Gold Fields Limited · JSE:GFI
Gold Fields — Q3 F2008 Earnings Presentation
56 slides from Gold Fields's earnings presentation, May 9, 2008
Slide 1: Quarterly Results Q3 F2008
Quarterly Results Q3 F2008 Johannesburg 9 May 2008
Slide 2: Safety: In Case Of Emergency
Introduction SAFETY In Case Of Emergency ….. Siren will sound and announcement made over public address system Evacuate building through exit points Congregate g g across street where safety y wardens will provide further information 2
Slide 3: Quarterly Results Q3 F2008
Quarterly Results Q3 F2008 Johannesburg 9 May 2008
Slide 4: Cautionary Statement
Introduction Cautionary Statement This document and any materials distributed in connection with this document are not directed to, or intended for distribution to or use b any person or entity by, i that h is i a citizen ii or resident id or located l d in i any locality, l li state, country or oth
Slide 5: Introduction Safety
Introduction Safety 5
Slide 6: Safe Production Is Our Commitment
Introduction Safety If we cannot mine safely we will not mine Step change in safety is needed Board has approved external safety audit SAFE PRODUCTION IS OUR COMMITMENT 6
Slide 7: Quarterly Results Q3 F2008
Quarterly Results Q3 F2008 Johannesburg 9 May 2008
Slide 8: Introduction
Nick Holland Chief Executive Officer INTRODUCTION 8
Slide 9: Seamless Transition, Focused Leadership
INTRODUCTION Leadership Changes Operational Executive Terence Goodlace Chief Operating Officer Nick Holland Chief Executive Officer Vishnu Pillay Glenn Baldwin Juan Luis Kruger Head of Operations Head of Operations Head of Operations South Africa Australia & Ghana South America SEAMLESS TRANSITION,
Slide 10: Safe Production = Profitable Production
INTRODUCTION Our Strategic Commitment Notional Cash Expenditure Free Cash Flow Margin Growingg Growth Gold Fields Operational Excellence Securing the Future UNHEDGED SAFE PRODUCTION = PROFITABLE PRODUCTION 10
Slide 11: Our Commitment Unfolding
INTRODUCTION Our Commitment Unfolding Growing Gold Fields Operational Excellence Securing the Future SOUTH AFRICA Stabilisation of power allocation CERRO CORONA Commissioning g June 08,, Production & Shipment p Q1 F09 TARKWA CIL expansion on track for Q1 F09 start-up SOUTH DEEP A development project
Slide 12: Q3F08 Headlines
INTRODUCTION Q3F08 Headlines Growing Gold Fields Operational Excellence Securing the Future Attributable production down 14% to 827koz Unit total cash costs R122,920/kg , g ((US$513/oz) $ ) Operating profit up 26% to R2,566m Core earnings up 67% to 155(SA)cps Cash flow from operations less all capit
Slide 13: Financial Review
Growing Gold Fields Operational Excellence Securing the Future Nick Holland Chief Executive Officer FINANCIAL REVIEW 13
Slide 14: Salient Features
Q3 F08 FINANCIAL REVIEW Salient Features Growing Gold Fields Securing the Operational Excellence Q3 2008 Q2 2008 Future Gold Produced1 000oz 827 960 Exchange rate ZAR/US$ 7.45 6.76 A$/oz 1,008 886 US$/oz 921 784 Revenue R/kg 220,612 170,488 Rm 6 109 6,109 5 430 5,430 Operating costs, net Rm 3,543 3,
Slide 15: Operating Cost Analysis
Q3 F08 FINANCIAL REVIEW Operating Cost Analysis Growing Gold Fields Operational Excellence Securing the Future 3,392 (47) 88 121 (11) 3,543 Rm 3345 0 3345.0 3345 0 3345.0 3433 0 3433.0 3543 0 3543.0 Q2F2008 SA Operating Costs International Operating Translation Adjustments GIP Q3F2008 Costs MAINLY T
Slide 16: Income Statement
Q3 F08 FINANCIAL REVIEW Income Statement Growing Q3 2008 Q2 2008 Gold Fields Operational Excellence Securing the Future Operating profit Rm 2,566 2,037 Amortisation & depreciation Rm 714 763 Net operating profit Rm 1,852 1,274 I t Interest t paid, id nett R Rm (88) (92) Foreign exchange gain/(loss)
Slide 17: Income Statement: Net Profit
Q3 F08 FINANCIAL REVIEW Income Statement Growing Gold Fields Operational Excellence Securing the Future Q3 2008 Q2 2008 Rm 1,248 1,938 Net profit attributable to ordinary shareholders (SA)cps 191 297 Rm 1,009 603 Net profit excluding gains and losses on foreign exchange, financial instruments and ex
Slide 18: Cash Flow Statement
Q3 F08 FINANCIAL REVIEW Cash Flow Statement Growing Gold Fields Securing the Operational Excellence Q3 2008 Q2 2008 Future Cash flow from operations Rm 3,039 1,148 Dividends Rm - - Capital p expenditure p - additions Rm ((2,086)) ((2,476)) Capital expenditure - disposals Rm 3 2 Other investing activ
Slide 19: Capital Expenditure Analysis
Q3 F08 FINANCIAL REVIEW Capital Expenditure Analysis Growing Q3 08 Gold Price: US/$ 921/ozGold Fields Operational Excellence Q3 Average Exchange Rate : R/US$ 7.45 Securing the Rm Future Sustaining capex South Africa 536 Australia 255 Ghana 189 Subtotal 980 Project capex Driefontein 9 shaft 61 S th D
Slide 20: Balance Sheet
Q3 F08 FINANCIAL REVIEW Balance Sheet Growing Gold Fields Securing the Operational Excellence Q3 2008 Q2 2008 Future Cash Rm 1 944 1,944 1 321 1,321 Debt (6,635) (6,412) Long term Rm (5 951) (5,951) (6 037) (6,037) Short term Rm (684) (375) Net debt Rm (4 691) (4,691) (5 091) (5,091) Net debt US$m (
Slide 21: SA Supply & Services Spend
Q3 F08 FINANCIAL REVIEW SA Supply & Services Spend * Cost Excludes Power and Labour Main supply and services cost drivers PPI? during FY08 YTD: Steel Products (40-50% weighted), Fuel (50%), Timber (24%), Steel Balls (50%), Foodstuffs (14%), Services/Labour Hire (11%), Cyanide (20%) Gold Fields South
Slide 22: Australia Supply Spend View
Q3 F08 FINANCIAL REVIEW Australia Supply Spend View Main supply cost drivers Diesel? during FY08 YTD: Diesel (15%) , Lime (30%), Cement (16%), ? Cyanide (19%), Steel b ll (7%), balls (7%) LPG (16%) ? Gold Fields Australia FY08 Inflation Basket: ? March FY08 = 7-10% end-FY08 est. = 7-10% ? ? Australi
Slide 23: Ghana Supply Spend View
Q3 F08 FINANCIAL REVIEW Ghana Supply Spend View Main supply cost drivers ? d i during FY08 YTD: YTD Diesel (15%), Cyanide (10%), Steel balls (13%), Tyres (20%), Ammonia (59%) Gold Fields Ghana FY08 Inflation Basket: ? March YTD = 13-15% end FY08 est end-FY08 est. = 14 14-16% 16% Ghana CPI YOY F Gh F
Slide 24: Q3 F08 Operational Review
Growing Gold Fields Operational Excellence Securing the Future Terence Goodlace Chief Operating Officer Q3 F08 OPERATIONAL REVIEW 24
Slide 25: Safety Trends
Q3 F08 OPERATIONAL REVIEW Safety Trends Operational Excellence Growing Gold Fields Securing the Future Securing the Future FATAL INJURY FREQUENCY RATE SERIOUS INJURY FREQUENCY RATE 0 40 0.40 (per million hours worked) (per million hours worked) 11.00 10.00 10.44 0.35 0.32 0.32 0.33 0.32 9.15 0.32 0.
Slide 26: Gold Production
Q3 F08 OPERATIONAL REVIEW Gold Production Operational Excellence Growing Gold Fields Operational Excellence Securing the Future Estimate 1 200 1 000 173 153 ged Ounces 159 153 800 153 210 196 208 218 218 600 Manag 400 685 689 657 520 543 43 200 0 Q4 F07 Q1 F08 Q2 F08 Q3 F08 Q4 F08E South Africa Ghan
Slide 27: Cash Costs
Q3 F08 OPERATIONAL REVIEW Cash Costs Operational Excellence Growing Gold Fields Operational Excellence Securing the Future Estimate 700 600 500 US$/ounce 400 300 200 100 - Q4 F07 Q1 F08 Q2 F08 Q3 F08 Q4 F08E Ghana Australia South Africa Group SHIELDED BY THE RAND 27
Slide 28: Capital Expenditure
Q3 F08 OPERATIONAL REVIEW Capital Expenditure Operational Excellence Growing Gold Fields Operational Excellence Securing the Future Estimate 350 300 48 30 34 27 34 250 54 $ million 57 80 51 61 200 US$ 90 96 78 150 87 77 100 122 124 121 50 104 105 0 Q4 F07 Q1 F08 Q2 F08 Q3 F08 Q4 F08E South Africa Pe
Slide 29: Strategic Priorities: Manage the Basics Well
Q3 F08 OPERATIONAL REVIEW Strategic Priorities Operational Excellence Growing Gold Fields Operational Excellence Securing the Future Safety, Health, Environment, Community Volume, Value, Quality Cost Leadership Utilities and Energy Capital MANAGE THE BASICS WELL 29
Slide 30: Strategic Priorities: Deliver Growth Projects
Q3 F08 OPERATIONAL REVIEW Strategic Priorities Operational Excellence Growing Gold Fields Growing Gold Fields Securing the Future Cerro Corona project commissioning Q1 F2009 Tarkwa CIL expansion Q1 F2009 Project Pipeline St Ives underground mine build up Q2 F2009 South Deep expansion and KSDO F2008
Slide 31: South Africa
Growing Gold Fields Operational Excellence Securing the Future Vishnu Pillay Head of Operations: South Africa Q3 F08 OPERATIONAL REVIEW SOUTH AFRICA 31
Slide 32: Driefontein Gold Mine
Q3 F08 OPERATIONAL REVIEW Driefontein Gold Mine Growing Operational Excellence Gold Fields Q3 F08 Q2 F08 KEY ISSUES Securing the Kg Future Gold 6,530 7,451 1 Million fatality free shifts production koz 210 240 Production impacted by power rationing and R/kg 104,870 94,390 Christmas break. Total cash
Slide 33: Driefontein Guidance
Q3 F08 OPERATIONAL REVIEW Driefontein Gold Mine Growing Gold Fields Operational Excellence Securing the Future Guidance Guidance Revised Guidance Actual For Q3 F08 For Q4 F08 For Q4 F08 Q3 F08 25/02/08 25/02/08 09/05/08 Gold Production 5 900 5,900 6 530 6,530 6 800 6,800 6 800 6,800 (kg) Total Cash
Slide 34: Kloof Gold Mine
Q3 F08 OPERATIONAL REVIEW Kloof Gold Mine Growing Operational Excellence Gold Fields Q3 F08 Q2 F08 KEY ISSUES Securing the Future Gold Kg 5,458 7,179 production koz Production severely impacted by restricted 176 231 power supply compounded by Christmas R/kg 112,514 91,029 break and fire Total cash c
Slide 35: Kloof Guidance
Q3 F08 OPERATIONAL REVIEW Kloof Gold Mine Growing Gold Fields Operational Excellence Securing the Guidance Guidance Revised Guidance Future Actual For Q3 F08 For Q4 F08 For Q4 F08 Q3 F08 25/02/08 25/02/08 09/05/08 Gold Production 5 450 5,450 5 458 5,458 5 910 5,910 5 600 5,600 (kg) Total Cash Costs
Slide 36: Beatrix Gold Mine
Q3 F08 OPERATIONAL REVIEW Beatrix Gold Mine Growing Operational Excellence Gold Fields Q3 F08 Q2 F08 KEY ISSUES Securing the Future Gold Kg 2,542 , 3,698 , production koz 82 119 1 Million Fatality Free Shifts R/kg g 160,071 108,031 Production impacted by power rationing, Total cash Christmas break a
Slide 37: Beatrix Guidance
Q3 F08 OPERATIONAL REVIEW Beatrix Gold Mine Growing Gold Fields Operational Excellence Securing the Guidance Guidance Revised Guidance Future Actual For Q3 F08 For Q4 F08 For Q4 F08 Q3 F08 25/02/08 25/02/08 09/05/08 Gold Production 2 644 2,644 2 542 2,542 3 733 3,733 3 300 3,300 (kg) Total Cash Cost
Slide 38: South Deep Project
Q3 F08 OPERATIONAL REVIEW South Deep Project Growing Operational Excellence Gold Fields Q3 F08 Q2 F08 KEY ISSUES Securing the Future Gold Kg 1,637 2,104 production koz 53 68 Production decreased due to termination of R/kg 194,258 147,719 VCR mining, Christmas break and Eskom Total cash power rationi
Slide 39: South Deep Guidance
Q3 F08 OPERATIONAL REVIEW South Deep Project Growing Gold Fields Operational Excellence Securing the Guidance Guidance Revised Guidance Future Actual For Q3 F08 For Q4 F08 For Q4 F08 Q3 F08 25/02/08 25/02/08 09/05/08 Gold Production 1 400 1,400 1 637 1,637 1 200 1,200 1 200 1,200 (kg) Total Cash Cos
Slide 40: South Deep Accident Investigation
Q3 F08 SOUTH AFRICA REVIEW South Deep Project Main Vent Shaft Shaft 95 Level Vent Raise Accident on 1 May 2008 Shaft Conveyance fell 59 m to 110A 9p persons fatally y injured j 59.3m 1 May, 2008 Memorial service held ACCIDENT drop SITE INVESTIGATION UNDERWAY 40
Slide 41: Key Focus Areas
Q3 F08 OPERATIONAL REVIEW Key Focus Areas Growing Gold Fields Operational Excellence Securing the Future Accommodation Unskilled Wellbeing People Management Retention Skilled Training and Leadership pipeline Implementation of Technology Safe Production Review Pillar and Remnant Mining Plan for Secon
Slide 42: Ghana
Growing Gold Fields Operational Excellence Securing the Future Glenn Baldwin Head of Operations: West Africa and Australia Q3 F08 OPERATIONAL REVIEW GHANA 42
Slide 43: Tarkwa Gold Mine
Q3 F08 OPERATIONAL REVIEW Tarkwa Gold Mine Operational Excellence Growing Gold Fields Q3 F08 Q2 F08 KEY ISSUES Securing the Future Gold koz 165 158 production Grade up Total cash Input cost increases offset stronger US$/oz 436 413 costs production Operating South pads upgrade completed US$m 79 61 pr
Slide 44: Damang Gold Mine
Q3 F08 OPERATIONAL REVIEW Damang Gold Mine Growing Gold Fields Operational Excellence Securing the Future Q3 F08 Q2 F08 KEY ISSUES Gold koz 53 44 production Total cash US$/oz 546 605 Damang Pit Cut Back performed to plan costs O Operating Multiple ore sources give flexibility US$m 19 9 profit Plant
Slide 45: Australia
Growing Gold Fields Operational Excellence Securing the Future Glenn Baldwin Head of Operations: West Africa and Australia Q3 F08 OPERATIONAL REVIEW AUSTRALIA 45
Slide 46: St Ives Gold Mine
Q3 F08 OPERATIONAL REVIEW St Ives Gold Mine Growing Gold Fields Operational Securing the Future Excellence Q3 F08 Q2 F08 KEY ISSUES Gold koz 104 110 production Cave Rocks and Belleisle late Total cash Cave Rocks permitting delays and US$/oz 592 521 costs positive geological model re- Operating US$m
Slide 47: Agnew Gold Mine
Q3 F08 OPERATIONAL REVIEW Agnew Gold Mine Growing Gold Fields Operational Excellence Securing the Future Q3 F08 Q2 F08 KEY ISSUES Gold koz 49 49 production Total cash Record underground production in March US$/oz 473 419 costs Exploration program accelerated Operating US$m 19 11 profit Capex US$m 8
Slide 48: Peru
Growing Gold Fields Operational Excellence Securing the Future Juan Luis Kruger Head of Operations: South America Q3 F08 OPERATIONAL REVIEW PERU 48
Slide 49: Cerro Corona Project Milestones
Q3 F08 OPERATIONAL REVIEW Cerro Corona Project Growing Gold Fields Operational Excellence Securing the Future Q3 F08 PROJECT MILESTONES Mechanical Work Completed for Crusher, Filtration and Storage Areas Energization of the 220kV power line and Cerro Corona Substation I iti t d water Initiated t sto
Slide 50: Cerro Corona Start-up Schedule
Q3 F08 OPERATIONAL REVIEW Cerro Corona Project Growing Gold Fields Operational Excellence Securing the Future START-UP SCHEDULE Mechanical Work Completed on April 17th Commissioning and OperationsTeam In Place Pl t Completion Plant C l ti – May M g Timing Commissioning g Process – June TMF Completio
Slide 51: Mechanical Completion: 17 April 2008
Q3 F08 OPERATIONAL REVIEW Cerro Corona Project Growing Gold Fields Operational Excellence Securing the Future MECHANICAL COMPLETION: 17 APRIL 2008 51
Slide 52: Cerro Corona Will Deliver Value
Q3 F08 OPERATIONAL REVIEW Cerro Corona Project Growing Gold Fields Operational Excellence Securing the Future Key Performance Average Yearly Life Unit Indicators of Mine Ounces produced Equivalent koz ~350 Cash Cost US$/oz ~330 Sustaining Capital US$/oz ~50 All-in Cost US$/oz ~400 Project capital US
Slide 53: Conclusions
Growing Gold Fields Operational Excellence Securing the Future Nick Holland Chief Executive Officer CONCLUSIONS 53
Slide 54: Outlook: Production Growth
CONCLUSIONS Outlook Growing Gold Fields Operational Excellence Securing the Future S f t efforts Safety ff t stepped t d up South African production up 4% Q4 F2008 International te at o a p production oduct o steady Group costs steady South Deep recommence development below 95-level Cerro Corona sta
Slide 55: Corporate Strategy
CONCLUSIONS Corporate Strategy Notional Cash Expenditure Free Cash Flow Margin Growing Growth Gold Operational Fields Excellence Aggressive International Growth Securing Few, Large, High Quality Assets the Future Smaller Projects For Exceptional Returns SAFETY Leverage Existing Positions UNHEDGED IM
Slide 56: Questions
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