Slide 1: Q2 2014 Results
Q2 2014 Results Making Cash at US1,300/oz Gold Price Nick Holland 21 August 2014
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 2014 Results Salient Features Q2 2014 Q1 2014 H1 2014 H1 2013 Gold price 1,275 1,283 1,279 1,503 Production Au eq oz 548 557 1,105 928 AISC US$/oz 1,050 1,066 1,058 1,358 AIC US$/oz 1,093 1,114 1,104 1,522 Normalised earnings US$m 25 21 45 32 Net cash generated1 US$m 65 54 119 (276) 1 Cash flow f
Slide 4: Q2 2014: Results – Key Themes
Q2 2014: Results Key Themes Commitments Made On 22 August 2013 ● Focus remains on generating free cash flow ● Rebasing of South Deep continues ● Driving brownfields exploration in Australia and Ghana ● Sale of international project portfolio Underway progressing - Yanfolila and Chucapaca Underway co
Slide 5: Q2 2014: Key Achievements
Q2 2014: Key Achievements Group and All Three International Regions At or Exceeding 15% FCF Margin Australia Region ● Q2 2014: 257Koz @ AIC of US$1,042/oz ● 2014 YTD: 502Koz @ AIC of US$1,072/oz ● Q2 2014 FCF Margin: 20% West Africa Region ● Q2 2014: 181Koz @ AIC of US$1,084/oz ● 2014 YTD: 373Koz @
Slide 6: Group AISC and AIC down Quarter on Quarter and Year on Year
Q2 2014: Key Achievements Group AISC and AIC down Quarter on Quarter and Year on Year ● AISC down 2% QoQ Production and Costs (Q2 2014: US$1,050/oz vs Q1 2014: US$1,066/oz) 700000 1 800 618 600 ● AISC down 26% YoY 1 600 600000 557 000 548 000 (Q2 2014: US$1,050/oz vs. Q2 2013: US$1,416/oz) 517 200 1
Slide 7: Q2 2014 AISC and AIC – Competitive Costs
Q2 2014: Key Achievements Q2 2014 AISC and AIC 1600 1400 1200 1000 800 600 400 200 0 AISC AIC Source: JPMorgan Competitive Costs Nick Holland | Q2 2014 Results: Making cash at US$1,300/oz | 21 August 2014 7
Slide 8: US$65m Net Cash Flow from operating activities
Q2 2014 Key Achievements US$65m Net Cash Flow1 from operating activities ● 20% improvement on US$54m generated in Q1 2014 Net cash flow1 | Gold price 250 2 000 ● 128% improvement on net cash outflow of US$229m in Q2 2013 (positive swing of US$294m) 200 1 372 1 500 1 315 1 265 1 283 1 275 150 1 000 1
Slide 9: Balance Sheet Further Strengthened
Q2 2014: Key Achievements Balance Sheet Further Strengthened ● Q2 2014 - Net debt reduced by US$50m to US$1,635m ● Net Debt to EBITDA reduced to 1.47X1 ● Maturity date on US$715m of debt extended, on same terms, from November 2015 to November 2017 ● YTD - Net debt reduced by US$101m H1 2014 Dividend
Slide 10: Active Portfolio Management: Strategic Context
Q2 2014: Key Achievements Active Portfolio Management: Strategic Context • Ongoing Strategic Portfolio Review – annual planning & capital allocation process • Test existing assets, brownfields opportunities and M&A targets against Gold Fields’ Franchise Asset objectives: Franchise Strategic Portfoli
Slide 11: Active Portfolio Management: 15% Free Cash Flow Margin
Q2 2014: Key Achievements Active Portfolio Management: 15% Free Cash Flow Margin @ US$1,300/oz gold price Granny Agnew Smith Operate @ 15% FCF Margin Tarkwa Cerro Corona South Damang St Ives Deep Restructure Darlot ? Talas Asosa APP Divest Yanfolila Chucapaca Woodjam Active Portfolio Management To A
Slide 12: Active Portfolio Management: Disposal of Non-Core Assets
Q2 2014: Key Achievements Active Portfolio Management: Disposal of Non-Core Assets Yanfolila Project, Mali Chucapaca Project, Peru ● GFI stake (85%) sold to Hummingbird ● GFI stake (51%) sold to joint venture Resources partner, Buenaventura ● US$20m in shares ̵ US$81 million ● Competitive disposal p
Slide 13: Active Portfolio Management: Disinvestments
Q2 2014: Key Achievements Active Portfolio Management: Disinvestments Arctic Platinum Project Finland Woodjam “The wrong metal” British Columbia “The wrong metal” Talas Kyrgysztan “The wrong address” FSE Phillippines “Great optionality” Yanfolila Mali Asosa “Franchise / hurdle rates” Ethiopia “The w
Slide 14: South Africa Region
South Africa Region
Slide 15: South Deep Project Overview
South Deep Project Overview ● Ground Support Programme ̵ Affected majority of production and destress areas Fleet ̵ Commenced mid-May Availability & Utilisation ̵ Completed end-September Operator & Ore Handling Technician Infrastructure Skills ̵ Expected to provide stability for life-of-mine ● Criti
Slide 16: South Deep: Fast-Tracked Critical Interventions
South Deep Project Fast-Tracked Critical Interventions Ground support rehabilitation on track • Completion by end of September as planned Leadership structure transformed • Its all about the people! • Improved safety, culture and productivity - critical to de-risk build-up to full Surplus equipment
Slide 17: South Deep: Reviewing The Mining Method
South Deep Project Reviewing The Mining Method • International Geotechnical Advisory Board (IGAB) - Industry leading experts from across the globe - Reviewed South Deep’s destress mining methodology over past seven months - Two alternative mining methods identified • Both methods piloted in areas ou
Slide 18: 4X4 Destress Method
South Deep Project 4X4 Destress Method 3m wide crush pillars 2m wide crush pillars 4m x 4m 4mexcavations x 4m excavations 5m x 2.2m excavations New 3mcrush wide pillars crush pillars Old 2m wide crush pillars 3m wide 4.0m Section view Section view 5.0m 4.0m SAD SD SAD 2.2m SAD SD SAD 1. Bigger excav
Slide 19: Inclined Slot Method
South Deep Project Inclined Slot Method ● All development always within the destressed window provided by vertical slots ● Lower cost method ̵ No separate destress ̵ Slots are non-entry, no support required ● Period to commencement of longhole stoping only 6 months (previous design ~3 years) ● Singl
Slide 20: Inclined Slot Method
South Deep Project Inclined Slot Method Inclined slots destress the development required for subsequent destress slots Slot access in destress shadow (4.5m x 4.5m) Rotated view 20m Front view 9m XX Side view Nick Holland | Q2 2014 Results: Making cash at US$1,300/oz | 21 August 2014 20
Slide 21: Inclined Slot Method With Longhole Stoping
South Deep Project Inclined Slot Method With Longhole Stoping Subsequent slot The destress slot also acts as the slot for the longhole stope 20m(w) x 20m(h) x 15m(l) Rotated view XX Nick Holland | Q2 2014 Results: Making cash at US$1,300/oz | 21 August 2014 21
Slide 22: Inclined Slot Method Mining Sequence
South Deep Project Inclined Slot Method With Longhole Stoping ● 1Inclined Slot Method Mining Sequence Initial two inclined slots mined destressing the subsequent slot access 2 Project at steady state 3 Completed test project Implementation End 2015 If Pilot Is Successful Nick Holland | Q2 2014 Resul
Slide 23: Australia Region
Australia Region | Go. Gann
Slide 24: Gold Fields Australia: A Robust Portfolio
Australia Region Gold Fields Australia: A Robust Portfolio Q2 2014 Production and AIC By Mine 300 1 600 256.9 1 372 1 400 250 1 228 1 200 200 1 042 1 010 1 000 US$/oz Koz 150 692 800 600 100 83.4 84.6 66.0 400 50 22.9 200 0 0 Region St Ives Granny Smith Agnew/Lawlers Darlot Production AIC Targeting
Slide 25: Yilgarn South Acquisition: Key Performance Indicators
Australia Region Yilgarn South Acquisition: Key Performance Indicators KPI Unit GFI 9 Months ABX 9 Months Comments Safety TRIFR 7.72 15.51 Actual injuries - 11 under GFI vs 30 under ABX Only mining ore that generates the required Ore Processed Kt 1,931 2,274 margin Head Grade g/t 6.29 5.08 As above
Slide 26: Shaping Our Destiny
Australia Region Shaping Our Destiny ● Continued focus on costs and productivity improvements to ensure 15% FCF margin ● Carbon Tax repealed - ~A$15m p.a. benefit ● US$62m exploration spend in 2014 to crystalize known upside ● Leverage our expertise to realize full site potential of orogenic style a
Slide 27: Orogenic Ore Bodies
Australia Region Orogenic Ore Bodies ● Are well understood geologically ● Can be large and of good grade ● Occur in clusters at different scales, providing mining flexibility and optionality ● Can have significant vertical and horizontal dimensions and “grow volumetrically” with time as extensional
Slide 28: St Ives Gold Mine
Australia Region St Ives Gold Mine ● Mineral Resources: 4.34 Moz ● Q2 2014: 83Koz @ AIC of US$1,372/oz ● Mineral Reserves: 2.02 Moz ● H1 2014: 180Koz @AIC of US$1,329/oz ● Outstanding reserve replacement history ● Extensive land position - significant exploration potential ● Significant new discover
Slide 29: St Ives Gold Mine: Invincible Discovery
Australia Region St Ives Gold Mine: Invincible Discovery 2013 R& R Mt g/t Au koz ● Large high grade open pit and potential underground operation Statement ● 2.25km strike length Resource* 9.2 4.5 1,329 ● Wide mineable zones (up to 20m) Reserve** 3.7 4.1 492 ● 2014 Drill focus on expanding the open p
Slide 30: St Ives: Invincible and Neptune Relative to Lefroy Mill
Australia Region St Ives Gold Mine: Invincible and Neptune Relative to Lefroy Mill • Within Operating Radius of Existing g Operations p • Limited to Lake Disturbance Only Within Trucking Distance From The Plant Nick Holland | Q2 2014 Results: Making cash at US$1,300/oz | 21 August 2014 30
Slide 31: St Ives Gold Mine: Speedway Trend
Australia Region St Ives Gold Mine: Speedway Trend 1m @ 21.8g/t (49m) ● New under-explored trend 2m @ 8.3g/t (56m) ● Invincible the anchor deposit in the North ● Proven capacity to deliver major deposits 2m @ 24.3g/t (24m) ● Evidence of gold along 22km strike ● Rigorous staged exploration programme
Slide 32: Agnew/Lawlers Gold Mine
Australia Region Agnew/Lawlers Gold Mine ● Q2 2014: 66Koz @ AIC of US$1,010/oz ● H1 2014: 125Koz @AIC of US$1,017/oz ● Mineral Resources: 3.7 Moz ● Mineral Reserves: 1.0 Moz ● Outstanding reserve replacement history ● Significant on-site exploration potential Agnew Reserves and Production Lawlers Re
Slide 33: Agnew/Lawlers: New Holland Exploration Potential
Australia Region Agnew/Lawlers Gold Mine: New Holland Exploration Potential Genesis Open Pit New Holland Open Pit Hidden Secret Open Pit Sheba Potential for deeper lodes?? 1,000m Potential extensions Current target areas Drilled, to be developed New Holland Under Explored - Gets Better! Nick Holland
Slide 34: Agnew/Lawlers: Waroonga Exploration Potential
Australia Region Agnew/Lawlers Gold Mine: Waroonga Exploration Potential Kath h Rajah Main Ma S South Main North Waroonga Waroo W onga North Hauptspalt auptspalt Yeom Yeoman FBH Kim Indicated Resource Link nk Inferred Resource Pre-resource early stage target Target Zones High Grade Shoots Open at De
Slide 35: Granny Smith Gold Mine
Australia Region Granny Smith Gold Mine ● Q2 2014 85Koz @ AIC of US$692/oz ● H1 2014 151Koz @ AIC of US$788/oz The Star Performer In The Portfolio Nick Holland | Q2 2014 Results: Making cash at US$1,300/oz | 21 August 2014 35
Slide 36: Granny Smith Gold Mine
Australia Region Granny Smith Gold Mine ● Mineral Resources: 3.3 Moz ● Located in highly endowed province ● Mineral Reserves: 0.80 Moz ● >20 Moz in the Laverton Region including: ̵ Granny Smith ~ 2.5 Moz ● Outstanding reserve replacement history ̵ Wallaby ~ 8 Moz ● Significant reserve growth potenti
Slide 37: Granny Smith Gold Mine: Targets
Australia Region Granny Smith Gold Mine: Targets • Resource Development and Conversion Wallaby Lease area: 61,700 ha / 660 km2 • Advanced Drilling Keringal • Initial Drilling Jubilee Deep Wedge Shear Hill Side IP Platypus Boomer Northern Fleet Targets (Dallas south, Alabama, Raw Prawn) Tail Pipe (Gr
Slide 38: Granny Smith: Wallaby Ore Body
Australia Region Granny Smith Gold Mine: Wallaby Ore Body Wallaby Ore Body Mineral Resources • Open Pit – 27.6 Mt @ 1.33g/t for 1.18 Moz Zone 250 • Underground – 8.5 Mt @ 7.54g/t for 2.06 Moz Zone 60 Mineral Reserves • Underground – 4.1 Mt @ 6.34g/t for 838 Koz Zone 70 Zone 80 Current Mining Areas •
Slide 39: Granny Smith: Wallaby Ore Body
Australia Region Granny Smith Gold Mine: Wallaby Ore Body Zone 250 Zone 60 Zone 70 Un-depleted Global Resource Zone 80 Intrusive 3.58Mt @ 8.50g/t for Z80 Depth 1.8km 980Koz (3.0g/t cut) Zone 90 3.84Mt @ 8.88g/t for Z90 Zone 100 1.1Moz (3.18g/t cut) 3.36Mt @ 9.04g/t for Zone 100 South– Target Zone 11
Slide 40: Granny Smith: Wallaby Growth Potential
Australia Region Granny Smith Gold Mine: Wallaby Growth Potential 2013 MY Resource Wireframes vs 2014 Planned Drilling Zone 60 Zone 250 Zone 70 Zone 70E Z100 Infill and Extensions Resource Drilling Zone 80 Zone 90 Zone 90 Extensions Z100 Step-Out Inferred Resource Drilling Zone 100 Phase 2 – 25m inf
Slide 41: Darlot Gold Mine
Australia Region Darlot Gold Mine ● Q2 2014: 23Koz @ AIC of US$1,228/oz ● H1 2014: 46Koz @ AIC of US$1,149/oz ● Mineral Resources: 0.27 Moz ● Mineral Reserves: 0.16 Moz ● Searching for a game changer M Ozs Darlot Reserves and Production 2.50 2.00 1.50 1.00 0.50 0.00 2014 Reserve MY est Reserves Prod
Slide 42: Darlot Gold Mine
Australia Region Darlot Gold Mine Cornucopia, King of the Hills, CDA, Western Limb, El Dorado and Walters extensions Extensive Brown Fields Targets Nick Holland | Q2 2014 Results: Making cash at US$1,300/oz | 21 August 2014 42
Slide 43: West Africa Region
West Africa Region
Slide 44: Gold Fields Ghana: Significant Potential Beyond Current Resource Life
West Africa Region Gold Fields Ghana: Significant Potential Beyond Current Resource Life Q2 2014 Production and AIC By Mine 200 1 400 1 282 180 181.3 1 200 160 1 084 1 026 140 1 000 140.7 120 800 US$/oz Koz 100 600 80 60 400 40 40.5 200 20 0 0 Region Tarkwa Damang Production AIC Targeting One Millio
Slide 45: Tarkwa Gold Mine
West Africa Region Tarkwa Gold Mine ● Q2 2014: 141Koz @ AIC of US$1,026/oz ● Optimisation of Mill from 12 Mtpa to +13 Mtpa underway (by early 2015) ● H1 2014: 286Koz @ AIC of US$1,021/oz ● Settled down well after closure of heap leach ● Mineral Resources: 10.3 Moz operations in Q1 2014 ● Mineral Res
Slide 46: Damang Gold Mine
West Africa Region Damang Gold Mine ● Q2 2014: 41Koz @ AIC of US$1,282/oz ● H1 2014: 87Koz @ AIC of US$ 1,192/oz ● Turn-around consolidated in Q2 2014 ● Significant improvement in operational performance, focussed costs control, quality selective mining, reduced dilution, recoveries and throughput S
Slide 47: Damang On-lease Exploration Opportunities
West Africa Region Damang On-lease Exploration Opportunities pportuni portun HUNI SADDLE PIT JUNO PIT NYAME TOMENTO NORTH & DIP EXTENSION 17km AMOANDA CH HIDA ● Mineral Resources: 6.6 Moz REX ● Mineral Reserves: 1.1 Moz ● Good progress on extensive brownfields exploration potential on 30km strike be
Slide 48: South America Region
South America Region
Slide 49: Cerro Corona Copper/Gold Mine
South America Region Cerro Corona Copper/Gold Mine ● Q2 2014: 77Koz AU Eq @ AIC of US$789/oz ● H1 2014: 157Koz AU Eq @ AIC of US$709/oz ● Mineral Resources: Au 3.3 Moz and Cu 1,124 Mlb ● Mineral Reserves: Au 2.0 Moz and Cu 712 Mlb ● Continued outperformance against resource model ● Future capital re
Slide 50: Conclusion
Conclusion ● Group guidance for 2014 maintained ● Rebasing of South Deep continues to be the top priority ● Driving brownfields exploration in Australia and Ghana ● Maintain momentum on the sale of international project portfolio ● Paying down debt Generating a 15% Free Cash Flow Margin at US$1,300/