Slide 1: Building a Sustainable Business At US$1,300/oz Gold Price
Building a Sustainable Business At US$1,300/oz Gold Price Denver Gold Forum Nick Holland 16 September 2014
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 The Journey Started With The Speech To The Melbourne Mining Club What Investors Want Aug 2012 Portfolio Review Aug - Dec 2012 Sibanye Gold Dec - Jan 2012 New Cash Strategy 2013 Business Plan A New Paradigm 15 April 2013 Gold Price < US$1,300/oz A Fundamental Shift I
Slide 4: Six Strategic Themes
The Transformation of Gold Fields Six Strategic Themes Commitments Made On 22 August 2013 1. Focus on free cash flow ̵ Structural shift in cost base ̵ >15% free cash flow at a US$1,300/oz gold price ̵ No marginal mining, no high-grading, maintain cut-off grades ̵ Protect sustainability of ore bodies
Slide 5: AIC Down 30% from Q2 13 to Q2 14
The Transformation of Gold Fields AIC Down 30% from US$1,572/oz (Q2 13) to US$1,093/oz (Q2 14) Production and Costs 700,000 1,800 598,000 1,600 600,000 557,000 548,000 1,400 496,000 500,000 451,000 1,200 Ounces US$/oz 400,000 1,000 300,000 800 600 200,000 400 100,000 200 0 0 Q2 2013 Q3 2013 Q4 2013
Slide 6: Net Cash Flow
The Transformation of Gold Fields Net Cash Flow1 250 2,000 200 1,372 1,500 1,315 1,265 1,283 1,275 150 1,000 100 65 54 500 50 38 US$ million US$/oz 3.6 0 0 -50 -500 -100 -1,000 -150 -1,500 -200 -250 -229 -2,000 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Net cash flow Gold price 1 Net cash flow from ope
Slide 7: Creating Value Through Corporate Restructuring
The Transformation of Gold Fields Creating Value Through Corporate Restructuring (Announced 29 November 2012) 28 Nov 2012 Gold Price 1,800 US$1,719.69/oz 28 November 2012 to 3 September 2014 1,700 1,600 1,500 1,400 1,300 1,200 3 Sep 2014 1,100 US$1,269.40/oz 1,000 Total Shareholder Returns 28 Novemb
Slide 8: Balance Sheet Further Strengthened
The Transformation of Gold Fields Balance Sheet Further Strengthened ● H1 2014 - Net debt reduced by US$100m to US$1,635m ● Net Debt to EBITDA reduced to 1.47X1 ● Maturity date on US$715m of debt extended, on same terms, from November 2015 to November 2017 1 12-month rolling historical average Targe
Slide 9: Active Portfolio Management
The Transformation of Gold Fields Active Portfolio Management Arctic Platinum Project Finland Woodjam “The wrong metal” British Columbia “The wrong metal” Talas Kyrgysztan “The wrong address” FSE Phillippines “Great optionality” Yanfolila Mali Asosa “Franchise / hurdle rates” Ethiopia “The wrong add
Slide 10: Alignment of Executive and Senior Management Incentives With Shareholders
The Transformation of Gold Fields Alignment of Executive and Senior Management Incentives With Shareholders ● Short term bonus (Annual) ̵ Based on Board approved annual operational plans and targets ̵ Includes parameters for operational sustainability ● Long term bonus (Three year cycle) ̵ Cash rath
Slide 11: Australia Region
Australia Region
Slide 12: Gold Fields Australia: A Robust Portfolio
Australia Region Gold Fields Australia: A Robust Portfolio Q2 2014 Production and AIC By Mine 300 1,600 256.9 1,372 1,400 250 1,228 1,200 200 1 042 1,010 1,000 US$/oz Koz 150 692 800 600 100 83.4 84.6 66.0 400 50 22.9 200 0 0 Region St Ives Granny Smith Agnew/Lawlers Darlot Production AIC Targeting
Slide 13: Yilgarn South Acquisition: Key Performance Indicators
Australia Region Yilgarn South Acquisition: Key Performance Indicators KPI Unit GFI 9 Months ABX 9 Months Comments Safety TRIFR 7.72 15.51 Actual injuries - 11 under GFI vs 30 under ABX Only mining ore that contributes to the required Ore Processed Kt 1,931 2,274 margin Head Grade g/t 6.29 5.08 As a
Slide 14: St Ives Gold Mine
Australia Region St Ives Gold Mine RESOURCE EXTENSION & EXPLORATION ● Orogenic style of mineralisation DISCOVERY RESOURCE ● 127,556 ha of granted tenements with 4.3 Moz significant exploration potential RESERVE ● Circa 16 Moz discovered and 12 Moz 2.0 Moz • Strong endowment produced since 1980 ~12 M
Slide 15: Agnew / Lawlers Gold Mine
Australia Region Agnew / Lawlers Gold Mine RESOURCE EXTENSION & EXPLORATION ● Orogenic style of mineralisation DISCOVERY ● 78,547 ha of granted tenements with significant exploration RESOURCE potential 3.66 Moz ● Circa 11 Moz discovered and 7 Moz produced since 1985 • Extensive exploration pipeline
Slide 16: Granny Smith Gold Mine
Australia Region Granny Smith Gold Mine RESOURCE EXTENSION & EXPLORATION ● Orogenic style of mineralisation DISCOVERY ● 61,774 ha of granted tenements with significant exploration RESOURCE potential 3.3 Moz ● >20 Moz mined in the Laverton region including ~ 2.5 Moz RESERVE from Grannny Smith, ~ 8 Mo
Slide 17: West Africa Region
West Africa Region | Gop | Fiecps
Slide 18: Gold Fields Ghana: Significant Potential Beyond Current Resource Life
West Africa Region Gold Fields Ghana: Significant Potential Beyond Current Resource Life Q2 2014 Production and AIC By Mine 200 1,400 1,282 180 181.3 1,200 160 1,084 1,026 140 1,000 140.7 120 800 US$/oz Koz 100 600 80 60 400 40 40.5 200 20 0 0 Region Tarkwa Damang Production AIC Targeting One Millio
Slide 19: Tarkwa Gold Mine
West Africa Region Tarkwa Gold Mine ● Wits Style Paleoplacer mineralisation RESOURCE EXTENSION & EXPLORATION ● 20,825 ha of granted tenements with significant DISCOVERY exploration potential at existing pits and on-site RESOURCE ● Significant on-site ore reserve extension and new 10.3 Moz exploratio
Slide 20: Damang Gold Mine
West Africa Region Damang Gold Mine RESOURCE EXTENSION & ● Hydrothermal Paleoplacer mineralisation EXPLORATION DISCOVERY ● 25,016 ha of granted tenements RESOURCE 6.6 Moz ● Significant exploration potential on 30 km strike RESERVE 1.1 Moz • Exploration aligned to turnaround length between Tarkwa and
Slide 21: South America Region
South America Region @ | Gop | Fiecps
Slide 22: Cerro Corona Copper/Gold Mine
South America Region Cerro Corona Copper/Gold Mine RESOURCE EXTENSION & EXPLORATION ● Cu/Au porphyry mineralisation DISCOVERY RESOURCE ● 2,765 ha of mining concession 3.3 Moz Au 1,124 Mlb Cu RESERVE • 2014 re-logging project to ● Continued outperformance against resource model 2.0 Moz Au better defi
Slide 23: South Africa Region
South Africa Region
Slide 24: South Deep Project
South Africa Region South Deep Project RESOURCE EXTENSION & ● Ground Support Programme EXPLORATION DISCOVERY ̵ Affected majority of production and destress areas RESOURCE ̵ Commenced mid-May 76.2 Moz • Massive, multi-layered palaeoplacer with high ̵ Completed end-September RESERVE predictability • G
Slide 25: Reviewing The Mining Method
South Deep Project Reviewing The Mining Method • International Geotechnical Advisory Board (IGAB) - Industry leading experts from across the globe - Reviewed South Deep’s destress mining methodology over past seven months - Two alternative mining methods identified • Both methods piloted in areas ou
Slide 26: Conclusions
Conclusions
Slide 27: Conclusions
Conclusions 1. Focus on free cash flow ̵ Structural shift in cost base ̵ >15% free cash flow at a US$1,300/oz gold price ̵ No marginal mining, no high-grading, maintain cut-off grades ̵ Protect sustainability of ore bodies by investing in development and stripping 2. Reboot and deliver South Deep 3.
Slide 28: Building a Sustainable Business At US$1,300/oz Gold Price
Building a Sustainable Business At US$1,300/oz Gold Price Denver Gold Forum Nick Holland 16 September 2014