Slide 1: Analysts Site Visit
Analysts Site Visit Tarkwa Team May 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: Site Layout
Tarkwa Gold Mine Site Layout ● Site Layout Akontansi Pit HME Workshops CIL Plant This is where you are …. Tarkwa Gold Mine 2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015 3
Slide 4: Safety Statistics
Tarkwa Gold Mine Safety Statistics Rolling 12 Month Injury Rates_2008 - Current LDIFR MTIFR RWIFR TRIFR 2.0 1.8 1.6 1.4 1.2 Rate 1.0 0.8 0.6 0.4 0.2 0.0 2008 A J O 2009 A J O 2010 A J O 2011 A J O 2012 A J O 2013 A J O 2014 A J O 2015 Fatality Free Man-hours – 62,202,902 Fatality Free Shifts – 5,055
Slide 5: Why We Are Excited About Tarkwa
Tarkwa Gold Mine Why We Are Excited About Tarkwa… ● Magnificent ore body and infrastructure ̵ 9.6Moz resources @ 1.15g/t as at December 2014 ̵ 7.5Moz reserves @ 1.05g/t as at December 2014 (Ex pit reserves is 6.6Moz @ 1.30g/t) ̵ Open cast mining with easy accessible ore - strip ratio of 5.7 ̵ Free l
Slide 6: Tarkwa and Damang Mine Locations
Tarkwa Gold Mine Tarkwa and Damang Mine Locations GHANA • Damang Pits TARKWA ADR Plant • North Pads N • North Primary Crusher Tarkwa Pits • Tarkwa Tarkwaian Banket • South Tarkwa Outcrop Pads • South Primary Crusher 12 Km 2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015 6
Slide 7: A Brief History
Tarkwa Gold Mine A Brief History Date Activity 1993 • Gold Fields signed a management contract with the Government of Ghana to operate the mine 1998 • Initial Tarkwa Phase I development completed for an open pit operation, mining 14.5Mtpa including 4.7Mtpa of heap leach feed ore 1999 • Tarkwa phase
Slide 8: Leadership Team (1 of 2)
Tarkwa Gold Mine Leadership Team (1 of 2) ● Management Team Michiel van (1 of –2)General Manager Der Merwe George Nutor – Metallurgy Manager B.Eng. (Extractive Metallurgy) MSc. Mineral Eng. (Extractive Metallurgy) 19 years experience 20 years experience Steve Osei-Bempah – Manager Mining Elliot Twum
Slide 9: Leadership Team (2 of 2)
Tarkwa Gold Mine Leadership Team (2 of 2) Dave Pienaar – Safety Manager Augustine Asubonteng – Finance Manager NASDAM (M+3) BSc. Natural Resources, ACCA 25 years experience 12 years experience Jeff Addy – ICT Operations Manager Kwame Ako – Business Improvement Manager BSc. Computer Science BSc. Civi
Slide 10: Replacement of Reserves
Tarkwa Gold Mine Replacement of Reserves 16 14 12 10 10 Moz 8 8 6 4 2 0.55 0.55 0.72 0.72 0.66 0.63 0.66 0.74 0.72 0.72 0.63 0.56 - 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Reserves Gold produced Cumulative Production Cumulative Contained Au 2015 Analyst Site Visit - Tarkwa Gold M
Slide 11: Geology
Tarkwa Gold Mine Geology The existing surface operation currently exploits narrow auriferous conglomerates KOTTRAVERCHY ABOSSO AKONTANS I APINTO 0 8 PEPE Internal Waste KILOMETERS AVS MANTRAIM N Capital Waste HUNI SANDSTONE TARKWA PHYLLITE BANKET GROUP A CDE F2 G Reef Zones BIRIMIAN BASEMENT 2015 An
Slide 12: Stratigraphy: Well established reef identification & zoning system
Tarkwa Gold Mine Stratigraphy: Well established reef identification & zoning system Afc - Well sorted with rounded clasts of quartzite & visible gold. ~3m thick A1 - Poorly sorted conglomerate & thin quartzite. 2m-7m thick A3 - Visible gold is rare. Moderately sorted thin discontinuous conglomerate.
Slide 13: Exploration
Tarkwa Gold Mine Exploration • Extensional drilling: Will increase priority over the next 2-3 years to understand potential • Underground potential: Low potential for underground at lower gold prices • Kottraverchy – inventory at 2.61 g/t cut-off (2013 costs at US$1500 gold price): Tonnes Grade (g/t
Slide 14: Exploration: Gold Production Against Geological Confidence
Tarkwa Gold Mine Exploration: Gold Production Against Geological Confidence Inferred, 0% Measured (Grade Controlled Drilled ), 43% Indicated, 49% Measured (Resource Drilled), 8% 600 500 400 Ounces (koz) 300 200 100 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Measured Indicated Infe
Slide 15: Hydrothermal potential drill targets within 5-8km buffer zone from plant
Tarkwa Gold Mine Hydrothermal potential 4 drill targets &1 robust anomaly within 5-8km buffer zone from plant Fanti Plant North Hill Kobada Badukrom Blue Ridge 2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015 15
Slide 16: Kobada Target – Trenching & Drilling
Tarkwa Gold Mine: Kobada Target – Trenching & Drilling 2 zones outlined by trenching 1,371m of trenching completed. 11.7m @ 0.62g/t 1.8m @ 12.1g/t 34.5m @ 1.65g/t including 23.3m @ 2.40g/t 14.8m @ 4.53g/t including 84.4m @ 0.41g/t including 17.9m @ 0.55g/t 21m @ 0.77g/t 8.8m @ 2.63g/
Slide 17: North Hill Target - Trenching
Tarkwa Gold Mine: North Hill Target - Trenching Trenching completed with 1.35km dug and 100% of results received 681m collared in 6 holes on 1 line with on significant results 30m @ 0.42g/t 61m @ 1.36g/t Incl. 1m @ 1.61g/t 15m @ 1.88g/t & 10m @ 0.78g/t 18m @ 2.19g/t 10m @ 0.26g/t 10m @ 0.91g/t 6
Slide 18: Blue Ridge Targets
Tarkwa Gold Mine: Blue Ridge Targets • Gold in soil anomaly trenched 160m apart over 900 m cumulative strike. Section in next slide Target has a set gold bearing quartz-tourmaline veinlets intersected by scout drilling that returned encouraging results. 2015 Analyst Site Visit - Tarkwa Gold Mine |
Slide 19: Blue Ridge Target – Drill Section
Tarkwa Gold Mine: Blue Ridge Target – Drill Section High probability of outlining isolated high grade veins of 1 to 2 m wide 2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015 19
Slide 20: Existing Mine Fleet
Tarkwa Gold Mine Existing Mine Fleet Equipment On-site # Excavators 984C 4 994B 1 9250 4 9350 4 996B 1 Dump trucks Cat777F 2 HD785 13 Cat785C 67 Cat793D 8 Drills Pantera 12 DK45S 3 PV235 4 Ancillary Cat992 FEL 6 Dozers 27 Graders 11 Water Carts 7 Compactors 5 984C 1 2015 Analyst Site Visit - Tarkwa
Slide 21: Mining Equipment – Key Assumptions
Tarkwa Gold Mine Mining Equipment – Key Assumptions Availability Use of Availability Production Rates Fleet 2014 2014 2015 2014 2014 2015 2014 2014 2015 Actual (%) Plan (%) Plan (%) Actual (%) Plan (%) Plan (%) Actual Plan Plan Excavators tph tph tph 984C 88 88 85 72 74 76 925 980 950 994B 85 85 85
Slide 22: Drill Rig Challenges in 2014
Tarkwa Gold Mine Drill Rig Challenges in 2014 • Majority of drill rig fleet reached end of its life in 2014, resulting in lower availabilities • End of supplier maintenance and repair contract (MARC) – transition to owner maintenance • Situation was compounded with the increased need for ore (CIL pl
Slide 23: Owner Miner: Mining Unit Cost
Tarkwa Gold Mine Proven Owner Miner 4.00 160 3.50 140 3.00 120 Million Tonnes 2.43 2.50 100 US$/t 2.00 98.4 80 1.50 60 1.00 40 0.50 20 0.00 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 F'cast OPEX Tons - Mt CAPEX Tons - Mt Mining Unit Cost - US$/ton • High volume and grade driven producer in
Slide 24: Selective Mining
Tarkwa Gold Mine Selective Mining Ore Waste 2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015 24
Slide 25: Resources as at 31st December 2014
Tarkwa Gold Mine Resources as at 31st December 2014 Measured Indicated Inferred Total Mineral Resource Tonnes Grade Gold Tonnes Grade Gold Tonnes Grade Gold Tonnes Grade Gold (Mt) (g/t) (koz) (Mt) (g/t) (koz) (Mt) (g/t) (koz) (Mt) (g/t) (koz) Open pit Akontansi 24.3 1.31 1,023 79.2 1.27 3,241 2.1 0.
Slide 26: Reserves as at 31st December 2014
Tarkwa Gold Mine Reserves as at 31st December 2014 Proved Probable Total Reserve Tonnes Grade Gold Tonnes Grade Gold Tonnes Grade Gold Mining Area (Mt) (g/t) (Moz) (Mt) (g/t) (Moz) (Mt) (g/t) (Moz) Open Pit Akontansi 25.9 1.22 1.0 56.3 1.20 2.2 82.3 1.20 3.2 Kottraverchy 6.0 1.45 0.3 0.0 0.57 0.0 6.
Slide 27: Tonnes Mined
Tarkwa Gold Mine Tonnes Mined 2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015 27
Slide 28: Ore Tonnes
Tarkwa Gold Mine Ore Tonnes 2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015 28
Slide 29: CIL Processing Plant
Tarkwa Gold Mine CIL Processing Plant Primary, Secondary and Tertiary crushing circuit 14 MW SAG Mill (2x 7MW) 14 MW Ball Mill (2x 7MW) 1x common Leaching Tank + 2 parallel streams (1 leach + 7 CIL) 3 Thickeners, 3 Tailings Storage Facilities 13.3Mtpa throughput capacity at a rate of 1,6
Slide 30: CIL Process Flow
Tarkwa Gold Mine CIL Process Flow Crusher Pocket Crusher CV01 CV114 CV02 CV03 Cyclones Stockpile 4 x Trash Screens CV116 Mill CV115 Auxiliary Discharge Stockpile Screen CV162 CV04 SAG Mill Scats Stockpile CV161 Ball Mill 3 x Thickener Carbon Sizing Screens Eluted Carbon Loaded Carbon Mill Return Tan
Slide 31: Processing Unit Cost Vs. Throughput Trend
Tarkwa Gold Mine Processing (Heap Leach + CIL) Unit Cost Vs. Throughput Trend 25.0 14.00 12.00 20.0 10.54 10.00 9.12 15.0 US$/ton Tonnes 8.00 6.00 10.0 4.00 13.3 11.3 5.0 2.00 5.1 0.00 0.0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 F'cast CIL Ore Treated - kt HL Ore Stacked - kt CIL Unit Cost
Slide 32: Major Projects and Capital Expenditure
Tarkwa Gold Mine Major Projects and Capital Expenditure CIL expansion to 13.5Mtpa Optimisation Amount Comments Areas US$’M ● IRR: Est. 192% Crushing • Utilised HL 2nd & Tetiary crushing circuit to (Act.: 406%) 0.56 feed CIL material sizes P80 22mm; Impact Circuit ● Payback: Est. 1.2 years of 200 t/h
Slide 33: Key Metrics
Tarkwa Gold Mine Key Metrics Q4 – 2014 2014 Q1 – 2015 2015 KPI Unit Actual Actual Actual Forecast Safety LTI 1 3 1 1 Ore mined kt 3,023 13,625 3,937 14,558 Ore mined grade g/t 1.31 1.31 1.37 1.4 Waste mined (Operational) kt 7,551 34,245 8,186 36,609 Waste mined (Capital) kt 11,590 39,473 13,602 47,1
Slide 34: Cost Strategy & Opportunities
Tarkwa Gold Mine Cost Strategy & Opportunities Opportunities VDTs Revise / refine Update VDTs targets • GENSER: Potential lower power price by 30%. Reduction of 15% in LOM processing cost Target Setting Management Meetings & Reviews • Fuel: Declining crude oil price on the Last Month: - Priorities w
Slide 35: A Reducing Trend In Operational Expenditure
Tarkwa Gold Mine A Reducing Trend In Operational Expenditure Operational expenditure by activity 2015 Operational forecast spend by element Sundry 4% 700 22% Power 12% Labour 23% 600 586 2% Contarctors & Consultants 97 11% 500 479 470 40 75 75 US$ Million 400 Materials Top 5 material 31 30 50% 153 s
Slide 36: Cost History: AISC vs Gold Price
Tarkwa Gold Mine Cost History: AISC vs Gold Price 1 800 800 1 600 700 1 400 580 600 1 200 1 194 500 1 000 1 040 400 US$/oz koz 800 300 600 200 400 200 100 0 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 F'cast CIL Gold Production - koz HL Gold Production - koz AIC - US$/oz Gold Price - US$/oz
Slide 37: Strategic Focus: Tarkwa Is Positioned To Deliver On Its Long Term Plan
Tarkwa Gold Mine Strategic Focus: Tarkwa Is Positioned To Deliver On Its Long Term Plan • 0 LTI Target • To be a 600koz per - Advanced safety annum production culture on the mine - Grade & throughput supported by behavioral safety Safety Production management program to work towards zero harm 3 Year
Slide 38: Total employee head count of 4,526
Tarkwa Gold Mine Total employee head count of 4,526 Expats, 31 Snr. Officials , 85 Contractors 2 114 Staff , 1 941 GFG Employees 2 412 Officials, 355 (non-core Business. Hospital, cleaning services etc.) Employee Group Female Male Total Expats 0 31 31 Senior Officials 3 82 85 Officials 39 316 355 St
Slide 39: The Foundation: $1.00/Oz And 1% Of Pre-tax Profits
Tarkwa Gold Mine The Foundation: $1.00/Oz And 1% Of Pre-tax Profits 2014 2010 2005 2004 2002 1993 Responding to Setting up of Legally Sustainable community needs Fund registered as a Community SEED as relating to the Foundation Empowerment stepped up impact of our and Economic mining activities Bega
Slide 40: Sustainable Development: About US$26M Invested
Tarkwa Gold Mine Sustainable Development: About US$26M Invested • About US$8million has been spent on Education Education • 52 basic schools • 400 classrooms • Over 1,100 scholarship beneficiaries • Foundation sponsored health facilities • Health Reduction in communicable diseases • Access to commun
Slide 41: Risks and Opportunities
Tarkwa Gold Mine Risks and Opportunities Risk Mitigating Actions TSF Capacity TSF 5 construction commenced Power Negotiating VRA agreement or independent power providers (GENSER) Mine Call Factor (Reconciliation between reserve Improve on mining practices and day-to-day tracking of ore from pit to R
Slide 42: Thank you
Thank you Payal)