Investor reference pack
REINVESTING FOR THE FUTURE
September 2017
Invincible Pit, St Ives, Western Australia
Investor reference pack REINVESTING FOR THE FUTURE September 2017 - - PowerPoint PPT Presentation
Invincible Pit, St Ives, Western Australia Investor reference pack REINVESTING FOR THE FUTURE September 2017 Forward looking statements Certain statements in this document constitute forward looking statements within the meaning of
September 2017
Invincible Pit, St Ives, Western Australia
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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 Gruyere Project; the Damang Reinvestment Plan; the Salares Norte 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; expected All-in Sustaining costs and All-in costs; 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, September 2017
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Gold Fields, Reinvesting for the future, September 2017
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Gold Fields, Reinvesting for the future, September 2017
Group: H1 2017
Attributable production 1,047koz AIC US$1,103/oz Mine net cash flow* US$105m
Group: Q2 2017
Attributable production 550koz AIC US$1,092/oz Mine net cash flow* US$70m
Demarks growth projects in Gold Field’s portfolio
Americas Region
All in costs: US$677/eq oz Net cash flow: US$27m inflow
West Africa Region
All in costs: US$1,138/oz Net cash flow*: US$74m inflow
South Africa Region
All in costs: US$1,557/oz Net cash flow: US$48m outflow
Australia Region
All in costs: US$924/oz Net cash flow: US$51m inflow (excl. Gruyere)
Salares Norte results of feasibility study expected in H1 2018. Mineral resources as at 31 December 2016 of 4.4Moz gold equivalent Damang Reinvestment tracking ahead of
by c.100koz per annum
* Excluding Damang project capex
Gruyere on track for first production in early 2019. The mine will add attributable annual production of 135koz at steady state
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Excluding project capex and working capital requirements of US$39m in Q1 and US$102m in Q2, net cash flow was US$4m and US$35m, respectively
4 38 54 65 63 54
30 75 47 26 34 152 82
1,625 1,372 1,315 1,265 1,283 1,275 1,265 1,179 1,198 1,174 1,103 1,092 1,182 1,242 1,329 1,198 1,216 1,247
500 1,000 1,500 2,000
50 100 150 200 250 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017
US$/oz US$ million Net cash flow Gold price
Net cash flow = Cash flow from operating activities (which is net of tax) less net capital expenditure, environmental payments and financing costs
2014
Gold: US$1,249/oz Net cash: US$236m
2013
Gold: US$1,386/oz Net cash: -US$232m
Gold Fields, Reinvesting for the future, September 2017 2015
Gold: US$1,140/oz Net cash: US$123m
2016
Gold: US$1,241/oz Net cash: US$294m
H1 2017
Gold: US$1,232/oz Net cash: -US$102m
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Gold Fields, Reinvesting for the future, September 2017
selectively hedged the oil price and Australian dollar gold price
̵ Australia: 78m litres at an equivalent Brent Crude swap price of US$49.92/bbl for the period June 2017 to December 2019 ̵ Ghana: 126m litres at an equivalent Brent Crude swap price of US$49.80/bbl for the period June 2017 to December 2019 ̵ Volumes hedged represent 50% of annualised fuel consumption for the two regions
̵ 165koz with a floor price of A$1,696/oz and a cap of A$1,754/oz for the period July 2017 to December 2017 ̵ 130koz at an average forward price of A$1,720 for the period July 2017 to December 2017 ̵ Gold volumes hedged represent c.70% of expected production from the Australia region for the second half of 2017
̵ 8,250t hedged for the period August 2017 to December 2017 (c.70% of production) ̵ Average floor level US$5,867/t, average cap level US$6,300/t
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0.0 0.5 1.0 1.5 2.0 500 1,000 1,500 2,000 FY 2013 H1 2014 FY 2014 H1 2015 FY 2015 H1 2016 FY 2016 H1 2017
US$m Net debt (US$m) and Net debt/EBITDA
Net debt Net debt/EBITDA
Gold Fields, Reinvesting for the future, September 2017
500 1,000 1,500 2,000 2,500 3,000 3,500 US$ facilities Rand facilities Total facilities
US$m Debt facilities
Utilised Unutilised 100 200 300 400 500 600 700 800 900 Dec-17 Dec-18 Dec-19 Dec-20
US$m Maturity schedule
Damang pit, Ghana Salares Norte, Chile Gruyere, Western Australia South Deep, South Africa
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400 600 800 1 000 1 200
1 000 1 500 2 000 2 500 2018 2019 2020 2021 2022 US$/oz koz Production and AIC (2017 money terms) Australia Ghana South Africa Americas AIC
Gold Fields, Reinvesting for the future, September 2017
Prod 2 137 2 324 2 339 2 475 2 393 AIC 1 143 1 030 965 883 865 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2018 2019 2020 2021 2022 Annual Production by Resource/Reserve Reserve Inferred Endowment
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Gold Fields, Reinvesting for the future, September 2017
400 600 800 1,000 1,200 1,400
400 600 800 1,000 1,200 2018 2019 2020 2021 2022
US$/oz koz Production and region AIC (2017 money terms)
St Ives Agnew Granny Smith Gruyere AIC
400 600 800 1,000 1,200 1,400 1,600
200 300 400 500 600 2018 2019 2020 2021 2022
US$/oz koz Production and AIC (2017 money terms)
South Deep AIC
200 300 400 500 600 700 800
100 150 200 250 300 350 2018 2019 2020 2021 2022
US$/oz koz Production and AIC (2017 money terms)
Cerro Corona AIC
400 600 800 1,000 1,200 1,400
200 300 400 500 600 700 800 900 1,000 2018 2019 2020 2021 2022
US$/oz koz Managed production and region AIC (2017 money terms)
Tarkwa Damang AIC
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Gold Fields, Reinvesting for the future, September 2017
Process plant Gruyere village
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Gold Fields, Reinvesting for the future, September 2017
Main Access Road Airstrip and Airport Terminal Building Processing Plant and Tailings Storage Facility
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Gold Fields, Reinvesting for the future, September 2017
the Damang complex and satellite pit areas
̵ Total tonnes mined in H1 2017 were 18.9Mt vs. plan of 15.2Mt ̵ Total tonnes mined in 2017 are expected to be 41Mt vs. the project schedule of 33Mt, with the key focus on capital waste stripping ̵ Gold produced in H1 2017 was 77koz; AIC of US$1,702/oz; Project capex of US$53m ̵ Construction of the Far East Tailings Storage Facility (FETSF) commenced during Q1 2017 and is on plan
Mined but not planned Damang Complex Planned but not mined Planned and mined
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Gold Fields, Reinvesting for the future, September 2017
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Gold Fields, Reinvesting for the future, September 2017
1,000 1,500 2,000 2,500 3,000 2014 2015 2016 H1 2017 m2
Destress - monthly average
Low Profile High Profile 69% 20%
200 300 400 500 600 700
2014 2015 2016 H1 2017
metres
Development - monthly average
Development Linear (Development)
20 000 30 000 40 000 50 000 60 000 70 000 80 000 2014 2015 2016 H1 2017 tonnes
Longhole stoping - monthly average
LHS Linear (LHS)
10 000 15 000 20 000 25 000 30 000 35 000 2014 2015 2016 H1 2017 m3
Backfill placed - monthly average
Backfill Linear (Backfill )
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Gold Fields, Reinvesting for the future, September 2017
High-grade gold High-grade silver Low-grade Agua Amarga Brecha Principal
OPEN
Scale: 1cm:100m
Gruyere, Western Australia South Deep, South Africa
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Key Observations:
View West
500m
Gold Fields, Reinvesting for the future, September 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, September 2017
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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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, September 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
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
# of Holes Drilled: 6 (6/11) Metres: 2768 (2768/4500) Assays: 1 (1/11)
Gold Fields, Reinvesting for the future, September 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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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, September 2017
Mill
Note: selected assay results reported
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Invincibl e Mine Victor y Arg
ge Juncti
Gold Fields, Reinvesting for the future, September 2017
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Gold Fields, Reinvesting for the future, September 2017
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.
Aircore Holes Metres 1,200 112,000
Argo Neptune Invincible Revenge Leviathan
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Key Observations:
.
Underpinning growth at Agnew
Gold Fields, Reinvesting for the future, September 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, September 2017
CIL PLANT
STARTER PIT Kobada South Kobada North North Hill Badukrom
South Heap Leach Blue Ridge KD East KD Far North KD Far South
Gruyere, Western Australia South Deep, South Africa
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H1 2017 H1 2016 Q2 2017 Q1 2017
Production koz 468.8 466.1 243.3 225.4 AIC* US$/oz 924 928 890 962
Gold Fields, Reinvesting for the future, September 2017
910koz at AIC of US$1,100/oz
despite a US$48m tax payment related to FY 2016
Smith
̵ On track for first production in early 2019
̵ Total consideration of A$18.5m comprising A$12m in cash and 130m Red 5 shares ̵ Cash component of A$7m upfront, A$5m deferred up to 24 months. Deferred consideration may be taken in additional Red 5 shares or cash ̵ Gold Fields to underwrite Red 5 rights issue up to A$7m
200 400 600 800 1,000 1,200 50 100 150 200 250 300 350 400 450 500 550 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017
Production (koz) and AIC (US$/oz)
Production AIC 200 400 600 800 1,000 1,200 1,400 20 40 60 80 100 120 140 160 180 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017
Net Cash Flow (US$m) and gold price (US$/oz)
Net CF Gold Price * Excluding Gruyere
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H1 2017 H1 2016 Q2 2017 Q1 2017
Production koz 358.5 345.5 183.9 174.5 AISC US$/oz 995 1,052 955 1,037 AIC US$/oz 1,142 1,052 1,131 1,153
Gold Fields, Reinvesting for the future, September 2017
2016
̵ Gold produced in H1 2017 was 77koz; AIC of US$1,702/oz; Project capital expenditure of US$53m ̵ Increase in forecast of total tonnes mined in 2017 to 41Mt from original plan of 33Mt
the year
US$34m at Tarkwa and outflow of US$13m at Damang
2019
̵ Damang: 30% reduction in power unit cost to 16.0 USc/kWh ̵ Tarkwa: 18% reduction in power unit cost to 13.5 USc/kWh
200 400 600 800 1,000 1,200 1,400 50 100 150 200 250 300 350 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017
Production (koz) and AIC (US$/oz)
Production AIC 200 400 600 800 1,000 1,200 1,400 10 20 30 40 50 60 70 80 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017
Net Cash Flow (US$m) and gold price (US$/oz)
Net CF Gold Price
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H1 2017 H1 2016 Q2 2017 Q1 2017
Au Eq Prod koz 137.0 127.5 68.4 68.7 Au Eq AIC US$/oz 677 728 724 626 AU only Prod koz 69.9 70.5 36.1 33.8 AU only AIC US$/oz 253 489 380 118
Gold Fields, Reinvesting for the future, September 2017
100 200 300 400 500 600 700 800 900 1,000 20 40 60 80 100 120 140 160 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017
Production (koz) and AIC (US$/oz)
Production AIC 200 400 600 800 1,000 1,200 1,400 10 20 30 40 50 60 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017
Net Cash Flow (US$m) and gold price (US$/oz)
Net CF Gold Price
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̵ TRIFR of 2.18 (H1 2016: 2.89)
̵ 9,800kg (315koz) at AIC of R585,000/kg
̵ Steady state production of 500koz at AIC
H1 2016 H1 2016 Q2 2017 Q1 2017
Production koz 119.3 140.0 73.5 45.8 AISC US$/oz 1,521 1,229 1,352 1,784 AIC US$/oz 1,557 1,257 1,389 1,821
Gold Fields, Reinvesting for the future, September 2017
500 1,000 1,500 2,000 2,500 20 40 60 80 100 120 140 160 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017
Production (koz) and AIC (US$/oz)
Production AIC 200 400 600 800 1,000 1,200 1,400
10 20 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017
Net Cash Flow (US$m) and gold price (US$/oz)
Net CF Gold Price
Investor Relations Contacts Media Contact
Avishkar Nagaser Tel: +27 11 562 9775 Mobile: +27 82 312 8692 E-mail: Avishkar.Nagaser@goldfields.co.za Thomas Mengel Tel: +27 11 562 9849 Mobile: +27 72 493 5170 E-mail: Thomas.Mengel@goldfields.co.za Sven Lunsche Tel: +27 11 562 9763 Mobile: +27 83 260 9279 E-mail: Sven.Lunsche@goldfields.co.za
Gruyere Project, Western Australia