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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


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Gold Fields

REINVESTING FOR THE FUTURE

Diggers and Dealers, 8 August 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 - Reinvesting for the future, Diggers and Dealers, August 2017

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Gold Fields overview

Gold Fields - Reinvesting for the future, Diggers and Dealers, August 2017 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 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 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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SLIDE 5

Gold Fields in Australia

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Gold Fields Australia overview

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

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

Darlot

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Darlot sale to Red 5

  • Total consideration of A$18.5m

̵ 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

  • Gold Fields will underwrite Red 5 rights issue up to A$7m
  • Subject to customary conditions, including Red 5 shareholder approval

̵ 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 in an Australian context

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

  • St. Barbara

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 Australia vs. Australian peers

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

  • St. Barbara

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

  • St. Barbara

OceanaGold

Reserve life

100 200 300 400 500 600 700 800 900 1,000

  • St. Barbara

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

  • 600
  • 500
  • 400
  • 300
  • 200
  • 100

100 200 300 400 OceanaGold Saracen Northern Star GFA Regis Evolution

  • St. Barbara

Net cash flow/production oz (US$/oz)

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Historical Gold Production Profile - Australia

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

Consistency of Delivery = CREDIBILITY Consistency of 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 (oz)

Darlot Granny Smith Agnew St Ives

Barrick Yilgarn South Acquisition Oct 2013

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

Gruyere accommodation

  • village. Completed

Gruyere Process Plant - earthworks

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Brownfields exploration – Continues to deliver

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

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

  • 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) ̵ Northern Fleet (Granny Smith) ̵ Katana & Waroonga North (Agnew)

  • Strong pipeline developing
  • Extensional exploration (from known

mines)

  • Regional exploration (on greater

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

  • St. Ives
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Wallaby – A World Class Deposit

Underpinning growth at Granny Smith –

Key Observations:

  • Resources 6.5Moz (24% increase on 2015)
  • Reserves 1.69Moz (29% increase on 2015)
  • Open at depth
  • Shifting focus to reserve conversion in 2017-2018
  • Zone 110-120
  • 500m x 1,000m defined so far
  • 250m x 200m high grade extension confirmed
  • Open to the south-west for at least 450 metres

Granny Smith – Resource & Reserve growth

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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Granny Smith – Resource & Reserve growth

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:

  • Typical Wallaby-style mineralisation continues to be

intersected

  • Mineralisation open in all directions
  • Early geotech investigations & modelling underway
  • Mineralisation identified to 1900m from surface (potential

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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Granny Smith – Emerging projects

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

  • 7.5km of anomalous gold zone
  • Full field Aircore program continues
  • On-going on-lake drilling programs in 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

  • inc. 2m @ 13.3 g/t

26m @ 2.01 g/t 7m @ 2.6 g/t

Max Gold

Note: selected assay results reported

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Granny Smith – Blurry BIF emerging Project

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:

  • LCDD0055: 5.26 @ 20.4 g/t from 243m

Key Observations:

  • Gold rich veins seen in LCDD0055 hosted by porphyry
  • Conglomerate package on western side of target area
  • Altered banded iron formation and porphyritic intrusive

Recommendations:

  • Drill follow up holes along to LCDD0055
  • Update geological model

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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St Ives – Resource & Reserve growth

Invincible Complex - Continues To Grow

Underpinning growth at St Ives

Key Observations:

  • Economic mineralisation intersected over 1,400m strike and

800m depth

  • Open up and down plunge
  • Strong geological continuity between holes
  • Open pit nearing completion
  • Underground portal established

Invincible Deeps

  • 11.30m at 6.55g/t from 853.7m (LD14682W5)
  • 10.90m at 5.40g/t from 819.8m (LD14682W4)
  • 9.60m at 5.89g/t from 855m (LD14682W9)
  • 12.45m at 4.23g/t from 881.35m (LD14682W9)
  • 11.05m at 3.45g/t from 896.95 (LD14682W11)

Invincible Mids

  • 29m at 2.0 g/t from 459m (LD14721)

Invincible South

  • 20.35m at 5.62g/t Au from 414.6m (LD14827)
  • 14m at 1.36g/t Au from 439m (LD14828)
  • 13m at 2.14g/t Au from 422m (LD14828)
  • 8.6m at 9.08g/t Au from 421.3m (LD14830)
  • 6.45m at 8.21g/t Au from 392.7m (LD14831A)
  • 5.75m at 2.25g/t Au from 383.95m (LD14831A)
  • 4.55m at 2.61g/t Au from 404.15m (LD14830)

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

  • Reven

ge Juncti

  • n

Mill “Greater” Invincible

  • Resource growth to 1.427 Mozs

since discovery

  • Open Pit mining continues circa

mid-2019

  • UG mine development

commenced July 2017

  • Future mine expansions at

Invincible mid & Deeps

  • Invincible South – Feasibility in

2018

  • Further “shoots” emerging

Speedway Trend

  • 35km structural trend
  • Full field aircore program

commenced

  • Future “blue sky” targets expected

to emerge

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

St Ives – “Greater” Invincible & Speedway Trend

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St Ives – Palaeochannel Project

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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St Ives – Palaeochannel Project

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

L

Best 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:

  • Extensive palaeochannel network identified across St. Ives

tenements hosting alluvial gold

  • High energy channels providing greatest opportunity
  • Depth of palaeochannel averages 75 metres
  • Some significant mineralisation identified in the lower regolith and

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:

  • Multiple mineralised quartz zone intersected
  • Resource conversion in parallel to exploration
  • Encouraging results incl.
  • WNGC780155: 1.5m @ 16.3g/t
  • WNGC780159: 2.2m @ 20.3g/t
  • WNGC780161: 2.9m @ 26.5g/t
  • WNGC78150: 0.8m @ 38.1g/t
  • WNGC780124: 3.3m @ 115.1g/t

.

Underpinning growth at Agnew

Agnew – Emerging projects

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

Safe Production Delivery Growth