LEVERAGE TO THE GOLD PRICE Tommy McKeith Paydirt Conference Perth - - PowerPoint PPT Presentation

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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


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LEVERAGE TO THE GOLD PRICE

Tommy McKeith Paydirt Conference – Perth 15 March 2010

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Forward Looking Statements

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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Our value proposition

INTRODUCTION

Rapidly developing exploration portfolio Growth opportunities at operations Rising production outlook 81Moz of reserves No hedging Gold Fields - Leverage to the gold price

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Our value proposition

INTRODUCTION 2 4 6 8 10 12 14 16 18 AU ABX NEM GFI

2009 Trailing EV / EBITDA

Source: BMO Nesbitt Burns

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Our strategy

INTRODUCTION

Growth on a per share basis - no M&A heroics

South America ~1Moz South Africa ~2.2 to ~2.5Moz West Africa ~1Moz Australasia ~1Moz

International Diversification

5-year target

Deliver consistency Grow existing assets Exploration success

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

  • 100

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

Generating free cash flow

INTRODUCTION

163

* NCE = Operating costs plus all capital (sustaining and growth)

Increasing margin after significant inward investment

Koz

3

Investment

3

Free Cash Flow US$/oz

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7

Leverage to the gold price

INTRODUCTION

20 112 163

* NCE = Operating costs plus all capital (sustaining and growth)

Gold price up 14% delivers operating profit up 30%

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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Our strategy

INTRODUCTION

To be the Global Leader in Sustainable Gold Mining

Free Cash Flow

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)

Unhedged

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  • Sweating our assets
  • South Deep

developing a world class mine

  • St Ives

exploring a world class camp

  • Agnew

delivering continuously

  • Growing Gold Fields
  • Chucapaca

discovering a mine in Peru

  • Yanfolila

exploring an emerging camp in Mali Presentation focus

INTRODUCTION

To be the Global Leader in Sustainable Gold Mining

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10

Developing a world class mine

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)

On track for 300Koz in F2010

Production Development

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11

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

20

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

Developing a world class mine Refurbishing south shaft creating additional upside

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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

Capital programme on track Developing a world class mine

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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

Developing a world class mine Building up to +750Kozpa in F2015

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Exploring a world class camp

ST IVES MINE

Gold first discovered at Red Hill 1897, mined to 1930’s

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Re-started in 1980 10Moz production milestone in December 2009

Exploring a world class camp

ST IVES MINE

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Exploring a world class camp

ST IVES MINE

  • 500

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

  • Multiple ore sources
  • Lefroy Mill 4.2Mtpa – 2004
  • Four +2Moz sources

Endowment ‘000s oz

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Exploring a world class camp

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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  • June 2009
  • Reserves 2.3Moz
  • Resources 5.6Moz
  • New discoveries
  • Athena, Hamlet, Yorrick

etc.

  • Significant impact
  • Potential to increase life

and throughput

Exploring a world class camp

ST IVES MINE

  • 200

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

Gold Fields added 3.65Moz reserves since purchase

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Exploring a world class camp

ST IVES MINE

A B

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Exploring a world class camp

ST IVES MINE

750m A B

Argo 1Moz produced 889Koz Resource Athena 771Koz Resource Hamlet 251Koz Resource

June 2009 endowment 2.9Moz ~120km drilled

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Exploring a world class camp

ST IVES MINE

First gold from underground by December 2010

  • 300m

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

Athena Long Section

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Exploring a world class camp

ST IVES MINE

200m

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Delivering continuously

AGNEW MINE

163

196

20 112

20 112 163

  • 1400m
  • 1000m
  • 850m

Kim S Extension Project Existing Reserve/Resource

  • 1850m

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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Discovering a mine in Peru

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

Gold Fields 51% (operator) and Buenaventura 49%

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Discovering a mine in Peru

CHUCAPACA PROJECT

163

196

20 112

20 112 163

2

16

GF BVN

Canahuire Katrina Katrina Katrina South Cerro Chucapaca

Canahuire

First resource June 2010 ~1km strike defined Open to the west and at depth Robust mineralisation

Satellites

Initial drilling March 2010 Community access agreement

Interim Scoping Study

June 2010 Canahuire only

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Discovering a mine Peru

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

Robust results indicating a significant discovery

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Exploring an emerging camp

YANFOLILA PROJECT

20 112 163

20 112 163 196

Loulo Morila Syama Siguiri

YANFOLILA

Sadiola Essakane

Endowed Siguri Basin - concealed by shallow cover Mali

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Exploring an emerging camp

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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Rising production trend Significant leverage to the gold price Strong balance sheet South Deep gaining momentum Growth opportunities at operations Developing exploration portfolio

29

CONCLUSIONS

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LEVERAGE TO THE GOLD PRICE

ENQUIRIES:

Willie Jacobsz Willie.jacobsz@gfexpl.com Office: +1 508 839 1188 Mobile: +1 857 241 7127 www.goldfields.coza