LEVERAGED TO GOLD Q2 F2010 RESULTS Johannesburg Johannesburg 4 - - PowerPoint PPT Presentation

LEVERAGED TO GOLD

Q2 F2010 RESULTS

Johannesburg Johannesburg 4 February 2010

2

Emergency Procedures

INTRODUCTION INTRODUCTION

• In the event of an emergency an alarm will sound.
• Exit premises through doors on the north side of room.
• Congregate on lawns to the north of the building.
• Await further instructions
• Await further instructions.

SAFETY FIRST

3

Forward Looking Statement

INTRODUCTION 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 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 important factors include among others: economic, business and political conditions in South Africa; decreases in the market price of gold; hazards associated with underground and surface gold mining; labour disruptions; changes in government regulations, particularly environmental regulations; changes in exchange rates; currency devaluations; inflation and

• ther macro-economic factors; 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 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

• r to reflect the occurrence of unanticipated events.

Introduction Introduction

Ni k H ll d Ni k H ll d Nick Holland Nick Holland Chief Executive Officer Chief Executive Officer

5

Q2 F2010 Salient Features

INTRODUCTION INTRODUCTION 1 Solid financial results

• 1. Solid financial results.
• 2. Driefontein and Kloof constrained by lack of flexibility and stoppages.
• 3. Growth projects progressing well:
• South Deep Project;

D d h d

• Damang secondary crusher; and
• Athena mine development.
• 4. Exploration portfolio showing significant promise.

A SOLID PERFORMANCE IN A CHALLENGING ENVIRONMENT

6

Q2 F2010 Salient Features

INTRODUCTION INTRODUCTION Gold production Steady at 900koz Gold price Up 9% to R263,828/kg T t l h t U h d t R147 648/k Total cash cost Unchanged at R147,648/kg NCE Up 4% to R216,830/kg Operating profit Up 25% to R3,478 million Operating margin Up 13% to 43% Net earnings Up 40% to R1 409 million Net earnings Up 40% to R1,409 million Normalised earnings Up 64% to R1,022 million

LEVERAGED TO THE HIGHER GOLD PRICE

7

Q2 F2010 Salient Features

INTRODUCTION INTRODUCTION

1 200

US$/oz Cost Analysis

900 1,000 1,100 1,200

Free Cash Flow Margin

600 700 800 900

S$/oz

Investing in the future

200 300 400 500

US

Good cost control

• 100

200

009 009 009 009 010 010 Q1 F20 Q2 F20 Q3 F20 Q4 F20 Q1 F20 Q2 F20

Gold price Cash costs NCE

MAINTAINING A FREE CASH FLOW MARGIN

8

Q2 F2010 Salient Features

INTRODUCTION INTRODUCTION South Deep

• Build-up to 300koz on track.

Beatrix

• Consolidating the gains.

C C O t f i Cerro Corona

• Outperforming.

Agnew

• Good cash generator.

Damang

• Mill rebuild accelerated.

Tarkwa

• Power change-over impacted plant.

St Ives

• Grade gap.

g p Driefontein & Kloof

• Volumes impacted by seismicity, stoppages

and lack of flexibility.

FOCUSING ON THE CHALLENGES!

9

Strategic Focus

INTRODUCTION INTRODUCTION South Deep

• FULCO implemented;
• Leveraging South Shaft to provide incremental production

beyond 330kt per month. Beatrix Cerro Corona

• Maintaining the momentum

Cerro Corona Agnew

• Maintaining the momentum.

D S d h b ild t 250k Damang

• Secondary crusher – build-up to ~250koz p.a.

Tarkwa

• Building up to steady state of +750koz p.a.

Tarkwa Building up to steady state of 750koz p.a. St Ives

• Solving the grade gap.

Driefontein & Kloof

• Seismicity, development and labour optimisation.

DRIEFONTEIN, KLOOF AND ST IVES THE PRIMARY FOCUS

10

Strategic Focus

INTRODUCTION INTRODUCTION

South Africa Region The Challenges Strategic Response

• Increased focus on seismicity;
• Lack of flexibility;
• Unplanned production stoppages;
• Accelerate development;

R d i i t ti

• Cash flows invested into

South Deep.

• Reduce mining concentration;
• Alternative working arrangements

to redeploy excess labour into gold to redeploy excess labour into gold winning.

LONG LIFE QUALITY ORE BODIES

11

Programme

INTRODUCTION INTRODUCTION Financial Review Paul Schmidt Chief Financial Officer South Africa Review Vishnu Pillay Head of South Africa Australasia Review Mark Zeptner Acting Head of Australasia West Africa Review Peter Turner Head of West Africa South America Review Juan Luis Kruger Head of South America Conclusion Nick Holland Chief Executive Officer

Financial Review Financial Review

P l S h idt P l S h idt Paul Schmidt Paul Schmidt Chief Financial Officer Chief Financial Officer

13

Q2 F2010 FINANCIAL REVIEW Q2 F2010 FINANCIAL REVIEW Salient Features

13

Q2F2010 Q2F2010 Q1F2010 Q1F2010

Attributable gold produced

000oz

900 906 1 096 959 Revenue

US$/oz

1,096 959

US$/ZAR

7.49 7.82

R/kg

263,828 241,164

R

8 067 7 416

Rm

8,067 7,416 Operating costs, net

Rm

4,589 4,629 Operating costs

R/ton

333 343

SA R/t

1 084 1 059 p g

SA ug R/t

1,084 1,059 Operating profit

Rm

3,478 2,787 Operating margin

%

43 38 T t l h t

R/k

147 648 147 343 Total cash costs

R/kg

147,648 147,343

US$/oz

613 586 Notional cash expenditure1 (NCE)

R/kg

216 830 207 754 Notional cash expenditure (NCE)

R/kg

216,830 207,754

1 NCE = Operating cost + Capex

US$/oz

900 826

25% INCREASE IN OPERATING PROFIT

14

Q2 F2010 FINANCIAL REVIEW Q2 F2010 FINANCIAL REVIEW Income Statement

14

Q2F2010 Q2F2010 Q1F2010 Q1F2010

Net operating profit

Rm

2,322 1,613 Net operating profit

Rm

2,322 1,613 Loss on financial instruments

Rm

(55) (132) Exploration

Rm

(168) (133) I t t d th

R

(117) (252) Interest and other

Rm

(117) (252) Profit before tax & exceptional items

Rm

1,982 1,096 Exceptional items

Rm

432 666 Mining & income tax

Rm

(832) (638) Net profit

Rm

1,582 1,124 Net profit attributable to ordinary

Rm

1,409 1,007 Net profit attributable to ordinary shareholders

SA cps

200 143

Rm

1,022 625 Normalised earnings

SA cps

145 89

64% INCREASE IN NORMALISED EARNINGS

15

Q2 F2010 FINANCIAL REVIEW Q2 F2010 FINANCIAL REVIEW Cash Flow Statement

15

Q2F2010 Q2F2010 Q1F2010 Q1F2010

Cash flows from operations

Rm

2 105 1 263 Cash flows from operations

Rm

2,105 1,263 Dividend paid

Rm

• (564)

C it l dit t (1 965) (1 743) Capital expenditure net

Rm

(1,965) (1,743) Net loans (repaid)/received

Rm

(656) 630 Other activities

Rm

(18) (25) Net cash outflow

Rm

(534) (439) Currency translation adjustment

Rm

84 (87) Cash at beginning of period

Rm

2,278 2,804 Cash at end of period

Rm

1,828 2,278

67% INCREASE IN OPERATING CASH FLOW

16

Balance Sheet

Q2 F2010 FINANCIAL REVIEW Q2 F2010 FINANCIAL REVIEW

16

Q2F2010 Q1F2010

Loans - Long term Rm (4,823) (5,010) Loans - Short term Rm (3,674) (3,963) Gross debt Rm (8,497) (8,973) Less cash and deposits Rm 1,828 2,278 Net debt Rm (6,669) (6,695)

Q1 $/R 7 37

NET DEBT TO EBITDA: 0.48

Q1 $/R 7.37 Q2 $/R 7.65

17

Financial Flexibility

Q2 F2010 FINANCIAL REVIEW Q2 F2010 FINANCIAL REVIEW

17

Headroom Available

R d D i t d US$ D i t d R d E i l t* Rand Denominated US$ Denominated Rand Equivalent* Rm $m Rm Uncommitted Facilities 1 302 1 302 Uncommitted Facilities 1,302

• 1,302

Committed Facilities 2,500 362 5,269 Total credit 3 802 362 6 571* Total credit 3,802 362 6,571* Debt Maturity Profile (R'm) as at December 2009

4 002 3 924 5,000 2,700 741 940 3,534 4,002 741 3,319 3,924 3,082 2,000 3,000 4,000 Utilised R8,497m Facilities R15,068m

*C t d t US$1 7 65

741 940 582 741

• 1,000

Q3 F2010 Q4 F2010 F2011 F2012 F2013 Facilities R15,068m Headroom R6,571*

CIRCA $1 BILLION OF HEADROOM

*Converted at US$1 : 7.65

18

Interim Dividend

Q2 F2010 FINANCIAL REVIEW Q2 F2010 FINANCIAL REVIEW Q2 F2010 FINANCIAL REVIEW Q2 F2010 FINANCIAL REVIEW

Interim dividend of 50c per share. Amounts to 50% payout in terms of dividend policy Amounts to 50% payout in terms of dividend policy. 67% higher than interim dividend paid in F2009. g p

CONSISTENT DIVIDEND PAYER

South Africa Region South Africa Region

Vi h Pill Vi h Pill Vishnu Pillay Vishnu Pillay Head of the South Africa Region Head of the South Africa Region

20

SOUTH AFRICA REGION SOUTH AFRICA REGION

Operational Scorecard

Safety

Major impact on production despite improving

Safety

trends.

Secondary Support

Backlog eliminated (86km completed).

Development

52% of main development now mechanised; One pass support system in place. Now positioned to gain traction. Improvement in Fall of Ground incidents

Seismicity

Improvement in Fall of Ground incidents, recovery times longer.

SAFETY REMAINS THE KEY VALUE DRIVER

21

SOUTH AFRICA REGION SOUTH AFRICA REGION

Seismicity A Key Strategic Issue

Seismicity one of the Biggest Challenges Major impact on production through unplanned production stoppages. STOP – START MINING INCREASES THE RISK

22

SOUTH AFRICA REGION SOUTH AFRICA REGION

Seismicity A Key Strategic Issue

Seismic Risk Mitigation

Centralised blasting. Centralised blasting. I d l t Increased areal support. Pre-conditioning of mining faces. Acceleration of development. THE FOCUS

REDUCED MINING CONCENTRATION THE NEXT STEP

23

Seismicity A Key Strategic Issue

SOUTH AFRICA REGION SOUTH AFRICA REGION

Increasing magnitude

• f events

CENTRALISED BLASTING Time distribution of seismicity – No. of Events Before centralised blasting

s Events

After centralised blasting After centralised blasting

Events E

POSITIVE IMPACT OF CENTRALISED BLASTING

24

Seismicity A Key Strategic Issue

SOUTH AFRICA REGION SOUTH AFRICA REGION

FALLS OF GROUND All Injuries Frequency Rate

10.22 10.00 12.00

j q y

8.00

man hours 6.27 3 82

6.00

er million m 3.82

2.00 4.00

Rate pe

0.00

Rate F2008 Rate F2009 F2010 Q1 & Q2

POSITIVE IMPACT OF AREAL SUPPORT

25

Seismicity A Key Strategic Issue

SOUTH AFRICA REGION SOUTH AFRICA REGION SEISMIC FACE BURSTS Kloof 2005 to 2009 Kloof 2005 to 2009

Hanging wall Sidewall Face

119 99 64 11 7 44 34 33 13 5 7 1 4 1 4 2005 2006 2007 2008 2009

POSITIVE IMPACT OF PRE-CONDITIONING

26

The Way Forward

SOUTH AFRICA REGION SOUTH AFRICA REGION

The Challenge Strategic Response

Increased development Seismic Impact on Production

• Reduce mining concentration.

Constraints largely resolved

• Impact of seismicity;
• Stoppages remains high

Constraints largely resolved

• Secondary support backlog.
• Stoppages remains high.
• Up-skilling for mechanisation.
• Maintenance.

DEVELOPMENT TO GAIN TRACTION IN H2 F2010.

27

The Way Forward

SOUTH AFRICA REGION SOUTH AFRICA REGION

The Challenge Strategic Response

6-day working week. Calendar 2009 Lost production

• Will increase face time by ~10%.
• Engagement with stakeholders commenced.
• Lost 7% of production shifts (76 days;

2 200k ) d t l d t

• FULCO implemented at South Deep.

Optimise deployment of people

• 2,200kg) due to unplanned stoppages.

Optimise deployment of people.

• Misplaced and surplus people re-deployed

to gold winning. g g

INCREASED PRODUCTIVITY THROUGH IMPROVED FACE TIME

28

SOUTH AFRICA REGION SOUTH AFRICA REGION

Q2 F2010 Summary

Q2 F10 Q1 F10 SALIENT FEATURES

Gold produced

Kg koz

16,257 523 16,386 527

• Gold production steady despite

t stoppages.

• NCE up 4%, building South Deep.

Total cash cost

R/kg US$/oz

165,707 688 162,553 647

g

• Safety remains the number one

value driver.

US$/oz

688 647 NCE

R/kg US$/oz

242,050 1 005 233,034 927

value driver.

• Focus on:

S i i it t

NCE

US$/oz

1,005 927

– Seismicity management. – Ore Reserve Development.

Capex

Rm US$m

1,137 152 1,050 134

SAFETY & FLEXIBILITY KEY VALUE DRIVERS

29

SOUTH AFRICA REGION SOUTH AFRICA REGION

Driefontein Gold Mine

Q2 F10 Q1 F10 Q2 F10 SALIENT FEATURES

Gold Produced

kg

5,825 5,893 Gold Produced

• A solid performance, despite stoppages.
• Lost most of December month due to

major seismic event at 4 Shaft.

Koz

187 190 Total cash cost

R/kg

154,678 154,387

US$/oz

642 614

R/kg

208,103 207,416

– 7 days lost (Search & Rescue). – ‘Knock-on’ effects.

NCE

g

208,103 207,416

US$/oz

864 825 Capex

Rm

274 272

US$m

37 35

OUTLOOK

• Q3 F2010 Production:~5,000kg at a total cash cost of ~R178,000/kg and NCE of

~R232,000/kg.

–

‘Knock-on’ effect of December stoppages; Christmas break.

• Building a surface stockpile buffer.
• Development accelerating.

STRATEGIC FOCUS ON MAINTAINING FACE TIME

30

SOUTH AFRICA REGION SOUTH AFRICA REGION

Kloof Gold Mine

Q2 F10 Q1 F10 Q2 F10 SALIENT FEATURES

Gold Produced

kg

4,887 5,024 Gold Produced

• A solid performance, despite stoppages.
• Best improvement in safety ever.

koz

157 162 Total cash cost

R/kg

169,306 162,818

US$/oz

703 648

/

233 804 217 456

• Production impacted by seismicity.
• “Back to basics” recovery well underway.

NCE

R/kg

233,804 217,456

US$/oz

971 865 Capex

Rm

280 244

US$m

37 31

US$m

37 31

OUTLOOK

• Q3 F2010 Production:~4,500kg at a total cash cost of ~R181,000/kg.

–

‘Knock-on’ effect of December stoppages; Christmas break. I i til ti i f t t t 3 d 4 Sh ft iti f d ti

• Improving ventilation infrastructure at 3 and 4 Shaft positive for production.
• Development accelerating.

RECOVERY PROGRESSING WELL

31

SOUTH AFRICA REGION SOUTH AFRICA REGION

Beatrix Gold Mine

Q2 F10 Q1 F10 Q2 F10 SALIENT FEATURES

Gold Produced

Kg

3,318 3,437 Gold Produced

• A solid performance.
• Mine performing to plan.

Koz

107 111 Total cash costs

R/kg

167,722 165,900

US$/oz

696 660

R/kg

220,766 215,595

p g p

• Turn around consolidated.

NCE

g

220,766 215,595

US$/oz

917 858 Capex

Rm

156 150

US$m

21 19

OUTLOOK

• Q3 F2010 Production:~3,000kg at a total cash cost of ~R182,000/kg and NCE of

R235,000/kg.

–

Christmas break; Slow January start-up due to in-stope risk mitigation.

• 3 Shaft hoisting constraints now resolved.
• Improved Mine Call Factor is a significant opportunity.

PERFORMING WELL

32

SOUTH AFRICA REGION SOUTH AFRICA REGION

South Deep Gold Mine

Q2 F10 Q1 F10 Q2 F10 SALIENT FEATURES

Gold Produced

Kg

2,227 2,032 Gold Produced

• Build-up on schedule:

– up 10% quarter on quarter;

50%

Koz

72 65 Total cash costs

R/kg

183,655 179,921

US$/oz

763 716

R/kg

380,647 375,344

– up 50% year on year.

• Capital programme on track.

NCE

g

380,647 375,344

US$/oz

1,581 1,493 Capex

Rm

427 384

US$m

57 49

OUTLOOK

• Q3 F2010 Production: 2 200kg at a total cash cost of

R192 000/kg and an NCE of

• Q3 F2010 Production:~2,200kg at a total cash cost of ~R192,000/kg and an NCE of

R394,000/kg.

–

Christmas break.

• Mining of South Shaft project area to commence on 01 July 2010
• Mining of South Shaft project area to commence on 01 July 2010.

–

Incremental production.

• Full Calendar Operations (FULCO) commenced.

DELIVERING ON ITS PROMISE

33

SOUTH AFRICA REGION SOUTH AFRICA REGION

South Deep Gold Mine

Colour Coding: Red Up Cast. GreenDown Cast Gold Rock Handling Capacity

South Shaft Twins Ventilation Shaft Twins Main Shaft M t ll i l Pl t

1 4km

SOUTH SHAFT PROJECT

SV 1 SV 3 Metallurgical Plant SV 2

1.4km

Project Summary

• First blast: 1 July 2010

50 Lvl Rock Capacity 120ktpm Rock Capacity 175ktpm Rock Capacity 195ktpm 51 Lvl

First blast: 1 July 2010

• Initial project life: 6 years
• Mining method: Remote long hole stoping
• Average tonnage: 20 ktpm (Peak tonnage 30

70 Lvl 71 Lvl 78 Lvl

Initial mining to focus on 78 Level – east Shaft Complex

ktpm)

• Estimated capital: R55m
• Estimated working costs: R380/ton
• ‘Old Mine’ above 85 L to be re-modelled and

78 Lvl 90 Lvl 84 Lvl 90 Lvl 95 L l

Old Mine above 85 L to be re-modelled and re-evaluated

• Phased incremental production of 100kg

per month.

95 Lvl

100 Lvl

105 Lvl 110 Lvl

Deepened Section

110a Pump 95 Lvl

MINING AT SOUTH SHAFT – FIRST BLAST Q1 F2011

110a Pump

34

South Deep Project

SOUTH AFRICA REGION SOUTH AFRICA REGION

Progress To F2010 Target

2,500 3,000 60 70 80 1 500 2,000

ment (m)

40 50 60

uction (koz)

1,000 1,500

Developm

20 30 40

Gold Produ

500

Q1 Q2 Q3 Q4 Q1 Q2

10

Q1 Q2 Q3 Q4 Q1 Q2 Q1 F2009 Q2 F2009 Q3 F2009 Q4 F2009 Q1 F2010 Q2 F2010 Q1 F2009 Q2 F2009 Q3 F2009 Q4 F2009 Q1 F2010 Q2 F2010

SOUTH DEEP ON TRACK

35

South Deep Project

SOUTH AFRICA REGION SOUTH AFRICA REGION

Capital Programme: F2010 to F2014

Item Year Q2 F2010 F2010 F2011 F2012 F2013 F2014 Status 94 Level Refrigeration Plant No 2 Twin Vent Shaft (C l ti f k (Completion for rock hoisting) Tailings Storage Facility Plant Expansion to 330ktpm or above New Mine Development p Phase 1 Total Capital (All projects) R1,770m R1,875m R2,079m R1,484m R1,198m

ALL CAPITAL PROJECTS ON TRACK

Note: Capital estimates in July 2009 money

36

SOUTH AFRICA REGION SOUTH AFRICA REGION

F2010 Operational Focus A safe production culture. p

Stop, Think, Fix, Verify and Continue.

Ore Reserve development for flexibility.

24 months of opened-up ore reserves.

Deliver South Deep.

Achieve F2010 production target of 300koz Achieve F2010 production target of 300koz.

Focus on our people.

Attraction, Retention, Skills.

IF WE CANNOT MINE SAFELY, WE WILL NOT MINE

Australasia Region Australasia Region

M k Z t M k Z t Mark Zeptner Mark Zeptner Acting Head of the Australasia Region Acting Head of the Australasia Region

38

AUSTRALASIA REGION AUSTRALASIA REGION

Introduction

Q2 F10 Q1 F10 SALIENT FEATURES

Gold produced

koz

143 146

• Gold production steady.
• Cash cost down 7%.
• NCE up only 5%;

Total cash cost

A$/oz

703 754

US$/oz

637 626

– Accelerated mine development, – Exploration drilling. F fl ibilit

US$/oz

637 626

A$/oz

1,053 1,002

• Focus on flexibility.
• Turning St Ives and Agnew into long-life

mines

NCE

US$/oz

956 831

mines.

Capex

US$m

41 30

AN INCREASE IN FLEXIBILITY IS ESSENTIAL

39

AUSTRALASIA REGION AUSTRALASIA REGION

St Ives Gold Mine

Q2 F2010 Q1 F2010

Gold produced

koz

96 100 SALIENT FEATURES

• Gold production steady.

Total cash cost

A$/oz

798 841

US$/oz

724 698

A$/oz

1,149 1 089

• Cash costs down – royalty buy back.
• NCE up 6%.
• Lefroy mill production down 4% due to 14%

d i d d d

NCE

A$/oz

1,149 1,089

US$/oz

1,043 901

Capex

A$m

31 23 drop in underground grades:

–

Belleisle stope failure;

–

Lower grades mined at Argo;

• O

it d 10% t t f A ll

p

US$m

28 19

• Open pit grades up 10% - start of Apollo.

Q3 OUTLOOK

• Q3 F2010 Production - 100koz at total cash cost of A$755/oz and NCE of A$1,140/oz.
• Open Pits - Apollo ramping up, lower strip ratio at Leviathan.
• Underground - Improved grades at Argo, new Naiad ore body at Belleisle.

Underground Improved grades at Argo, new Naiad ore body at Belleisle.

• Processing - New ore blending strategy at Lefroy mill, 7 day mill shutdown.
• Aggressive on-site exploration, at least 2.5 moz reserve target by June 2010.

SOLVING THE GRADE GAP!

40

AUSTRALASIA REGION AUSTRALASIA REGION

St Ives Gold Mine

Argo

14 16

Argo

8 10 12

ade g/t Feb ‘10 D ‘09 Jan ‘10

2 4 6

Gr Dec ‘09

2 22-Nov 23-Nov 24-Nov 25-Nov 26-Nov 27-Nov 28-Nov 29-Nov 30-Nov 01-Dec 02-Dec 03-Dec 04-Dec 05-Dec 06-Dec 07-Dec 08-Dec 09-Dec 10-Dec 11-Dec 12-Dec 13-Dec 14-Dec 15-Dec 16-Dec 17-Dec 18-Dec 19-Dec 20-Dec 21-Dec 22-Dec 23-Dec 24-Dec 25-Dec 26-Dec 27-Dec 28-Dec 29-Dec 30-Dec 31-Dec 01-Jan 02-Jan 03-Jan 04-Jan 05-Jan 06-Jan 07-Jan 08-Jan 09-Jan 10-Jan 11-Jan 12-Jan 13-Jan 14-Jan 15-Jan 16-Jan 17-Jan 18-Jan 19-Jan 20-Jan 21-Jan 22-Jan 23-Jan 24-Jan 25-Jan 26-Jan 27-Jan 28-Jan 29-Jan 30-Jan 31-Jan 01-Feb Actual MTD Grade Daily Grade

GRADES TO LEFROY MILL IMPROVING

41

AUSTRALASIA REGION AUSTRALASIA REGION

St Ives Gold Mine

180

Development progress

ATHENA

100 120 140 160

res

20 40 60 80

Metr

Cumulative Advance (m)

Timeline

• First ore May 2010.

First stoping March 2011

• First stoping March 2011.
• Full production November 2011.

ACCELERATION IN DEVELOPMENT

42

AUSTRALASIA REGION AUSTRALASIA REGION

St Ives Gold Mine Argo – Athena Camp

Poseidon North

• Potential for open pit

& underground mines

Blue Lode A1

mines.

• Ramp up in

l ti d illi

Apollo Zeus Dido Athena Pollux Hamlet Yorick Clifton

exploration drilling.

• Argo, Apollo &

Ath d

Yorick Macbeth Diana Argo A’

Athena underway.

• Hamlet – June 2010.

Diana LEGEND

RC

Scallop CN6

Drilling

• Yorick – Resource

drilling underway.

F2010 Drill Targets

RC Diamond

MOST SIGNIFICANT NEW DISCOVERY IN WA

43

AUSTRALASIA REGION AUSTRALASIA REGION

Agnew Gold Mine

Q2 F2010 Q1 F2010

Gold produced

koz

47 46 SALIENT FEATURES

Total cash costs

A$/oz

509 566

US$/oz

461 470

A$/oz

856 819

• Gold steady.
• NCE up 5%;

– Exploration spend on Kim

NCE

$

856 819

US$/oz

777 679

Capex

A$m

15 13

S$

13 10

Exploration spend on Kim.

• Underground ore tons up 4% and head

grade up 12%.

US$m

13 10 Q3 OUTLOOK

• Q3 F2010 Production - 48koz at total cash cost of A$560/oz and NCE of A$850/oz
• Increasing output from Main lode ore body to restore mining balance.
• Deeper Kim lode drilling results positive with grade maintained.

Deeper Kim lode drilling results positive with grade maintained.

• Main lode drilling programme to commence in Q3.
• Aggressive exploration, targeting 5-year reserve (1moz) by mid 2010.

A STEADY CASH FLOW PRODUCER

44

AUSTRALASIA REGION AUSTRALASIA REGION

Agnew Gold Mine

Kim and Main Lodes

North South

• Deep drilling to 1,400m

below surface at Kim below surface at Kim.

• Drilling moving to Main
• 850m

Existing Reserve/Resource Kim Lode 4m @ > 5g/t

Current Development Level

Zone with

• Drilling moving to Main.
• 5 year reserve by July 2010
• 1400m
• 1000m

Kim S Extension Project Drillhole Completed Zone with Bulk Mining Potential

• 5 year reserve by July 2010.

1400m

• 1850m

Drillhole Planned Projected Kim Lode Extension Projected Intersection of Kim Lode with Barrick Tenement

CREATING A LONG-LIFE ASSET

45

AUSTRALASIA REGION AUSTRALASIA REGION

F2010 Operational Focus

• St Ives - solving the grade gap.
• Improving flexibility at both St Ives and Agnew
• Improving flexibility at both St Ives and Agnew.
• Turning Agnew and St Ives into long-life mines

Turning Agnew and St Ives into long life mines. OUTLOOK FOR AUSTRALASIA POSITIVE

West Africa Region West Africa Region

P t T P t T Peter Turner Peter Turner Head of the West Africa Region Head of the West Africa Region

47

WEST AFRICA REGION WEST AFRICA REGION

Regional Summary

Q4 F09 Q3 F09 SALIENT FEATURES

Gold produced *

koz

218 227

Operations

• VRA power station commissioned.
• Damang mill rebuild brought forward.
• Electricity stable – US$0 10/kwh

Total cash cost

US$/oz

524 513

Electricity stable US$0.10/kwh. Growth Projects

• Damang Secondary Crusher project on track.

T k HPGR Pil t P j t i i d

NCE

US$/oz

741 678

• Tarkwa HPGR Pilot Project commissioned.
• Positive exploration results at Damang and

Yanfolila in Mali.

C

US$

43 36 Capex

US$m

43 36

* Managed production

A SOLID PLATFORM FOR GROWTH NOW IN PLACE

48

WEST AFRICA REGION WEST AFRICA REGION

Tarkwa Gold Mine

Q2 F10 Q1 F10 SALIENT FEATURES

Gold produced

koz

173 175 p

• Gold production steady.
• VRA power station commissioned.

Total cash cost

US$/oz

492 480 NCE

US$/oz

728 690

p

• Yield steady at 1.4g/t.

Capex

US$m

37 33

OUTLOOK

• Q3 F2010 Production: ~184koz at total cash costs of ~US$505/oz and an NCE of US$725/oz.
• CIL operating consistently at name-plate capacity

–

Successful completion of de-bottlenecking and process control improvements.

–

Plant performing at 1mtpm.

• HPGR Pilot Project on track, provides upside on heap leach recoveries.

A WORLD CLASS MINE

49

WEST AFRICA REGION WEST AFRICA REGION

Damang Gold Mine

Q2 F10 Q1 F10 SALIENT FEATURES

Gold produced

koz

45 51 Gold produced 45 51

• Mill rebuild brought forward.
• NCE up 24%:

– Investment in growth

Total cash cost

US$/oz

643 622 NCE

US$/oz

791 637

Investment in growth.

Capex

US$m

6 3

OUTLOOK OUTLOOK

• Q3 F2010 Production: ~52koz at total cash costs of ~US$625/oz and an NCE of

Q $ US$790/oz.

• Medium term build-up to 250koz p.a.:

– Installation of new secondary crusher on track

Installation of new secondary crusher on track.

– Exploration programme delivering results.

ON A GROWTH TRAJECTORY

50

WEST AFRICA REGION WEST AFRICA REGION

Damang Gold Mine Screen Screen Civils Civils Screen Screen Civils Civils C h C h Ci il Ci il Crusher Crusher Civils Civils SECONDARY CRUSHER ON SCHEDULE

51

WEST AFRICA REGION WEST AFRICA REGION

Damang Gold Mine

TARGETING GROWTH TO 250koz p.a.

GREATER DAMANG

• New secondary crusher.
• Aggressive exploration drive:

HUNI GAP

DPCB

– Greater Damang; – Greater Amoanda.

• Targeting 2 moz reserve by June 2010

JUNO

(DRILLING IN PROGRESS) )

2.8KM

Targeting 2 moz reserve by June 2010.

TAMANG

(DRILLING IN PROGRESS)

TOMENTO NORTH TOMENTO EAST GREATER AMOANDA

TWO NEW “SUPER PITS” EMERGING

52

Damang Gold Mine

WEST AFRICA REGION WEST AFRICA REGION

Juno Juno DPCB DPCB Huni Huni

Huni Gap Juno Gap

2008 - $420/oz

N

p p

S N

CREATING A “SUPER PIT” AT GREATER DAMANG

53

WEST AFRICA REGION WEST AFRICA REGION

Damang Gold Mine

HUNI GAP - PHASE 1 – SUMMARY OF RESULTS

DPCB DPCB PLANT PLANT

DRC1701D DRC1707D

4m at 2 85g/t

DRC1704D

29 t 1 5 /t

PLANT PLANT

81m at 1.14g/t incl. 12m at 5.95g/t 4m at 2,85g/t 17m at 1.21g/t 24m at 3.67g/t

DDD033 3.6m @ 4.96g/t

HUNI GAP 29m at 1.5g/t 1m at 15.33g/t

DRC1709D

9m at 1.29g/t 22m at 1.36g/t

DRC1708D

3m at 2.01g/t 8m at 1.41g/t 11m at 2.25g/t g 11m at 2.25g/t

HUNI HUNI Pit Pit HUNI HUNI Pit Pit

Huni and DPCB Looking South West Huni and DPCB Looking South West

54

Damang Gold Mine

WEST AFRICA REGION WEST AFRICA REGION

WEST AFRICA REGION WEST AFRICA REGION

Tomento East PitAmoanda – Tomento E. Corridor Amoanda North Extension Amoanda Pit

FAULT FAULT

Greater Amoanda

4m @ 11.7g/t 4m @ 11.7g/t

FAULT FAULT

22m 22m @ 5.27g/t & @ 5.27g/t & 17m @ 2.12g/t 17m @ 2.12g/t

Visible Gold observed at 80m Visible Gold observed at 80m

30m @ 8.56g/t 30m @ 8.56g/t

900m N S

Inferred Blocks Indicated Blocks Interpreted Mineralisation

30m @ 8.56g/t 30m @ 8.56g/t

5,754m drilled in quarter

55

Yanfolila Project, Mali

WEST AFRICA REGION WEST AFRICA REGION

Loulo Morila

YANFOLILA

Sadiola Essakane Syama Siguiri

ELEPHANT COUNTRY

56

Yanfolila Project, Mali

WEST AFRICA REGION WEST AFRICA REGION

Glencar acquisition successfully concluded Glencar acquisition successfully concluded Consolidation of ground holdings continues with Consolidation of ground holdings continues with additional 500 km²

Bagama Bagama

Bokoro Bokoro

Komana scoping study at advanced stage.

Kobada Kobada g

Bokoro Bokoro

Initial drill testing completed over Bokoro target Komana Komana Regional exploration program in progress over Solona and 5 Reconnaissance licenses

A RAPIDLY EMERGING GOLD CAMP

57

Yanfolila Project, Mali

WEST AFRICA REGION WEST AFRICA REGION

Komana East

Komana

6,050m drilled at Komana East and West. 60% of assay results received for Komana East Visible gold in 2 holes at g Komana West Komana East Drill Results

FRAMEWORK DRILLING – POSITIVE RESULTS

58

Yanfolila Project, Mali

WEST AFRICA REGION WEST AFRICA REGION

Bokoro : 23m @ 2 27g/t from 62m

Early Stage Targets

Bokoro : 23m @ 2.27g/t from 62m

Komana Komana

Faliko: 24m @ 1.14g/t from 8m Badogo: 8m @ 2.6g/t from 6m

REGIONAL DRILLING CONFIRMING SCALE OF CAMP

59

Yanfolila Project, Mali

WEST AFRICA REGION WEST AFRICA REGION

Jun 2009 Dec 2009 Jun 2010 Dec 2010 Komana drilling

Interim resource

Komana drilling

Interim resource

Other targets

Additional discoveries

Interim scoping study

Conceptual study

INTERIM SCOPING STUDY Q2 F2011

South America Region South America Region

J L i K J L i K Juan Luis Kruger Juan Luis Kruger Head of the South America Region Head of the South America Region

61

Cerro Corona Mine

Q2 F2010: SOUTH AMERICA Q2 F2010: SOUTH AMERICA Q2 F10 Q1 F10 Salient Points

Gold

koz

35 33 Copper

tons

10,600 9,100 Production

Eq oz

98 89

• Au equivalent ounces +11%
• Au +3%; Cu +16%;

– higher Cu grade and recoveries

Total cash cost

US$/oz

378 349 NCE

US$/oz

617 599 higher Cu grade and recoveries

• Cash flow before loans of $29 million;

– prepaid $30 million of project financing loan

• TMF construction on track.

Capex

US$m

24 23

Outlook Q3 F2010

• Q3 F2010 Production: Au 36.6k oz and Cu 10,200 tons:

– Equivalent ounces: 100k eq oz (Au @ US$ 1,085/oz and Cu @ US$ 6,700 per ton).

• Total cash costs of US$355/eq oz and NCE of US$575/eq oz.

q q

• Final construction phase to complete the 3,740m level raise at Las Aguilas / Las Gordas TMF by April.
• Operational improvement projects – sustained recoveries.

STEADY, CONSISTENT CASH GENERATOR

62

SOUTH AMERICA REGION SOUTH AMERICA REGION

Cerro Corona Mine

Focus on cash generation

• Three consecutive quarters of positive

cash generation (~US$ 27M/quarter) 800 1,200

Leverage to higher prices

400 800

Leverage to higher prices Costs management

‐

Q2 F2009 Q3 F2009 Q4 F2009 Q1 F2010 Q2 F2010

• Controllable costs in line with plan
• Higher cash cost driven by increase in

revenues, tons shipped and earnings Gold Spot Price Cash Cost NCE

LEVERAGE TO PRICES - INCREASED NCE MARGIN

63

SOUTH AMERICA REGION SOUTH AMERICA REGION

Cerro Corona Mine

800 1,200

Focus on cash generation

• Three consecutive quarters of positive

cash generation (~US$ 27M/quarter)

400 800

Leverage to higher prices

‐

Q2 F2009 Q3 F2009 Q4 F2009 Q1 F2010 Q2 F2010

Leverage to higher prices Costs management

‐800 ‐400

• Controllable costs in line with plan
• Higher cash cost driven by increase in

revenues, tons shipped and earnings

800 Gold Spot Price Gold Price Received Cash Cost NCE NCE Margin

LEVERAGE TO PRICES - INCREASED NCE MARGIN

64

Cerro Corona Mine

SOUTH AMERICA REGION SOUTH AMERICA REGION Production Optimization – Our Priority

100 120

Eq oz Produced

Maximize throughput – above 750tn/hr

• November record throughput of 770 tn/hr
• Increased utilization to 95.4% in Q2

40 60 80 100

Q

Increase recoveries – Cu >85% / Au >65%

‐ 20 40 Q1 F2009 Q2 F2009 Q3 F2009 Q4 F2009 Q1 F2010 Q2 F2010

• Q2 recoveries up: Cu 84%; Au 68%

Grade control improved blending

80 90

Recoveries

Grade control – improved blending Cost optimization

50 60 70

A R

p

• Contract mining fleet optimization – in progress

30 40 Q1 F2009 Q2 F2009 Q3 F2009 Q4 F2009 Q1 F2010 Q2 F2010

Au Recovery Cu Recovery

SWEATING THE ASSET FOR HIGHER CASH FLOW

65

Cerro Corona Mine

SOUTH AMERICA REGION SOUTH AMERICA REGION

Las Las Gordas Las Águilas

TMF CONSTRUCTION ON TRACK, WITHIN BUDGET

66

SOUTH AMERICA REGION SOUTH AMERICA REGION

Chucapaca Project

• Canahuire target:

Canahuire

Canahuire target:

Initial resource – Q4 F10; Robust mineralization; Open to the west. Open to the west.

• Katrina satellite targets:

Initial drilling commenced

Cerro Chucapaca

Initial drilling commenced.

• Interim scoping study:

Katrina

Interim scoping study:

To be delivered - Q4 F10; Resource still open.

GF

Katrina South

BVN

GOLD FIELDS’ NEXT MINE IN SOUTH AMERICA

67

SOUTH AMERICA REGION SOUTH AMERICA REGION

Chucapaca Project

CCP09-59 92m @ 2.08g/t Au CP09-58 198.9m @ 1.22g/t Au CCP09-63 40m @ 7.84g/t Au CCP09-60 CCP09 60 127.4m @ 8.55g/t Au uncut CCP09-52 72.2m @ 6.94g/t Au CCP09-61 12.86m @ 6.95g/t Au

DRILL RESULTS GETTING EVEN BETTER

68

SOUTH AMERICA REGION SOUTH AMERICA REGION

Other Exploration Projects

Peru Bolivia

Maricunga Belt – Central Chile

• Highly endowed belt with + 100 M oz Au

E i i ith i ifi t

Argentina Chile

• Emerging region with significant

development projects: Cerro Casale, Caspiche, Marte Lobo

! ! !!

Marte Lobo Au deposit La Coipa Au Mine

Pircas and other projects

p ,

Pircas Project:

Refugio Au Mine Cerro Casale Au Deposit Marte Lobo Au deposit

j

• Second drill campaign completed
• Encouraging results
• Option to acquire 100% of the property
• Other projects being advanced

EARLY DAYS BUT PROMISING

69

SOUTH AMERICA REGION SOUTH AMERICA REGION

Conclusions

• Cerro Corona Mine consistently delivering above plan
• Cerro Corona Mine consistently delivering above plan
• Phase II growth key area of management focus:
• Phase II growth key area of management focus:

– Oxide treatment – Resource conversion

Resource conversion

• Socio-political environment challenging but stable

p g g

• Chucapaca Project encouraging; scoping study on track

SOUTH AMERICA DELIVERING + PROMISING OUTLOOK

STRATEGIC ISSUES STRATEGIC ISSUES

Ni k H ll d Ni k H ll d Nick Holland Nick Holland Chief Executive Officer Chief Executive Officer

71

Growth Projects

STRATEGIC ISSUES STRATEGIC ISSUES Yanfolila Project (Mali) Acquisition of Glencar complete in Dec 09. Interim scoping study for Komana due Q2 F2011. Chucapaca Project (Peru) Internal scoping study on track. p g y Due by end of Q4 F2010. Talas Project (Kyrgyzstan) Internal scoping study on track. Internal scoping study on track. Due by Q4 F2010. Uranium Project Feasibility Study underway. Internal and peer reviews underway. APP (Finland) APP (Finland) Platsol technology could transform project. Extensive testwork underway.

ALL PROJECTS ADVANCING ON SCHEDULE

72

Power Costs in SA

STRATEGIC ISSUES STRATEGIC ISSUES

Power Costs for the South Africa Region I t f P d 35% I

4,000 4,500

Impact of Proposed 35% Increase

2,500 3,000 3,500

illion

1,000 1,500 2,000

R ‘m

500

F2008 F2009 ecast ecast ecast ecast F F F2010 Fore F2011 Fore F2012 Fore F2013 Fore

A LONG-TERM COST EFFECTIVE SOLUTION REQUIRED

73

CONCLUSION CONCLUSION

• Significant increase in operating cash flow.

g g

• Balance sheet strong
• Balance sheet strong.
• South Deep delivering on its promise.
• Exploration projects living up to expectations.
• Plans in place to reposition Driefontein and Kloof.

POSITIONING TO GENERATE FREE CASH FLOW

LEVERAGE TO GOLD

Q2 F2010 RESULTS

Johannesburg Johannesburg 4 February 2010