Gold Fields In Australia DELIVERY & GROWTH WA Mining Club, 27 - - PowerPoint PPT Presentation

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Gold Fields In Australia DELIVERY & GROWTH WA Mining Club, 27 - - PowerPoint PPT Presentation

Gold Fields In Australia DELIVERY & GROWTH WA Mining Club, 27 July 2017 Forward looking statements Certain statements in this document constitute forward looking statements within the meaning of Section 27A of the US Securities Act of


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Gold Fields In Australia

DELIVERY & GROWTH

WA Mining Club, 27 July 2017

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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.

Gold Fields – Delivery & Growth

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Gold Fields overview

Gold Fields – Delivery & Growth

Americas Region

  • Att. production: 269koz (12% of group)

All in costs: US$762/oz Net cash flow: US$77m inflow

Ghana Region

  • Att. production: 644koz (32% of group)

All in costs: US$1,020/oz Net cash flow: US$100m inflow

South Africa Region

  • Att. production: 290koz (13% of group)

All in costs: US$1,234/oz Net cash flow: US$12m inflow

Australia Region

  • Att. production: 942koz (43% of group)

All in costs: US$941/oz Net cash flow: US$256m inflow (A$343m)

Group: FY 2016

Attributable production 2,146koz AIC US$1,006/oz Mine net cash flow US$444m

Australia; 5.8Moz South Africa; 34.1Moz Americas; 1.3Moz West Africa; 7.0Moz

Attributable reserves

As at 5 May 2017

Share price (JSE/ADR) R43.10/$3.16 Market capitalisation ($m) 2,596 Enterprise value ($m) 3,837 Average daily value traded ($m) 25 EV/EBITDA (x) 3.5

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Gold Fields vs. global peers

Gold Fields - Reinvesting for the future, Diggers and Dealers, August 2017

Putting Gold Fields into a global context

Note: Size of bubble indicates current market cap Gold Fields Barrick Newmont AngloGold Goldcorp Kinross Newcrest Agnico Sibanye Randgold 600 700 800 900 1,000 1,100 1,200 1,000 2,000 3,000 4,000 5,000 6,000 7,000

All-in Costs (US$/oz) Production (koz)

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Gold Fields in Australia

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Gold Fields Australia – 2016 performance

Gold Fields – Delivery & Growth

43% of group production, 58% of group net cash flow

  • Production: 942koz
  • AIC: A$1,261/oz

(US$941/oz)

  • Net cash flow:

US$256m Gold Fields Australia

  • Production: 363koz
  • AIC: A$1,273/oz

(US$949/oz)

  • Net cash flow:

US$113m St Ives

  • Production: 284koz
  • AIC: A$1,119/oz

(US$834/oz)

  • Net cash flow:

US$137m Granny Smith

  • Production: 229koz
  • AIC: A$1,301/oz

(US$971/oz)

  • Net cash flow: US$64m

Agnew

  • Production: 66koz
  • AIC: A$1,662/oz

(US$1,238/oz)

  • Net cash flow: US$1m
  • Divestment underway

Darlot

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Gold Fields in an Australian context

Gold Fields – Delivery & Growth

Gold Fields is the 3rd largest producer in Australia, and growing

200 400 600 800 1,000 1,200 200 400 600 800 1,000 1,200 1,400 1,600 1,800 Newmont Aus Newcrest Aus GFA Evolution Northern Star AngloGold Aus OceanaGold

  • St. Barbara

Regis Saracen

Australian gold producers: Production vs. AISC

Production (koz) AISC (US$/oz) (rhs) Note: AISC as reported by the companies

2016 Production Ozs & AISC

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Historical Gold Production Profile - Australia

Gold Fields – Delivery & Growth

Consistency of Delivery = CREDIBILITY

Consistency of Production Delivery for 16 Years

  • 200,000

400,000 600,000 800,000 1,000,000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Australian Gold Production Ozs

Darlot Granny Smith Agnew St Ives

Barrick Yilgarn South Acquisition Oct 2013

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Reserve Life

Gold Fields – Delivery & Growth

Sustainable reserves supported by Exploration Investment

2.8 5.9 6.1 6.2 6.9 10.1 12.1 2 4 6 8 10 12 14 Northern Star Saracen GFA Regis Evolution

  • St. Barbara

OceanaGold

Reserve life

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Regional Safety Performance Q1 2017

V B

TRIFR C2016 St Ives 10.82 Agnew 12.38 Granny Smith 6.95 Darlot 4.67 GFA 9.43

27% 53% 6% 7% 7%

Recordable Injuries 2017

Sprain and strain Laceration Fracture Foreign Body Contusion 8 10 12 14 16 18 20 22 24 26 28

Gold Fields Australia TRIFR 12 Month Moving Average 2012 - 2017

2012 2016

Vital Behaviours since 2014 Challenging start 2017

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Gold Fields Australia – What sets us apart?

Regional operating model Regional technical, financial, logistical support General Managers are our strength & have empowerment at their sites General Managers have a seat at the Regional Leadership Table as equals Responsibility & Accountability Adherence to Values – this is how we manage our business We know who our CEO is!!! Communication & engagement Monthly & Quarterley with Gold Fields EXCO & CEO – regional leaders, site managers, key personnel We get together a lot! Rewarded for performance Multiple mine sites & a project development site Quality asset base Diversity of operations – career development & advancement Exploration commitment for core growth Empowerment of Operations

Consistency Of Delivery over 16 Years

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Significant investment in WA

Gruyere, Western Australia South Deep, South Africa

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Three Pillars for Growth in Australia

Focused Mergers & Acquisitions

2002: St. Ives & Agnew (2 Mines) 2013: Granny Smith, New Holland, Darlot (4 Mines) 2016: Gruyere (50%) In development (5 Mines)

Gold Fields – Delivery & Growth

Delivering Sustainability of Operations

Margin Improvement

Re-structure in 2013 Focus on Free Cash Flow & Margin Margin Improvement Plan 2016/2017 Business Improvement Technology focus (future) Quality Life-Of Mines

Exploration

2002: A$28 Mill 2003-2004: A$38-A$41.6 Mill 2005: A$27.8 Mill 2006-2014: A$33 Mill increasing to A$63.9 Mill 2015-2017: A$90-A$100 Mill (5 Year Strategy)

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Exploration Expenditure

Gold Fields – Delivery & Growth

Sustained & Growing Investment

  • 20.0

40.0 60.0 80.0 100.0 120.0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exploration Expenditure – Gold Fields In Australia

  • St. Ives Mill

Upgrade Gold downturn Company restructure Granny Smith, Lawlers, Darlot acquisition

2 MInes Agnew

  • St. Ives

4 Mines Agnew

  • St. Ives

Granny Smith Darlot

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Gruyere adds life and quality in WA

  • Total purchase consideration = A$350m

̵ A$250m paid on deal completion ̵ A$100m payable according to an agreed construction cash call schedule

  • Additional 1.5% net smelter royalty on GFL’s share of

production after mine production exceeds 2Moz

  • Acquisition cost of A$199 per reserve ounce and A$106

per resource ounce

Exposure to a new and emerging goldfield in Western Australia

Gold Fields – Delivery & Growth

LOM Plan First gold Late 2018/early 2019 Life of mine 13 years Annual production (100% basis) 270koz AISC A$945/oz (US$690/oz) AIC A$1,103/oz (US$805/oz) Total capital cost (100% basis) A$532m (US$399m) IRR at A$1,500/oz gold after taking into account acquisition cost 6% Payback period 4.5 years

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The Gruyere JV – Gold Fields & Gold Road

Gold Road Resources

  • Delivery on an ambitious exploration investment in a new Greenstone Belt in WA (remote)
  • Significant discovery of large low grade long life ore body at Gruyere
  • Largest undeveloped Project in WA
  • 6.6 Moz Resource (50/50 Split GFA & GOR)
  • 3.5 Moz Reserve (50/50 Split GFA & GOR)
  • +13 Years Life-Of-Mine
  • Feasibility delivered in 2016
  • Quality Project Team established
  • Quality management & Board

Gold Fields

  • 16 years operations in Western Australia
  • Regional technical & operations experience to deliver operations strength
  • Delivered consistency of production delivery for Gold Fields & LoM
  • Growth through acquisition & exploration investment – history of discovery
  • Regional team with significant Project delivery experience
  • A Project funding alternative to Gold Road & recognition of growth potential at Gruyere
  • Commitment to exploration at Gruyere
  • Operations leadership

Management through JV SteerComm & JV Management Committee

Gold Fields – Delivery & Growth

Collaboration & Respect

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Progress on Gruyere

  • Approval for the Project Management Plan, Mining Proposal and Mine Closure Plan was granted by the

Western Australian Department of Mines and Petroleum in February 2017 – Achieved

  • Construction of 648 Room accommodation village & facilities – Completed July 2017
  • EPC, bulk earthworks, SAG mill supply and primary crusher supply contracts - Awarded
  • SAG & BALL Mill supply contracts – Awarded
  • Clearing and top soil stripping of the process plant area and tailings storage facility – Completed
  • New Airstrip clearing & excavation - Complete
  • Detailed engineering and design on the process plant - Commenced
  • Construction of the Anne Beadell borefield for plant construction and potable water - Completed
  • Power supply contract for gas pipeline and gas generation - Executed

Gruyere is on track for first production early 2019

Gold Fields – Delivery & Growth

Gruyere accommodation

  • village. Completed

Gruyere Process Plant - earthworks

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Brownfields exploration – Our mines continue to deliver

A$90 – A$100m budgeted for exploration per annum

Gold Fields – Delivery & Growth

  • A$102m exploration spend in 2016

̵ This resulted in Reserves increasing 13% (excluding Gruyere) after depletion

  • A$89m budgeted for exploration in

2017

  • Resource and Reserve Growth

̵ Wallaby (Granny Smith) ̵ Invincible (St Ives)

  • Emerging Projects

̵ Historic Granny Smith, Goanna, Windich Pits (Granny Smith) ̵ Lake Carey – Northern Fleet anomalism ̵ Waroonga North (Agnew) ̵ Speedway Trend (St. Ives)

  • Strong pipeline developing
  • Extensional exploration (from known

mines)

  • Invincible continues to grow (St. Ives)
  • Wallaby Underground – depth extension

confirmed

  • FBH, and Sheba, & Cinderella – lateral and depth

A$10.9m 77% in ground 48,119m drilled A$28.4m 75% in ground 140,878m drilled A$21.9m 74% in ground 232,438m drilled A$40.9m 72% in ground 240,946m drilled Agnew Darlot Granny Smith

  • St. Ives
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Gold Fields – Delivery & Growth

GOLD FIELDS AUSTRALIA

Safe Production Delivery Growth