Goodmorningladiesandgentlemen,todayspresentationwill Good o g ad - - PDF document

Goodmorningladiesandgentlemen,today’spresentationwill Good

• g ad es a d ge t e e , today s p ese tat o

focusonGoldFields’growthstrategy.Wehaveatargetof5m

• zperyear,eitherinproductionordevelopmentby2015.

Thepresentationprovidesaroadmaponhowweintend gettingthere,whydiscoverymatterstothestrategyandalso some detail on the various opportunities we have in the somedetailonthevariousopportunitieswehaveinthe pipelinethatarelikelytocontributetothetarget.

1

Idrawyourattentiontooutforwardlookingstatementsand d a you atte t o to out o a d oo g state e ts a d giventhatthisisongrowththestatementbecomesallthe morerelevant.

2

GoldFieldsrecentlyannounceditsF2010yearendresults.A summaryofthekeyindicatorswillprovideagoodintroductionto

• urgrowthstrategy.Inaddition,ourperformancesupportsthe

investmentcaseforGoldFields,whichIhavecombinedfor purposesofthispresentation. Intermsofarisingproductionprofile,attributableproductionwas up 2% at 3.5moz. In particular, production at South Deep was up up2%at3.5moz.Inparticular,productionatSouthDeepwasup 52%to265koz,atTarkwaitwasup20%to720kozandatCerro Coronaitwasup80%to394kgoldeq oz. GoldFieldsisanindustryleaderwithtotalattributablereservesof 78moz,areservelifeinexcessof20yearsandresourcesof 281moz. We have an extensive pipeline of growth opportunities with both Wehaveanextensivepipelineofgrowthopportunitieswithboth greenfields andbrownfieldsexplorationprojectsatdifferent stagesofdevelopment.InF2010weadded6.5meq ouncesto attributableresourceatacostofabout$12/oz. Wearefocusedonfreecashflowandhaveintroducedthe measureNotionalCashExpenditureorNCE.NCEisanimportant measure as it indicates how much free cash flow is generated to measureasitindicateshowmuchfreecashflowisgeneratedto paytax,interest,greenfields exploration&dividends.TheNCE marginimprovedby2%from13%inF2009to15%inF2010and thisduringacapitalintensiveperiodwhilewebuildSouthDeep. GoldFieldshaslowgearinglevelsandaconservativefinancial policy,whichincludesastrictpolicyofnohedging. O h d d iti id ll t t th ld

Thisgraphneatlysummarises ourperformancefortheyear s g ap eat y su a ses ou pe o a ce o t e yea endedJune2010intheonemetricthatcountsthemost– cashflowgenerationorNCEmargin.Notonlyhavewe capitalisedonhighergoldpricesbutwehavecontainedour costsanddrivenvolumegrowth.Weintendtocontinuethis trend in 2011. trendin2011.

4

SouthDeepisakeyassetforGoldFieldsandtheflagship Sout eep s a ey asset o Go d e ds a d t e ags p growthprojectinSouthAfrica.Theproductionbuildupis

• ntrackandwearewellplacedtodelivertherequired

volumetoachievefullproductionofbetween750kozand 800kozbyDecember2014.ProductionatSouthDeepfor 2011 is estimated at between 320koz and 350koz. The 2011isestimatedatbetween320kozand350koz.The capitalprogrammeisalsoontrack.We’vespentR1.6bnat SouthDeepinF2010.Capitalisexpectedtopeakataround R2bnayearoverthenexttwoyearsafterwhichitwill decreasesubstantially.Peakcapitalcanbeattributedtothe deepening of the ventilation shaft which commenced in deepeningoftheventilationshaft,whichcommencedin April2010andisplannedforcompletionin2012.Theshaft deepeningiskeytoSouthDeepachieving330ktpa,whichis thevolumerequiredtoachievefullproduction.Wehave alsocommencedconstructionofthetailingsdamandwe are at an advanced stage of designing the plant expansion areatanadvancedstageofdesigningtheplantexpansion.

5

Thetableoutlinesthecriticalpathitemsintermsofdelivering e tab e out es t e c t ca pat te s te s o de e g SouthDeep.Wearemanagingcapitalefficientlybymeeting budgetsandwherepossibleshowingsignificantsavings.We arealsoapplyinginnovativesolutionstohelpderisk commissioningdates. More importantly, this project is being delivered safely. Moreimportantly,thisprojectisbeingdeliveredsafely.

6

OurachievementsinF2010andbeyondaredrivenbyGold Ou ac e e e ts 0 0 a d beyo d a e d e by Go d Fields’groupstrategy.Thethreecorepillarsofourstrategy areunderpinnedbyanunhedgedpositionandcollectivelyaim toachievefreecashflow. Thepillarofsweatingourassetsisaboutourexistingportfolio

• f assets with the number one priority being safe production.
• fassetswiththenumberoneprioritybeingsafeproduction.

Thefocushereistoensurethatwerunouroperationsas efficientlyaspossible. Thepillarofsecuringourfutureisaboutensuringthelong termsustainabilityofourbusinesses.Itencompassessafety, human capital as well as the environmental and social licenses humancapitalaswellastheenvironmentalandsociallicenses tooperateineachjurisdiction. GrowingGoldFieldsisaboutgrowingtheportfoliowith

• uncesthatarebetteronanNCEbasis,offergrowthpershare

andenhancereturns.Thisleadsmeontoourgrowthstrategy.

7

Wearetargetingfivemillionouncesperyear,inproductionor e a e ta get g e

• ou ces pe yea ,

p oduct o o indevelopment,by2015.ThegoalisforSouthAfricato contributeatleast2mouncestothistarget,andforthe internationalregionsi.e.SouthAmerica,AustralasiaandWest Africatoeachcontributeabout1mattributableouncesper

• year. This will grow our international presence and achieve a

year.Thiswillgrowourinternationalpresenceandachievea 6040productionsplitbetweentheinternationalandSouth Africanoperations.

8

Weintendgrowingthroughexploration.Thisdoesnotmean e te d g o g t

• ug e p o at o

s does ot ea thatwewillnotacquireassets.Itmeansthatwewillnot engagein“M&AHeroics.”OurM&Astrategyistherefore

• pportunistic.Wewillconsiderinvestmentsinproducing

assetsandlatestagedevelopmentprojectswhicharevalue accretive. accretive. Havingsaidthat,acontinuinglackofqualitygolddiscoveries intheindustryhasledtoescalatingcompetitionforadvanced explorationandproducingassets.Thismakesgrowththrough M&Aexpensiveanddilutive. For this reason and in the current price environment we Forthisreasonandinthecurrentpriceenvironment,we believeexplorationsuccessoffersthemostcosteffectivepath toaccretiveandvalueaddinggrowth. Ourgrowthstrategyisthereforepremisedoncreatingour

• wnhighqualitygrowthopportunitiesmainlythroughan

aggressive focus on near mine exploration at our existing aggressivefocusonnearmineexplorationatourexisting assetsandanequallyaggressivegreenfields exploration programmeintheregionswherewearebasedandina limitednumberofhighlyprospective“newfrontiers”around theworld. Since adopting this strategy 3years ago we have doubled our

9

Ourexplorationprogrammeisfocusedondeliveringourregional h f b bl f h ff h growthtargetsof1mattributableouncesfromeachoffshore regionandhassofaryieldedresults: InSouthAmerica,togetherwithourpartner,Buenaventura,the explorationprogrammehasleadtoanewdiscoveryinsouthern Peru– calledChucapaca.Injust18monthsfromthediscovery hole at the Canahuire deposit we announced an initial resource of holeattheCanahuire depositweannouncedaninitialresourceof some5.6Mozeq. InKyrgyzstan,whichisoneofthe“newfrontiers”,ourpartner Orsu MetalsCorp.announcedaresourceontheTaldybulak depositwhereGoldFieldsowns60%.Chucapaca andTaldybulak havesignificantupsidepotential. InAustraliaatourSt.Ivesmine,weannouncedaninferred resourceofover1MozattheHamletdeposit,whichispartofthe developingArgoAthenacamp. And,inNovemberlastyearweacquiredGlencarMiningandhave subsequently consolidated the Yanfolila belt in southern Mali. subsequentlyconsolidatedtheYanfolilabeltinsouthernMali. Sincethenwehavecompletedover70kmofaircoredrillingand 30kmofdiamonddrillinginthebelt. Iwillnowprovideyouwithanupdateonmostoftheprojects beginningwithChucapaca inPeru.

10

Chucapaca istheflagshipgrowthtargetinSouthAmerica. C ucapaca s t e ags p g o t ta get Sout e ca GoldFieldsholds51%andBuenaventura49%ofa12,700Ha jointventure.It’sthetenementsinthisslide,whichare shownindarkgreen.Inadditiontothis,GoldFieldsowns

• utrightanumberofadditionaltenements,whichareshown

in red. inred. TheareaislocatedinsouthernPeru.

11

Chucapaca actuallyconsistsof4targetsandtheresourceof C ucapaca actua y co s sts o ta gets a d t e esou ce o 5.6mozeqrecentlyannouncedrelatestotheCanahurie target. Wehavecompletedover22,000mofdrillingontheCanahuire discoveryandworkontheotherthreetargetswillbe completedduringtheyear. Initialscopingstudieshaveshownthatthedepositis amenabletoopenpitminingandthatwecanextractthe metalseconomically.Thishasgivenussufficientconfidence tostartinfillandextensionaldrillingwiththegoalof completing a prefeasibility study by Q3 2011 completingapre feasibilitystudybyQ32011.

12

Thisslideshowsallblocksintheresourcethatareabove1g/t. s s de s o s a b oc s t e esou ce t at a e abo e g/t Theareainblueisthepitwe’vefloatedandasyoucansee fromthecolouredsquares,themajorityofthemineralisation

• ptimises.

There is a high grade shoot plunging to the west where we Thereisahighgradeshootplungingtothewestwherewe hadsomeofourbestdrillresults40m@7g/tand120m@ 8g/t.Itsopentothewestandthereisgoodpotentialto expandthisresourcefurther.

13

WealsohavetwoexpansionopportunitiesatCerroCorona, e a so a e t o e pa s o oppo tu t es at Ce o Co o a, whichisourproducingmineinPeru. Thefirstistheoxidestockpiletreatmentproject.Theoxide capthatwasremovedwhenwecompletedtheinitialstripat CerroCoronahasbeenstockpiledandwearebusywiththe feasibility study for a processing plant. We are in the process feasibilitystudyforaprocessingplant.Weareintheprocess

• fcompletingthedetailedengineeringplanandexpectto

startconstructionoftheplantinearly2011. Theotheropportunityisconvertingresourcestoreservesand isakeystrategicfocusatCerroCorona.CurrentlyCerro Corona is tailings constrained which means we have limited Coronaistailingsconstrained,whichmeanswehavelimited spacetostackwaste.Thecurrenttailingsfacilityallowsfor 89Mtwhilewehavearesourceof117Mt.Wewillcontinueto analyse alternativestosolvingthetailingsconstraintandhave alsodevelopedaninfilldrillingprogramme.

14

MovingontoAustralasia.

• g o to

ust a as a GoldFieldshasmaintainedarobustandincreasingexploration investmentinAustralia.Wefocusonnewexplorationand investedalmost$60millionlastyear. WiththiscommitmentwehavebeenabletojustifytheLefroy MillatStIvesandmorerecentlydiscoverthegrowingArgo Athenacamp. This sort of investment makes Gold Fields one of the top gold ThissortofinvestmentmakesGoldFieldsoneofthetopgold explorationinvestorsinAustralia.

15

StIvesisaworldclassgoldcamp.Therehasbeenover10Moz St es s a

• d c ass go d ca

p e e as bee o e

• producedfromStIvesandwehaveover5millionouncesin

resource. Withthishistoryitisincrediblethatwecanstillmake significant new discoveries such as the ArgoAthena camp and significantnewdiscoveriessuchastheArgo Athenacampand

• nly5kmfromourmill– showninthebox.

ThisistestamenttoGoldFields’commitmentandthe excellentdiscoveryscienceofournearmineexplorationteam at St Ives atStIves.

16

TheArgoAthenacampcomprisesanumberofmineralised e go t e a ca p co p ses a u be o e a sed shearsandalreadyhasaknownanddefinedendowmentof

• ver3.5Moz.

Contrarytoourpreviousexplorationmodelthebest mineralisation at Athena and Hamlet is hosted in the basalts. mineralisationatAthenaandHamletishostedinthebasalts. Thishasopenedupsignificantopportunitytodiscovermore. Thisdiscoveryisfastdevelopingintothebestnewgold discoveryinWesternAustralia.

17

TheAthenaundergroundmineisonscheduleforminingto e t e a u de g ou d e s o sc edu e o g to commencelaterthisyear,andforfullproductionin2011. Ascanbeseeninthepictures,thedeclineandorebody developmentisontrackforaDecemberstartup. Theundergrounddefinitiondrillingshownhereismostly complete and we are opening up the ore body which is completeandweareopeninguptheorebodywhichis deliveringrobustwidthsandgrades.

18

AtHamlet,weannounceda1MozinferredresourceinMay t a et, e a

• u ced a
• e ed esou ce

ay andwearecurrentlyinfilldrillinganddrillingbeneaththe resource. Theorebodyisclearlyopeninthatdirectionwith8m@10g/t, 7m @ 7g/t and 12m @ 8g/t. 7m@7g/tand12m@8g/t. Hopefullynextyearwewillbeabletoshowdevelopmentinto thisorebodyanddescribetheYorick depositasournext resource.AtYorick,whichis500meastofHamlet,drillingis identifying discrete zones of mineralisation displaying good identifyingdiscretezonesofmineralisationdisplayinggood continuity. Thiscampcontinuestodeliverandweareveryexcitedabout itspotential. MovingtoAgnew.

19

Agnewhasbeenthesilentandconsistentperformer. g e as bee t e s e t a d co s ste t pe o e Theminehasreservesandresourcesinexcessof3.5Moz. ThisyearwehavedrilledtheextensionofKim,beneaththe Waroongaopenpit,andextendedthemineralisationby another 500m to 1,200m below surface. another500mto1,200mbelowsurface. Wearestillintheprocessofcompletingtheresourcewhich willhopefullyextendAgnew’slifetoabout10years.

20

Hereyoucanseethedrillingthathasbeencompletedto e e you ca see t e d g t at as bee co p eted to extendKimtodepth. ThedrillshavenowmovedtotheMainNorthLodedrillout. Gold Fields near mine exploration strategy at St Ives and GoldFieldsnearmineexplorationstrategyatStIvesand Agnew– hasreplacedandinfactgrownourreserves– soour strategytogrowthroughexploration isworking.

21

MovingontoMaliandtheYanfolila project,whichisthe

• g o to

a a d t e a

• a p oject,

c s t e productoftheGlencaracquisitionandisthecorefocusof growthintheregion. ItisawellendowedregioninSouthernMalicoveringalarge landholdingof1600sqkmandislocatednearpower,good roads, water and infrastructure. roads,waterandinfrastructure. Wehaveachievedencouragingresultsfromourextensive drillingprogramoverthepastyear.

22

AtKomanaEastandWest,whicharetheflagshiptargetsof t o a a ast a d est, c a e t e ags p ta gets o thisproject,6newtargetsweredrilledindicatinggold mineralisationnearsurfaceandinoxidematerial. More importantly, these deposits lend themselves to shallow, Moreimportantly,thesedepositslendthemselvestoshallow, freedig,earlyminingopportunitiesandweexpecttohavea starterprojectofatleast2mozinreservewithinthenext3 years.

23

WithregardstotheKomanaEastdepositspecifically, 70%of t ega ds to t e o a a ast depos t spec ca y, 0% o theresultsindicatenearsurfacegoldmineralisation. Therearethreemainzoneswhichshowhighgradeshoots withinoxidemineralisationandareopentothenorth,south andatdepthwith53m@6.5g/t,28m@11g/t&20m@ 21g/t. 21g/t.

24

AttheDamang MineinGhanawehaveabrownfields t t e a a g e G a a e a e a b o e ds explorationprogrammeunderway. Theemphasissofarhasbeenonextensionaldrillingtothe southofthemainDamang Mineandbetweensomeofthe smallersurfacemines.Thisfocuswasinfluencedbythe commissioning of the secondary crusher, which will allow us commissioningofthesecondarycrusher,whichwillallowus toprocessharderoreofahighergrade. NearmineexplorationduringF2010wasdirectedattwocore growthprojects,GreaterDamang andGreaterAmoanda.

25

TheGreaterDamang Projectextendsforabout5kilometers e G eate a a g

• ject e te ds o about 5
• ete s

whileGreaterAmoanda extendsfor2kilometers Theobjectiveduring2011istoadvancetheGreaterDamang Projectwithadditionalinfilldrillingtosupportafeasibility studydecisiononanenlargedsurfaceminingoperation.

26

WithaNetDebt:EBITDA ratioof0.41andacomfortable t a et ebt at o o 0 a d a co

• tab e

maturityprofile,GoldFieldsiswellplacedtofunditsgrowth frominternalcashflowsandfacilitieswithouttappingthe equitymarkets.Timingisalsoinourfavourwithmanyofthe projectsreachingdecisionstagewhenSouthDeepisatfull

• production. Gold Fields has over R9bn in available funding

production.GoldFieldshasoverR9bninavailablefunding thatcanbeaccessed. Inaddition,wehavecreatedateamtotakeresponsibilityfor projectdevelopmentandtosupportthelargenumberof growthprojectsinprogressorinthepipeline.

27

Withthelongtermgoalclear,eachyearintheleadupto t t e o g te goa c ea , eac yea t e ead up to 2015willfocusonachievingthisgoal.Tothisend,thereare 4strategicobjectivesthatwewillfocusonin2011.InSouth Africa,wewillseektosteadyproductionatKloof, DriefonteinandBeatrix.Thiswillbeachievedontheback

• f the significant improvement in safety and the consequent
• fthesignificantimprovementinsafetyandtheconsequent

reductioninunplannedsafetystoppagesaswellasan increaseinorereservedevelopmentandminingflexibility

• verthenext23years.

WewillcontinuethemomentumatSouthDeep,intermsof production and the capital project to ensure delivery of this productionandthecapitalprojecttoensuredeliveryofthis mine. IncreasingtheNCEmarginto20%in2011from15%in2010. Thiswillbeachievedinpartthroughrevenue,bydriving volumegrowthwherewecan,butprimarilybyreducing costs and improving efficiencies A comprehensive business costsandimprovingefficiencies.Acomprehensivebusiness processreengineeringprojecthascommencedatKloof, DriefonteinandBeatrixinSouthAfricaaswellasTarkwain GhanaandSt.IvesinAustralia. Andfinally,advancingthegrowthprojects.Inparticular, completing the construction of Athena and the feasibility

28

29