Slide 1: Fourth Quarter and Year-end Results
Fourth Quarter and Year-end Results Period ending 31 December 2012 Market Presentation 14 February 2013 Nick Holland Chief Executive Officer
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: Overview
Overview | igen ass Fietps
Slide 4: Q4 2012 Salient Features
Q4 2012 Salient Features • Attributable production of 754,000 gold equivalent ounces (811koz) - KDC and Beatrix down 30% quarter on quarter due to strike - International operations up 11% - Strike impact mitigated through improved international performance • Total cash cost US$946/oz (Q3 - US$916/oz
Slide 5: F2012 Salient Features
F2012 Salient Features Earnings - SA cents per share • Attributable p production of 3.25 million g gold 1 200 equivalent ounces (F2011 - 3.49Moz) 1 000 973 1 003 939 • Total T t l cash h costt US$894/oz US$894/ (F2011- US$795/oz) 800 778 578 600 • NCE US$1,376/oz (F2011 – US$1,173/oz) 492 529 400 39
Slide 6: F2012 Achievements
F2012 Achievements • SA production stable in H1, disrupted by YaRona fire and strikes in H2 • Strikes at KDC and Beatrix well managed from a safety perspective • South Deep physical infrastructure completed • New “24/7/365” operating model at South Deep agreed and being implemented • Conversion to o
Slide 7: Proforma Results – new Gold Fields
Proforma Results – new Gold Fields Q4 2012 F2012 Attributable production koz 534 2,031 Cash costs US$/oz 793 784 NCE US$/oz 1,365 1,365 NCE margin i % 19 18 EBITDA US$ m 506 1,868 Mine capital expenditure US$ m 312 1,155 Project capital US$m 17 58 FSE expenditure US$m 16 65 Cash generated by interna
Slide 8: Financial Strategy: Leverage the Balance Sheet
Financial Strategy Leverage the Balance Sheet Proforma Gold Sibanye All figures in US$ million Fields Gold Financial Targets Net Debt – 31 Dec 2012 1,263 , 443 • Leverage balance sheet in particular, EBITDA – C2012 1,868 694 the long end Net Debt/EBITDA – 31 Dec 2012 0.68 0.64 C Committed itt d unut
Slide 9: Financial Strategy: Commitment to return cash to shareholders
Financial Strategy Commitment to return cash to shareholders Dividend (SA cps) F2008 to F2012 1200 38% 40% 33% 35% 1000 A cents per sharre 1003 939 30% 800 Pay-out ratio 26% 25% 25% 22% 600 20% 578 15% 529 400 396 10% SA 200 330 5% 150 130 140 235 • Final dividend: R0.75 per share 0 2008 2009 2010 2
Slide 10: The New Gold Fields: It's not about ounces, it's about cash
The New Gold Fields IIt’s ’ not about b ounces Its about cash!
Slide 11: Investors expect us to deliver leverage to the gold price
Investors expect us to deliver leverage to the gold price However we have not met their expectations… However, Note: Data indexed to 13 January 2006; index made up of 8 major gold producers’ total return indexes weighted by market capitalisation; Major Gold producers defined as: AngloGold Ashanti, B
Slide 12: The Way Forward for Gold Fields
The Way Forward for Gold Fields It is not about ounces at any cost. Its about cash! • Review portfolio to optimise cash generation Focus on cash • Understand and manage all-in costs – Notional Cash Expenditure (NCE) 1 generation • Prioritise low risk,, high g return brownfields growth g opportunitie
Slide 13: Portfolio Review: Unbundling Sibanye Gold
Portfolio Review Unbundling Sibanye Gold Shareholders Gold Fields International Limited GFIMSA Tarkwa KDC Damang Beatrix St Ives Service Entities Agnew g Cerro Corona South Deep Other subsidiaries and Investments T Two Independent I d d t Companies C i Gold Fields Limited | Q4 2012 & F2012 Results M
Slide 14: Rationale for Unbundling Sibanye Gold
Portfolio Review Rationale for Unbundling Sibanye Gold Create fit-for-purpose, sustainable, long-life operations Install a specialist, dedicated and focussed management team Ring-fence SA cash flows for SA projects and dividends R Reverse d declining li i production d ti ttrends d Optimise extractio
Slide 15: International Diversification
International Diversification A more balanced portfolio Gold Fields Gold Fields Before Unbundling Post Unbundling 13% ction 17% 29% 24% 28% (managed) 40% Produc 9% 13% 15% 43% 35% 26% 8% C2012 C2016 RSA – South Deep RSA - Sibanye Australia West Africa South America 6% erves2 4% 6% 10% naged) 19% 53%
Slide 16: GFI After Sibanye Gold Unbundling
Portfolio Review GFI After Sibanye Gold Unbundling FINLAND Arctic Platinum Project MALI Vancouver Yanfolila Denver PHILIPPINES PERU GHANA Far Southeast Cerro Corona Tarkwa Chucapaca Damang AUSTRALIA Manila Agnew Accra Lima St Ives Johannesburg Perth SOUTH AFRICA Santiago South Deep Offices Mines Exp
Slide 17: Understand and Manage All-in Costs (NCE)
Portfolio Review U d Understand t d and d Manage M All-in All i Costs C t (NCE) New GFI Including South Deep New GFI Excluding South Deep US$/oz US$/oz 1 800 1 800 1 600 19% 1 600 26% NCE 1 400 NCE 1 400 Margin Margin 1 200 1 200 1 000 1 000 800 800 600 600 400 400 200 200 - - 08 09 10 11 12 08 09 0
Slide 18: Review Portfolio for Cash Generation
Portfolio Review R i Review P Portfolio tf li for f Cash C h Generation G ti • Corporate Office and Regional structures rationalised Group • Greenfields exploration spend cut to US$80 million p.a. • Owner mining conversion completed St Ives • High cost heap leach operation closed • Low grade Main an
Slide 19: Prioritise Low Risk, High Return Brownfields Growth Opportunities
Portfolio Review P i iti L Prioritise Low Ri Risk, k High Hi h Return R t B Brownfields fi ld GGrowth th O Opportunities t iti Tarkwa Tarkwa Expansion Phase 6 (TEP6) Damang Optimise extraction of 10Moz ore body Sulphides Expansion Project Cerro Corona Oxides Project L Low Risk Ri k Strategy St t T T
Slide 20: Pursue Greenfields Projects Only For Attractive Returns
Portfolio Review Pursue Greenfields Projects Only For Attractive Returns Construction Decision (+ve feasibility study) Chucapaca 1 Indicated and Inferred Resources FS (+ve pre-feasibility study) APP Far Southeast 4 Damang Yanfolila GFI Target Confirmed Resource Development (+ve scoping study) Talas
Slide 21: Pursue Greenfields Projects Only For Attractive Returns
Portfolio Review Pursue Greenfields Projects Only For Attractive Returns Peru Chucapaca Project • Start small if possible • Advance only projects with attractive returns Philippines Far Southeast Project • Enforce stringent stage gates Finland Arctic Platinum Project • Where appropriate de-risk thro
Slide 22: Operations Review
Fietps Operations Review
Slide 23: South Deep Project – South Africa
South Deep Project – South Africa Koz Managed g Production F2012 F2011 90 80 Managed production koz 270 273 70 EBITDA (operating profit) US$ m 148 131 60 50 Contribution to New GFI EBITDA 8% 7% 40 Total cash cost US$/oz 1,105 1,073 30 20 NCE US$/oz 2 283 2,283 2 091 2,091 10 - Internal contribution
Slide 24: South Deep Project – South Africa
South Deep Project – South Africa Deliver South Deep Landmark Union Agreement on new Operating Model – 2 October 2012 Production build-up to run-rate of 700koz by end of 2015 De-stress development increased 75% year on year. Self-funding by end of 2013 Major progress on key infrastructure: o
Slide 25: Tarkwa Gold Mine - Ghana
Tarkwa Gold Mine - Ghana Koz Managed g Production F2012 F2011 250 Managed production koz 719 717 200 EBITDA (operating profit) US$ m 729 752 150 Contribution to New GFI EBITDA 39% 38% 100 Total cash cost US$/oz 673 556 50 NCE US$/oz 1,049 913 - NCE Margin 39% 42% Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 J
Slide 26: Damang Gold Mine - Ghana
Damang Gold Mine - Ghana Koz Managed g Production F2012 F2011 70 Managed production koz 166 218 60 EBITDA (operating profit) US$ m 125 201 50 Contribution to New GFI EBITDA 7% 10% 40 30 Total cash cost US$/oz 918 701 20 NCE US$/oz $ 1,630 1,056 10 - NCE Margin 2% 33% Mar-10 Jun-10 Sep-10 Dec-10 Mar-
Slide 27: Cerro Corona Gold Mine - Peru
Cerro Corona Gold Mine - Peru Koz Managed g Equivalent q Production F2012 F2011 120 Managed production koz 342 383 100 EBITDA (operating profit) US$ m 396 403 80 Contribution to New GFI EBITDA 21% 20% 60 Total cash cost US$/oz 492 437 40 NCE US$/oz $ 775 592 20 - NCE Margin 51% 60% Mar-10 Jun-10 Sep
Slide 28: St Ives Gold Mine - Australia
St Ives Gold Mine - Australia Koz Managed g Production F2012 F2011 130 Managed production koz 450 465 125 EBITDA (operating profit) US$ m 326 322 120 Contribution to New GFI EBITDA 17% 16% 115 110 Total cash cost US$/oz 931 901 105 NCE US$/oz $ 1,608 1,287 100 95 NCE Margin 4% 19% Mar-10 Jun-10 Sep-
Slide 29: Agnew Gold Mine - Australia
Agnew Gold Mine - Australia Koz Managed g Production F2012 F2011 60 Managed production koz 177 194 50 EBITDA (operating profit) US$ m 144 181 40 Contribution to New GFI EBITDA 8% 9% 30 Total cash cost US$/oz 827 696 20 NCE US$/oz $ 1,191 1,096 10 - NCE Margin 29% 32% Mar-10 Jun-10 Sep-10 Dec-10 Mar-
Slide 30: Conclusions
Conclusions Fietps
Slide 31: Group Guidance for 2013
Group Guidance for 2013 Managed production koz 1,910 to 1,990 Attributable production koz 1,825 to 1,900 Cash cost US$860/oz (R250,000/kg) NCE US$1,360/oz (R395,000/kg) US$1=R9.00 Exchange rates U$1 = A$0.962 Gold Fields Limited | Q4 2012 & F2012 Results Market Presentation | 14 February 2013 Page 3
Slide 32: Conclusion
Conclusion A smaller, more focussed, yet solid platform for growth Focus on cash generation and a superior return on all funds invested Cash generation takes priority over production targets Dividends have first call on cash flows – 25% to 35% of normalised earnings Judiciously advance only low-risk