Slide 1: Gold Fields Quarter and period ended Dec 2010
Gold Fields Quarter and period ended Dec 2010 Johannesburg, 18 February 2011 1
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 E h Exchange A t off 1934. Act 1934 Such forward looking statements involve known and unknown
Slide 3: Introduction: Programme
Introduction Programme g Introduction Nick Holland Financial review Paul Schmidt Region operational summaries • Australasia region Richard Weston • South Africa region Tim Rowland • South America region Juancho Kruger • West Africa region Peter Turner Growth Nick Holland Conclusion Nick Holland 3
Slide 4: Share price performance
Introduction Share p price performance p Gold Fields vs. US listed peers (USD) 0.4 0.3 0.2 0.1 0 -0.1 -0.2 -0.3 Jan 10 Mar 10 May 10 Jul 10 Sep 10 Nov 10 Gold Fields AngloGold Barrick Goldcorp Newmont Harmony Kinross Gold Price (R/kg) Best performing stock in 2010 4
Slide 5: Highlights for quarter ending December 2010
Introduction Highlights g g for quarter q ending g December 2010 NCE margin • Robust production 20 20 18 • Total cash cost down 2% q/q 18 16 • Initial target of 20% Group NCE 14 margin achieved 12 % • Normalised earningsg for p period up p 10 45% to R1.5 billion 8 • BPR gaining traction 6 4 • 40% in
Slide 6: 2010 Achievements: Safety
Introduction C2010 Achievements • Continuous improvement in safety 50 South Africa region safety 0.30 45 0.25 0.25 40 35 0.19 0.19 0.20 30 25 0 13 0.13 0 15 0.15 20 0.10 15 10 0.05 5 36 31 26 17 0 0.00 2007 2008 2009 2010 Fatalities (LHS) FIFR* (RHS) * Rate per million man hours If we cannot mine sa
Slide 7: 2010 Achievements: Business Process Re-engineering
Introduction C2010 Achievements • Business Process Re-engineering gaining momentum NCE margin 25 Initial 950 target 20 900 margin % 15 850 NCE m kozz 10 800 5 750 9 18 18 20 0 700 Mar 10 Jun 10 Sep 10 Dec 10 NCE margin (LHS) Production (RHS) Focused on margin per share 7
Slide 8: Cost control
Introduction Cost control Group total cash cost 167 000 166 000 165 000 164 000 R/kg g 163 000 162 000 161 000 160 000 159 000 Jun-10 Sep-10 Dec-10 Solid cost performance 8
Slide 9: Attributable mineral reserves – Australasia region
Introduction Attributable mineral reserves – Australasia region g 5 41 4.1 4 3.5 3 2.8 2.2 moz 2 1.2 1.3 1 0 Jun-10 Dec-10 Jun-10 Dec-10 Jun-10 Dec-10 Agnew St Ives Australia Region Total Open pit and Underground Surface • Growth at St Ives • Net growth after depletion at Agnew Reserves up 28% 9
Slide 10: Attributable mineral reserves - South Africa region
Introduction Attributable mineral reserves - South Africa region g 70 61.7 60.2 60 50 40 34.5 moz 29 3 29.3 m 30 26.7 20.2 20 10 5.7 5.4 0 Jun 10 Dec 10 Jun 10 Dec 10 Jun 10 Dec 10 Jun 10 Dec 10 Beatrix KDC South Deep SA Region Total Above Infrastructure Surface Below Infrastructure • South Deep up
Slide 11: Attributable mineral reserves – West Africa region
Introduction Attributable mineral reserves – West Africa region g 9 8.5 8.1 8 7.0 7 6.6 6 5 4 moz 3 2 1.5 1.4 1 0 Jun-10 Dec-10 Jun-10 Dec-10 Jun-10 Dec-10 Damang Tarkwa West Africa Region Total Open pit and Underground Surface World class ore bodies 11
Slide 12: Attributable mineral reserves – South America region
Introduction Attributable mineral reserves – South America region g 5 4.3 4.3 4 moz 3 2 Jun-10 Dec-10 Cerro Cerona Open pit and Underground Surface • Net growth after depletion Replacing depletion 12
Slide 13: Group attributable mineral reserves
Introduction Group p attributable mineral reserves 100 80 78.0 76.7 moz 60 40 20 0 Jun 10 Dec 10 Open pit and Underground Surface Below infrastructure Quality reserve base 13
Slide 14: 2010 Achievements: Growth pipeline
Introduction C2010 Achievements • Growth pipeline gaining momentum • Project pipeline underpins 5moz* target by 2015 • Organic growth • St Ives, Agnew, g Cerro Corona, Damang g • Greenfields projects • FSE in the Philippines • Chucapaca in Peru • Yanfolila in Mali • APP in Finland • Balance sheet st
Slide 15: 2010 Achievements: Sustainability and mining rights
Introduction C2010 Achievements • New order mining rights now in place for all South African mines • 2014 BEE ownership hi ttargets t achieved hi d and d accounted t d ffor • Fully integrated reporting – industry philosophy • Joint 1st in JSE Carbon Disclosure Index in 2010 • First gold company to t
Slide 16: Financial Review
Financial Review Paul Schmidt Chief Financial Officer 16
Slide 17: Group quarterly salient features
Financial Review Group p quarterly q y salient features Description Units Dec 2010 Sep 2010 Attributable g gold p produced koz 898 908 R/kg 303,958 289,329 Revenue US$/oz 1,366 1,223 Rm 9 255 9,255 9 053 9,053 Operating cost, net Rm 5,015 5,132 Operating margin % 46 43 Operating profit Rm 4,240 3,92
Slide 18: Group salient features
Financial Review Group p salient features Description Units Dec 2010 Sep 2010 Net (loss)/earnings Rm (777) 701 g Normalised earnings Rm 1,475 , 1,016 , SA cps (110) 99 Net (loss)/earnings per share p US cps ((15)) 13 SA cps 206 144 Normalised earnings per share p US cps 29 20 Delivering the gold pri
Slide 19: BEE Transactions
Financial Review BEE Transactions Description Dec 2010 ESOP Rm 1,227 1% of GFIMSA Rm 73 10% of South Deep Rm 825 Total Rm 2,125 2014 Ownership target achieved at < R3/share 19
Slide 20: Final dividend calculation for six months to Dec 2010
Financial Review Final dividend calculation for six months to Dec 2010 Description cps Rm Net loss (11) (76) Add BEE transactions - 2 125 2,125 Less growth capital - South Deep - (1,003) Net earnings after growth capital 147 1,046 Final dividend cps (50% of earnings after growth) 70 505 40% Period-o
Slide 21: Cash flow
Financial Review Cash flow Dec 2010 Sep 2010 Cash flow from operating activities Rm 3,889 2,250 Cash flow from investing activities (2,921) (2,228) Cash flow before financing activities 968 22 Dividends to non-controlling non controlling interest holders (149) - Dividends paid to ordinary shareholde
Slide 22: Australasia Region
Australasia Region Richard Weston EVP Australasia Region 22
Slide 23: Australasia Region: Salient features
Australasia Region Salient features Units Dec 2010 Sep 2010 Gold production koz 169 153 Total cash cost A$/oz 731 735 NCE A$/ A$/oz 986 1 062 1,062 NCE margin % 29 22 • Significant uplift in production at St Ives - sustainable • Production Prod ction at Agne Agnew getting back to historical le level
Slide 24: St Ives Gold Mine
Australasia Region St Ives Gold Mine 100 150 • Significant production achievement • Improved underground performance 80 • NCE margin up from 22% to 29% • Near mine pipeline Ops Profit (A$m) 60 • Athena - full production Q3 2011 • Hamlet development commenced koz 100 • Reserves increase to 2 2.8moz 8
Slide 25: Hamlet project feasibility metrics
St Ives Gold Mine Hamlet p project j feasibility y metrics • Feasibility study completed and project approved • Good mining conditions • Steeply dipping ore body • 10m average ore body width • Paste fill utilised • Close proximity to infrastructure • LOM parameters • Ore 4.2mt • Head ggrade 4.8g/t g
Slide 26: Agnew Gold Mine
Australasia Region Agnew g Gold Mine 40 50 • Production up 25% • Production returned to historical levels 40 30 • NCE margin 29% Ops Profit (A$m) 30 • Owner Mining benefits being observed • Further improvements being implemented koz 20 20 • Upside Waroonga potential • Open pit potential 10 • Main dr
Slide 27: Australasia Region: 2011 Focus
Australasia Region 2011 Focus St Ives • BPR objectives well advanced and initiating further improvements • Consolidation of production improvements in mining & processing areas • Development of Hamlet to continue • Targeting further extensions at Cave Rocks to extend mine life Agnew • Commence surfa
Slide 28: South Africa Region
South Africa Region Tim Rowland EVP South Africa Region 28
Slide 29: South Africa Region: Salient features
South Africa Region Salient features Units Dec 2010 Sept 2010 Gold p production kg g 15,090 , 15,458 , Total cash cost R/kg 194,115 195,627 NCE R/kg 279,715 284,118 NCE ex S South th D Deep R/k R/kg 252 202 252,202 256 433 256,433 NCE margin % 7 1 NCE margin ex South Deep % 16 11 • Production only 2
Slide 30: South Africa Region: Cost trends
South Africa Region Cost trends Operating costs 3,100 3,050 3,000 Rm 2,950 2 900 2,900 2,850 2 800 2,800 Jun 10 Sep 10 Dec 10 • Only a 2% increase in costs despite 7% wage increase Holding the line 30
Slide 31: South Deep
South Africa Region South Deep p 250 2 600 • Record mechanised production in Dec 2010 2 400 200 • Plant expansion commenced 2 200 • Expected completion H2 2012 Profit (Rm) uction (kg) 2 000 150 • Ventilation shaft for completion H2 2012 1 800 Ops P Produ 100 • Tailings storage facility H2 2011 1 600
Slide 32: South Deep Project
South Africa Region South Deep p Project j 3 Capital (Rbn) 2.5 2 1.5 Plan 1 Actual 0.5 0 18 mths to- 2011 2012 2013 2014 date *Capital stated in July’09 real terms 18 months to-date 2011 2012 2013 2014 Status Refrigeration Plant – 94 Level phase-1 Complete Twin vent shaft – rock hoisting On track Ta
Slide 33: KDC (Kloof Driefontein Complex)
South Africa Region KDC ((Kloof Driefontein Complex) p ) 1,200 11,000 • Merger complete and overheads 1 100 1,100 10,000 reduced • Focus on business units 1,000 9,000 0,900 8,000 • Operating profit up Profit (Rm) uction (kg) 0,800 7,000 0,700 6,000 0 600 0,600 • Unit costs contained Ops P Produ 5,00
Slide 34: Beatrix Gold Mine
South Africa Region Beatrix Gold Mine 400 3,400 • NCE margin 17% • Focus F on improving i i kkey margin i ddrivers i 3,200 • Face length flexibility • Labour management 3,000 • Volume and grade management Profit (Rm) uction (kg) 2,800 300 • Operating profit up Ops P Produ 2,600 2,400 • Unit costs co
Slide 35: South Africa Region: 2011 Focus
South Africa Region 2011 Focus • Stabilise production base at KDC • Further improve health and safety performance • Increase development to improve flexibility at long life shafts • Maintain momentum at South Deep • Re-engineer mines for energy efficiency • Further delivery of BPR initiatives to und
Slide 36: South America Region
South America Region Juancho Kruger EVP South America Region 36
Slide 37: Cerro Corona Mine
South America Region Cerro Corona Mine Units Dec 2010 Sep 2010 Gold production koz 35 46 Copper production tons 9,474 10,250 Total Gold production Eq koz 94 106 Total cash cost US$/eq oz 449 354 NCE US$/eq oz 650 456 g NCE margin % 54 64 • Safe production in line with plan • 54% NCE margin • Free ca
Slide 38: Cerro Corona 2010 Performance
South America Region Cerro Corona 2010 Performance 350 400 Operational Performance • Record R d production d ti 406k A Au eq oz 300 • TMF at level 3740 within budget and 350 schedule • Strict cost and capital controls Ops Prrofit (US$m) uction (kg) 250 • Total Cash cost US$364/eq oz 300 • NCE US$532
Slide 39: South America Region: 2010 Achievements
South America Region 2010 Achievements • Oxides Project • Feasibility studies & engineering underway • Permitting and EIA approval in progress • Tailings Storage Capacity • Potential to convert ~40mt of resources into reserves • Engineering alternatives to expand TMF and WSF in progress • Additional
Slide 40: Chucapaca JV Project - Peru
South America Region Chucapaca p JV Project j - Peru Chucapaca JV Project 51% Gold Fields 49% Buenaventura Cerro Corona Mine PERU Lima Chucapaca JV Project Mi i Mining C Concessions i Chucapaca JV Project Gold Fields Buenaventura Aruntani 12,700Ha 94,100Ha 18,400Ha Dominant land position – camp scal
Slide 41: Chucapaca JV Project - Peru
South America Region Chucapaca p JV Project j - Peru • Canahuire discovery hole drilled September 2008 Canahuire • 18 months th from f discovery di to t Initial I iti l Inferred I f d Resource of 5.6moz AuEq • Mineralisation remains still open to the west Cerro • Scoping study supports open pit mini
Slide 42: Canahuire: Planning inventory (Dec 2010)
Chucapaca JV Project Canahuire: Planning g inventory y ((Dec 2010)) W E 1.3km 5 6moz Resource Shell 5.6moz 350m Grades improving Model L ki N Looking North th extending Higher grades and more ounces 42
Slide 43: South America Region: 2011 Focus
South America Region 2011 Focus Cerro Corona • Consolidate safety culture • Process plant operational improvement projects • Phase II drilling programme • Alternatives to increase tailings and waste storage capacity • Oxide plant – construction decision p Chucapaca • Further drilling and feasibility
Slide 44: West Africa Region
West Africa Region Peter Turner EVP West Africa Region 44
Slide 45: West Africa Region: Salient features
West Africa Region Salient features Units Dec 2010 Sep 2010 Gold production 000’oz 237 242 Total cash cost US$/oz 540 616 NCE US$/oz $ 1 009 1,009 883 NCE margin % 26 28 • Steady production costs • Improved flexibility at Damang due to secondary crusher • Free cash flow of US$66m NCE margin of 26% 4
Slide 46: Tarkwa Gold Mine
West Africa Region Tarkwa Gold Mine 150 300 • Solid production quarter 250 • Cash costs down to US$517/oz 100 $m) s Profit (US$ 200 • Operating profit up 19% at US$141m koz 150 Ops 50 100 0 50 Sep p 2010 Dec 2010 Operating profit Production Costs contained 46
Slide 47: Damang Gold Mine
West Africa Region Damang g Gold Mine 50 80 • Production up 7% to 60koz 40 60 • Total cash cost down 9% to US$608/oz $m) • Operating profit up 30% to US$45m s Profit (US$ 30 koz 40 • Secondary crusher providing flexibility 20 Ops • Damang Super Pit confirmation drilling 20 delivering positive result
Slide 48: Yanfolila Project - Mali
West Africa Region Yanfolila Project j - Mali • Significant land position (180 x 60 km) • Property consolidation ongoing MALI • Extensive mineralisation across entire property • Drill intensive project - 80,000m in 2011 B Bamako k Yanfolila Project Essakane • Main focus on Komana Camp on south Sadio
Slide 49: Yanfolila Project: Komana East
Yanfolila Project: Komana East South North KRC0150 – 30m @ 5 g/t and 4m @ 9.1 g/t (1m) KRC0147 – 22m @ 4.7 g/t (39m) KRC0210 – 13m @ 7.9g/t (23m) KRC0211 – 15m @ 9.1g/t (16m) KRC0155 – 21m @ 3.95g/t (0m) KRC0153 – 39m @ 1.8g/t 1 8g/t (1m) KRC0172 – 16m @ 7.1g/t (61m) KRC0173 – 10m @ 2.1g/t (31m) KE2
Slide 50: Yanfolila Project: Upside Komana East and West camp
Yanfolila Project: Upside Komana East and West camp • Defining high grade shoots at Komana • New discoveries: Guirin West, Badogo-Malikila (off map) Adding substantial quality ounces 50
Slide 51: West Africa Region: 2011 Focus
West Africa Region 2011 Focus • BPR optimisation & lowering of cost base at Tarkwa • Consolidating OM at Damang • Near mine reserve growth at Damang Focus on growth and optimisation 51
Slide 52: Growth
Growth Nick Holland Chief Executive Officer 52
Slide 53: Gold Fields growth story
Gold Fields Ag growth story y Finland Mali Philippines Ghana Tarkwa Peru Damang Cerro Corona 2001 Australia South Africa Agnew Driefontein St Ives Kl f Kloof Beatrix South Deep Project 2008 Building a global company 53
Slide 54: Developing five new mines
Growth Portfolio Developing p g five new mines Arctic Platinum Project Finland Yanfolila Far Southeast Project Project Mali Philippines Peru Chucapaca South Project Africa South Deep Project 5moz in development or production by 2015 54
Slide 55: Far Southeast Project - Philippines
Australasia Region Far Southeast Project j - Philippines pp • World class deposit • One of the highest grade gold and copper porphyries • Significant exploration potential • Established infrastructure • Tarred access roads and existing power lines and substations • Proximity to Poro Point port facil
Slide 56: Far Southeast Project Philippines
Far Southeast Project Philippines pp • Initial 80,000m drill program underway • Resource definition Enargite drilling • Confirm the high grade zone • Exploration potential 1,,600m Drilling remains un-tested level • 8 underground rigs and 1 surface rig planned FSE Historic drill intersections: 691m a
Slide 57: Arctic Platinum Project Finland
Arctic Platinum Project Finland • Sleeper in portfolio • 100% Gold Fields owned • ~12moz resource of 2PGE • ROVANIEMI • Au – Cu – Ni by-products circa 50% of Arctic Platinum Project revenue • Price deck tripled since 2003 feasibility FINLAND • Platsol - new metallurgical process HELSINKI • Bench B h
Slide 58: Arctic Platinum Project Finland
Arctic Platinum Project Finland (indicated) Suhanko North Tuumasuo Konttijarvi 45Mt 2 8Moz 2.8Moz 2.0g/t (2PE +Au) Plant site Niittylampi Cu - Ni Ah Ahmavaara Vaaralampi Little Suhanko Not estimated 116Mt 32Mt 5.5Moz 1.0Moz 1.5g/t (2PE +Au) 1.0g/t (2PE +Au) Feasibility on 12moz resource in 2003 – si
Slide 59: Developing five new mines
Growth Portfolio Developing p g five new mines Arctic Platinum • Metallurgical Project test work Finland Yanfolila • Drilling and Far Southeast • Drilling feasibility Project Project Mali Philippines Peru Chucapaca • Drilling and South Project Africa feasibility South Deep Project • Construction 5mo
Slide 60: Greenfields and Brownfields Projects
Growth Portfolio Greenfields and Brownfields Projects j ~5.0moz 50 Target* Far Southeast Project Arctic Platinum Project Chucapaca p Project j Yanfolila Project South Deep Project Cerro Corona Oxides Project Argo - Athena Camp Camp, St Ives Damang Growth Project M i t i Current Maintain C t Operatio
Slide 61: Conceptual build-up to ~5moz p.a. by 2015
Growth Portfolio Conceptual p build-up p to ~5moz p.a. p by y 2015 6 000 5 500 Impact of targeting NCE Production (''000Koz) - Upgrade portfolio 500 - 1,000 eq Au oz* - Widen NCE margin 5 000 - Increase cash flow 200 - 300 eq q Au oz* 4 500 400 – 600 2PGE + Au eq oz* Annual P 1 0 - 250 150 2 0 Au oz
Slide 62: Conclusion
Conclusion Nick Holland Chief Executive Officer 62
Slide 63: 2011 Focus
Conclusion 2011 Focus To Be The Global Leader In Sustainable Gold Mining Free Cash Flow Optimise Our Assets Grow Gold Fields S Secure O Future Our F t Targeting 5moz by 2015* * In production or development 63
Slide 64: 2011 Focus: Grow free cash flow margin per ounce
Conclusion 2011 Focus Grow free cash flow margin per ounce • Stabilising South Africa legacy mines Stabilise production base • International mines delivering to plan • Target - 20% NCE margin per mine Focus on free cash flow • BPR delivering in all regions • Regionalisation strategy completed Restru
Slide 65: 2011 Focus: Grow ounces per share
Conclusion 2011 Focus Grow ounces per share Improve quality of portfolio to reduce d NCE • Organic growth at all international assets Geographic, technical and currency y diversification • US$150m e exploration ploration b budget dget Grow mainly through discovery • Targeting 5moz by 2015* No M&A he
Slide 66: 2011 Focus: Sustainability
Conclusion 2011 Focus Sustainability We will not mine if we cannot mine safely Integrated reporting and integrated delivery philosophy (ICMM, Global impact, WGC) Committed to responsible gold Attraction and retention of key skills Environmental stewardship Growing stakeholder & investor confidence 6
Slide 67: Key messages
Conclusion Key y messages g Strong Cash Growth quarter generation pipeline • Robust production • Strong operating cash • Real progress being flow - R1.2bn made • Excellent E ll t costt control t l The best performer in 2010 67
Slide 68: Fiecos_
Fiecos_ (woe