GOLD FIELDS LIMITED A DEEP VALUE OPPORTUNITY FNB Showcase October - - PowerPoint PPT Presentation

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GOLD FIELDS LIMITED A DEEP VALUE OPPORTUNITY FNB Showcase October - - PowerPoint PPT Presentation

GOLD FIELDS LIMITED A DEEP VALUE OPPORTUNITY FNB Showcase October 2010 Nikki Catrakilis-Wagner Investor Relations 1 Forward Looking Statements Certain statements in this document constitute forward looking statements within the


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SLIDE 1

GOLD FIELDS LIMITED A DEEP VALUE OPPORTUNITY

FNB Showcase – October 2010 Nikki Catrakilis-Wagner Investor Relations

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SLIDE 2

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 Securities Exchange Act of 1934. Such forward looking statements involve known and unknown risks, uncertainties and

  • ther important factors that could cause the actual results, performance or achievements
  • f the company to be materially different from the future results, performance or
  • f 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 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 environmental regulations; and new legislation affecting mining and mineral rights; changes in exchange rates; currency devaluations; inflation and other i f t i d t i l ti t t f i f f t d macro-economic factors, industrial action, temporary stoppages of mines for safety and unplanned maintenance reasons; and the impact of the AIDS crisis in South Africa. These forward looking statements speak only as of the date of this document. The company undertakes no obligation to update publicly or release any revisions to these The company 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 occurrence of unanticipated events.

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FNB Showcase October 2010

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SLIDE 3

Agenda

  • Strategy
  • F2010 Scorecard

F f F2011

  • Focus for F2011
  • Growth strategy
  • Balance Sheet
  • Investment case

Sustainable gold mining

FNB Showcase October 2010

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SLIDE 4

Group Strategy

Strategic Framework

p gy

Focused on Free Focused on Free Cash Flow

Sweating our assets Growing Gold Fields Securing our future Unhedged

To be the Global Leader in Sustainable Gold Mining

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FNB Showcase October 2010

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SLIDE 5

F2010 Scorecard

Strategic Framework

Attributable production up 2% to 3 5m oz

  • Attributable production up 2% to 3.5m oz
  • South Deep up 52% from 175koz to 265koz
  • Cerro Corona* up 80% from 219koz to 394koz

Sweating our assets

  • Cerro Corona up 80% from 219koz to 394koz
  • Tarkwa* up 20% from 612koz to 721koz

Sweating our assets

  • NCE margin
  • Up 2% from 13% to 15%

Up 2% from 13% to 15%

*Managed

Improving the margin per oz

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FNB Showcase October 2010

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SLIDE 6

F2010 Scorecard

Strategic Framework

Greenfields Greenfields

  • Chucapaca initial resource 5.6m eq oz
  • Yanfolila progressing well

Growing Gold Fields

  • Yanfolila progressing well

Brownfields Growing Gold Fields

  • St. Ives & Agnew – resource growth
  • Cerro Corona – oxide expansion
  • Damang & Tarkwa - growth

Towards 5moz in production or development by 2015

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FNB Showcase October 2010

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SLIDE 7

F2010 Scorecard

Strategic Framework

  • Best safety year ever – second consecutive year

Securing Our Future

  • South Deep new order mining right executed
  • 2014 BEE equity targets by Dec 2010

Securing Our Future

  • IAS / SAMREC Award for best reporting of R&R
  • Cerro Corona - Peru’s safest open pit mine
  • Pioneers carbon trading in gold industry

To be the Global Leader in Sustainable Gold Mining

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FNB Showcase October 2010

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SLIDE 8

F2010

Introduction

NCE margin

1000 1200 800 1000 $/oz 400 600 200 400 Q1F2010 Q2F2010 Q3F2010 Q4F2010 Gold Price NCE Cash Cost

Focused on free cash flow

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FNB Showcase October 2010

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SLIDE 9

Operational Performance

South Deep Project p j

600 800

z)

200 400 600

roduction (oz

200

F2009 F2010 F2011 F2012 F2013 F2014 Pr

1.5 2 2.5

l (Rbn)

0.5 1 1.5

Capital F2009 F2010 F2011 F2012 F2013 F2014

Plan Actual

Achieving momentum at South Deep

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FNB Showcase October 2010

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SLIDE 10

South Deep Project

Operational Performance

p j Capital Programme F2010 to F2014

Item Year Q4 F2010 Item F2010 F2011 F2012 F2013 F2014 Status

Refrigeration Plant

Twin Vent Shaft

  

Tailings Storage Facility Plant Expansion

 

Plant Expansion New Mine Development

 

Total Capital Actual

R1.6bn

Base Plan

R1.8bn R1.9bn R2.1bn R1.5bn R1.2bn

Note: Capital estimates in July 2009 money

South Deep Project capital efficient and on track

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FNB Showcase October 2010

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SLIDE 11

F2011 focus

Conclusion

  • South Africa
  • Safe production

Safe production

  • Ore reserve development
  • South Deep
  • Maintain momentum
  • 20% NCE margin
  • Volume growth
  • Business process re-engineering
  • Advancing the growth pipeline

Safe profitable ounces

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FNB Showcase October 2010

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SLIDE 12

Strategic Framework

Growth Strategy gy

5 million ounces per year, in development or in production development or in production, by 2015

South Africa Region Australasia Region West Africa Region South America Region

2 moz 1 moz 1 moz 1 moz

Value adding growth

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FNB Showcase October 2010

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SLIDE 13

Gold Fields international exploration

Strategic Framework

  • Less discoveries mean
  • Increasing competition among majors and mid tiers to acquire resources

p

  • Increasing competition among majors and mid-tiers to acquire resources
  • Decreasing quality of resources available for acquisition
  • Increasing prices – gold and assets
  • No M&A heroics = value accretive growth through the drill bit
  • Greenfields exploration doubled
  • US$40M (F2008)
  • US$80M (F2010)
  • Near mine exploration maintained
  • US$51M (F2008)
  • US$52M (F2010)

Increased exploration commitment yielding results

FNB Showcase October 2010

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SLIDE 14

Supporting regional growth and developing new frontiers

Gold Fields international exploration

pp g g g p g

6.2Mozeq resource announced by Orsu Metal Corp Metal Corp. Consolidated the Yanfolila Camp 5.6Mozeq discovery discovery 1.0Moz inferred resource announced

Supporting regional growth target of 1Mozpa

FNB Showcase October 2010

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SLIDE 15

Chucapaca Joint Venture - Peru

South America Region

p J i t V t

Chucapaca

Joint Venture 51% Gold Fields 49% Buenaventura 163

196

Canteras del Hallazgo – 12,700Ha

MINING CONCESSIONS

Gold Fields - 94,100Ha Buenaventura – 18,400Ha Aruntani

SYMBOLOGY

Dirt Road Back Road Main Road !

S O OG

Growing Gold Fields in South America

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FNB Showcase October 2010

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SLIDE 16

South America Region

Chucapaca Joint Venture - Peru

  • Discovery hole drilled September

2008 p

Canahuire

2008

  • Canahuire drilling: 22,290m

Canahuire

  • Amenable to open pit mining
  • Positive metallurgical recoveries

Cerro Chucapaca

  • Initial drilling in progress on other

targets

112

Katrina

  • Drilling re-started on Canahuire
  • Pre-feasibility Q3 2011

20

20

GF

Katrina South

y

BVN

Canahuire inferred resource 5.6Mozeq

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FNB Showcase October 2010

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SLIDE 17

Cerro Corona Mine - Peru

South America Region

Oxide stockpile treatment

  • ~300k eq oz
  • Engineering of plant in progress
  • Construction early 2011

Construction early 2011 Resource conversion project

  • Resources 8.1m eq oz
  • Tailings constraint alternatives

Expansion and life extension opportunities

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FNB Showcase October 2010

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SLIDE 18

Australasia Region

St Ives Gold Mine - Argo-Athena Camp g p

Argo 1 moz Produced Athena 771 koz Resource Hamlet 1 moz Resource C t ti Q1 2011 889 koz Resource Under Construction Construction Q1 2011

Yorrick Yorrick Yorrick Yorrick

Defined Endowment +3.5 moz – With Significant Potential

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FNB Showcase October 2010

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SLIDE 19

Australasia Region

Far South East Project - Philippines

  • Located in Northern Luzon

j pp

  • 250km north of Manila
  • Established infrastructure
  • Established and supportive workforce
  • Existing mineral tenure

g

FNB Showcase October 2010

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World class potential

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SLIDE 20

Australasia Region

Far South East Project - Philippines

  • 18-month option

j pp

Southwest Northeast

18 month option

  • $10m option fee
  • Conduct drill program & feasibility

750 m

  • Conduct drill program & feasibility

studies

  • $44m down-payment payable
  • Further $66m after 12 months
  • Final payment of $220m prior to expiry

AuEq g/t

Final payment of $220m prior to expiry

  • f option period

900 m     691m @ 2.5 g/t Au and 0.9% Cu  907m @ 1.5 g/t Au and 0.5% Cu  953 @ 1 3 /t A d 0 6% C

FNB Showcase October 2010

20 900 m  953m @ 1.3 g/t Au and 0.6% Cu

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SLIDE 21

Yanfolila Project in Mali

West Africa Region

j 163

196

112 163

112 163 20

YANFOLILA PROJECT Sadiola Essakane

20

20

Loulo Morila Syama Siguiri Sadiola Syama

An emerging camp in elephant country

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FNB Showcase October 2010

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SLIDE 22

West Africa Region

Yanfolila Project - Mali j

KW

Komana West Komana East

Gonka

Targeting 2moz Resource in 30km radius of Komana in 3yrs

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FNB Showcase October 2010

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SLIDE 23

West Africa Region

Yanfolila Project - Mali

11m@2.6g/t from 34m

j

  • 3 High grade shoots

18m@4.5g/t from 33m 2m@5 7g/t from 34m

  • Shallow oxide opportunities
  • Free dig mining potential

2m@5.7g/t from 34m 22m@4.8g/t from 7m

  • Open to North, South & at

depth

21m@20.8g/t from 53m 51m@4.1 g/t from 0m 53m@6.5 g/t from 8m 35m@2.1 g/t from 32m

Komana East

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FNB Showcase October 2010

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SLIDE 24

Balance Sheet

Financial Position

10 0

Debt maturity as at June 2010

8.0 10.0 6.0 Rbn 2.0 4.0

  • 2.0

F2011 F2012 F2013 F2014+ F2011 F2012 F2013 F2014+

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FNB Showcase October 2010

One of the best Balance Sheets in the industry

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SLIDE 25

US$ Bond Issue – Salient Features

Financial Position

$ Amount $1bn Notes Senior unsecured Maturity October 2020 C 4 875% Coupon 4.875% Interest Payment Dates Semi-annual Interest Payment Dates Semi annual Ratings Moody’s - Baa3 (Stable) Ratings S&P – BBB- (Stable)

Strengthens liquidity

FNB Showcase October 2010

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SLIDE 26

Balance Sheet

Financial Position

Pro-forma Debt maturity as at June 2010

12.0 14.0 8.0 10.0 Rbn 4.0 6.0

  • 2.0

F2011 F2012 F2013 F2014+ F2011 F2012 F2013 F2014+

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FNB Showcase October 2010

Significantly improved

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SLIDE 27

Investment case

Conclusion

  • Rising production profile
  • One of the highest quality reserve bases in the gold industry
  • Strong growth pipeline
  • Strong growth pipeline
  • Focused on free cash-flow generation
  • Superior balance sheet
  • Excellent exposure to the gold price
  • Excellent exposure to the gold price
  • Ensuring sustainability: our assets, our communities and our environment

Sustainable gold mining

FNB Showcase October 2010

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SLIDE 28

Good value

Conclusion

16X

2009 Trailing EV/EBITDA

16X 10.6X 6.2X

AngloGold Ashanti Barrick Gold Gold Fields

Source: BMO Nesbitt Burns

A deep value opportunity

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FNB Showcase October 2010

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SLIDE 29

Gold Fields Can you afford not to own it?

Investor Relations Nikki Catrakilis-Wagner Investor Relations ( ffi ) 27 11 562 9706 (office) +27 11 562 9706 (mobile) +27 83 309 6720 nikki.catrakilis-wagner@goldfields.co.za

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