Analysts Site Visit Tarkwa Team May 2015 Forward looking - - PowerPoint PPT Presentation
Analysts Site Visit Tarkwa Team May 2015 Forward looking - - PowerPoint PPT Presentation
Analysts Site Visit Tarkwa Team May 2015 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
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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 among others those relating to the Damang Exploration Target Statement; the Far Southeast Exploration Target Statement; commodity prices; demand for gold and other metals and minerals; interest rate expectations; exploration and production costs; levels of expected production; Gold Fields’ growth pipeline; levels and expected benefits of current and planned capital expenditures; future reserve, resource and other mineralisation levels; and the extent of cost efficiencies and savings to be achieved. Such forward looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the company to be materially different from the future results, performance or achievements expressed or implied by such forward looking statements. Such risks, uncertainties and other important factors include among others: economic, business and political conditions in South Africa, Ghana, Australia, Peru and elsewhere; the ability to achieve anticipated efficiencies and other cost savings in connection with past and future acquisitions, exploration and development activities; decreases in the market price of gold and/or copper; hazards associated with underground and surface gold mining; labour disruptions; availability terms and deployment of capital or credit; changes in government regulations, particularly taxation and environmental regulations; and new legislation affecting mining and mineral rights; changes in exchange rates; currency devaluations; the availability and cost of raw and finished materials; the cost of energy and water; inflation and other macro-economic factors, industrial action, temporary stoppages of mines for safety and unplanned maintenance reasons; and the impact of the AIDS and other occupational health risks experienced by Gold Fields’ employees. These forward looking statements speak only as of the date of this document. Gold Fields undertakes no obligation to update publicly or release any revisions to these forward looking statements to reflect events or circumstances after the date of this document or to reflect the
- ccurrence of unanticipated events.
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
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Tarkwa Gold Mine
- Site Layout
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
Site Layout
Tarkwa Gold Mine
This is where you are …. CIL Plant HME Workshops Akontansi Pit
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Tarkwa Gold Mine
Fatality Free Man-hours – 62,202,902 Fatality Free Shifts – 5,055,585 LTI Free Shifts – 299,622
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
Safety Statistics
0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0
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
Rate Rolling 12 Month Injury Rates_2008 - Current LDIFR MTIFR RWIFR TRIFR
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Tarkwa Gold Mine
- 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 leaching conglomerate ore, low cyanide consumption yielding 97% recovery ̵ High volume driven mine with industry benchmark mining cost of US$2.45/t, mined by Gold Fields
- wner fleet and maintenance
̵ State-of-the-art 13.5Mtpa CIL plant operated at US$11/t ̵ 17 year life of mine at an AISC of US$988/oz
- Professional and Motivated people
̵ Employer of choice in Ghana, employing 2,400 highly motivated workforce ̵ High performance and zero tolerance safety culture
- Experienced miner in Ghana, West Africa
̵ We have been operating in Ghana since 1993 ̵ Total gold produced since 1994 is 9.6Moz
- Huge exploration potential within the Tarkwa lease area
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
Why We Are Excited About Tarkwa… A World Class Mine By Any Measure!
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Tarkwa and Damang Mine Locations
Tarkwa Gold Mine
Tarkwaian Banket 12 Km
- North Pads
- South
Pads
- Damang Pits
- South Primary Crusher
ADR Plant
Tarkwa
- North Primary Crusher
Tarkwa Pits •
N
GHANA TARKWA
Tarkwa Outcrop
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
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Tarkwa Gold Mine
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 II expansion completed to increase mining rate to 20.7Mtpa. All
underground operations and associated processing plant ceased production 2000
- GFG acquired the Northern area of Teberebie from Ghanaian Australian Goldfields
Limited and re-commissioned the open pit and heap leach operations. Tarkwa Phase III increased mining rate to 36 Mtpa and heap leach ore production to 12.6 Mtpa 2004
- Tarkwa implemented owner mining in July 2004 and commissioned CIL plant with
“name plate” capacity of 4.2Mtpa in October 2004 2010
- Conversion to owner maintenance was completed, with the inherent cost savings and
productivity gains materialising within a short period of time 2013
- North and South Heap Leach operations stopped
2014
- CIL Plant upgrade to 13.5Mtpa
A Brief History
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
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Tarkwa Gold Mine
- Management Team (1 of 2)
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
Leadership Team (1 of 2)
Michiel van Der Merwe – General Manager B.Eng. (Extractive Metallurgy) 19 years experience Steve Osei-Bempah – Manager Mining
- BSc. Mining Eng.
23 years experience Awie Landsberg – Engineering Manager (HME) National Higher Diploma – Mech. Eng. 22 years experience Godfred Avane – Mineral Resources Manager
- MSc. Geological Engineering
19 years experience George Nutor – Metallurgy Manager
- MSc. Mineral Eng. (Extractive Metallurgy)
20 years experience Elliot Twum – Engineering Manager
- BSc. Electrical/Electronic Engineering
14 years experience Abubakari Mohammed – HR Manager MPA, BA Hons Economics, ACCA Level 1 19 years experience Florence Ansere-Bioh – Comm. Affairs Manager MPhil Sociology 21 years experience
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Tarkwa Gold Mine
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
Dave Pienaar – Safety Manager NASDAM (M+3) 25 years experience Kwame Ako – Business Improvement Manager
- BSc. Civil Eng., Pg. Cert (Ops), MBA
9 years experience Major Eric Amuzu (Rtd) – Protection Services Manager
- Dip. Military Studies/Dip. Industrial Security
35 years experience Dr Ishmael Sackey – Health Services Manager
- BSc. (Medical Science) MB ChB
Advanced Diploma in Occupational Health 14 years experience Augustine Asubonteng – Finance Manager
- BSc. Natural Resources, ACCA
12 years experience Jeff Addy – ICT Operations Manager
- BSc. Computer Science
15 years experience Richard Attifu – Supply Chain Manager
- Dip. Logistics & Transport, MSc. Procurement,
Logistics & Supply Chain Management 31 years experience Ben Addo – Manager Environmental
- BSc. (Chemistry) MSc. Environmental
Management 20 years experience
Leadership Team (2 of 2)
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Tarkwa Gold Mine
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
Replacement of Reserves
0.55 0.55 0.72 0.72 0.66 0.63 0.66 0.74 0.72 0.72 0.63 0.56 8 10
- 2
4 6 8 10 12 14 16 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Moz
Reserves Gold produced Cumulative Production Cumulative Contained Au
11
ABOSSO KOTTRAVERCHY HUNI SANDSTONE TARKWA PHYLLITE BIRIMIAN BASEMENT BANKET GROUP
N
KILOMETERS 8
AKONTANSI APINTO PEPE AVS MANTRAIM
Tarkwa Gold Mine
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
Geology
The existing surface operation currently exploits narrow auriferous conglomerates
A CDE F2 G Reef Zones
Capital Waste Internal Waste
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Tarkwa Gold Mine
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
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. Up to 7m thick
B
- Very coarse quartzites with thin lags of pebble conglomerate. Up to 3m thick
CDE - Can be subdivided into the lower C reef and upper E reef both of which are conglomeratic. Up to 8m thick F2
- A variably developed polymictic gravel up to 2m. Essentially a marker horizon
G
- Poorly sorted conglomerate with clasts of quartzite and phyllite. Varies from 2m to 6m
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Tarkwa Gold Mine
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
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):
- Akontansi – inventory at 3.26 g/t cut-off (2013 costs at US$1500 gold price):
Tonnes Grade (g/t) Gold (oz) 8,847,360 3.45 982,116 Tonnes Grade (g/t) Gold (oz) 16,136,368 3.51 1,819,097
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2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
100 200 300 400 500 600 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Ounces (koz)
Measured Indicated Inferred
Tarkwa Gold Mine
Exploration: Gold Production Against Geological Confidence
Measured (Grade Controlled Drilled ), 43% Measured (Resource Drilled), 8% Indicated, 49% Inferred, 0%
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Tarkwa Gold Mine
North Hill Kobada Badukrom Blue Ridge Plant
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
Fanti
4 drill targets &1 robust anomaly within 5-8km buffer zone from plant
Hydrothermal potential
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Tarkwa Gold Mine: Kobada Target – Trenching & Drilling
- 1,371m of trenching completed.
- 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/t
- 21.1m @ 0.73g/t including
8.6m @ 1.60g/t
- 1.8m @ 12.1g/t
- 2 zones outlined by trenching
- 11.7m @ 0.62g/t
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
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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
15m @ 1.88g/t & 18m @ 2.19g/t 1m @ 11.4 g/t 10m @ 0.26g/t 10m @ 0.91g/t 1m @ 1.61g/t 30m @ 0.42g/t 61m @ 1.36g/t Incl. 6m @ 2.07g/t 10m @ 0.78g/t
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
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Tarkwa Gold Mine: Blue Ridge Targets
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
- Gold in soil anomaly trenched 160m apart over 900 m cumulative strike.
- Target has a set gold bearing quartz-tourmaline veinlets intersected by scout
drilling that returned encouraging results.
Section in next slide
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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
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2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
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
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Tarkwa Gold Mine
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
Mining Equipment – Key Assumptions
Fleet Availability Use of Availability Production Rates 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 69 74 76 1,734 1,800 1,800 9250 84 88 85 71 74 76 1,370 1,650 1,550 9350 86 88 85 78 74 76 1,730 1,950 1,900 Dump Trucks Cat777F 89 85 85 75 74 76 HD785 92 85 85 78 74 76 Cat785C 77 77 85 79 74 76 Cat793D 90 87 85 58 74 76 Drills m/hr m/hr m/hr Pantera 72 80 82 88 74 76 24.7 22 22 DK45S 72 84 85 88 74 76 27.3 22 26 PV235 76 84 85 87 74 76 22.1 22 24 Unit Truck Cat777F HD785 Cat785C Cat793D Truck Load tonnes 91 91 136 210 Dump minutes 1.25 1.25 1.25 1.25 Loader Loading Time 984C minutes 4.70 4.70 6.80
- 994B
minutes 2.30 2.30 3.30 5.00 9250 minutes 2.90 2.90 3.95 5.80 9350 minutes 2.30 2.30 3.30 5.00 996B minutes
- 3.00
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Tarkwa Gold Mine
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
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 plant treated 13.3Mt versus a plan of 12.4Mt to produce >20koz over plan
Remedial Actions
- Five new drill rigs have been ordered
- Short-term contractor drilling used as a stop
gap
- Improved maintenance on the drill rigs
222 142 300 50 100 150 200 250 300 350 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15
Meters (Thousand) Total Drilled Meters
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Tarkwa Gold Mine
Proven Owner Miner
- High volume and grade driven producer in a select mining operation
- Average unit mining costs within lower quartile of industry benchmark
- Well trained and competent workforce
- Training simulator, GPS Fleet Monitoring System
- Real time Mine Management Reporting System
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
98.4 2.43 20 40 60 80 100 120 140 160 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 F'cast Million Tonnes US$/t OPEX Tons - Mt CAPEX Tons - Mt Mining Unit Cost - US$/ton
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Tarkwa Gold Mine
Ore re Was aste
Selective Mining
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
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2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
Resources as at 31st December 2014
Tarkwa Gold Mine
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 0.97 67 105.6 1.28 4,331 Kottraverchy 9.1 1.68 493 0.0 0.96 0.0 0.0 0.0 9.1 1.68 493 Pepe 15.5 1.50 745 9.1 1.27 372 0.7 1.52 36 25.3 1.42 1,153 Teberebie 32.7 1.54 1,619 20.9 1.60 1,075 0.2 1.42 8 53.8 1.56 2,702 Total open pit 81.6 1.48 3,880 109.1 1.34 4,688 3.1 1.13 111 193.7 1.39 8,679 Surface Surface stockpiles 5.0 0.73 118 5.0 0.73 118 Spent Ore (Heap Leach) 60.0 0.40 771 60.0 0.40 771 Total surface 5.09 0.73 118 60.0 0.40 771 65.0 0.43 889 Grand total 86.6 1.44 3,997 169.1 1.00 5,409 3.1 1.13 111 258.7 1.15 9,568
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2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
Reserves as at 31st December 2014
Tarkwa Gold Mine
Proved Probable
Total Reserve
Mining Area
Tonnes (Mt) Grade (g/t) Gold (Moz) Tonnes (Mt) Grade (g/t) Gold (Moz) Tonnes (Mt) Grade (g/t) Gold (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 6.0 1.45 0.3 Pepe/Mantraim 13.8 1.40 0.6 2.4 1.10 0.1 16.2 1.36 0.7 Teberebie 32.0 1.41 1.5 20.9 1.45 1.0 52.9 1.43 2.4 Total Ex-Pit 77.7 1.35 3.4 79.7 1.26 3.2 157.4 1.30 6.6 Surface Stockpiles Spent Ore (SHL) 60.0 0.40 0.8 60.0 0.40 0.8 Surface stockpiles 5.0 0.73 0.1 5.0 0.73 0.1 Total Surface Stockpiles 5.0 0.73 0.1 60.0 0.40 0.8 65.0 0.43 0.9 GRAND TOTAL 82.7 1.31 3.5 139.7 0.89 4.0 222.4 1.05 7.5
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Tarkwa Gold Mine
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
Tonnes Mined
28
Tarkwa Gold Mine
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
Ore Tonnes
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Tarkwa Gold Mine
- 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
1,650 tonnes per hour
CIL Processing Plant
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
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2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
CIL Process Flow
Tarkwa Gold Mine
Scats Stockpile 2 x Regeneration Kilns CIL Tanks Acid Column 2 elution Column Pregnant Solution Tank Electrowinning Cells Furnace Gold Bullion Loaded Carbon Screen Carbon Sizing Screens Tailings Screens Tailings Tank Tailings 1 Storage Facility Process Water Pond Mill Return Tank 3 x Thickener 4 x Trash Screens Mill Discharge Screen SAG Mill Stockpile CV04 CV03 CV02 CV01 Crusher Pocket Crusher Cyclones Eluted Carbon Screen CV115 CV116 CV161 CV162 CV114 Auxiliary Stockpile Ball Mill CIL 2 Tanks CIL 1 Tanks Tailings Tank Tailings 2 Storage Facility Tailings Screens
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Tarkwa Gold Mine
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
Processing (Heap Leach + CIL) Unit Cost Vs. Throughput Trend
5.1 11.3 13.3 10.54 9.12 0.0 5.0 10.0 15.0 20.0 25.0 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 F'cast Tonnes US$/ton CIL Ore Treated - kt HL Ore Stacked - kt CIL Unit Cost - US$/ton HL - US$/ton
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Tarkwa Gold Mine
CIL expansion to 13.5Mtpa
- IRR: Est. 192%
(Act.: 406%)
- Payback: Est. 1.2 years
(Act.: 0.4 years)
- NPV @ 15%: Est. US$147M
(Act.: US$166M)
Major Projects – 5 Year Outlook
- Capital Waste Stripping: Mining avg.
53.4Mtpa @ Avg. Unit cost of US$2.48/t
- TSFs: - TSF 1 stage 8 & 9
- TSF 2 stage 4,5 & 6
- TSF 3 Stage 2 & 3
- TSF 5 Stage 1 & 2
- Mining fleet replacement:
- HME Component Change out
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
KPI 2015 2016 2017 2018 2019 Waste Stripping 118.7 116.8 133.6 126.6 118.3 Mining Equipment 48.8 5.0 2.6 9.4 18.8 HME Components 15.1 14.0 14.0 14.0 14.0 Tailings Storage Facilities 11.8 13.4 5.4 4.5 34.7 Other 2.3 1.7 1.6 1.8 1.5 Total Capital 196.7 150.9 157.2 156.3 187.3 Optimisation Areas Amount US$’M Comments Crushing Circuit 0.56
- Utilised HL 2nd & Tetiary crushing circuit to
feed CIL material sizes P80 22mm; Impact
- f 200 t/hr on milling rate
Milling Circuit 1.74
- Upgraded cyclone feed pumps from 1.2kW
to 1.8 kW to streamline fluid dynamics and milling constraints
Leaching 4.37
- Replaced CIL stream 1 lower flow-rate
screens with high flow-rate screen to sustain incremental flow
- Upgrade CIL tails pumps
- Oxygen plant Installation to sustain
recovery at 97% at the higher throughput.
Total Capital 6.67
Major Projects and Capital Expenditure
33
Tarkwa Gold Mine
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
Key Metrics
KPI Unit Q4 – 2014 2014 Q1 – 2015
2015
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 47,195 Total mined kt 22,164 87,343 25,725 98,362 CIL ore processed kt 3,381 13,361 3,385 13,361 CIL head grade g/t 1.25 1.26 1.28 1.39 CIL recovery % 97.1 97.3 96.9 97.1 CIL gold produced
- z
130,587 527,179 135,766 580,000 NHL gold produced
- z
2,511 31,043 Gold production
- z
133,098 558,222 135,766 580,000 Gold Price US$/oz 1,203 1,266 1,218 1,193 Operating Cost US$M 89.4 373.9 84.9 347.8 Capital Expenditure US$M 51.5 174.1 84.5 196.7 AISC US$/oz 1,148 1,068 1,297 1,040 Cash Flow generated (Ex. Div.) US$M 7.1 101.7 (20.5)
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Tarkwa Gold Mine
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
Cost Strategy & Opportunities
VDTs Target Setting Priority levers Operating Strategy
Last Month:
- Priorities
- Action plans
- Results attained
Next Month
- Revised priorities
- Action plans
- Expected results
Management Meetings & Reviews
- GENSER: Potential lower power
price by 30%. Reduction of 15% in LOM processing cost
- Fuel: Declining crude oil price on the
world market.
- Continuous improvement by
- ptimizing efficiencies
- Strategic and rapid sourcing
- pportunities on the back of lower
commodity prices
Update VDTs Revise / refine targets Identify & agree priorities Present Operating Strategy and action plans to Exco
Opportunities
35 184 136 145 104 89 89 10 9 10 153 138 121 40 31 30 97 75 75 100 200 300 400 500 600 700 2013 Actual 2014 Actual 2015 Forecast US$ Million Operational expenditure by activity MIN HME MRM Metallurgy Engineering G&A
A Reducing Trend In Operational Expenditure
Tarkwa Gold Mine
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
586 479 470
22% 2% Labour 23% Materials 50% Contarctors & Consultants 11% Power 12% Sundry 4% 2015 Operational forecast spend by element Fuel 54% Explosives 16%
- Mech. Parts &
Comp. 13% GET 10% Tyres & Tubes 7% Top 5 material spend is approximately 62%
- f total material
spend
36
Tarkwa Gold Mine
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
Cost History: AISC vs Gold Price
580 1 040 1 194 100 200 300 400 500 600 700 800 200 400 600 800 1 000 1 200 1 400 1 600 1 800 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 F'cast koz US$/oz CIL Gold Production - koz HL Gold Production - koz AIC - US$/oz Gold Price - US$/oz
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Tarkwa Gold Mine
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
3 Year Strategic Focus
Safety Production Cost Growth
- To be a 600koz per
annum production
- Grade & throughput
- Achieve and maintain a
sustainable 20 year LOM
- Resetting & optimizing
- ur cost base
- Grow the reserve with
- n-lease exploration
- Target AISC of <US$1,000/oz
- Continue the focus on
cost control & industry best practices
- Maintain current drive on
business improvement
- pportunities
- 0 LTI Target
- Advanced safety
culture on the mine supported by behavioral safety management program to work towards zero harm
Strategic Focus: Tarkwa Is Positioned To Deliver On Its Long Term Plan
38
GFG Employees 2 412 Contractors 2 114 (non-core
- Business. Hospital,
cleaning services etc.)
Expats, 31
- Snr. Officials ,
85 Officials, 355 Staff , 1 941
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
Total employee head count of 4,526
Tarkwa Gold Mine
Employee Group Female Male Total
Expats 31 31 Senior Officials 3 82 85 Officials 39 316 355 Staff 56 1,885 1,941
Total 98 2,314 2,412
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Tarkwa Gold Mine
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
The Foundation: $1.00/Oz And 1% Of Pre-tax Profits Central To Our Business Philosophy and Not an Ad-On
Responding to community needs as relating to the impact of our mining activities No secured funding As and when needed or appropriate
1993 2002 2004 2014
Setting up of Fund Began the process of integrating community development into the company’s business Legally registered as a Foundation 1st in the industry
2005 2010
Sustainable Community Empowerment and Economic Development (SEED) Programme adopted SEED stepped up
40
Tarkwa Gold Mine
Chamber of Mines Presentation on Cost | October 2014
Sustainable Development: About US$26M Invested
Education Health Water & Sanitation Agriculture
- About US$8million has been spent on Education
- 52 basic schools
- 400 classrooms
- Over 1,100 scholarship beneficiaries
- Foundation sponsored health facilities
- Reduction in communicable diseases
- Access to community health care
- Awareness on HIV/AIDS and public health
- Provision of potable water at the doorstep of residents of
stakeholder communities
- Small town water supply systems
- Mechanized boreholes
- Almost a 1,000 oil palm farmers supported
- Over US$ 5.5million plus has been spent on Agriculture
- More than 400 community residents supported under Micro
enterprises
41
Tarkwa Gold Mine
Opportunities What’s Required to Make the opportunity a reality Ounces/ Benefit Potential Costs Required
Fleet Management System Complete all hardware installation Increased mining efficiency
- Energy and Carbon efficiency
improvement Implement and manage C&E saving initiatives Reduction of operational cost To be determined on a case by case basis Upgrading inferred resources Additional drilling required 238koz US$5.1M Mining of Teberebie Pillar All permits obtained and mining has commenced 400koz of additional reserve
- unces in Teberebie
Operational cost
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
Risk Mitigating Actions
TSF Capacity TSF 5 construction commenced Power Negotiating VRA agreement or independent power providers (GENSER) Mine Call Factor
(Reconciliation between reserve and actual gold produced)
Improve on mining practices and day-to-day tracking of ore from pit to ROM to plant
Delay of EPA permits
Timeous application & high-level engagement