Gold Fields Limited · JSE:GFI
Gold Fields — BMO Capital Markets Global Metals and Mining Conference 2015
20 slides from Gold Fields's conference presentation, Feb 23, 2015
Slide 1: Delivering on the Strategy
BMO Capital Markets Global Metals and Mining Conference DELIVERING ON THE STRATEGY Nick Holland Monday, 23 February 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: The Transformation of Gold Fields
The Transformation of Gold Fields Strategic Imperatives 1. Focus on Free Cash Flow ̵ Structural shift in cost base ̵ >15% free cash flow margin at a US$1,300/oz gold price ̵ No marginal mining and high-grading, maintain cut-off grades ̵ Protect sustainability of ore bodies by investing in developmen
Slide 4: Salient features
Salient features Q4 2014 Full year 2014 ● Attributable production: 556koz ● Attributable production: 2.22Moz ● AISC: US$1,023/oz (excl. South Deep: ● AISC: US$1,053/oz (excl. South Deep: US$963/oz) US$1,000/oz) ● AIC: US$1,047/oz (excl. South Deep: ● AIC: US$1,087/oz (excl. South Deep: US$975/oz) US
Slide 5: How we scored on key deliverables in 2014
How we scored on key deliverables in 2014 Cost Control & Production 15% FCF Margin Safety @ US$1,300/oz Increased Reduce net debt momentum at Pay Dividends by $200m in 2014 South Deep Disposal of non- core assets BMO Capital Markets Global Metals and Mining Conference | Nick Holland | 23 February 20
Slide 6: Production and Costs
The Transformation of Gold Fields AIC down 35% from US$1,621/oz (Q4 2012) to US$1,047/oz (Q4 2014) Production and Costs 700 000 1800 598 000 1600 600 000 557 000 548 000 559 000 556 000 534000 1400 496 000 500 000 477000 451 000 1200 Ounces 400 000 US$/oz 1000 300 000 800 600 200 000 400 100 000 200
Slide 7: Net Cash Flow
The Transformation of Gold Fields Net Cash Flow1 250 2013 2014 2 000 Gold: US$1,386/oz Gold: US$1,249/oz 1 686 Net cash: (US$232 million) Net cash: US$236 million 1 625 1 372 1 500 1 315 150 1 265 1 283 1 275 1 265 1 179 1 000 65 63 54 54 50 38 4 500 US$ million -6 US$/oz -50 0 -45 -500 -150 -1 000
Slide 8: Strengthening of the Balance Sheet
The Transformation of Gold Fields Strengthening of the Balance Sheet ● Net debt reduced by US$282m to US$1,453m ● Net debt to EBITDA reduced to 1.3x1 ● Maturity date on US$715m of debt extended, on same terms, from Nov 2015 to Nov 2017 ● Targeting net debt to EBITDA of 1.0x by 2016 Net debt (US$m) a
Slide 9: Utilisation of Cash: A Dividend-first Policy
The Transformation of Gold Fields Utilisation of Cash A Dividend-first Policy ● H1 2014 Dividend: R0.20 per share ● H2 2014 Dividend: R0.20 per share ● Total 2014 Dividend: R0.40 per share Dividend per share (Rc) and % payout 25 40% 35% 20 30% 15 25% 20% 10 15% 10% 5 5% 0 0% H1 2013 H2 2013 H1 2014
Slide 10: Solid international portfolio
Solid international portfolio All regions generating cash at current gold price Production (koz) AIC (US$/oz) 300 1300 Spot gold 250 1100 900 200 700 150 500 100 300 50 100 0 -100 Australia Ghana Peru Australia Ghana Peru Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 201
Slide 11: South Deep: 2014 Intervention
South Deep 2014 Intervention ● People Strategy • Short term › Rightsizing of workforce through voluntary separation process • Medium term › Recruit South African Team from limited pool of skills • Long term › Grow South African skills pool through bespoke mechanised mining training ● Fleet Availabil
Slide 12: South Deep: The Way Forward
South Deep The Way Forward: Short-term Objectives ● Address the skills shortage ̵ Internal skills development deemed an imperative ● Stop the cash burn ̵ Move to break-even in 2016 ̵ Optimise entire mine ̵ No more major capital required • ZAR1.7bn project capital remaining from original budget - to
Slide 13: Future upside...not blue-sky
Future upside...not blue-sky | Go. Gite
Slide 14: St Ives – Project Generation: Highly Prospective Corridor
St Ives – Project Generation: Highly Prospective Corridor Speedway Corridor Exploration Targets ● Poorly Explored Trend ● Proven to be Able to Deliver Major Deposits ● Multiple Programmes Undertaken at all Milestone Levels (1-4) ● Evidence of Gold Along 22km Strike Length ● Rigorous Staged Explorati
Slide 15: Agnew – Waroonga Maintains High Potential Extensional Opportunities
Agnew – Waroonga Maintains High Potential Extensional Opportunities Robust Reserve Secured at FBH-Link – Additional Targets to be Tested in 2015 FBH-Link Probable Reserve: 1,19Mt at 9.1 g/t for 348 koz 15
Slide 16: Agnew/Lawlers - Genesis New Holland
Agnew/Lawlers - Genesis New Holland Genesis New Holland – 2015 Targets for Reserve Replacement and Growth Grade Control Advanced Drilling Initial Drilling BATAVIA 500 SERIES - EASTERLY EXTENSIONS GENESIS 200 - SERIES AREA 2/3 HIMITSU GENESIS 500 EXTENSIONS CINDERELLA 600-700 SERIES HIDDEN SECRET UG
Slide 17: Granny Smith – Wallaby Underground Continues to Grow
Granny Smith – Wallaby Underground Continues to Grow Wallaby Deposit 2015 Focus On Reserve Replacement and Growth 1,800m Wallaby Southern Corridor Exploration Zone 60 Zone 250 Zone 70 Zone 70E Zone 90 North Step-Out Zone 80 Exploration Zone 90 Zone 100 Zone 90 N Infill Resource Drilling Zone 110 Zon
Slide 18: Damang Exploration Targets: >10km strike to be fully tested
Damang Exploration Targets: >10km strike to be fully tested Exploration Projects for 2015 • Exploration program tailored to fit Damang’s turnaround Saddle ‘Bridge’ strategy • Replace and grow reserves by extensions to active pits and known ore deposits Juno South & • Exploration to target hydrotherm
Slide 19: Salares Norte Project (Chile) - 2015 Drilling Program
Salares Norte Project (Chile) - 2015 Drilling Program Infill and Resource Delineation: 33,000 metres Agua SNDD119 52.8 m @ 2.0 g/t Au SNRC129 22m @ 5.8 g/t Au 29.4 g/t Ag Amarga 27.3 g/t Ag SNDD109 SNRC128 49.2 m @ 1.9 g/t Au 35m @ 2.2 g/t Au 8.7 g/t Ag 27.8 g/t Ag SNDD108 SNDD072 63.8 m @ 4.3g/t Au
Slide 20: Conclusions
Conclusions Group 2015 Guidance ● Attributable production (gold equivalent): 2.20Moz ● AISC: US$1,055/oz ● AIC: US$1,075/oz ● Exchange rates: ZAR11.50 = US$1.00; US$0.80 = A$1.00 Five Strategic Priorities ● South Deep – The top priority ● Cash flow and margin – Make money at current prices ● Dividen
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