Gold Fields Limited · JSE:GFI
Gold Fields — Corporate Update (2011)
27 slides from Gold Fields's corporate update, 2011
Slide 1: South Africa Region
South Africa Region CER] Ficvos
Slide 2: Overview
Overview Gold Production and NCE Margin (2008 – 2011) koz % 2 500 16 KDC 14 Pretoria 2 000 South Deep Johannesburg 12 Beatrix 1 500 10 Bloemfontein 8 Durban 1 000 2 066 2,066 2 095 2,095 1,866 6 4 500 2 Cape Town 0 0 2008 2009 2010 2011E Production NCE Margin Mineral Reserves & Resources EBITDA1 (Gr
Slide 3: Multi-shaft underground complexes
Multi-shaft underground complexes KDC Beatrix South Deep Formed in 2010 from Driefontein Shallower, safer, steadier 34.5Moz reserve and >50 years of (West) and Kloof (East) life Large, challenging, complex and Well capitalised, consistent Safer, mechanised mining deep ore body performer
Slide 4: Since 2007 significant progress on safety but 2011 has levelled off
Since 2007 significant progress on safety but 2011 has levelled off Fatalities1 Serious Injuries1 # fatalities # serious injuries 40 1000 35 900 800 30 700 25 600 20 500 15 400 300 10 200 5 100 0 0 2005 2006 2007 2008 2009 2010 2011YTD 2005 2006 2007 2008 2009 2010 2011YTD 2 ________________________
Slide 5: Redoubling efforts to achieve zero harm...
Redoubling efforts to achieve zero harm... • Compliance • Engineer out risk • Health & wellness o harm • Aligned stakeholders Goal: Zero • Culture: Hearts & minds 101
Slide 6: ...through numerous initiatives
...through numerous initiatives Culture: Hearts Aligned g Health & Engineer g out Compliance and Minds stakeholders wellness risk Leadership Engagement with Holistic approach Underground Increased communication unions and to well-being well being – transport safety frequency of and commitm
Slide 7: South African production in decline, plans in place to arrest this
South African production in decline, plans in place to arrest this Production (‘000oz) South Africa Region production (‘000 ounces) 2 500 B ti Beatrix KDC S th D South Deep 2 000 1 500 1 000 KDC accounts for >90% of the decline since 2009 500 0 2008 2009 2010 2011E 103
Slide 8: Decline due to reduced mineable face length at KDC
Decline due to reduced mineable face length at KDC % Change (9 months to Sept 2010 vs 9 months to Sept 2011) Overall gold down 11% driven by − Reduction in face length worked Gold -11% − Decline in g grade = Mine call factor has been stable Grade (cm.g/t) -3% Overall productivity maintained de
Slide 9: Plan to stabilise KDC between 250-275koz per quarter
Plan to stabilise KDC between 250-275koz per quarter Major investments in developing a safety culture Business Process Re-engineering Programme (BPR) − Shaft Full Potential (SFP) programme that is already delivering − NCE management helping to mitigate cost inflation in 2011 Focus on surface m
Slide 10: Shaft Full Potential programme: two fundamental drivers
Shaft Full Potential programme: two fundamental drivers Back to basics... ‘Full potential’ crew productivity Increasing ‘work place availability’ Launched several pilots - already having Focus on accelerating off and on reef a positive impact development - Continuous blasting - Realising full po
Slide 11: Our cost reduction program has helped offset inflation
Our cost reduction program has helped offset inflation SA Region Net Cost (R million) R838 million of cost reductions have helped contained cost escalation below inflation − Wage rates ~9% − Electricity ~27% Further cost savings identified
Slide 12: KDC production holding steady in 2011
KDC production holding steady in 2011 Moving closer to 2010 levels KDC average monthly production (‘000 ounces) 140 123 121 120 101 100 90 92 87 80 60 40 20 0 2008 2009 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011E 107
Slide 13: ~5Moz surface opportunity at KDC
~5Moz surface opportunity at KDC KDC and South Deep Surface Resources RD V6# RD V5# RD V2# Tailings Storage Facilities: KDC West RD 2Vent# ~4.1Moz g gold ((~418 Mt @ RD L10# RD 10 0.3g/t) South Deep RD 8 & 9 RD 13 RD 5 RD 7 RD 11 Surface S f R Rock k Dumps: D RD 12 RD HW# RD 6 ~0.6Moz gold (~30M
Slide 14: Surface mining underpins KDC production profile
Surface mining underpins KDC production profile Requires acquisition of new plant and KDC surface production de-risked by conversion of existing ones processing tailings and rock dumps Forecast Production 2011E – 2020E (‘000 ounces) 1 • Migrate surface rock dump processing to mobile 200 plant (Pytho
Slide 15: Exploring alternative options for KDC
Exploring alternative options for KDC KDC West KDC East D7 D10 D8 2 plants; D2 5 operating 3 plants; l t shafts h ft 7 operating shafts D1 K3 D4 D5 K8 K7 Legend Operating shaft EBA Plant Tailings dam 1. Bring forward valuable ounces 2 2. R i Review mining i i areas serveddbby operating ti shafts h f
Slide 16: Beatrix continues to provide predictable stable production
Beatrix continues to provide predictable stable production A cash generator: R525m free cash flow generated in 9 months to September 2011 Beatrix production profile ((‘000 000 oz) Consistent stable production from shallow orebody 500 No N significant i ifi seismic i i risk i k 400 Well capital
Slide 17: South Deep – flagship project in the region
South Deep – flagship project in the region World class reserve well understood Forecast production build-up (koz) 800 Massive ore body: 34.5Moz reserve (>50 years of life) 700 High tech, safer, mechanised bulk mining 600 500 Mine design that has cracked the deep level bulk 400 300 mining code
Slide 18: Ventilation shaft deepening
Ventilation shaft deepening 80% complete complete, on budget and on time; commissioning planned July 2012 113
Slide 19: Ventilation shaft equipping & headgear
Ventilation shaft equipping & headgear Headgear A-Frame early lift strategy Completed in May 2011 Rock winder installation progressing to plan – all major components manufactured and delivered to the mine 114
Slide 20: Tailings storage facility
Tailings storage facility Return Water Dam – lining complete in No.2 TSF – tailings deposition to cover the toe drains is in progress Pump station No.1 No.2 Penstock - returning water to fill the return water dam Return Water Dam – compartment No.2 being filled 115
Slide 21: Backfill infrastructure
Backfill infrastructure Full Plant Tailings – Backfill plant under construction at South Shaft 116
Slide 22: Plant expansion
Plant expansion 450ktpm downstream processing capacity Leach extension earthworks Leach extension earthworks Elution earthworks Elution earthworks Thickener earthworks 330ktpm milling capacity Thi k Thickener earthworks th k 117
Slide 23: Mining philosophy
Mining philosophy Mining a massive orebody at depth De-stress mining Backfilling Large backfilled stope Mechanisation Mechanisation 118
Slide 24: Combined mining methods
Combined mining methods 3D View of planned mining Drifts Long hole stoping t i Drives De-stress Stope Drives De-stress Stope Access Drives 119
Slide 25: De-stress accelerating, being de-risked with more access points
De-stress accelerating, being de-risked with more access points South Deep De-stress mining (m2) Enhanced understanding of the ore 8 000 body, logistics, and skills required 6 000 Increasing number of access points in place to lower delivery risk 4 000 Mining methodology proven; seismicity man
Slide 26: South Africa Region: the way forward
South Africa Region: the way forward Targeting stable production of 250-275koz per quarter from KDC − On-going optimisation − Surface mining to de-risk production profile − Numerous options under review Steady consistent production from Beatrix Ramp-up Ramp up at South Deep Critical enablers
Slide 27: Sustainable steady state production
Sustainable steady state production ~ 2Moz South Deep ramp-up 700koz run-rate ~ 1.7Moz Beatrix stable at by end 2015 ~350kozpa Beatrix ~355koz KDC stabilised at South Deep 1 to 1.1Moz* ~280koz KDC ~1.1Moz Current 2015 Target _________________________ * Anticipated annual production over next 3 to 5