Gold Fields Limited · JSE:GFI
Gold Fields — European Gold Forum 2013
27 slides from Gold Fields's conference presentation, Apr 17, 2013
Slide 1: It's All About Cash! European Gold Forum 2013
It All About Its Ab t Cash! C h! European p Gold Forum 2013 17 April 2013
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: Investors expect us to deliver leverage to the gold price
Investors expect us to deliver leverage to the gold price However, o e e , we e have a e not ot met et ttheir e e expectations….. pectat o s Note: Data indexed to 13 January 2006; index made up of 8 major gold producers’ total return indexes weighted by market capitalisation; Major Gold producers de
Slide 4: The Gold Fields Paradigm Shift
The Gold Fields Paradigm Shift Its ts not ot about ou ounces ces at a any y cost cost… • Review portfolio to optimise cash generation (Focus on NCE) Focus on cash 1 • Prioritise low risk, high return brownfields growth opportunities generation • Pursue greenfields projects only if they offer truly a
Slide 5: Portfolio Review: Unbundling Sibanye Gold
Portfolio Review Unbundling U bu d g Sibanye S ba ye Gold Go d Shareholders Gold Fields International Limited GFIMSA Tarkwa KDC Damang Beatrix St Ives Service Entities Agnew g Cerro Corona South Deep Other subsidiaries and Investments Two Independent Companies GFI | Its All About Cash! | Sydney Inve
Slide 6: Portfolio Review: Unbundling Sibanye Gold - Rationale
Portfolio Review Unbundling U bu d g Sibanye S ba ye Gold Go d - Rationale at o a e Create fit-for-purpose, sustainable, long-life operations Install a specialist, dedicated and focussed management team Ring-fence SA cash flows for SA projects and dividends Reverse declining production trends Optimi
Slide 7: Portfolio Review: Focus on Sustainable Cash Generation
Portfolio Review Focus ocus on o Sustainable Susta ab e Cash Cas Generation Ge e at o • Corporate Office and Regional structures rationalised Group • Greenfields exploration p spend p cut to US$80 $ million p p.a. • Owner mining conversion completed St Ives • High cost heap leach operation closed •
Slide 8: Focus On Cash Generation – Case Study, Agnew Gold Mine
Portfolio Review Focus ocus On O Cash Cas Generation Ge e at o – Case Study, Agnew g e Go Gold d Mine e Challenges Interventions • Mi d hi Mined high h grade d Ki Kim and d llow grade d MMain i & • Withd Withdrew ffrom Main M i &R Rajah j h llodes d Rajah lodes • Refocus mining on high grade Kim • D
Slide 9: Prioritise low risk, high return Brownfields Opportunities
Portfolio Review Prioritise o se lowo risk, s , high g return e u Brownfields o e ds Oppo Opportunities u es Tarkwa Tarkwa Expansion Phase 6 (TEP6) D Damang O ti i extraction Optimise t ti off 10M 10Moz ore b body d Sulphides Expansion Project Cerro Corona Oxides Project L Low Risk Ri k Strategy St
Slide 10: Pursue Greenfields Projects Only For Superior Returns
Portfolio Review Pursue u sue G Greenfields ee e ds Projects ojec s O Only y For o Supe Superior o Returns eu s Construction Decision (+ve feasibility study) Chucapaca 1 Indicated and Inferred Resources FS (+ve pre-feasibility study) APP Far Southeast 4 Damang Yanfolila GFI Target Confirmed Resource
Slide 11: Pursue Greenfields Projects Only For Superior Returns
Portfolio Review Pursue u sue G Greenfields ee e ds Projects ojects Only O y For o Superior Supe o Returns etu s Peru Chucapaca p Project j • Start small if possible • Advance only projects with Philippines Far Southeast Project attractive returns • Enforce stringent g stage g gates g • Where approp
Slide 12: The New Gold Fields: Global Footprint
The New Gold Fields AG Global oba Footprint ootp t FINLAND Arctic Platinum Project MALI Vancouver Yanfolila Denver PHILIPPINES PERU GHANA Far Southeast Cerro Corona Tarkwa Chucapaca Damang AUSTRALIA Manila Agnew Accra Lima St Ives Johannesburg Perth SOUTH AFRICA Santiago South Deep Offices | Mines |
Slide 13: The New Gold Fields: Proforma results from operations
The New Gold Fields Proforma o o a results esu ts from o operations ope at o s Proforma based on Results for Q4 2012 and F2012 Q4 2012 F2012 Attributable production koz 534 2,031 Cash costs US$/oz 793 784 NCE US$/oz 1,365 1,365 NCE margin % 19 18 EBITDA US$m 506 1,868 Normalised earnings US$m 143 44
Slide 14: The New Gold Fields: Focus on All-in Costs (NCE)
The New Gold Fields Focus ocus on o All-in Costs ((NCE) C ) New GFI Including South Deep New GFI Excluding South Deep US$/oz US$/oz 1 800 1 800 1 600 19% 1 600 26% NCE NCE 1 400 Margin 1 400 Margin 1 200 1 200 1 000 1 000 800 800 600 600 400 400 200 200 - - Jun-08 8 Sep-08 8 Dec-08 8 Mar-09 9 Jun-09
Slide 15: The New Gold Fields: Leverage the Balance Sheet
The New Gold Fields Leverage e e age tthe e Balance a a ce S Sheet eet Debt Maturity Post Unbundling Financial Targets 1 200 • Leverage balance sheet in particular, 1 000 the long end 800 $ million 600 • Strive for long-term Net Debt / EBITDA 1 000 400 720 ratio ≤1.0x 200 - 40 40 - 50 - - Liquidity
Slide 16: The New Gold Fields: Dividend Policy
The New Gold Fields Dividend de d Policy o cy Dividend Pay-out Ratio F2008 to F2012 1200 40% 2012 Dividends 38% A cents per sharre 33% 35% 1000 Pay-out ratio 1003 939 30% 800 26% 25% 25% 22% 600 20% 578 15% 400 529 SA 396 10% % 200 330 5% Final dividend R0.75 per share 150 130 140 235 0 0% 2008 2009
Slide 17: The New Gold Fields: International Diversification
The New Gold Fields International Diversification Gold Fields Gold Fields Before Unbundling Post Unbundling duction 17% 13% 29% anaged) 40% 24% 28% 9% Prod (ma 15% 43% 13% 35% 26% 8% C2012 C20161 RSA – South Deep RSA - Sibanye Australia West Africa South America 6% 4% 6% 10% 19% 53% 22% 62% 18% 1 Ad
Slide 18: South Deep Project (South Africa) 100%
South Deep Project (South Africa) 100% Capital Cap a Projects ojec s Progress og ess Landmark Union Agreement on new Operating Model – 2 October 2012 Full production of circa 700koz in 2016 De-stress development increased 75% year on year. Self-funding by end of 2013 Ke Infrastr Key Infrastr
Slide 19: 2013 Group Guidance
2013 Group Guidance Conservative Co se a e Yete Realistic ea s c Managed production koz 1,910 to 1,990 Attributable production koz 1,825 to 1,900 US$/oz 860 Cash cost R/kg 250,000 US$/oz 1,360 NCE R/k R/kg R395 000 R395,000 US$:ZAR 1=9.00 Exchange rates US$:A$ 1 = 0.962 Focus On Margins & Cash Flow
Slide 20: Conclusion
Conclusion A smaller, more focussed, yet solid platform for growth Focus on cash generation and a superior return on all funds invested Cash generation takes priority over production targets Dividends have first call on cash flows – 25% to 35% of normalised earnings Judiciously advance only low-risk
Slide 21: Investor Relations Contact
Investor Relations Contact Willie Jacobsz Senior Vice President Head of Investor Relations & Corporate Affairs Office: +27-11-562-9775 Mobile: +27-(0)82-971-9238 Willie.jacobsz@goldfields.co.za. Remmy Kawala Vice President, Investor Relations Office: +27-11-562-9844 Mobile: +27-(0)82-312-8692 Remmy.
Slide 22: South Deep Project (South Africa) 100%
South Deep Project (South Africa) 100% Transition a s o Phase ase – Project ojec to o Mine e F2012 F2011 Koz Managed Production Managed production koz 270 273 90 80 EBITDA (operating profit) US$ m 148 131 70 60 Contribution to New GFI EBITDA % 8 7 50 40 Total cash cost US$/oz 1,105 1,073 30 NCE US$/
Slide 23: Damang Gold Mine (Ghana) 90%
Damang Gold Mine (Ghana) 90% Two o Years ea s O Of Heavy ea y Inward a d Investment es e F2012 F2011 Koz Managed Production Managed production koz 166 218 70 60 EBITDA (operating profit) US$ m 125 201 50 Contribution to New GFI EBITDA 7% 10% 40 Total cash cost US$/oz 918 701 30 20 NCE US$/oz 1,630 1
Slide 24: Tarkwa Gold Mine (Ghana) 90%
Tarkwa Gold Mine (Ghana) 90% Optimisation Op sa o Phase ase F2012 F2011 Koz Managed Production Managed production koz 719 717 250 EBITDA (operating profit) US$ m 729 752 200 Contribution to New GFI EBITDA 39 38 150 Total cash cost US$/oz 673 556 100 NCE US$/oz 1,049 , 913 50 NCE Margin % 39 42 - Dec
Slide 25: Cerro Corona Mine (Peru) 99%
Cerro Corona Mine (Peru) 99% Its s Pay-back ay bac Time e F2012 F2011 Koz Managed Equivalent Production Managed production koz 342 383 120 100 EBITDA (operating profit) US$ $m 396 403 80 Contribution to New GFI EBITDA 21 20 60 Total cash cost US$/oz 492 437 40 NCE US$/oz 775 592 20 NCE Margin % 51 6
Slide 26: St Ives Gold Mine (Australia) 100%
St Ives Gold Mine (Australia) 100% Harvest a es Benefits e e so of O Owner e Mining g Co Conversion e so F2012 F2011 Koz Managed Production Managed production koz 450 465 130 125 EBITDA (operating profit) US$ m 326 322 120 Contribution to New GFI EBITDA 17 16 115 Total cash cost US$/oz 931 901 110 1
Slide 27: Agnew Gold Mine (Australia) 100%
Agnew Gold Mine (Australia) 100% A Turn-around u a ou d S Story oy F2012 F2011 Koz Managed Production Managed production koz 177 194 60 50 EBITDA (operating profit) US$ m 144 181 40 Contribution to New GFI EBITDA 8 9 30 Total cash cost US$/oz 827 696 20 NCE US$/oz 1,191 1,096 10 NCE Margin % 29 32 -