DIGGERS & DEALERS CONFERENCE 5 August 2015 STUART MATHEWS VP - - PowerPoint PPT Presentation

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DIGGERS & DEALERS CONFERENCE 5 August 2015 STUART MATHEWS VP - - PowerPoint PPT Presentation

Sustaining FCF and Growing the Exploration Pipeline DIGGERS & DEALERS CONFERENCE 5 August 2015 STUART MATHEWS VP OPERATIONS AUSTRALIA Forward Looking Statements Certain statements in this document constitute forward looking


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SLIDE 1

Sustaining FCF and Growing the Exploration Pipeline

DIGGERS & DEALERS CONFERENCE 5 August 2015

STUART MATHEWS – VP OPERATIONS AUSTRALIA

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SLIDE 2

2

Forward Looking Statements

Stuart Mathews – Diggers & Dealers, Kalgoorlie, Western Australia 3-5 August 2015 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.
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3

Snapshot of Gold Fields

  • Gold Fields is the world’s 7th largest gold producer

with 8 operations in 4 countries ̵ Australia: St Ives; Agnew/Lawlers; Granny Smith; Darlot ̵ Ghana: Tarkwa; Damang ̵ Peru: Cerro Corona ̵ South Africa: South Deep

  • In 2014, the company produced 2.2Moz at AISC of

US$1,053/oz and AIC of US$1,087/oz, generating net cash flow of US$235m

  • As at 31 December 2014, Gold Fields had total

attributable mineral resources of 108.3Moz and mineral reserves of 48.1Moz

A global gold producer

As at 31 July 2015 Share price (JSE/ADR) R34.26/$2.76 Market capitalisation ($m) 2,147 Enterprise value ($m) 3,646 Average daily value traded ($m) 21.7

45% 32% 14% 9%

2014 production

Australia Ghana Peru South Africa

0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0 180.0 200.0 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 Apr-15 May-15 Jun-15 Jul-15 Aug-15

GFI vs. gold price Jan-14 to-date

GFI US Equity XAU Curncy

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SLIDE 4

4

The Transformation of Gold Fields

1. Focus on Free Cash Flow ̵ Structural shift in cost base ̵ >15% free cash flow margin at a US$1,300/oz gold price ̵ Focus on quality, cash-generative ounces - no marginal mining and high-grading, maintain cut-off grades ̵ Protect sustainability of ore bodies by investing in development and stripping 2. A new growth paradigm ̵ Focus on growing the margin, not ounces ̵ Opportunistic acquisitions ̵ Focus on brownfields exploration ̵ No greenfields exploration ̵ Divest non-core projects and exploration portfolio ̵ Execute plans safely 3. Strengthen balance sheet 4. Pay dividends 5. Deliver South Deep

Strategic imperatives Focus On Total Shareholder Returns

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SLIDE 5

5

The Transformation of Gold Fields

Active portfolio management Continue to Look at Value Adding Acquisitions

Sold Disposal Underway Retain Woodjam British Columbia “The wrong metal” Asosa Ethiopia “The wrong address” Yanfolila Mali “Not franchise asset” Talas Kyrgysztan “The wrong address” Chucapaca Peru “Franchise/hurdle rates” Salares Norte Chile “Great optionality” FSE Philippines “Great optionality” Arctic Platinum Project Finland “The wrong metal”

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SLIDE 6

6

534000 477000 451,000 496,000 598,000 557,000 548,000 559,000 556,000 501,000

200 400 600 800 1000 1200 1400 1600 1800 100,000 200,000 300,000 400,000 500,000 600,000 700,000 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 US$/oz Ounces

Production and Costs

Gold Produced Gold Price AIC

The Transformation of Gold Fields

Significant reduction in AIC since Q4 2012 A Sustainable, Structural Shift In The Cost Base

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SLIDE 7

OPERATIONS & EXPLORATION OVERVIEW – Australia Region

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Australia Region

Regional Overview

  • Consolidated portfolio of

prospective, orogenic greenstone style ore bodies

  • Demonstrated management

capability in WA

  • Well positioned for further growth
  • Optimisation of all operations

Delivering value

  • 15% contribution from ‘reserves
  • nly’ at A$1,370/oz (US$:A$ 0.95)
  • Contributed ~45% of Gold Fields’

total produced ounces in 2014

FCF % margin

  • Brownfield exploration momentum

increased with ~A$85m 2015 budget

  • Marginal mining eliminated where

practical

Derisking

Regional Highlights

Region 10 Moz Resource 3.6 Moz Reserve

Mineral Resources and Reserves 2014*

Operation Tonnes (Mt) Grade (g/t) Gold (Moz)

Australia Resources 62.4 5.00 10.0 Australia Reserves 26.3 4.28 3.6

  • Successful & rapid integration of new

Yilgarn assets

  • GFI process and protocols installed at new

assets

  • Exploration strategy targeted to leverage
  • rogenic-style ore body LoM extensions

SIGM GSM Darlot Agnew *Excluding Growth Projects

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9

Australia Region

Gold Fields Australia: A Robust Portfolio – 2014 actual vs. 2015 guidance Targeting One Million Ounces at AIC Below US$1,050/oz

US$/oz Koz

200 400 600 800 1000 1200 1400 50 100 150 200 250 300 350 400 2014 2015 2014 2015 2014 2015 2014 2015 Production AIC

St Ives Granny Smith Darlot Agnew/Lawlers

Tonnes (Mt) Grade (g/t) Gold (Moz)

Resources 62.4 5.00 10.0 Reserves 26.3 4.28 3.6

2014 2015F

Production 1,031 983 Costs 1,015 966

* 2015 guidance based on exchange rate of 0.80

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Exploration Commitment & Focus

  • Exploration group resourced for target generation, technical strengths in geophysics &

geological structure, and geochemistry

  • Investing >A$85m exploration expenditure in 2015 across 4 mine sites
  • One of the largest exploration budgets in Gold in Australia for 2015
  • Commitment to elevated exploration spend regionally for the next 3-5 years
  • Merger & Acquisition opportunity – advanced exploration & production projects

̵ Potential to optimise milling capacity across 3 mine sites (40% spare mill capacity)

  • Toll treatment opportunity
  • Constrained by logical haulage distances
  • Regional consolidation of satellite resource and reserve potential

Our tenements are one of our greatest assets

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11

Australia Region

St Ives Overview Key Site Developments

St Ives 3.5 Moz Resource 1.8 Moz Reserve

Mineral Resources and Reserves 2014

Operation Tonnes (Mt) Grade (g/t) Gold (Moz) St Ives Resources 30.1 3.63 3.5 St Ives Reserves 17.8 3.14 1.8

  • Investing in next generation of mines with

exploration focussed on the Speedway trend, Eastern causeway zone & recently acquired Kambalda West tenements

  • Open-pit capital development commenced on

Invincible deposit, with first production achieved in Q1 2015

  • Neptune open-pit stage 1 completed and

future stages confirmed & in plan

  • Palaeochannel project – Project team

established & 2 year assessment in progress

  • Well established mix of owner

mined open-pit and underground

  • perations
  • Invincible open pit represents a

major new discovery to anchor the LoM plan

Delivering value

  • LoM based on current Reserves
  • nly extends to 2020 (6 years)
  • ~A$42m exploration programme

tailored to drive discovery in ‘new exploration space’

LoM Extension

  • Projects retired early if they fail to

meet milestone hurdle criteria

  • Marginal mining eliminated where

practical

Derisking

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12

Invincible Open Pit

Nth Stage 1 Commence Feb 2015 Stage 1 Nth Stage 2 2016 mining Stage 3 Commence March 2015 Stage 2 Stage 1 & 2 to be mined simultaneously Stage 4 Commence pre-strip Jan 2016

2015 Plan Tonnes Grade Ounces Invincible 1,171 kt 3.44 g/t 130 koz

Stage 5 Commence pre-strip 2016

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13

Invincible Open Pit

Production on-schedule

Dec-14 Jun-15

  • Commenced mining late-December 2014
  • Main & North pits are now in ore
  • 5x excavators in operation
  • Production mainstay for open pits next 4 years – reserve of 5.01Mt @ 3.85g/t for 628koz
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14

Speedway Corridor Eastern Causeway Kambalda West

St Ives Exploration 2015

Budget Summary A$42m

  • A$7m – Neptune Paleo-channel infill

drilling

  • A$10m - Extensional Exploration

Developing Key Camps

  • A$25m - Additional Exploration Exploring

for New Deposits & Developing Pipeline

  • Immature Greenfields Exploration Target

Areas

  • 112,810 hectares of tenements
  • Targeting:

̵ Pipeline growth and development ̵ New Discovery

Greater Invincible Cave Rocks & Trend Hamlet

Extensional Targets Additional Targets

South West Dome

Drill Type 2014 Metres 2015 Metres

Aircore 33,155 117,000 RC 41,127 65,000 DDH 61,767 74,330 TOTAL 136,049 256,330

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15

St Ives – Project Generation: Highly Prospective Speedway Corridor

Speedway Corridor Exploration Targets

  • Poorly explored trend
  • Proven to be able to deliver major deposits
  • Multiple programmes in progress
  • Evidence of gold along 22km strike length
  • Rigorous staged exploration programmes to ascertain

potential

  • SKIMPI and GMag used to define bedrock structure
  • Multi-elements to determine rock types & anomalism
  • Looking for the next Invincible
  • Paleo-channel study in progress
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Australia Region

Agnew

  • Key Site Developments

Agnew 2.6 Moz Resource 0.9 Moz Reserve

Mineral Resources and Reserves 2014

Operation Tonnes (Mt) Grade (g/t) Gold (Moz) Agnew Resources 13.8 5.79 2.6 Agnew Reserves 3.6 7.44 0.9

  • FBH improved Reserve at 348koz & Resource

at 585koz – take over mining front ex. Kim

  • Continued positive exploration results at

Waroonga North and Kath Projects

  • Positive results at Cinderella UG – situated
  • approx. 300m from New Holland (NH)

development

  • Numerous highly prospective targets for

resource growth contiguous to mining at Waroonga and NH

  • Agnew’s new FBH ore body

development continues on plan

  • Optimising Kim sequencing

Delivering value

  • LoM based on current Reserves
  • nly at Agnew extends to 2019 (5

years)

  • Improving understanding of

broader regional targets to discover next generation mines

LoM Extension

  • Intensified focus on defining new
  • re sources at Waroonga & New

Holland

  • Marginal mining eliminated where

practical

  • Air quality & ventilation upgraded

Derisking

3,000 6,000 9,000 Meters

/

250,000 250,000 275,000 275,000 6,875,000 6,875,000 6,900,000 6,900,000 6,925,000 6,925,000

Combined Tenements

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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

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18

Agnew/Lawlers - Genesis New Holland

Genesis New Holland – 2015 Targets for Reserve Replacement and Growth

600-700 SERIES BATAVIA 500 SERIES - EASTERLY EXTENSIONS GENESIS 200 - SERIES AREA 2/3 CINDERELLA HIDDEN SECRET UG / OPEN-PIT HIMITSU GENESIS 500 EXTENSIONS

Grade Control Advanced Drilling Initial Drilling

Genesis New Holland – Broad spectrum of exploration & resource definition targets

Cinderella Himitsu Hidden Secret Batavia 500 GN 200 GN500 600-700

CINDERELLA

500m strike potential

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Exploration Near-Mine

  • Exploration schedule accelerated & planned in

detail

  • Exploring all opportunities for extensions &

discovery

  • Surface Rigs: 3 DDH + 1 RC active
  • UG Rigs: 5 DDH active
  • Cinderella feasibility underway & extensional
  • pportunities under investigation
  • Focus is on delivering reserves with strong FCF

margin capacity

Agnew Gold Mine

New Holland Genesis

Waroonga

Hidden Secret Cinderella 500 Series North

Main South/ Yeoman

Kath War N Himitsu Cinderella Trend

“old” Barrick / Gold Fields Boundary

Drilling Metres 2014 Metres Planned 2015 Air core

  • RC

2,872 22500

Diamond

53,265 73437

Total

56,137 95,397

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20

Agnew Gold Mine

Cinderella to Himitsu wireframe model

230 Lode 180 Lode

New Holland Open Pit Hidden Secret Open Pit

N S

141 Lode

Cinderella 141 Easterly structures

  • Phase 1 of diamond drill program successfully completed.
  • Multiple structures intersected.
  • Western extension of Cinderella Z141 interpreted. Stronger mineralisation associated with

coarser sandstone units.

  • Continuous structure Z180 intersected over 500m strike length.
  • Numerous narrow lode mining opportunities emerging

Himitsu long section Looking East

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Australia Region

Darlot Overview Key Site Developments

Mineral Resources and Reserves 2014

Operation Tonnes (Mt) Grade (g/t) Gold (Moz) Darlot Resources 1.1 7.17 0.3 Darlot Reserves 0.4 7.36 0.1

  • Delivering production that funds

exploration

  • Emerging targets in mine & on

tenements

  • Value creation at Darlot focussed
  • n discovery of a ‘game changer’
  • re body

Delivering value

  • LoM based on current Reserves to

mid-2016 (12 months) at Darlot

  • Improving understanding of

broader regional targets to discover next generation mines

  • Investigating pit opportunity

LoM Extension

  • Marginal mining eliminated where

practical

  • Air quality & ventilation upgraded

Derisking

Darlot 0.3 Moz Resource 0.1 Moz Reserve

  • Returned to being cash accretive post

acquisition

  • Imperative is to discover new Resources and

convert to Reserves to sustain mine – upside potential from Centenary Depth Analogue target

  • Focus on quality mining is delivering

improvements in ore recovery, dilution & head grade

  • Numerous prioritised exploration targets being

tested

  • 2015 focus on determining the mine’s

potential to be a long term franchise asset

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Darlot - Exploration Drill Targets

Targeting >300koz

500 1000

CDA Oval- 2016 Mining Opportunity CDA Lords Boon West Repeat LSL Extensions MWS Target Chappell - 2016 Mining Target Eastern Hinge Zone King of the Hills Darlot Heart

Legend MS2 MS3 MS4 Xx Drilling or to drill Xx Developing Target Xx Geophysics review

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23

Green Field Exploration Target Generation

New Targets

  • Mag. Limb
  • East. Limb

Googlie Camp Delorian Cluster Yorker Bouncer Cluster Body Liner Cluster

  • Focus on structure and geophysics
  • E-W corridor defines Darlot-Centenary
  • Limited drilling beyond 250m depth
  • Longer lead time projects (+300m depth)
  • Delorian, Bouncer and Yorker clusters
  • Body Liner, Googlie & Limb clusters

Drilling Metres 2014 Metres Planned 2015 Air core

  • RC

10,537 10,000

Diamond

36,007 35,000

Total

46,544 45,000

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24

Australia Region

Granny Smith Overview Historical Exploration Delivery and Targets

Mineral Resources and Reserves 2014

Operation Tonnes (Mt) Grade (g/t) Gold (Moz) Granny Smith Resources 17.4 6.61 3.7 Granny Smith Reserves 4.5 6.02 0.9

5 10 15

  • 500

1,000 1,500 2,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Millions koz

Wallaby Underground Reserves, Mined Production, Exploration Expenditure

Reserves Production Cumulative Production Exploration Expenditure

  • Flagship high grade, high margin

Wallaby underground ore body

  • World class ore body enjoys good

geological continuity & predictability

Delivering value

  • LoM based on current Reserves only

extends to 2019 (5 years)

  • Focus on growth at Wallaby & near-

mine exploration of relatively unexplored tenements

LoM Extension

  • Metallurgical Plant investment to reinstall

structural integrity and improve recovery by ~3%

  • Marginal mining eliminated where

practical

Derisking

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Granny Smith Mine

MINING

  • Attention to drill & blast – stope design &

development strategy

  • Dilution reduction in stoping by up to 20%

(dependent on location & geometry of the

  • re body)
  • Innovation in slot design & implementation
  • +20,000oz from same ore tonnage

profile

Future Improvements

  • Optimising extraction of the resource
  • Improve resource to reserve conversion
  • Paste Fill investigations
  • Shaft vs Haulage with deepening mine
  • Challenging minimum mining width
  • Narrow lode/vein mining studies

Diggers & Dealers, Kalgoorlie, Western Australia 3-5 Aug 2015

Operations Improvements

PROCESSING

  • Invested in the asset that makes you money

(+A$25 Mill since acquisition)

  • Campaign milling – 15 days per month
  • New cyclones, right-sized ball mill discharge

pumping & plumbing

  • Steady state feed of 350 tph
  • Refurbishment of leach & CIL tanks
  • Structural steel remediation
  • Recovery gain of +3% achieved (88% to

92%)

  • +15,000oz from budget ore feed

2015 & Future Improvements

  • Tailings Retreatment Circuit Upgrade
  • New gravity circuit installed
  • New carbon regeneration kiln
  • Upgrade elution circuit

Improved & Optimised Production Profile & Major Reduction in All-in Sustainable Cost

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Processing

85% 87% 89% 91% 93% 95% 97% ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' J M A M J J A S N D J M A J A S N D J F M A M J J A S O N D J F M A M J J A S O N D 2012 2013 2014 2015

Recovery per day

Daily 7 day MA 30 day MA 60 day MA 90 day MA

2.50 3.50 4.50 5.50 6.50 7.50 8.50 9.50 ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' J M A M J J A S N D J M A J A S N D J F M A M J J A S O N D J F M A M J J A S O N D 2012 2013 2014 2015

Mill Feed Grade per day

Daily 7 day MA 30 day MA 60 day MA 90 day MA

Gold Fields Gold Fields Gold Fields

Dilution reduction & mine recovery impact High grade zones in Z80/Z90/Z100 Cyclones changed Dec’13 – improved grind Ball mill pumps/plumbing May’14 Maintained 360 tph feed since Nov’13

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Wallaby Deposit 2015 Focus On Reserve Replacement and Growth

Granny Smith – Wallaby Underground Continues to Grow

Zone 250 Zone 60 Zone 70E Zone 100 Zone 120 Zone 110

Zone 110-Z120 Infill Resource Drilling

Zone 70 Zone 80 Zone 90

Zone 90 N Infill Resource Drilling Zone 130-Z150 Exploration Wedges

1,800m

Wallaby Southern Corridor Exploration Zone 100 North Step-Out Exploration Zone 90 North Step-Out Exploration Zone 100 Infill Resource Drilling

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Granny Smith Gold Mine

  • Wallaby and Environs:

̵ Resource Drilling ̵ Extensional targets ̵ Wallaby Deeps (Z110 – Z150)

  • Granny Smith:

̵ Open pit extensions ̵ UG options

  • Lake Carey:

̵ Geophysics (Gravity and SAM) ̵ RAB & Aircore programs ̵ Target Generation ̵ Early drill testing

  • Kerringal & Jubilee Targets:

̵ Geophysics (Gravity) ̵ Drill testing

2014 Exploration – Target Areas

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Conclusion

Major Producer and Actively Exploring

  • A foundation of long-life producing assets
  • Continuing to optimise extraction of the resource base
  • Major commitment to Brownfields exploration
  • A$85m approved exploration spend in 2015
  • Actively seeking Merger & Acquisition opportunities
  • Producing assets
  • Advanced exploration opportunities
  • Committed to a 15% FCF Margin at US$1,300/oz gold price as a core to our business
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SLIDE 30

QUESTIONS

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SLIDE 31

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Investor Relations Contacts

Avishkar Nagaser

Tel: +27 11 562 9775 Mobile: +27 82 312 8692 E-mail: avishkar.nagaser@goldfields.co.za

Willie Jacobsz

Tel: +1 617 535 7545 Mobile: +1 857 241 7127 E-mail: willie.jacobsz@goldfields.co.za

Francie Whitley

Tel: +27 11 562 9712 Mobile: +27 82 321 7433 E-mail: francie.whitley@goldfields.co.za

J.P. Morgan CEEMEA & LATAM Asia Forum, 28-29 May 2015