Mine Geology and Mineralisation 255,000 Waroonga Cross Section New Holland Cross Section Resource: R 16 8 Mt @ 5 16.8 5.53 53 g/t /t ffor Resource:2.4 Resource:2 4 Mt @ 8.72 8 72 g/t for 0.67Moz 0 67Moz 2.99Moz Reserve 1.2 Mt @ 6.24 g/t for 0.24Moz Reserve: 3.0 Mt @ 7.37 g/t for 0
Slide 51: Exploration
To be the global leader in sustainable gold mining Exploration
Slide 52: Growth Pipeline (Brownfields)
Agnew/Lawlers Gold Mine - Growth Pipeline (Brownfields) Mine (Extensional) Exploration Regional (Additional) Exploration Indicated FBH Resource FBH Resource 500 Series Cinderella Development The Link Kath Advanced 500 Series Drilling 200 Series Colours Waroonga Extensions Black: Waroonga Blue: New H
Slide 53: Geology and exploration potential
Agnew/Lawlers Gold Mine Agnew_Geology Felsic Granite Geology gy S di Sediment t Siltstone Sandstone • Endowment and Waroonga Conglomerate Exploration Potential is Mafic strong over combined Mafic Intrusive tenement areas Dolerite Mafic Volcanic • Lawlers prospect areas Basalt under review – little U
Slide 54: Positioning New Holland and Waroonga Relative To Each Other
Agnew/Lawlers Gold Mine Positioning New Holland and Waroonga Relative To Each Other (looking East) N S 2.6km Waroonga Nth plunge 600/700 series ~640m 3.2km Previous Lease Boundary p ~640m separates g the 2 underground g areas mining Very large system with potential to +2km depth Waroonga ̵ NH-G beyo
Slide 55: The Targets
Agnew/Lawlers Gold Mine The Targets (Plan view and looking West) Hidden Secret 200 Series 253,000 254,000 255,000 3,000 3,000 500 Series 6,903 6,903 6,902,000 6,902,000 1,500 m 6,901,000 6,901,000 00 00 6,900,00 6,900,00 0 / 300 600 1,000 m Meters 253,000 254,000 255,000 Gold Fields Australia Site V
Slide 56: Waroonga Drilling Results: Kath Upper, Kim/Fitzroy Positions
Agnew/Lawlers Gold Mine Waroonga Drilling Results: Kath Upper, Upper Kim/Fitzroy Positions 8 2m @ 11 8.2m 11.5g/t 5g/t incl incl. 4.6m 4 6m @ 15.4g/t 15 4g/t Kath Upper Rajah Waroonga North Main South Main Legend North Target completed, Preliminary Assays received Target completed, completed Assays
Slide 57: Waroonga Drilling Results: Waroonga North, Kath
Agnew/Lawlers Gold Mine Waroonga Drilling Results: Waroonga North, North Kath EMSD1104: Kath Upper 0.3m @ 23.2g/t Rajah EMSD1103: 2.37m @ 19.0 g/t Waroonga North Main South Main North EMSD1125A: 8.07m @ 2.10g/t EMSD1090: 3 5m @ 11 3.5m 11.15g/t 15g/t incl incl. 1.58m 1 58m @ 22 22.96g/t 96g/t Kath E
Slide 58: Genesis New Holland Exploration Series
Agnew/Lawlers Gold Mine Genesis New Holland Exploration 200 Series Hidden Secret 500 Series Obvious targets tested in 2014 Gold Fields Australia Site Visit: Agnew/Lawlers Gold Mine | Jason Sander | July 2014 58
Slide 59: The Series Target Area
Agnew/Lawlers Gold Mine The 200 Series T Target t Area A • Current 200 Series reserve approximately 250m along strike • Interpreted structure extends another ~950m but is not sufficiently drill t t d tested 250Koz Target Gold Fields Australia Site Visit: Agnew/Lawlers Gold Mine | Jason Sander | July
Slide 60: The Series: 500Koz Target
Agnew/Lawlers Gold Mine The 500 Series South North Target Area Extrapolation of 500 Series position Genesis Pit • Genesis 500 main ounce producer since 2011 • Mineralised system is open to the north – Structures intersected 200m north th iin 2014 Q1 • Drilling to test further extensions of the 200 S
Slide 61: 600/700 Series
Agnew/Lawlers Gold Mine 600/700 Series South North 600/700 Series 1.2m @15g/t N New H Holland ll d Genesis 700 Series S i currentlytl >400m 400 600 SSeries i currently tl >800 >800m Batavia strike length and a further strike length approximately Sheba 100m below 600 series. 120m below 500 Series. Op
Slide 62: Hidden Secret longsection
Agnew/Lawlers Gold Mine Hidden Secret 1m@68 0g/t 1m@68.0g/t 1m@43.8g/t 8m@20.2g/t Hidden Secret Pit 2m@62.2g/t Hidden Secret 1m@105g/t 2m@28.9g/t 3m@53.5g/t incl. 1m@142g/t 2m@51.3g/t 1m@33.8g/t 3m@33.0g/t WARCD0470 Hidden Secret 2m@38.6g/t 4m@23 0g/t 4m@23.0g/t WARCD0470 WARCD0470 6m@34.0g/t incl.
Slide 63: Conclusions
Agnew/Lawlers Gold Mine Conclusions • Outstanding reserve replacement history - Agnew and Lawlers have historically had a LoM of approximately 3 years, every year, since 1986 • Situated in a highly prospective region for further gold discovery • Experienced focused management team • About to develop
Slide 64: Gold Fields Australia Site Visit: Agnew/Lawlers Gold Mine
Gold Fields Australia Site Visit: Agnew/Lawlers Gold Mine JASON SANDER General Manager 14th July 2014