Slide 1: Q2 2013: Survival at US$1,300/oz
Q2 2013: Survival at US$1,300/oz NICK HOLLAND Chief Executive Officer
Slide 2: Forward looking statements
Forward looking statements Certain statements in this document constitute “forward looking statements” within the meaning of Section 27A of the US Securities Act of 1933 and Section 21E of the US Securities Exchange Act of 1934. Such forward looking statements involve known and unknown risks, uncert
Slide 3: Q2 Financial Results: Salient Features
Q2 Financial Results Salient Features Q1 F2013 Q2 F2013 YTD F2013 Actual Actual Actual Gold produced (attributable) k'oz 477 451 928 Revenue US$m 805 637 1442 Operating costs US$m (402) (397) (799) Operating profit US$m 404 240 644 Net (loss)/profit US$m 27 (129) (102) Normalised (loss)/profit US$m
Slide 4: Net Loss Of US$129 Million
Q2 Financial Results Net Loss Of US$129 Million ● Production 5% lower at 451Koz (Q1 – 477Koz) ● Realised gold price 16% lower at US$1,372/oz (Q1 – US$1,625/oz) ● Revenue down 21% to US$637 million (Q1 – US$805 million) ● Once-off impairment of US$127 million ● South Deep still cash negative ● Damang
Slide 5: Once-off Impairment Of US$127 Million
Q2 Financial Results Once-off Impairment Of US$127 Million ● US$127 million (R1,160 million) impairment costs at Tarkwa and Damang ● Further asset impairment still to be assessed at year-end when new Reserves and operational plans are completed ‒ 2012 Reserves and 2013 operational plans (current) st
Slide 6: NCE Reduced To US$1,239/Oz
Q2 Financial Results NCE Reduced To US$1,239/Oz NCE Same As 18 Months Ago Nick Holland | Q2 2013 Results Presentation: Survival at US$1,300/oz | 22 August 2013 6
Slide 7: H1 2013 Dividend Deferred
Q2 2013 Results H1 2013 Dividend Deferred ● Group has made a loss for the quarter. ● Concern about gold price volatility in the short-term ● Gold Fields Board deemed it prudent not to declare an interim dividend ● In line with policy of only paying dividends from earnings Hunkering Down! Nick Hollan
Slide 8: 2013 Guidance Restated
Q2 2013 Results 2013 Guidance Restated Revised Guidance Original Guidance Production Koz 1.825 to 1.900 1.825 to 1.900 US$/oz 830 860 Cash costs R/kg 255,000 250,000 US$/oz 1,240 1,360 NCE R/kg 380,000 395,000 Exchange rates R/US$ 9.44 9.00 Benefits Of Aggressive Cost Focus Nick Holland | Q2 2013 Re
Slide 9: Transforming Gold Fields To Conserve Cash
Transforming Gold Fields To Conserve Cash Process Started In H1 2012 What Investors Want Aug 2012 Portfolio Review Aug - Dec 2012 Sibanye Dec - Jan 2012 New Cash Strategy 2013 Business Plan A New Paradigm 15 April 2013 Gold Price US$1,300/oz It’s Not About Ounces, It’s About Cash! Nick Holland | Q2
Slide 10: Corporate Office Restructured
Transforming Gold Fields To Conserve Cash Corporate Office Restructured ● Narrowly focussed on group functions: strategy; capital; growth; stakeholders; policies & standards; compliance & reporting ● Composition and size of Board of Directors addressed ● Employees down ~50% to 56 ● Corporate costs ~
Slide 11: Fit-for-purpose, Low-cost, Operating Model
Transforming Gold Fields To Conserve Cash Fit-for-purpose, Low-cost, Operating Model ● GIP, regions & operations restructured ● Full operational responsibility & accountability in appropriately resourced regions ● No compromise on health & safety, environment, stakeholder relations and communities ●
Slide 12: Reduction Of Marginal Mining
Transforming Gold Fields To Conserve Cash Reduction Of Marginal Mining COMPLETED STILL TO DO ● St Ives - Heap leach operations stopped ● Tarkwa North heap leach stopped by end 2013 ● Agnew - Low grade high cost Rajah and Main ● 2013 Resources and Reserves and 2014 lodes stopped, focus on high grade
Slide 13: Growth Projects For Sale
Transforming Gold Fields To Conserve Cash Growth Projects For Sale ● Arctic Platinum • Appointed CIBC in June 2013 – process started in August 2013 ● Talas • Appointed Jefferies in May 2013 – process started in May 2013 ● Woodjam • Process commenced June 2013 Buyers Market! Nick Holland | Q2 2013 Re
Slide 14: Greenfields Projects Under Review
Transforming Gold Fields To Conserve Cash Greenfields Projects Under Review ● International growth projects burn-rate reduced from 2012 US$153 million to 2013 forecast US$74 million ● Far Southeast • Focus on FPIC and FTAA • Explore high grade starter option ● Chucapaca • Stop all site activity exce
Slide 15: Additional US$230 Million Estimated Savings For 2013
Transforming Gold Fields To Conserve Cash Additional US$230 Million Estimated Savings For 2013 ● Operating costs: Savings of US$22 million ● Capital Expenditure: Savings of US$123 million ● Growth & International Projects: Savings of US$75 million ● Greenfields Exploration: Savings of US$10 million
Slide 16: Operational Health Check
SZ \ Bera Heber Cin) Operational Health Check | Goto ae
Slide 17: Operational Health Check: South Deep
Operational Health Check South Deep Project (South Africa) Total Development Meters Up 51% Q on Q 5,000 ● New operating model still bedding down 4,000 3,000 ● Challenging labour relations 2,000 ● Gap between broken grade and mill yield 1,000 - ● Despite positive trajectory, key metrics still Q3-2011
Slide 18: Operational Health Check: Tarkwa
Operational Health Check Tarkwa (Ghana) ● Strike action resolved Wage Negotiations ● South heap leach operations stopped ● Wage negotiations underway ● North heap leach operations to be closed by end of 2013 ‒ All-in heap leach costs circa US$1,600/oz ● Demanding internationally benchmarked ‒ Approx
Slide 19: Operational Health Check: Damang
Operational Health Check Damang (Ghana) ● Production down – strike & premature closure of original Damang Pit due safety concerns Action Plan ● Existing mine at end of life 1. Short-term recovery plan • Closure of original Damang Pit • Inadequate high grade volumes to plant 2. Short-term plan to imp
Slide 20: Damang: Short-term Recovery Plan
Operational Health Check Damang (Ghana): 1) Short-term Recovery Plan ● Survival trough remainder of 2013 Rationale ● Main focus on Huni Saddle area • Best short term cash position ● Good grade opportunities • Maintains operation while completing studies on ● Significant stripping in progress future
Slide 21: Damang: Short-term Plan To Improve Plant Throughput
Operational Health Check Damang (Ghana): 2) Short-term Plan To Improve Plant Throughput ● Processing plant in operation since 1997 ● Various changes over 16-year life increased throughput capacity from 3 to 5 Mtpa on mixed blend of soft and hard ore ● Transition to more hard ore required installatio
Slide 22: Damang: Study To Evaluate Future Options
Operational Health Check Damang (Ghana): 3) Study To Evaluate Future Options ● How best to bring to account 8Moz Resource ● Dedicated project team ● Can we develop a robust business case at US$1,300/oz? Board Decision By February 2014 Nick Holland | Q2 2013 Results Presentation: Survival at US$1,300
Slide 23: Operational Health Check: Cerro Corona
Operational Health Check Cerro Corona (Peru) ● Decrease in gold and copper grades, in line with TMF only to level 3,800m instead 3,815m 2012 Reserve declaration ● Construction of TMF only to level 3,800m instead 3,815m ● Lowest costs in Group - can maintain cost ● Drivers for this decision are: posi
Slide 24: Operational Health Check: St Ives
Operational Health Check St Ives (Australia) ● Fit-for-purpose, low-cost, operating model and structure is delivering results ● Further cost reductions and revenue enhancing measures under review ● Impairments of Reserves and asset base likely at year-end ● Significant exploration potential being re
Slide 25: St Ives: Invincible
Operational Health Check St Ives (Australia): Invincible • Major Discovery in 2012 • Discovery Hole to Maiden Invincible North Resource in 8 Months Extension • 8km from the Mill • Shallow Cover (~10m) • Significant Resource upside Invincible Inferred Dec 2012 ~160koz Open Pit (1.6Mt @ 3.0g/t) 87koz
Slide 26: Operational Health Check: Agnew
Operational Health Check Agnew (Australia) ● Fit-for-purpose, low-cost, operating model has set Agnew up as one of lowest cost producers in Group ● As operation goes deeper, costs and production will become more challenging ● Challenge is to maintain excellent performance ● Significant exploration p
Slide 27: Agnew: Exploration Upside at Waroonga North and FBH
Operational Health Check Agnew (Australia): Exploration Upside at Waroonga North and FBH 2013Q3 10 targets approved ($1.3M) (conventional drilling) 10 targets approved ($0.7M) (underground diamond 2013Q4 drilling) 1st Rig: 7 targets ($1.2M) (conventional + directional drilling) 2nd Rig: 6 targets ($
Slide 28: Investing In Future Cash Flow! Acquiring Barrick's Yilgarn South Assets
Investing In Future Cash Flow! Acquiring Barrick’s Yilgarn South Assets
Slide 29: Overview: Salient Features
Overview Salient Features ● Binding agreement to acquire Barrick’s Yilgarn South Assets ‒ Granny Smith, Darlot and Lawlers mines in Western Australia ● US$300 million less ~US$30 million working capital adjustment at closing ‒ 2.6 Moz of Reserves1 (US$104/reserve ounce) ‒ 1.9 Moz of Resources2 (US$6
Slide 30: What We Are Buying?
Overview What We Are Buying? Yilgarn (Pro forma) South Agnew H1 2012 Darlot Lawlers Production1 Koz 450 YILGARN SOUTH ASSETS All-in Sustaining costs 1 US$/oz 1,137 Granny Smith Mine Site Employees 1,331 (incl. Contractors) Resource – 31/12/2012 Moz 1.9 Reserve 2 – 31/12/2012 Moz 2.6 1: 2012 Producti
Slide 31: What We Are Paying
$0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 CGA Mining (B2Gold) US$/oz pa Aurizon (Hecla) Integra (Silver Lake) Avion Gold What We Are Paying (Endeavour) Fosterville/Stawell (Crocodile Gold) Crixas (AngloGold) Price/Production Frog's Leg (La Mancha) Competitively Priced Mt Rawdon & Cr
Slide 32: Strategic Regional Fit
Strategic Regional Fit ● Strategic regional re-positioning – portfolio de-risking ● Gold Fields has well a established, cash focussed operating franchise in Western Australia ‒ Unique opportunity to extend franchise ‒ Regional consolidation and critical mass ‒ Value enhancing regional synergies ● Fi
Slide 33: Improved Sovereign and Geographic Risk Profile
Improved Sovereign Risk Profile Improved Geographic Risk Profile Gold Fields Pre Sibanye Gold Fields Post Sibanye Gold Fields Post Yilgarn Acquisition 2012 3,348 2012 2,124 H1 2013 Proforma 2,256 Production (koz) Production (koz) Annualised (koz) Reserves (Moz)1 72.9 Reserves (Moz)1 59.4 Reserves (M
Slide 34: The Gold Fields Franchise In Australia: Cash Cost
The Gold Fields Franchise In Australia Top 16 Australian Gold Producers Q1 2013 Cash Cost A$ 1,400 1,200 1,000 800 600 400 200 ‐ Source: Data generated from quarterly reports. A Low Cost, Cash Flow Focussed Operating Model Nick Holland | Q2 2013 Results Presentation: Survival at US$1,300/oz | 22 Aug
Slide 35: The Gold Fields Franchise In Australia: NCE
The Gold Fields Franchise In Australia Top 16 Australian Gold Producers Q1 2013 NCE Estimate 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 ‐ Source: Data generated from quarterly reports. A Low Cost, Cash Flow Focussed Operating Model Nick Holland | Q2 2013 Results Presentation: Survival at US
Slide 36: Exploration Case Study - Orogenic Gold Deposits
The Gold Fields Franchise In Australia Exploration Case Study - Orogenic Gold Deposits St Ives Agnew 3.0 2.3 5.6 2.2 1.4 2.5 1.2 2.0 0.6 Ounces (Moz) Ounces (Moz) 1.0 0.4 - (1.0) (0.6) (2.0) (3.0) (4.0) (5.8) (1.6) (1.9) Reserves Production & Discovery & Reserves Reserves Production & Discovery & Re
Slide 37: A Transformational Opportunity: Re-positioning in Australia
A Transformational Opportunity Re-positioning Gold Fields in Australia 2012 Gold Production 000 oz 1,600 1,400 1,200 1,000 800 600 400 200 0 PF Gold Fields Newmont PF Barrick Focus Gold Fields Newcrest AngloGold Alacer St Barbara Evolution Regis Ashanti New Unique Opportunity to Extend Cash Focussed
Slide 38: Lawlers and Agnew: Consolidation and Operational Synergies
Lawlers and Agnew Consolidation and Operational Synergies Waroonga New Holland Genesis 640m -700m Kim New Holland Genesis Underground Underground Underground ABX GFI • Reserves of 387,000 ounces, Resources of 330,000 ounces • Mining methods: Long hole open stoping, inclined room & pillar • Lawlers a
Slide 39: Lawlers and Agnew: Operational Synergies
Lawlers and Agnew Consolidation and Operational Synergies ● Meaningful working and capital cost reductions (Better utilisation of existing Jumbo Fleet) ● Connecting Waroonga and New Holland with a ~ 700m drive (not modelled) ● Improved recoveries and head-grade - coarser ore from Lawlers will recove
Slide 40: Lawlers and Agnew: Tenement Consolidation and Track Record
Lawlers and Agnew Consolidation and Operational Synergies ● Tenement consolidation and exploration benefits ‒ Consolidation of a major mineralised complex with significant exploration potential ‒ Unlocks exploration targets and provides lower cost access ‒ Improved understanding and approach to regi
Slide 41: Exploration Potential: Genesis/New Holland Ore Bodies
Lawlers and Agnew Exploration Potential: Genesis/New Holland Ore Bodies ● Lawlers tenements under-explored ● Targeting more than 500koz of extensions to New Holland and Genesis Surface New Holland Pit Genesis Pit South North -700m Open 500m High Grade Mineralisation Target Areas Open Open New Hollan
Slide 42: Lawlers Exploration Potential
Lawlers and Agnew Lawlers Exploration Potential Track Record of Replacing Reserves Nick Holland | Q2 2013 Results Presentation: Survival at US$1,300/oz | 22 August 2013 42
Slide 43: Granny Smith: Location
Granny Smith Location ● Reserves of 1.9 Moz, Resources of 1.3 Moz ● Mining methods: Long hole open stoping and inclined room & pillar ● 400km north of Kalgoorlie ● Wallaby underground is only active mine ● Granny Smith mill is located 11km northeast of Wallaby Underground ● Total production from Gra
Slide 44: Granny Smith: Site Overview
Granny Smith Site Overview Granny Smith OP project (2P 27.7mT @ 1.28g/t Processing Plant and 1.4moz) Administration Accommodation Village Wallaby Underground (213k oz – 2012 Production) Tailings Dams Haul road (12km) Underground And Open Pit Potential Nick Holland | Q2 2013 Results Presentation: Sur
Slide 45: Granny Smith: Wallaby Underground
Granny Smith Wallaby Underground ● South dipping intrusives within conglomerate ● Stacked shear/lode system • 150m – 200m apart • 600m x 500m footprint • Gentle to Moderate dip to the NW Z250/60 • 5 – 10m thick lodes ● Geological model has been focused to the intrusive alteration pipe Lateral extens
Slide 46: Granny Smith: Reserve Upside
Granny Smith Reserve Upside • Quality ore-body - high-grade with continuity • Positive reconciliation – consistently outperforming against resource and grade control Z250/60 • Entering best part of the ore-body (Zones 90 and 100) Z70 • Significant upside and increasing production profile – not a dyi
Slide 47: Granny Smith: Track Record Of Replacing Reserves
Granny Smith Reserve Upside Track Record Of Replacing Reserves Nick Holland | Q2 2013 Results Presentation: Survival at US$1,300/oz | 22 August 2013 47
Slide 48: Lake Carey and Lake LeFroy Analogue
Granny Smith Lake Carey at Granny Smith and Analogue for Lake LeFroy at St Ives St Ives Granny Smith 2.4Moz discovered and mined on the salt lake since 2002 Demonstrated Experience in Salt Lake Exploration and Operation Nick Holland | Q2 2013 Results Presentation: Survival at US$1,300/oz | 22 August
Slide 49: Darlot: Exploration Potential
Darlot Exploration Potential • Multiple targets near existing development • Many structural repetitions in favourable lithology are untested • Reserves of 338,000 and Resources of • Current exploration program is targeting 1Moz of further additions 194,000 ounces • Mining method: Sub-level open stop
Slide 50: Darlot: Centenary Analogue
Darlot Exploration Potential - Centenary Analogue Section Plan • Same structural setting as Centenary Lodes • Potential repeat 1km below surface Exploration Upside Potential Nick Holland | Q2 2013 Results Presentation: Survival at US$1,300/oz | 22 August 2013 50
Slide 51: Summary: Investing in Free Cash Flow
Summary Investing in Free Cash Flow ● Competitively priced & conservatively financed ● Regional consolidation and strategic diversification ● Immediate operational synergies ● Strong management team with proven track record ● Unmodelled exploration upside and potential for orogenic success A Compell
Slide 52: Conclusions
Conclusions
Slide 53: A Transformational Opportunity: Global Footprint
A Transformational Opportunity Global Footprint FINLAND Arctic Platinum Project MALI Vancouver Yanfolila Denver PHILIPPINES Far Southeast PERU GHANA Cerro Corona Tarkwa Chucapaca Damang Manila Accra AUSTRALIA Lima Agnew Johannesburg St Ives Perth SOUTH AFRICA Darlot Santiago South Deep Granny Smith
Slide 54: The New Gold Fields: Now A Mid-Tier Producer
The New Gold Fields Now A Mid-Tier Producer THEN NOW 5Moz production target Focussed on cash flow Top tier producer Mid tier producer Higher risk profile More balanced portfolio Large corporate structure Lean, fit for purpose structure It’s Not About Ounces, It’s All About Cash! Nick Holland | Q2 20
Slide 55: The Way Forward: Re-balancing For Free Cash Flow
The Way Forward Re-balancing For Free Cash Flow Surviving At A US$1,300/oz Gold Price Nick Holland | Q2 2013 Results Presentation: Survival at US$1,300/oz | 22 August 2013 55
Slide 56: Questions: Investor Relations Contact
Investor Relations Contact Willie Jacobsz Senior Vice President Head of Investor Relations & Corporate Affairs Office: +27-11-562-9775 Mobile: +27-(0)82-971-9238 Willie.jacobsz@goldfields.co.za Remmy Kawala Vice President, Investor Relations Office: +27-11-562-9844 Mobile: +27-(0)82-312-8692 Remmy.k
Slide 57: Reconciliation NCE, All-in sustaining and All-in costs
Q2 Financial Results Reconciliation NCE, All-in sustaining and All-in costs US$m Koz US$/oz US$m US$/oz Excl Inventory write-off NCE (581.6) Gold produced 469.5 1 239 Gold in process and inventory change, Royalties, Realised gains and losses on commodity hedges, (24.1) Community costs, Rehabilitatio