LEVERAGE TO THE GOLD PRICE
Tommy McKeith Paydirt Conference – Perth 15 March 2010
LEVERAGE TO THE GOLD PRICE Tommy McKeith Paydirt Conference Perth - - PowerPoint PPT Presentation
LEVERAGE TO THE GOLD PRICE Tommy McKeith Paydirt Conference Perth 15 March 2010 Forward Looking Statements INTRODUCTION Certain statements in this document constitute forward looking statements within the meaning of Certain
Tommy McKeith Paydirt Conference – Perth 15 March 2010
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INTRODUCTION
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. 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 environmental regulations; and new legislation affecting mining and mineral rights; changes in exchange rates; currency devaluations; inflation and other macro- economic factors, industrial action, temporary stoppages of mines for safety 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 forward looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events. 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. 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 environmental regulations; and new legislation affecting mining and mineral rights; changes in exchange rates; currency devaluations; inflation and other macro- economic factors, industrial action, temporary stoppages of mines for safety 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 forward looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events. p
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INTRODUCTION
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INTRODUCTION 2 4 6 8 10 12 14 16 18 AU ABX NEM GFI
Source: BMO Nesbitt Burns
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INTRODUCTION
South America ~1Moz South Africa ~2.2 to ~2.5Moz West Africa ~1Moz Australasia ~1Moz
5-year target
58% 42%
F2010 Production Split*
South Africa International
40% 60%
Production Split Target – 5 Years
South Africa International
* F2010 YTD annualised
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Total Cash Costs
740 760 780 800 820 840 860 880 900 920
200 300 400 500 600 700 800 900 1,000 1,100 1,200
Q1 F2009 Q2 F2009 Q3 F2009 Q4 F2009 Q1 F2010 Q2 F2010
Production Gold price Cash costs NCE
INTRODUCTION
163
* NCE = Operating costs plus all capital (sustaining and growth)
Koz
3
Investment
3
Free Cash Flow US$/oz
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INTRODUCTION
20 112 163
* NCE = Operating costs plus all capital (sustaining and growth)
Gold production Steady at 900koz Gold price Up 14% to US$1,096/oz Total cash cost Up 5% to US$613/oz NCE Up 3% to US$900/oz Operating profit Up 30% to US$463 million Operating margin Up 13% to 43% Net earnings Up 45% to US$187 million
*Changes relative to Q1 F2010 Results
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INTRODUCTION
Revenue less NCE Sweat Our Assets Grow Gold Fields Secure Our Future
* NCE = Notional Cash Expenditure – Total cash cost plus all capital (sustaining and growth)
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INTRODUCTION
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SOUTH DEEP PROJECT
20 112 163
20 112 163 196
500 1,000 1,500 2,000 2,500 3,000
Q1 F2009 Q2 F2009 Q3 F2009 Q4 F2009 Q1 F2010 Q2 F2010
Development (m)
10 20 30 40 50 60 70 80
Q1 F2009 Q2 F2009 Q3 F2009 Q4 F2009 Q1 F2010 Q2 F2010
Gold Production (Koz)
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SOUTH DEEP PROJECT
20 112 163
20 112 163 196
16
196
1
50 Lvl 70 Lvl 71 Lvl 78 Lvl 90 Lvl 95 Lvl
100 Lvl
105 Lvl 110 Lvl
Colour Coding: Red Up Cast. GreenDown Cast Gold Rock Handling Capacity
Rock Capacity 120ktpm Rock Capacity 175ktpm Rock Capacity 195ktpm SV 1 South Shaft SV 3 Twins Ventilation Shaft Twins Main Shaft Metallurgical Plant SV 2
Deepened Section
110a Pump
1.4km Initial mining to focus on 78 Level – east Shaft Complex
51 Lvl 84 Lvl 90 Lvl 95 Lvl
20
112
50 Lvl 0 Lvl 70 Lvl 71 Lvl 90 Lvl 95 Lvl Rock Capacity 120ktpm SV 1 South Shaft SV 3 SV 2
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Initial mining to focus on 78
20 20
Level
2
Leve
2
Level
20 20
– east
0east 0east
Shaft Complex
78 78 78 8 78 78 78 78 8 78 78 78 78 78 78 78 78 78 78 L l L l l L l Lvl L l Lvl Lvl Lvl vl Lvl Lv Lvl L 70
Will increase base case hoisting capacity from 330 to 450Ktpm
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Item Year F2010 F2011 F2012 F2013 F2014 94 Level Refrigeration Plant No 2 Twin Vent Shaft (for rock hoisting) Tailings Storage Facility Plant Expansion to 330ktpm or above New Mine Development Phase 1 Total Capital (All projects) R1,770M R1,875M R2,079M R1,484M R1,198M
SOUTH DEEP PROJECT
Note: Capital estimates in July 2009 money
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SOUTH DEEP PROJECT
Notes: Excludes VCR Further optimisation in progress Exchange rate R7.50 : US$1.00
200 400 600 800 1,000 1,200 1,400 1,600 1,800 100 200 300 400 500 600 700 800 900
F2010 F2011 F2012 F2013 F2014 F2015 F2016
Gold Production (koz) Operating Costs (US$/oz) NCE (US$/oz Koz US$/oz
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ST IVES MINE
15
ST IVES MINE
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ST IVES MINE
1,000 1,500 2,000 2,500 3,000 3,500 4,000
Victory Area Revenge Area Junction Argo-Athena Area Intrepide Area Orchin Area Santa Ana Area Cave Rocks Nelsons Fleet Area Kambalda Dome Clifton Area Other
WMC Production GFA Production Reserve 09
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ST IVES MINE
0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 0.0 2.0 4.0 6.0 8.0 10.0 12.0
F1980 F1981 F1982 F1983 F1984 F1985 F1986 F1987 F1988 F1989 F1990 F1991 F1992 F1993 F1994 F1995 F1996 F1997 F1998 F1999 F2000 F2001 F2002 F2003 F2004 F2005 F2006 F2007 F2008 F2009 F2010
Grade (g/t) Ounces Produced (millions)
WMC Ounces GFA Ounces Cumulative Grade
WMC 5.6Moz in 21 years Gold Fields 4.5Moz in 9 years
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ST IVES MINE
400 600 800 1,000 1,200 1,400 1,600 1,800 2,000
Revenge Area Argo-Athena Area Victory Area Junction Cave Rocks Santa Ana Area Intrepide Area Orchin Area Nelsons Fleet Area Other Endowment ‘000s oz
Initial Reserve GFA Production to June 2009 June 2009 Reserve
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ST IVES MINE
20
ST IVES MINE
Argo 1Moz produced 889Koz Resource Athena 771Koz Resource Hamlet 251Koz Resource
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ST IVES MINE
0m 309m
North South
500m
Paringa Basalt Athena Basalt
South Shoot 2-3m wide 8-20g/t Central Shoot 5-12m wide 5-12g/t North Shoot 3-7m wide 3-9g/t
Oxide Lake Sediment
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ST IVES MINE
200m
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AGNEW MINE
163
196
20 112
20 112 163
Kim S Extension Project Existing Reserve/Resource
Projected Intersection of Kim Lode with Barrick Tenement Kim Lode 4m @ > 5g/t Drillhole Completed Drillhole Planned Projected Kim Lode Extension
Current Development Level
Zone with Bulk Mining Potential North South
Deep surface drilling 1,400m below surface at Kim Drill Main at depth Targeting 1Moz reserve
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CHUCAPACA PROJECT
163
196 Chucapaca
CHUCAPACA
Gold Fields - 94,100Ha Buenaventura – 18,400Ha Aruntani Canteras del Hallazgo – 12,700Ha
MINING CONCESSIONS
Dirt Road Back Road Main Road !
SYMBOLOGY CH CH CH CH CH CH CHUC UC UC UC UC UC UCAP AP AP AP AP AP APAC AC AC AC AC AC ACA
Chucapaca Cerro Corona
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CHUCAPACA PROJECT
163
196
20 112
20 112 163
2
16
GF BVN
Canahuire Katrina Katrina Katrina South Cerro Chucapaca
First resource June 2010 ~1km strike defined Open to the west and at depth Robust mineralisation
Initial drilling March 2010 Community access agreement
June 2010 Canahuire only
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CHUCAPACA PROJECT
20 112 163
20 112 163 196
CCP09-60 127.4m @ 8.55g/t Au uncut CCP09-63 40m @ 7.84g/t Au CCP09-52 72.2m @ 6.94g/t Au t Au CCP09-61 12.86m @ 6.95g/t Au u CCP09-59 92m @ 2.08g/t Au 59 g/t Au CP09-58 198.9m @ 1.22g/t Au
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YANFOLILA PROJECT
20 112 163
20 112 163 196
Loulo Morila Syama Siguiri
YANFOLILA
Sadiola Essakane
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YANFOLILA PROJECT
112 163
163 196
20
20 112 Komana
Kobada Bagama Bokoro
Glencar acquisition successfully concluded Consolidation of extensive ground holding Komana framework drilling progressing rapidly Initial drill testing completed over Bokoro target Re-stated Komana resource June 2010
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CONCLUSIONS
ENQUIRIES:
Willie Jacobsz Willie.jacobsz@gfexpl.com Office: +1 508 839 1188 Mobile: +1 857 241 7127 www.goldfields.coza