Slide 1: Q2 2015 Results
Q2 2015 Results CASH POSITIVE DESPITE THE LOWER GOLD PRICE Nick Holland 20 August 2015
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: Salient features
Q2 2015 Results Salient features US$59m swing in net cash flow to US$30m inflow in Q2 2015 (Q1 2015: -US$29m) Attributable gold equivalent production up 7% QoQ to 535koz (Q1 2015: 501koz) All-in costs down 9% QoQ to US$1,059/oz (Q1 2015: US$1,164/oz) Normalised earnings of US$22m (Q1 2015: -US$13m)
Slide 4: Production up 7%, all-in costs down 9%, gold price down 2%
Q2 2015 Results Production up 7%, all-in costs down 9%, gold price down 2% 700 000 1800 598 000 1600 600 000 557 000 548 000 559 000 556 000 534000 535 000 496 000 501 000 1400 500 000 477000 451 000 1200 Ounces 400 000 US$/oz 1000 300 000 800 600 200 000 400 100 000 200 0 0 Q4 2012 Q1 2013 Q2 2013
Slide 5: Net cash flow
Q2 2015 Results Net cash flow1 2012 2013 2014 2015 250 2 000 1 686 Gold: US$1,386/oz Gold: US$1,249/oz 1 625 Net cash: (US$232 million) Net cash: US$236 million 1 372 1 500 1 315 150 1 265 1 283 1 275 1 265 1 179 1 198 1 174 1 000 65 63 54 54 50 38 30 4 500 US$ million -6 US$/oz -50 -29 0 -45 -500 -
Slide 6: Balance sheet
Q2 2015 Results Balance sheet ● Net debt of US$1,477m at end-Q2 2015 Net debt (US$m) and Net debt/EBITDA 1 800 1.8 ● Net debt to EBITDA of 1.44x1 at end-Q2 2015 1 750 1 700 1.6 1 650 ● Targeting net debt to EBITDA of 1.0x by end- US$m 1 600 1.4 1 550 2016 1 500 1.2 1 450 1 400 1.0 ● Unutilised facil
Slide 7: Operations overview
OPERATIONS OVERVIEW
Slide 8: Solid global portfolio (excluding South Deep project)
Q2 2015 Results Solid global portfolio (excluding South Deep project) ● Attributable production: 496koz ● AIC: US$984/oz ● Net cash flow from operations: US$101m Production (koz) AIC (US$/oz) 300 1 300 Spot gold 250 1 100 900 200 700 150 500 100 300 50 100 0 -100 Australia Ghana Peru Australia Ghana
Slide 9: South Deep Highlights
Q2 2015: South Deep Highlights ● Core focus currently on getting the basics right 45 Production AIC 2 400 ● Maintain aspiration to achieve cash 40 breakeven by end of 2016 2 000 35 ● Operational performance remains important 30 1 600 US$/oz ̵ Production up 7% QoQ koz 25 1 200 ̵ AIC down 3% QoQ 20 ●
Slide 10: South Deep: Positive trends
Q2 2015: South Deep Positive trends Destress face availability Total destress 70 3 500 60 3 000 50 2 500 No. of ends 40 2 000 m2 30 1 500 20 1 000 10 500 0 0 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Total backfill production Total tonnes broke
Slide 11: Development of business improvement strategy to get the basics right
Q2 2015: South Deep Development of business improvement strategy to get the basics right ● 68 projects grouped into seven key pillars 1. People (9 projects) 2. Health and safety (5 projects) 3. Fleet (11 projects) Full benefit to 4. Infrastructure (16 projects) be realised in 5. Mining (15 projects)
Slide 12: Progress on getting the basics right
Q2 2015: South Deep Progress on getting the basics right • All executive team positions have been filled People • c.80% complete on recruitment of critical skills • Improvements in TRIFR (H1 2015: 3.03 vs. H2 2014: Health and Safety 5.10 ) • Acquisition of 27 new category I equipment Fleet • New 93L
Slide 13: South Deep: People
Q2 2015: South Deep People ● All executive team positions have been filled ● Approximately 80% complete on recruitment of critical skills ● New bonus system devised and implemented ● 3-year wage agreement concluded until 2018 ● Mechanised mining training revitalised ● Increased focus on engagement w
Slide 14: South Deep: Fleet
Q2 2015: South Deep Fleet ● Significant investment in new Commissioning schedule: Q2 2015 – Q4 2015 fleet ● 27 new Cat 1 machines purchased ̵ 23 of 27 machines delivered ̵ Slinging schedule developed and on track ̵ 20 of 23 of delivered machines are underground ̵ 18 of the 20 machines underground ar
Slide 15: South Deep: Mine Design and Planning
Q2 2015: South Deep Mine Design and Planning ● New mine development recommenced on 100 and 105 levels ● Mining span/pillar span change ̵ Benefits: • Increased stiffness of regional support design • More corridors (4 to 6) • Lower risk mining profile • Impact on reserves not significant ● High profil
Slide 16: Australia Region: A robust portfolio, with A$ tailwind
Q2 2015: Australia Region A robust portfolio, with A$ tailwind ● Strong performance from the region in the June quarter: Production of 235koz, at AIC of US$1,008/oz, generating net 120 2 000 cash flow of US$40m Production AIC 1 800 100 ̵ St Ives - production higher than 1 600 1 400 anticipated despi
Slide 17: St Ives - Invincible open pit
Q2 2015: Australia Region St Ives - Invincible open pit ● Commenced mining late-December 2014 ● Main and North pits are now in ore ● Five excavators in operation ● Production mainstay for open pits for the next four years ̵ Reserve of 5.01Mt @ 3.85g/t for 628koz with further potential upside Dec-14
Slide 18: St Ives - Exploration budget A$42m
Q2 2015: Australia Region St Ives - Exploration budget A$42m KEY TARGET AREAS ● A$7m – Neptune Paleo-channel infill Cave Rocks South West drilling (270koz in reserve) & Trend Dome ● A$10m - Extensional Exploration Developing key camps Eastern ● A$25m - Additional Exploration Causeway Exploring for n
Slide 19: Agnew - 2015 near mine exploration
Q2 2015: Australia Region Agnew - 2015 near mine exploration ● FBH infill drilling (350koz in reserve) ● Kath/Waroonga North extensions to Kim ● 600/700 series at Genesis New Holland ● Surface Rigs: 3 DDH + 1 RC active ● UG Rigs: 5 DDH active ● Cinderella feasibility underway and extensional opportu
Slide 20: Darlot - Exploration targets >300koz
Q2 2015: Australia Region Darlot - Exploration targets >300koz CDA Oval- 2016 Mining Opportunity LSL Extensions Darlot Heart CDA Lords Boon West Repeat Chappell - 2016 Mining Target MWS Target King of the Hills Legend MS2 MS3 MS4 Lords South Lower Xx Drilling or to drill Xx Developing Target 0 500 1
Slide 21: Darlot - Greenfields exploration, target generation
Q2 2015: Australia Region Darlot - Greenfields exploration, target generation Mag. Limb ● 24 drilling targets identified on tenements East. Limb ● Focus on structure and geophysics Yorker ● Limited drilling beyond 250m depth ● Longer lead time projects (+300m depth) Delorian Cluster Googlie ● Delori
Slide 22: Granny Smith - Wallaby Deposit
Q2 2015: Australia Region Granny Smith - Wallaby Deposit 2015 focus on reserve 1,800m replacement and growth Wallaby Southern Corridor Exploration Zone 60 Zone 250 Zone 70 Zone 70E 1.6Moz added to Zone 90 North Step-Out resources in 2014 Zone 80 Exploration Zone 90 Zone 100 Zone 90 N Infill Resource
Slide 23: Granny Smith - On-lease exploration
Q2 2015: Australia Region Granny Smith - On-lease 2014 2015F Drill Type exploration Metres Metres • Resource Development Air core - 77,240 and Conversion Wallaby RC 4,800 9,930 • Advanced Drilling DDH 67,800 63,150 Keringal Total 72,600 150,320 • Initial Drilling Jubilee Deep Wedge Shear Hill Side I
Slide 24: West Africa Region: Tarkwa shines in Q2 2015
Q2 2015: West Africa Region Tarkwa shines in Q2 2015 ● Attributable gold production in the region increased 13% QoQ to 178koz with AIC falling 21% QoQ to US$1,029/oz 180 Production AIC 1 600 ̵ Standout quarter for Tarkwa, with 160 1 400 production of 156koz at AIC of 140 US$938/oz 1 200 120 1 000 •
Slide 25: Cerro Corona: A high margin mine even at lower gold prices
Q2 2015: South America Region Cerro Corona: A high margin mine even at lower gold prices ● A much improved quarter, with gold equivalent production increasing 26% QoQ to 84koz on the back of higher gold and copper grades 90 Production AIC 800 80 700 ● Generated US$24m of net cash flow 70 600 during
Slide 26: Conclusions
Conclusions Well positioned to withstand lower US$ gold price ● We do not need to make any fundamental changes based on the fall in the US$ gold price ̵ Took the pain in 2012 and 2013 ̵ Weaker A$ and ZAR providing some buffer ● Committed to delivering on our plans in terms of both cost and productio
Slide 27: Questions
Investor Relations Contact Avishkar Nagaser Tel: +27 11 562 9775 Mobile: +27 82 312 8692 E-mail: Avishkar.Nagaser@goldfields.co.za Willie Jacobsz Tel: +1 617 535 7545 Mobile: +1 857 241 7127 E-mail: Willie.Jacobsz@goldfields.co.za Francie Whitley Tel: +27 11 562 9712 Mobile: +27 82 321 7433 E-mail: