Gold Fields Limited · JSE:GFI
Gold Fields — BofAML 2016 Global Metals, Mining and Steel Conference
28 slides from Gold Fields's conference presentation, May 11, 2016
Slide 1: BofAML 2016 Global Metals, Mining and Steel Conference
BofAML 2016 Global Metals, Mining and Steel Conference CASH POSITIVE DESPITE THE LOWER GOLD PRICE Nick Holland 11 May 2016
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: Snapshot of Gold Fields
Snapshot of Gold Fields A global gold producer ● Gold Fields is the world’s 7th largest gold producer with 8 As at 3 May 2016 operations in 4 countries Share price (JSE/ADR) R65,55/$4.13 ● In 2015, the company produced 2.2Moz at AISC of US$1,007/oz and AIC of US$1,026/oz, generating net cash flow of
Slide 4: Good start to 2016: Highlights from Q1 2016
Good start to 2016: Highlights from Q1 2016 All 8 operations exceeded planned production for Q1 2016 – Group: 515koz AISC (US$961/oz) and AIC (US$986/oz) tracking below FY16 guidance Positive operating trends continue at South Deep Transition to high profile destress mining at South Deep is progress
Slide 5: Steady decrease in all-in costs
Steady decrease in all-in costs 2013 2014 2015 700 000 1800 Production: 2,022koz Production: 2,219koz Production: 2,159koz AIC: US$1,312/oz AIC: US$1,087/oz AIC: US$1,026/oz 598 000 1600 600 000 557 000 548 000 559 000 556 000 557 000 566 000 535 000 515 000 1400 496 000 501 000 500 000 477000 451 0
Slide 6: Strong focus on cash generation
Strong focus on cash generation Net cash flow 250 2013 2014 2015 2 000 Gold: US$1,386/oz Gold: US$1,249/oz Gold: US$1,140/oz Net cash: (US$232m) Net cash: US$236m Net cash: US$123m 1 500 1 499 1 290 1 279 150 1 222 1 186 1 098 1 000 119 117 122 50 1 500 42 US$ million US$/oz -50 0 -500 -150 -1 000 -
Slide 7: Comfortable balance sheet, with flexibility
Comfortable balance sheet, with flexibility ● Net debt of US$1,380m at 31 December 2015 ● Net debt to EBITDA of 1.38x at end-2015 Net debt (US$m) and Net debt/EBITDA 2 000 1.8 ● Unutilised facilities of US$844m and R2.5bn 1 500 1.6 ● First debt maturity in November 2017 1 000 1.4 1.2 US$m ● US$148m
Slide 8: Operations Overview
| Go_p (aS OPERATIONS OVERVIEW
Slide 9: Solid global portfolio
Solid global portfolio Production, AIC and net cash flow (ex South Deep) ● Attributable production FY15: 1.96Moz ● AIC FY15: US$944/oz ● Net cash flow from international operations FY15: US$334m Equivalent production (koz) AIC (US$/oz) 600 1 200 500 1 000 400 800 300 600 200 400 100 200 0 0 Q1 2015
Slide 10: Australia Region
Australia Region Production AIC 400 1400 350 1200 300 1000 250 800 US$/oz Koz 200 600 150 400 100 50 200 0 0 2014 2015 2016F 2014 2015 2016F 2014 2015 2016F 2014 2015 2016F St Ives Agnew/Lawlers Darlot Granny Smith Tonnes Grade Gold 2015 2016F (Mt) (g/t) (Moz) Production (koz) 988 900 Resources 62.4
Slide 11: Australia: Exploring the Orogenic Mines
Australia: Exploring the Orogenic Mines Return on the 2015 investment 2016-2017 Focus ● Post depletion reserves largely ● A$86m planned for 2016 unchanged ● Exploration drill drive commenced to ● Increase in Resources of 13% Waroonga North (Agnew) ● Discovery of Invincible South ● Continue to grow t
Slide 12: Australia: Exploration Highlights
Australia: Exploration Highlights World Class Assets Four operating centres with ±50Moz endowment (includes past production) ● World class cornerstone asset in Wallaby ● Proven ability to explore and discover under West Australian lake systems ● Putting money in the ground ̵ Geophysics ̵ Alteration
Slide 13: Granny Smith: Q1 2016 Exploration Highlights
Granny Smith: Q1 2016 Exploration Highlights Granny Smith Regional endowment of +20Moz Au Wallaby ● New footwall splay lens identified at Zone 100 requires follow-up ● Zone 100 remains open east and south-east ● Q1 drilling confirms zones Z125, Z130 and Z135 ● Zone 110/120 drilling extended Regional
Slide 14: Granny Smith: Q1 2016 Exploration Highlights
Granny Smith: Q1 2016 Exploration Highlights Wallaby ● Wallaby Z110/120 Extensional drilling ̵ Significant intersections include: • WB3501UD 19.81m @ 6.86 g/t Au • WB3504UD 7.27m @ 9.33g/t Au; 36.87m @ 6.19g/t Au, 2.41m @ 6.34g/t Au; 6.67m @ 5.97g/t Au • WB3514UD 0.65m @ 79.30 g/t Au; 2.30m @31.78g/
Slide 15: Granny Smith: Q1 2016 Exploration Highlights
Granny Smith: Q1 2016 Exploration Highlights Regional ● Northern Fleet ̵ Significant intersections include: • LCNA0629 8m @ 1.25g/t Au • LCDD0005 0.39m @ 9.33g/t Au 7.87m @ 3.63g/t Au 2.79m @ 3.48g/t Au 0.69m @ 8.88g/t Au 3.71m @ 3.07g/t Au (incl. 1m @ 6.66g/t Au & visible gold) • Regional diamond d
Slide 16: St Ives: Q1 2016 Exploration Highlights
St Ives: Q1 2016 Exploration Highlights St Ives c.16Moz discovered and c.12Moz produced since 1980 Areas Being Explored ● Invincible ● Invincible South Retribution ● Incredible ● Palaeochannel Project Invincible & ● Retribution Invincible South Palaeochannel Project Highlights ● Significant up-plung
Slide 17: St Ives: Q1 2016 Exploration Highlights
St Ives: Q1 2016 Exploration Highlights St Ives ● Invincible Deeps ̵ High-grade hits in multiple zones (extensional) ̵ Significant intersections include • LD14480W4 2.7m @ 5.90g/t Au; 10.70m @ 8.2g/t Au; 13.7m @ 5.40g/t Au • LD14480W5 3.10m @ 5.40g/t Au; 11.00m @ 14.60g/t Au; 13.50m @ 7.90g/t Au; 5m
Slide 18: St Ives: Q1 2016 Exploration Highlights
St Ives: Q1 2016 Exploration Highlights St Ives ● Palaeochannel project ̵ Focus on the Argo area drilling a 160m x 20m pattern. Significant intersections include: • CD18999 5m @ 15.30g/t Au (supergene?) • TD13048 6m @ 1.50g/t Au • TD13049 2m @ 3.00g/t Au • TD13047 2m @ 2.50g/t Au • TD13050 2m @ 1.80
Slide 19: Agnew/Lawlers: Q1 2016 Exploration Highlights
Agnew/Lawlers: Q1 2016 Exploration Highlights Agnew/Lawlers ● c.11Moz discovered and c.7Moz produced since 1985 ● Waroonga North ̵ Drilling continues to define the Waroonga North shoot with mineralisation extended by100m down-plunge, key intercept: 3 m @ 17 g/t Au (EMSD1375W2). ̵ Significant interse
Slide 20: Darlot: Q1 2016 Exploration Highlights
Darlot: Q1 2016 Exploration Highlights Darlot c.3Moz discovered and produced ● CDA Oval ̵ Continued success – confirmation & extensions (next slide) ● Burswood ̵ Visible gold within veins ̵ Significant intersections include: • CDRCD0002 6.95m @ 8.05g/t Au • CDRCD0003 1.33m @ 7.62g/t Au • CDRCD0004 1
Slide 21: Darlot: Q1 2016 Exploration Highlights
Darlot: Q1 2016 Exploration Highlights Darlot ● CDA Oval ̵ Significant upgrade of the resource ̵ Significant intersections include: • CAD0193 8.8m @ 6.53g/t Au (incl. 2.1m @ 13.68g/t Au) • CAD0193W1 7.1m @ 11.46g/t Au • CAD0193W2 2.5m @ 3.78g/t Au (HW: 9.2m @ 18.25g/t Au) • CAD0193W3 4m @ 2.15g/t Au
Slide 22: West Africa Region
West Africa Region ● Development agreement reached with Production AIC the government of Ghana in March 700 1400 2016 600 1200 ̵ A reduction in the corporate tax rate from 500 1000 35.0% to 32.5%, effective 17 March 2016 US$/oz 400 800 ̵ A change in the royalty rate from a flat 5% Koz of revenue to
Slide 23: South America Region: Cerro Corona
South America Region: Cerro Corona ● Cu/Au porphyry mineralisation - 2,765 ha of mining concession Production (koz) and AIC (US$/oz) ● Continued outperformance against resource 90 83.6 1 200 79.2 model 80 1 000 70 66.6 66.2 62.9 ● Review of options to increase LoM tailings 60 800 and waste storage c
Slide 24: South Africa Region: South Deep
South Africa Region: South Deep ● Required leadership in place Production (koz) and AIC (US$/oz) ● Bedding down a performance driven culture 80 2 500 68 ● Skills development strategy developed 70 64 2 000 60 55 ● Significant improvement in safety performance 50 1 500 ● Positive production trends eme
Slide 25: South Deep: Encouraging trends
South Deep: Encouraging trends Destress Long Hole Stoping Production & Contribution 90 180 80 160 Tonnes (‘000)/Q 70 140 Tonnes (‘000)/Q 60 120 50 100 40 80 30 60 20 40 10 20 24% 36% 37% 40% 42% 22% 34% 0 0 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 2014 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 201
Slide 26: South Deep: Looking forward
South Deep: Looking forward BASICS MINING METHODS ASSET MANAGEMENT • Strong focus on basic • High profile destress stoping • Engineering skills operational requirements development program remain • Seismic risk correlation to continues increased production • Operating conditions • Planned maintenanc
Slide 27: Conclusions
Conclusions Strategic priorities ● Cash flow and margin – Make money at current prices ● Committed to delivering on our plans in terms of both production and costs ̵ Near-mine exploration continues ̵ Ongoing development of orebodies is critical ● Continue to reduce net debt – Targeting net debt/EBIT
Slide 28: Investor Relations Contacts
Investor Relations Contacts Avishkar Nagaser Thomas Mengel Francie Whitley Tel: +27 11 562 9775 Tel: +27 11 562 9849 Tel: +27 11 562 9712 Mobile: +27 82 312 8692 Mobile: +27 82 315 2832 Mobile: +27 82 321 7433 E-mail: E-mail: E-mail: Avishkar.Nagaser@goldfields.co.za Thomas.Mengel@goldfields.co.za F
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