Back To Work Back To Work Back To Work Back To Work Q2 F2008 - - PowerPoint PPT Presentation

Back To Work Back To Work Back To Work Back To Work

Q2 F2008 Results 31 January 2008 y

Forward Looking & Cautionary Statements Forward Looking & Cautionary Statements

This document and any materials distributed in connection with this document are not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation. This document and any materials distributed in connection with this document are not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation. This presentation does not constitute or form part of an offer to sell or issue, or any solicitation of an offer to buy or subscribe for, any securities referred to herein. The capital raising and other information in connection with the capital raising in certain jurisdictions may be restricted by law and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction. This presentation does not constitute or form part of an offer to sell or issue, or any solicitation of an offer to buy or subscribe for, any securities referred to herein. The capital raising and other information in connection with the capital raising in certain jurisdictions may be restricted by law and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction. The securities mentioned herein have not been, and will not be, registered under the U.S. Securities Act of 1933 (the "Securities Act"), and may not be offered or sold in the United States (as such term is defined in Regulation S under the Securities Act) unless they are registered under the Securities Act or pursuant to an exemption from registration. No public offer of the securities is being made in the United States. The securities mentioned herein have not been, and will not be, registered under the U.S. Securities Act of 1933 (the "Securities Act"), and may not be offered or sold in the United States (as such term is defined in Regulation S under the Securities Act) unless they are registered under the Securities Act or pursuant to an exemption from registration. No public offer of the securities is being made in the United States. This document is not an offer of securities for sale in any jurisdiction. Certain statements in this presentation 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. Such forward looking statements involve known and unknown risks, uncertainties and other important factors that could cause the t l lt f hi t f th t b t i ll diff t f th f t lt f This document is not an offer of securities for sale in any jurisdiction. Certain statements in this presentation 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. Such forward looking statements involve known and unknown risks, uncertainties and other important factors that could cause the t l lt f hi t f th t b t i ll diff t f th f t lt f 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: overall economic and business conditions in South Africa, Ghana, Australia, Venezuela and elsewhere; the ability to achieve anticipated efficiencies and other cost savings in connection with past and future acquisitions; the success of exploration and development activities; decreases in the market price of gold; the occurrence of hazards associated with underground and surface gold mining; the occurrence of labor disruptions; availability, terms and deployment of capital; changes in relevant government regulations, 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: overall economic and business conditions in South Africa, Ghana, Australia, Venezuela and elsewhere; the ability to achieve anticipated efficiencies and other cost savings in connection with past and future acquisitions; the success of exploration and development activities; decreases in the market price of gold; the occurrence of hazards associated with underground and surface gold mining; the occurrence of labor disruptions; availability, terms and deployment of capital; changes in relevant government regulations, g; p ; y, p y p ; g g g , particularly environmental regulations and potential new legislation affecting mining and mineral rights; fluctuations in exchange rates, currency devaluations and other macroeconomic monetary policies; and political instability in South Africa, Ghana, regionally in Africa

• r in Venezuela.. 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 g; p ; y, p y p ; g g g , particularly environmental regulations and potential new legislation affecting mining and mineral rights; fluctuations in exchange rates, currency devaluations and other macroeconomic monetary policies; and political instability in South Africa, Ghana, regionally in Africa

• r in Venezuela.. 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 2 g p p y y g circumstances after the date of this document or to reflect the occurrence of unanticipated events. g p p y y g circumstances after the date of this document or to reflect the occurrence of unanticipated events.

Introduction Introduction

Ian Cockerill Chief Executive Officer Chief Executive Officer

Introduction Introduction

4

Introduction Introduction Highlights Highlights Net Earnings

• Up 350% to R1,938m

Normalised earnings Operating margin

• Up 48% to R603m
• Up strongly to 38%

Operating margin Production

• Up strongly to 38%
• Down 3% to 960,000oz

Unit cash costs Dividend

• Up 3% to R101,532/kg
• Nil interim dividend

Dividend

• Nil interim dividend

5

Gold Price Captured in Margin Growth Gold Price Captured in Margin Growth

Introduction Introduction Corporate Action Corporate Action

Essakane

Sold to Orezone

Essakane

Sold to Orezone

Choco 10

Sold to Rusoro

Choco 10

Sold to Rusoro US$ 205 million US$ 205 million US$ 532 million* US$ 532 million*

* Priced on the day of the sale 6

Upgrading the Portfolio Upgrading the Portfolio

Introduction Introduction Cerro Corona Project Cerro Corona Project

Revised Schedule On Track LOM Salient Features LOM Salient Features

Ore 6.2mtpa Au 150koz

Transition and Operating

Au 150koz Cu 57mlb Cu (26kt) Au equiv* 360koz pa*

Full Production

Operating Teams in Place

Strip ratio 0.58 X Cash costs ~ US$320/oz

Production Q1 F09

Capital US$421m

7

EBITDA contribution* = (0.15*900 + 57*3.3) EBITDA contribution* = (0.15*900 + 57*3.3) – – (120) = ~US$203mpa (120) = ~US$203mpa

* Au equiv and EBITDA calc : US$900/oz Au and US$3.3lb and typical LOM parameters

Introduction Introduction Consequences of Power Shedding Consequences of Power Shedding

• 10% energy saving imposed by Eskom
• 10% energy saving imposed by Eskom

̵

Energy efficiencies across all mines

̵

Potential shedding of marginal production

̵

Energy efficiencies across all mines

̵

Potential shedding of marginal production

• Reviewing power constrained options for South Deep
• Reviewing power constrained options for South Deep

Q3 08 P d ti d 20% t 25% Q3 08 P d ti d 20% t 25%

• Q3 08 Production: down 20% to 25%

̵

Christmas break

̵

Power shedding

• Q3 08 Production: down 20% to 25%

̵

Christmas break

̵

Power shedding

• Steady state production at 90% power: down 15% to 20%
• Steady state production at 90% power: down 15% to 20%

8

South African Mines Back At Work South African Mines Back At Work

Financial Review Q2 F2008 Financial Review Q2 F2008

Nick Holland Chief Financial Officer Chief Financial Officer

Financial Financial Salient Features Salient Features

Q2F2008 Q2F2008 Q1F2008 Q1F2008

Gold produced – attributable 000oz 960 986 Gold produced attributable 000oz 960 986 Exchange rate ZAR/US$ 6.76 7.10 Revenue US$/oz 784 680 R/kg 170 488 155 333 Revenue R/kg 170,488 155,333 Rm 5,430 5,018 Rm 3,341 3,292 265 267 Operating costs R/ton 265 267 SA ug R/t 713 671 Operating profit Rm 2,037 1,716 Operating margin % 38 34 Total Total cash cash costs costs R/kg R/kg 101,532 101,532 98,456 98,456 US$ 467 431 US$

10

1

Operating Margin Increased to 38% Operating Margin Increased to 38%

Financial Financial Operating Costs (R’m) (Q On Q) Operating Costs (R’m) (Q On Q)

R3 341 R60m (1 8%) R44m (1.3%) -R55m (1.7%)

Operational cost increases

3400 3500

R3,292m R3,341m R60m (1.8%)

3200 3300 3000 3100 2800 2900 2600 2700 2500

Q1F2008 South African Operations International Operations Exchange Rate Translation Q2F2008

11

Good Cost Control Good Cost Control

Financial Financial Income Statement Income Statement

Q2F2008 Q2F2008 Q1F2008 Q1F2008

Operating profit Rm 2 037 1 716 Operating profit Rm 2,037 1,716 Amortisation & depreciation Rm (763) (771) Net operating profit Rm 1,274 945 Finance cost Rm (97) (107) (Loss)/gain on financial instruments Rm (188) 9 Exploration Rm (78) (85) Exploration Rm (78) (85) Other Rm (10) (11) Profit before tax & exceptional items Rm 901 751 Exceptional items Rm 1,417 29 Mining & income tax Rm (419) (289) Income from sale of Venezuela (discontinued Rm 119 (8)

• perations)

Rm 119 (8) Net profit Rm 2,018 483 Net profit attributable to minority shareholders Rm 80 54

12

Net profit attributable to ordinary shareholders Net profit attributable to ordinary shareholders Rm Rm 1,938 1,938 429 429

Financial Financial Income Statement Income Statement

Q2 2008 Q2 2008 Q1 2008 Q1 2008

Rm 1,938 429 Net profit attributable to ordinary shareholders (SA)cps 297 66 Net profit excluding gains and losses on foreign exchange, financial instruments, exceptional items and discontinued operations Rm 603 408 (SA)cps 93 62 ( ) p

13

Financial Financial Cash Flow Statement Cash Flow Statement

Q2F2008 Q2F2008 Q1F2008 Q1F2008

Cash flow from operations Rm 1 148 985 Cash flow from operations Rm 1,148 985 Dividends Rm

• (620)

Capital expenditure net Rm (2,474) (1,897) Disposals

• Essakane
• Venezuela

Rm Rm 1,042 1,193

• (28)

Other investing activities Rm 17 (8) Other investing activities Rm 17 (8) Net loans (repaid)/received Rm (1,081) 736 Other financing activities Rm 12 9 Other financing activities Rm 12 9 Net cash outflow Rm (143) (823) Currency translation adjustment Rm (6) (17) y j ( ) ( ) Cash at beginning of period Rm 1,470 2,310 Cash at end of period Rm 1,321 1,470

14

Financial Financial How is the Business Doing? How is the Business Doing?

December Quarter December Quarter R’m R’m R/kg R/kg US$/oz US$/oz

R 5 430 170 488 784 Revenue 5,430 170,488 784 Operating costs net (3,392) (106,515) (490) Operating profit 2,038 63,973 294 Finance costs (97) (2,895) (14) Exploration (79) (2 471) (11) Exploration (79) (2,471) (11) Capex - sustaining (933) (29,295) (135) Taxes and royalties (410) (12,874) (59) Surplus from current operations 519 16,287 75 (1 542) (48 417) (223) Long term growth and replacement capex (1,542) (48,417) (223) Cerro Corona (649) (20,378) (95) Uncle Harry’s (400) (12,560) (58) South Deep (204) (6,405) (29) Tarkwa expansion (196) (6,154) (28) 9 Shaft Driefontein (93) (2,920) (13)

Net Net Deficit Deficit (1,023) (1,023) (32,130) (32,130) (148) (148)

• Current Rand price R213,000/kg
• Core business has the potential to generate higher cash flow
• Input cost pressures remain a concern
• G ld Fi ld i

h it l h t l t d ti fil

• Current Rand price R213,000/kg
• Core business has the potential to generate higher cash flow
• Input cost pressures remain a concern
• G ld Fi ld i

h it l h t l t d ti fil

15

• Gold Fields in a heavy capital phase to secure long term production profile
• Power rationing impacting production
• Costs and capex to be reviewed throughout the business
• Gold Fields in a heavy capital phase to secure long term production profile
• Power rationing impacting production
• Costs and capex to be reviewed throughout the business

Financial Financial

Impact of Growth / Long Term Replacement Capital Impact of Growth / Long Term Replacement Capital

6 000 4 000 5 000 d ('000) 3 000 unces produced 1 000 2 000 Ou F2008 F2009 F2010 F2011 F2012 F2013 F2014 F2015 F2016 F2017 F2018 F2019 F2020 F2021 F2022 F2023 F2024 F2025 F2026 F2027 F2028 F2029 F2030 F2031 F2032 F2033 F2034 F2035 F2036 F2037 F2038 F2039 F2040 F2041 F2042 F2043 F2044 F2045 F2046 F2047 F2048 F2049

Total Excl Expansion South Deep Dries 9# Cerro Corona Tarkwa CIP Expansion

16

Securing Future Production Securing Future Production

Power Crisis Financial Positioning

• Higher Rand Gold Price could soften production cuts at SA Operations
• Higher Rand Gold Price could soften production cuts at SA Operations

g p p g p p

• Capital burn rate reduces in second half of the year
• Capital burn rate reduces in second half of the year

Capital burn rate reduces in second half of the year Capital burn rate reduces in second half of the year R4 2 b f i i ki R4 2 b f i i ki

• R4.2 bn of investments is kitty
• R4.2 bn of investments is kitty
• Debt headroom still exists (US$ 726m, R5,1bn current debt)
• Debt headroom still exists (US$ 726m, R5,1bn current debt)
• All capital expenditure being subject to review
• All capital expenditure being subject to review

17

Financial Royalty Bill: Draft 3 (South African Operations)

• Third draft of Mineral and Petroleum Resources Royalty Bill released on
• Third draft of Mineral and Petroleum Resources Royalty Bill released on

y y 6 December 2007 and applicable from April 2009 y y 6 December 2007 and applicable from April 2009

• South African Tax base changed to include beneficiation costs such as

refining, transport and insurance, resulting in 0.4% deduction from

• South African Tax base changed to include beneficiation costs such as

refining, transport and insurance, resulting in 0.4% deduction from Gross Sales Gross Sales

• New royalty proposed is based on profitability:
• Y% = EBITDA/(Revenue*12.5)
• New royalty proposed is based on profitability:
• Y% = EBITDA/(Revenue*12.5)
• Compared to a previous fixed rate of 1.5%
• Compared to a previous fixed rate of 1.5%

18

Financial Impact of Royalty Bill

• Royalty sensitivity for September and December 2007 quarters at

achieved gold prices and actual gold prices

• Royalty sensitivity for September and December 2007 quarters at

achieved gold prices and actual gold prices

Period Period Actual Actual R190,000/kg R190,000/kg Previous draft Previous draft Sept Quarter 2.9% 3.9% 1.5% Dec Quarter 3.0% 3.5% 1.5%

• Gold industry to make submissions to Treasury
• Gold industry to make submissions to Treasury

19

South African Operations South African Operations South African Operations South African Operations

Terence Goodlace Terence Goodlace Head of South African Operations Head of South African Operations

South African Operations South African Operations Health and Safety Health and Safety

Comprehensive new health and safety plans Comprehensive new health and safety plans

0 4

FATAL INJURY FREQUENCY RATE ( illi h k d) SERIOUS INJURY FREQUENCY RATE

0.32 0.32 0.34 0.32 0.33 0.25 0.30 0.19 0.33 0.22 0.28 0 2 0.25 0.3 0.35 0.4

(per million hours worked)

9.93 10.33 7.93 6.44 7.97 7.10 7.76 7.24 7.08 6.44 5.69

7 9 11

(per million hours worked)

0.05 0.1 0.15 0.2 1 3 5 F1998 F1999 F2000 F2001 F2002 F2003 F2004 F2005 F2006 F2007 YTD

• 1

F1998 F1999 F2000 F2001 F2002 F2003 F2004 F2005 F2006 F2007 YTD

28.63 27.50 30

LOST DAY INJURY FREQUENCY RATE (per million hours worked)

Beatrix 4# and Kloof 7# achieved a million Fatality Free Shifts

19.28 14.65 20.20 15.24 16.02 14.77 14.27 12.06 10 15 15 20 25

million Fatality Free Shifts

10.15 5 10

21

Committed To Zero Harm Committed To Zero Harm

F1998 F1999 F2000 F2001 F2002 F2003 F2004 F2005 F2006 F2007 YTD

South African Operations South African Operations Health and Safety Health and Safety

4

Beatrix - Fatalities

4

Driefontein - Fatalities

Mine Wide

2 3 r of fatals 2 3 r of fatals

Mine Wide Section 54

1 Numbe 1 Numbe

South Deep - Fatalities Kloof - Fatalities

3 4 fatals 3 4 atals

Mine Wide Section 54

1 2 Number of f 1 2 Number of fa

22

South African Operations South African Operations Summary Summary

Q2F2008 Q2F2008 Q1F2008 Q1F2008 Gold produced managed kg 20 432 21 436 Gold produced - managed kg 20,432 21,436 koz 657 689 Total cash costs R/kg 101,170 94,248 g , , Operating profit Rm 1,297 1,207 Operating margin % 37 36 Capex Rm 839 740 Results Results

• Production adversely affected by:

̵

One day national strike S f t l t d t t D i f t i d Kl f

̵

Safety related stoppages at Driefontein and Kloof

̵

Two fires at Kloof

• Development show positive trend

23

• Capital costs driven by Dries 9# and South Deep

South African Operations South African Operations Impact of Power Interruptions Impact of Power Interruptions

70 700

Power vs. Mill tons

100 %

50 60 500 600

80 % 90 % 100 %

40 50 400 500

ns '000 (MW)

80 % 70 % 55 %

30 300

Mill ton Power

10 20 100 200 21/1/08 22/1/08 23/1/08 24/1/08 25/1/08 26/1/08 27/1/08 28/1/08 29/1/08 30/1/08 31/1/08 1/2/08 2/2/08 3/2/08

Power MW Mill tons '000

24

10% Power Reduction ~ 21 % Reduction in Gold Production 10% Power Reduction ~ 21 % Reduction in Gold Production

Power MW Mill tons 000

South African Operations South African Operations Power Strategy Power Strategy

800

Prioritised Shafts versus Power Consumption

600 * * * * 400

wer MW

70 % 80 % 90 % 100 %

Pow Base Load

70 % 80 % 90 % 100 %

20

Mothball

25

Low Low Margin Margin High High Margin Margin

South African Operations South African Operations Driefontein Gold Mine Driefontein Gold Mine

Q2F2008 Q2F2008 Q1F2008 Q1F2008 G ld P d ti k 7 451 8 098

• Significant business interruptions

Key issues Key issues Gold Production kg 7,451 8,098 koz 240 260 T t l h t R/k 94 390 85 058 Development performance

• on reef lagging

Quality being restored Significant business interruptions

̵

Section 54’s and national stay away

̵

Seismicity in high grade pillars

• Overall improvement in safety

Total cash costs R/kg 94,390 85,058 Operating profit Rm 523 526 C R 267 219 Volumes being restored p y indices

• Consistent underground volumes
• Cost increased - training and

Capex Rm 267 219 contractor costs Outlook Outlook

• Emphasis on Masiphephe Health and Safety Programme
• Gold production down ~ 20% due to power situation

Outlook Outlook

Gold production down 20% due to power situation

• Assuming 90% power scenario – 6,700 kg / quarter

26

South African Operations South African Operations Kloof Gold Mine Kloof Gold Mine

Q2F2008 Q2F2008 Q1F2008 Q1F2008 G ld P d i k 7 179 7 319 D l t f

• 7 Shaft One Million FFS coupled with

Key issues Key issues Gold Production kg 7,179 7,319 koz 231 235 / Development performance

• on reef lagging

Quality being restored

7 Shaft One Million FFS coupled with

• utstanding performance
• Significant business interruptions

̵

Section 54’s and national stay away T d d fi

Total cash costs R/kg 91,029 86,269 Operating profit Rm 528 473 Volumes being restored

̵

Two underground fires

• Underground accumulations
• Main on-reef metres up 6%
• Cost increases - toll treatment and

Capex Rm 226 218

inflation

Outlook Outlook

• Implement new health & safety plan
• Gold production down ~ 25% due to power situation

Outlook Outlook

Gold production down 25% due to power situation

• Assuming 90% power scenario – 6,000 kg / quarter

27

South African Operations South African Operations Beatrix Gold Mine Beatrix Gold Mine

Q2F2008 Q2F2008 Q1F2008 Q1F2008

4 Sh ft O Milli FFS

Key issues Key issues Gold Production kg 3,698 3,707 koz 119 119 Development performance

• on reef lagging

Quality being restored

• 4 Shaft One Million FFS
• Production interruption:
• One day NUM strike
• Labour unrest at 4#

Total cash costs R/kg 108,031 106,393 Operating profit Rm 209 163 Volumes being restored

• Underground yield increased 5%
• Main on reef development up 29%
• Improved performance South Section

Q li f di i

Capex Rm 142 134

• Quality factors disappoint

Outlook Outlook

• Ongoing behaviour based safety intervention
• Gold production down ~ 25% due to power situation

Outlook Outlook

Gold production down 25% due to power situation

• Assuming 90% power scenario – 3,700 kg / quarter

28

South African Operations South African Operations South Deep Gold Mine South Deep Gold Mine

Q2F2008 Q2F2008 Q1F2008 Q1F2008 Key issues Key issues Gold Production kg 2,104 2,312 koz 68 74

• Operations
• VCR depleted above 95 level
• 35 day surface fan breakdown

Total cash costs R/kg 147,719 132,223 Operating profit Rm 37 45

y

• Progress
• Vent shaft equipping 26%
• Mobilisation below 95 level

Capex Rm 204 169 Outlook Outlook

• Surface drilling program on track
• Mine design and schedule of Phase 1 completed by June 2008
• Vent shaft brattice wall by July 2008

Outlook Outlook

Vent shaft brattice wall by July 2008

• Gold production down ~ 25% due to power situation

29

South African Operations South African Operations South Deep Project South Deep Project

90-Level

• Production build-up
• Production build-up

93-Level 94-Level

constrained:

• Lack of permanent shaft

infrastructure

constrained:

• Lack of permanent shaft

infrastructure

95-Level 100-Level

• Development behind schedule
• VCR depleted above 95 level
• Insufficient geological
• Development behind schedule
• VCR depleted above 95 level
• Insufficient geological

Vent Shaft -2791mBC 105-Level

g g information below 95 level g g information below 95 level

Project Project Capex Capex (Rm) (Rm)1

1

Completion Completion

110-Level

(Rm) (Rm) Development below 95 L 2,004 F2012 Vent Shaft deepening 660 F2011

Main Shaft -2995mBC 110A-Level

Refrigeration 94 L 163 F2008 Surface drilling 132 F2010

30

Key Focus Key Focus

South African Operations South African Operations South Deep Project South Deep Project

90-Level

• Production build-up
• Production build-up

93-Level 94-Level

constrained:

• Lack of permanent shaft

infrastructure

constrained:

• Lack of permanent shaft

infrastructure

95-Level 100-Level

• Development behind schedule
• VCR depleted above 95 level
• Insufficient geological
• Development behind schedule
• VCR depleted above 95 level
• Insufficient geological

Vent Shaft -2791mBC 105-Level

g g information below 95 level g g information below 95 level

Project Project Capex Capex (Rm) (Rm)1

1

Completion Completion

110-Level

(Rm) (Rm) Development below 95 L 2,004 F2012 Vent Shaft deepening 660 F2011

¹

Main Shaft -2995mBC 110A-Level

Refrigeration 94 L 163 F2008 Surface drilling 132 F2010

31

¹ June 2007 Terms

32 km Development 32 km Development

KSDO Project KSDO Project KSDO Scenarios KSDO Scenarios

• Systematic process used to derive scenarios
• 64 options considered
• Systematic process used to derive scenarios
• 64 options considered

64 options considered

• 6 Scenarios being evaluated at a high level
• Kloof Case Studies 3 and 5 used

64 options considered

• 6 Scenarios being evaluated at a high level
• Kloof Case Studies 3 and 5 used
• Scenarios Modelled
• Scenarios Modelled

Scenario Scenario Description Description¹ KSDO_1 330ktpm South Deep; 150ktpm Kloof No 4 Shaft - KEA (mod) KSDO_2 330ktpm South Deep; 150ktpm Kloof No 4 Shaft + KEA (mod) KSDO 3 400kt S th D Sh t Lift Sh ft 150kt Kl f N 4 Sh ft KEA ( d) KSDO_3 400ktpm South Deep + Short Lift Shaft; 150ktpm Kloof No 4 Shaft – KEA (mod) KSDO_4 400ktpm South Deep + Short Lift Shaft; 150ktpm Kloof No 4 Shaft + KEA (mod) KSDO 5 480ktpm South Deep + Deepened South Shaft _ p p p KSDO_6 480ktpm South Deep + Triple Declines From South Shaft To Twins

Tonnes > 330ktpm for South Deep provides for additional Ventilation Shaft and expanded Metallurgical Plant

32

Tonnes > 330ktpm for South Deep provides for additional Ventilation Shaft and expanded Metallurgical Plant South Deep Profiles include Mineral Resources from Contiguous Rights (4000mbd)

¹ Ore Tonnes only

KSDO Project KSDO Project Scenario KSDO_1 Scenario KSDO_1

3

N

3#

8 3

3# KEA

S 1 150ktpm 150ktpm 330ktpm 330ktpm 4 T 7 330ktpm 330ktpm 4

33

Ore Tonnes only

KSDO Project KSDO Project Scenarios KSDO_1 Scenarios KSDO_1

Hoisting

Main Vent

Hoisting Capacity

South Deep

South

Hoisting Capacity

• 230.9 m
• 225 m

Collar (BD)

Kloof

• No. 4

Hoisting Capacity 220 ktpm Hoisting Capacity 202 ktpm

51 Level pump station

2 SV Hoisting Capacity 176 ktpm

• 1,334 m

1 SV

Upgrade to 180 000 tpm

Surface conveyor

pump station

3 SV 2 SV

50

• 1,510 m

1 SV

53 56 58 60 63 65 68

22

4SV 180,000 tpm Hoisting Capacity 164 ktpm

84 Level pump station

• 2,426 m

70 71 72 75 78 80

1 SV Bottom

• 2,214 mbd

23

4 # Bottom

90 93 95 100

90

• 2,750 m

95 Level (+-100 000tpm) 83 85 95A belt level

• 2,940 mbd

95

105 110 110A 3 SV Bottom

• 2,993 mbd

2 SV Bottom

• 3,006 mbd

Main # Bottom

• 3,221 mbd

120 115 125 130 39 41 43

34

Schematic Diagram Decline Length 3,146m at 8º

135

(-3495 m)

45

• 3,723 mbd

4 SV Bottom

KSDO Project KSDO Project KSDO_1: Production Profile (Mt)* KSDO_1: Production Profile (Mt)*

KSDO_1 TONS HOISTED 8 000 000 6,000,000 7,000,000 8,000,000 4,000,000 5,000,000 6,000,000 Phase 2 ex Kloof Phase 2 ex Kloof Kloof inc 4 # Kloof inc 4 # 2,000,000 3,000,000 Uncle Uncle Harry’s Harry’s SD phase 2 Phase 1 Phase 1 1,000,000

08 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60

Current mine Current mine

20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20

CM&SV1&pillars Phase 1 WA4 Uncle Harry's Phase 2 125 to 135 Phase 3 Dev Kloof incl 4# Kloof Phase 2 &access 330ktpm 480ktpm

35

Kloof Phase 2 &access 330ktpm 480ktpm * South Deep projections as per feasibility study

International Operations International Operations International Operations International Operations

Glenn Baldwin Glenn Baldwin Glenn Baldwin Head of International Operations Glenn Baldwin Head of International Operations

International Operations International Operations Summary Summary

Q2F2008 Q2F2008 Q1F2008 Q1F2008 G ld d d d k 362 355 Gold produced - managed koz 362 355 Total cash costs US$/oz 470 468 Operating profit US$m 109 72 Operating profit US$m 109 72 Operating margin % 38 30 Capex – excluding Cerro Corona US$m 88 77 p g $ Results Results

• Production up
• Overall unit cash costs contained
• Production levels returned to normal in Ghana from the second half of the

Production levels returned to normal in Ghana from the second half of the quarter

• Australian performance mainly in line with guidance

37

International Operations International Operations Tarkwa Tarkwa Gold Mine Gold Mine

Q2F2008 Q2F2008 Q1F2008 Q1F2008 Key issues Key issues Production koz 158 154 Total cash costs US$/oz 413 423 Development performance

• on reef lagging

Quality being restored

• Three fatal accidents
• Rainfall stopped in the last half
• f Q2

Operating profit US$m 61 38 Capex US$m 46 43 Volumes being restored

• Electricity supply stable, but with

tariff increases

• Production up by 6%

Outlook Outlook

• Production up by 6%
• Cash costs slightly higher due to increased power tariff and fuel
• CIL Expansion Project: cost increase from $126 million to $161 million due to foreign

h t l ti d i h exchange exposures, cost escalation and minor scope changes

38

International Operations International Operations CIL Expansion Project CIL Expansion Project – – August 2007 August 2007

39

International Operations International Operations Ball Mill Construction Ball Mill Construction

August 2007

Construction Construction progressing well despite high rainfall p g

January 2008

40

International Operations Tarkwa Mine -Tyre Retread Facility

First Tyres Retreaded in January 2008

Extruding Machine

41

Extruding Machine

International Operations International Operations Damang Gold Mine Damang Gold Mine

Q2F2008 Q2F2008 Q1F2008 Q1F2008

• L

th t d d Key issues Key issues Production koz 44 47 Total cash costs US$/oz 605 468 Development performance

• on reef lagging

Quality being restored

• Lower than expected grades

from surface stockpiles

• Mining contractor cost increases

Operating profit US$m 9 10 Capex US$m 8 7 Volumes being restored

• Increased tonnage from pits

replacing lower cost surface stockpiles

• Similar production due to failure of in pit haul road in Damang Pit Cut Back (“DPCB”)

Outlook Outlook

• Similar production due to failure of in pit haul road in Damang Pit Cut Back ( DPCB )
• Alternative access to DPCB commenced in Q2 and will be completed in late February
• Total cost similar, but cash cost increase due to completion of DPCB capital strip

42

International Operations International Operations St Ives St Ives Gold Mine Gold Mine

Q2F2008 Q2F2008 Q1F2008 Q1F2008 Hi h d d d Key issues Key issues Production koz 110 102 Total cash costs US$/oz 521 551 Development performance

• on reef lagging

Quality being restored

• Higher grade underground ore
• Leviathon pit on schedule
• Increase in third party royalty

Operating profit US$m 28 12 Capex US$m 26 21 Volumes being restored

• Belleisle development impacted

by high volume water intersection Outlook Outlook

• Production and cash costs similar
• Cave Rocks project on-track for Q4 start-up
• Belleisle project schedule slippage by a few weeks due to water intersection
• Production at around 120koz per quarter by mid calendar 2008
• Brownfields exploration program continues with promising intersections

43

International Operations International Operations Agnew Agnew Gold Mine Gold Mine

Q2F2008 Q2F2008 Q1F2008 Q1F2008 P d ti k 49 51 Key issues Key issues Production koz 49 51 Total cash costs US$/oz 419 430 O f S$ Development performance

• on reef lagging

Quality being restored

• Expensive high grade stockpiles

depleted

• Problematic stope start ups

Operating profit US$m 11 12 Capex US$m 8 5 Volumes being restored

• Problematic stope start-ups

Outlook Outlook

• Similar production levels
• Significantly higher cash costs due to increased throughput of lower grade Songvang

stockpiles

• Reducing mine production from mid calendar 2008 due to depletion of surface stockpiles
• Accelerated exploration program to define near surface resources

44

Cerro Corona Project Cerro Corona Project

John Munro Head of Business Development Head of Business Development

Introduction Introduction Cerro Corona Project Cerro Corona Project

Revised Schedule On Track Transition and Operating

Full Production

Operating Teams in Place

Production Q1 F09

46

Overview Overview

• Health and Safety
• Health and Safety
• Fatal Accident on power line construction
• Fatal Accident on power line construction
• Community
• Community
• Stable
• 501 bypass road opened without incident

y

• Stable
• 501 bypass road opened without incident
• Operations
• Operations

Kt mined Kt mined Waste Waste Ore Ore Quarry Quarry Total Total Q1 4,006 867 2,685 7,558 Q2 4,197 336 3,441 7,974

• Cost and schedule
• Capital cost inline with revised plan
• Concentrator construction on revised plan
• Cost and schedule
• Capital cost inline with revised plan
• Concentrator construction on revised plan

47

Concentrator construction on revised plan

• TMF construction improving

Concentrator construction on revised plan

• TMF construction improving

Construction Update Construction Update

• Plant Construction

̵

Contracting revised and incentives introduced P f b t ti ll i d

̵

Performance substantially improved

̵

Achieved mid and late January deadlines

• Release services and crusher

̵

Flotation circuit critical

• Piping and instrumentation
• E

i i l t fi ld t l

• Engineering - complete, field support only
• Procurement
• P

l

̵

Only capacitor bank for Trujillo substation outstanding

̵

Major equipment, piping, valves and instruments – OK

• Power supply
• Incoming supply largely complete

̵

Coastal power line upgrade due to regional demand

48

̵

Corona limited to 3MW max draw until late March – non critical

Tailings Management Facility Construction Tailings Management Facility Construction

• Critical path
• Collect water for start up
• 500 000m3 impounded by end May

500 000m3 impounded by end May

• Complete embankment to 3672m RL
• Commence impounding water asap
• To sustain operations through dry season
• Bulk fill
• Suitable materials available on demand
• To sustain operations through dry season
• Not critical
• Engineered materials for filter zones
• Substantial progress in mining crushing and screening

Substantial progress in mining, crushing and screening

• Now building stockpiles of filter zones materials
• Impermeable and semi permeable clay zones
• Critical path – placement of impermeable zone
• Placement in wet weather constraint
• Sourcing alternative materials

49

• Wet weather placement improvements
• 15 weeks at current rates, 10 weeks at target rates

Schematic of TMF construction + empoundment Schematic of TMF construction + empoundment

50

Macro Project Schedule Macro Project Schedule

Q3 F2008 Q3 F2008 Q4 F2008 Q4 F2008 Q1 F2009 Q1 F2009 Q2 F2009 Q2 F2009

Concentrator

Construction C ld i i i Cold commissioning Water commissioning

Start up Start up

Hot commissioning on ore Full production

Tailings Management facility

Construction to 3672L Commence impounding

Infrastructure

Power restrictions

51

Construction Capital Cost Construction Capital Cost

US$m US$m November estimate 401 0 November estimate 401.0 Contingency 20.0 Total revised forecast 421.0 Contingency used Contingency used US$m US$m Construction reprogram 5.5 Freight and duty 1 5 Freight and duty 1.5 Civils and earthworks 2.6 Crusher hire 1.0 Extension of time 2 5 Extension of time 2.5 Total contingency used 13.1 Unutilised contingency 6.9 US$m US$m Forecast to completion Forecast to completion 421.0 421.0

52

Cerro Corona Cerro Corona – – Transition to Operations Transition to Operations

• Manpower
• Operating and leadership team complete
• Manpower
• Operating and leadership team complete

p g p p p g p p

• Operational readiness
• Operational readiness
• > 1 year mining operations
• Metallurgical team training continues
• Plant commissioning
• > 1 year mining operations
• Metallurgical team training continues
• Plant commissioning

Plant commissioning

• Support and services
• Trial runs on new activities

S t d d t ti

Plant commissioning

• Support and services
• Trial runs on new activities

S t d d t ti

• Systems and procedures testing
• Systems and procedures testing
• Risks to start up
• Risks to start up

Risks to start up

• TMF clay placement
• Continued progress on construction

Risks to start up

• TMF clay placement
• Continued progress on construction

53

• Power restriction
• Power restriction

Introduction Introduction Cerro Corona Project Cerro Corona Project

Revised Schedule On Track LOM Salient Features LOM Salient Features

Ore 6.2mtpa Au 150koz

Transition and Operating

Au 150koz Cu 57mlb Cu (26kt) Au equiv* 360koz pa*

Full Production

Operating Teams in Place

Strip ratio 0.58 X Cash costs ~ US$320/oz

Production Q1 F09

Capital US$421m

54

EBITDA contribution* = (0.15*900 + 57*3.3) EBITDA contribution* = (0.15*900 + 57*3.3) – – (120) = ~US$203mpa (120) = ~US$203mpa

* Au equiv and EBITDA calc : US$900/oz Au and US$3.3lb and typical LOM parameters

Conclusion Conclusion

Ian Cockerill Chief Executive Officer Chief Executive Officer

Conclusions Conclusions

• Cerro Corona prod ction in Q1 09
• Cerro Corona prod ction in Q1 09
• Cerro Corona production in Q1 09
• Cerro Corona production in Q1 09
• Capital prioritisation underway
• Capital prioritisation underway
• South Deep power constrained options under review
• South Deep power constrained options under review

p p y p p y

• South African power constraints

Q308 P d i d 20% 2 %

• South African power constraints

Q308 P d i d 20% 2 %

• Q308 Production down 20% to 25%
• Focus on high margin production
• Q308 Production down 20% to 25%
• Focus on high margin production

56

Higher Gold Price Higher Gold Price