Sustaining FCF and Growing the Exploration Pipeline
DIGGERS & DEALERS CONFERENCE 5 August 2015
STUART MATHEWS – VP OPERATIONS AUSTRALIA
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
STUART MATHEWS – VP OPERATIONS AUSTRALIA
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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
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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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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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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
Gold Produced Gold Price AIC
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prospective, orogenic greenstone style ore bodies
capability in WA
Delivering value
total produced ounces in 2014
FCF % margin
increased with ~A$85m 2015 budget
practical
Derisking
Region 10 Moz Resource 3.6 Moz Reserve
Mineral Resources and Reserves 2014*
Operation Tonnes (Mt) Grade (g/t) Gold (Moz)
Australia Resources 62.4 5.00 10.0 Australia Reserves 26.3 4.28 3.6
Yilgarn assets
assets
SIGM GSM Darlot Agnew *Excluding Growth Projects
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US$/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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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
exploration focussed on the Speedway trend, Eastern causeway zone & recently acquired Kambalda West tenements
future stages confirmed & in plan
established & 2 year assessment in progress
mined open-pit and underground
major new discovery to anchor the LoM plan
Delivering value
tailored to drive discovery in ‘new exploration space’
LoM Extension
meet milestone hurdle criteria
practical
Derisking
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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
Stage 5 Commence pre-strip 2016
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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
at 585koz – take over mining front ex. Kim
Waroonga North and Kath Projects
development
resource growth contiguous to mining at Waroonga and NH
development continues on plan
Delivering value
years)
broader regional targets to discover next generation mines
LoM Extension
Holland
practical
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
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FBH-Link Probable Reserve: 1,19Mt at 9.1 g/t for 348 koz
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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
CINDERELLA
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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
Diamond
Total
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New Holland Open Pit Hidden Secret Open Pit
N S
141 Lode
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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
exploration
tenements
Delivering value
mid-2016 (12 months) at Darlot
broader regional targets to discover next generation mines
LoM Extension
practical
Derisking
Darlot 0.3 Moz Resource 0.1 Moz Reserve
acquisition
convert to Reserves to sustain mine – upside potential from Centenary Depth Analogue target
improvements in ore recovery, dilution & head grade
tested
potential to be a long term franchise asset
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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
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Googlie Camp Delorian Cluster Yorker Bouncer Cluster Body Liner Cluster
Drilling Metres 2014 Metres Planned 2015 Air core
Diamond
Total
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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
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
Wallaby underground ore body
geological continuity & predictability
Delivering value
extends to 2019 (5 years)
mine exploration of relatively unexplored tenements
LoM Extension
structural integrity and improve recovery by ~3%
practical
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Diggers & Dealers, Kalgoorlie, Western Australia 3-5 Aug 2015
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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
Daily 7 day MA 30 day MA 60 day MA 90 day MA
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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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J.P. Morgan CEEMEA & LATAM Asia Forum, 28-29 May 2015