Gold Fields
REINVESTING FOR THE FUTURE
Diggers and Dealers, 8 August 2017
Gold Fields REINVESTING FOR THE FUTURE Diggers and Dealers, 8 - - PowerPoint PPT Presentation
Gold Fields REINVESTING FOR THE FUTURE Diggers and Dealers, 8 August 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
Gold Fields
REINVESTING FOR THE FUTURE
Diggers and Dealers, 8 August 2017
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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
Gold Fields - Reinvesting for the future, Diggers and Dealers, August 2017
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Gold Fields - Reinvesting for the future, Diggers and Dealers, August 2017 Americas Region
All in costs: US$762/oz Net cash flow: US$77m inflow Ghana Region
All in costs: US$1,020/oz Net cash flow: US$100m inflow South Africa Region
All in costs: US$1,234/oz Net cash flow: US$12m inflow Australia Region
group) All in costs: US$941/oz Net cash flow: US$256m inflow 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 Ghana; 7.0Moz
Attributable reserves
As at 3 August 2017 Share price (JSE/ADR) R52.69/US$3.98 Market capitalisation (US$m) 3,270 Enterprise value (US$m) 4,510 Average daily value traded (US$m) 28 EV/EBITDA (x) 3.8
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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 - Reinvesting for the future, Diggers and Dealers, August 2017
43% of group production, 58% of group net cash flow
Gold Fields Australia
St Ives
Granny Smith
Agnew
Darlot
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̵ A$12m in cash - A$7m upfront and A$5m deferred for up to 24 months ̵ 130m Red 5 shares ̵ Deferred consideration may be taken as additional shares in Red 5 or as cash
̵ Scheduled for completion and ownership transfer in September 2017
Gold Fields - Reinvesting for the future, Diggers and Dealers, August 2017
In line with strategy to continually upgrade the portfolio
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Gold Fields - Reinvesting for the future, Diggers and Dealers, August 2017
Gold Fields is the 3rd largest producer in Australia, and growing
200 400 600 800 1,000 1,200 200 400 600 800 1,000 1,200 1,400 1,600 1,800 Newmont Aus Newcrest Aus GFA Evolution Northern Star AngloGold Aus OceanaGold
Regis Saracen
Australian gold producers: Production vs. AISC
Production (koz) AISC (US$/oz) (rhs) Note: AISC as reported by the companies
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Gold Fields - Reinvesting for the future, Diggers and Dealers, August 2017
GFA compares favourably to Australian peers
500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 GFA Saracen
Evolution Northern Star OceanaGold Regis US$/oz
Mkt cap (NPV)/production oz
2.8 5.9 6.1 6.2 6.9 10.1 12.1 2 4 6 8 10 12 14 Northern Star Saracen GFA Regis Evolution
OceanaGold
Reserve life
100 200 300 400 500 600 700 800 900 1,000
Newcrest Aus Evolution Regis GFA Northern Star US$/oz
AISC vs. AIC
AISC (US$/oz) AIC (US$/oz) Note: Consensus NPV used as proxy for GFA mkt cap Note: AISC as reported; AIC calculated by Gold Fields Note: Net cash flow = Cash from operations – all capex
100 200 300 400 OceanaGold Saracen Northern Star GFA Regis Evolution
Net cash flow/production oz (US$/oz)
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Gold Fields - Reinvesting for the future, Diggers and Dealers, August 2017
Consistency of Delivery = CREDIBILITY Consistency of Delivery for 16 Years
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 (oz)
Darlot Granny Smith Agnew St Ives
Barrick Yilgarn South Acquisition Oct 2013
Gruyere, Western Australia South Deep, South Africa
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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 - Reinvesting for the future, Diggers and Dealers, August 2017
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
2015-2017: A$90-A$100m (5 Year Strategy) A$748m Total Exploration Spend over 16 Years
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̵ A$250m paid on deal completion ̵ A$100m payable according to an agreed construction cash call schedule
production after mine production exceeds 2Moz
per resource ounce
Exposure to a new and emerging goldfield in Western Australia
Gold Fields - Reinvesting for the future, Diggers and Dealers, August 2017
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$507m (US$370m) IRR at A$1,500/oz gold after taking into account acquisition cost 6% Payback period 4.5 years
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Western Australian Department of Mines and Petroleum in February 2017 – Achieved
Gruyere is on track for first production early 2019
Gold Fields - Reinvesting for the future, Diggers and Dealers, August 2017
Gruyere accommodation
Gruyere Process Plant - earthworks
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A$90 – A$100m budgeted for exploration per annum
Gold Fields - Reinvesting for the future, Diggers and Dealers, August 2017
̵ This resulted in Reserves increasing 13% (excluding Gruyere) after depletion
2017
̵ Wallaby (Granny Smith) ̵ Invincible (St Ives)
̵ Historic Granny Smith, Goanna, Windich Pits (Granny Smith) ̵ Northern Fleet (Granny Smith) ̵ Katana & Waroonga North (Agnew)
mines)
tenements)
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
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Wallaby – A World Class Deposit
Underpinning growth at Granny Smith –
Key Observations:
Wallaby Deposit
View West
500m
Gold Fields - Reinvesting for the future, Diggers and Dealers, August 2017
Zone 110- 120
Zone 120 Main Lens
WB3971UD 4.7m @ 11.26g/t WB3972UD 14.2m @ 6.34g/t
WB3907UD 0.95m @ 8.32g/t
WB3931UD 4.7m @ 6.1g/t 3.4m @ 5.2g/t WB3959UD 3.7m @ 10.18g/t
200m DH Intersections WB4013UD 14.7m @ 9.44g/t
Zone 120 Zone 110
WB3994UD 7.2m @ 15.74g/t
WB3767UD 29.25m @ 6.90g/t WB3691AUD 15.41m @ 14.27g/t
WB3686UD 12.75m @ 13.04g/t WB3694UD 13.06m @ 8.26g/t
Green = initial resource area Yellow = Zone 110 resource Blue = Zone 120 resource
Note: selected assay results reported
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Gold Fields - Reinvesting for the future, Diggers and Dealers, August 2017
Wallaby Zone 135 – Continues to deliver quality resources & future growth Resource growth to 6Moz
Wallaby Deposit
View West
Key Observations:
intersected
Z150 location) Target Description: Infill Z135 to 100x100m
Zone 135 Outline WBD044UDW2
3.83m @ 25.95g/t 4.43m @ 5.37g/t 3.72m @ 21.02g/t
100m
Intrusive Zone 135
WB3688UDW2 Pending Assay
WB3679UDW2 12.75m @ 18.12g/t WB3481UDW1 5.24m @ 4.54g/t
WB3801UDW1 Pending Assay
500m
WBD039UDW1 7.16m @ 16.06g/t
WBD044UDW1 11.8m @ 5.26g/t 4.83m @ 5.21g/t
WB3679UDW1 18.7m @ 8.73g/t
WBD046UDW4 6.64m @ 3.98g/t WB3688UDW1 Pending Assay
Continues to deliver quality resources and future reserve growth
Z150? Note: selected assay results reported
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Northern Fleet (Lake Carey area)
Lake Carey East Alabama Raw Prawn Raw PrawnSouth Lake Carey South Little Wallaby Dallas West Dallas South Scamp
Northern Fleet Overview
Gold Fields - Reinvesting for the future, Diggers and Dealers, August 2017
Alabama Dallas S Raw Prawn S Raw Prawn N Dallas
Blurry BIF
32 m at 1.1 g/t 8m at 4.28 g/t 14m at 0.65 g/t 37.63m @ 1.15 g/t 7.33m @ 4.40 g/t 4m @ 6.10 g/t 30m @ 1.69 g/t
26m @ 2.01 g/t 7m @ 2.6 g/t
Max Gold
Note: selected assay results reported
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Target Description: Contact between banded iron formation and intrusive porphyry which is coincident with multiple highly anomalous gold intersections
Potential: >1 Moz
# of Holes Drilled: 6 (6/11) Metres: 2768 (2768/4500) Assays: 1 (1/11)
Gold Fields - Reinvesting for the future, Diggers and Dealers, August 2017 A A’
Blurry BIF Target Area
Results:
Key Observations:
Recommendations:
LCNAC1438 Planned LCDD0055 BIF Sediments (undifferentiated)
Alabama A A’
LCNAC1427 (AC) 32 m at 1.10 g/t (94 m) LCNAC1438 (AC) 15m at 0.58 g/t from 136m
LCDD0056 (DD) VG at 140m Results Pending LCNAC1417 (AC) 8m at 4.28 g/t from 44m 14m at 0.65 g/t from 64m LCDD0055 (DD) 5.26m @ 20.4 g/t (243m) LCDD0055 (DD) 5.26m @ 20.4 g/t (243m)
Planned
Note: selected assay results reported
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Invincible Complex - Continues To Grow
Underpinning growth at St Ives
Key Observations:
800m depth
Invincible Deeps
Invincible Mids
Invincible South
Invincible Deeps Invincible Mids
Long Section of Invincible overlying underground mine design 800m
600m Invincible South Invincible South Invincible Open Pit
Gold Fields - Reinvesting for the future, Diggers and Dealers, August 2017
Mill
Note: selected assay results reported
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Invincibl e Mine Victor y Arg
ge Juncti
Mill “Greater” Invincible
since discovery
mid-2019
commenced July 2017
Invincible mid & Deeps
2018
Speedway Trend
commenced
to emerge
Gold Fields - Reinvesting for the future, Diggers and Dealers, August 2017
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Gold Fields - Reinvesting for the future, Diggers and Dealers, August 2017
Project Status
Advanced Scoping Study
Mining Several semi-continuous mining methods are being investigated. Processing Ongoing options study for plant upgrade and modifications. Geotechnical Geotechnical drill holes for pit design completed at Argo, Neptune & Pistol club. Geology Model for advanced scoping study completed. Environmental Ongoing assessment for approval. Power & Infrastructure To be assessed following mining and processing studies. West Kambalda Lefroy Mill
Drilling Completed Since Q2 2016
Aircore Holes Metres 1,200 112,000
Argo Neptune Invincible Revenge Leviathan
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Update
Target Description: Gold hosted in
palaeochannel sands and gravels
Potential: 5Moz potential Metres:
43,786 of 255,000m planned
Assays: 137 returned / 182 holes pending
LBest Results:
– 19m at 34.14g/t from 71m (LD81889) – 14m at 1.64g/t from 87m (LD15177) – 13m at 2.37g/t from 78m (CD19660A) – 11m at 3.64g/t from 90m (LD81734) – 10m at 2.05g/t from 77m (LD81842) – 9m at 3.36g/t from 78m (LD15139) – 8m at 3.28g/t from 81m (LD15140) – 7m at 4.71g/t from 83m (LD15135B) – 6m at 6.58g/t from 73m (LD15115B) – 6m at 6.12g/t from 67m (LD81741) – 6m at 4.23g/t from 65m (LD81822A) – 5m at 18.49g/t from 80m (LD81834)
Key Observations:
tenements hosting alluvial gold
sap rock which may require additional, targeted drilling.
Gold Fields - Reinvesting for the future, Diggers and Dealers, August 2017
Note: selected assay results reported
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Waroonga North underground – Underpinning Growth
Key Observations:
.
Underpinning growth at Agnew
Gold Fields - Reinvesting for the future, Diggers and Dealers, August 2017
6m quartz with visible gold
Long Section Looking East
Main Kim Waroonga North
Note: selected assay results reported
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Gold Fields - Reinvesting for the future, Diggers and Dealers, August 2017
Gold Fields Australia