MINERAL RESOURCE & MINERAL RESERVE STATUS AS AT 31 DECEMBER 2016 - - PowerPoint PPT Presentation

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MINERAL RESOURCE & MINERAL RESERVE STATUS AS AT 31 DECEMBER 2016 - - PowerPoint PPT Presentation

MINERAL RESOURCE & MINERAL RESERVE STATUS AS AT 31 DECEMBER 2016 Tim Rowland Group Competent Person 12 th April 2017 Market Presentation Forward looking statements Certain statements in this document constitute forward looking


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MINERAL RESOURCE & MINERAL RESERVE

STATUS AS AT 31 DECEMBER 2016 Tim Rowland – Group Competent Person 12th April 2017 Market Presentation

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2

Forward looking statements

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 Damang 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; 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

  • ccurrence of unanticipated events.

GFI Mineral Resources and Mineral Reserves | Tim Rowland | 12th April 2017

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3 Gold Mineral Resource Gold Mineral Reserve

31 December 2015

Gold Mineral Resource Gold Mineral Reserve

Production depletion

Gold Mineral Resource Gold Mineral Reserve

31 December 2016

121.5 Moz 50.1 Moz

Managed

2.4 Moz 2.3 Moz

Managed

120.4 Moz 52.1 Moz

Managed

102.2 Moz 46.1 Moz

Attributable

2.3 Moz 2.2 Moz

Attributable

101.5 Moz 48.1 Moz

Attributable

2015 2016 2015 2016

Gold Mineral Resource Gold Mineral Reserve

Additions 2016

1.3 Moz 4.3 Moz

1.6 Moz 4.2 Moz

Attributable Managed

Additions have offset depletion and grown the Reserve

1Group total figures are gold only ounces and

include Operating Mines and Growth Projects

2 Numbers in brackets are for December 2015.

Mineral Resource and Mineral Reserve

Headline numbers1 – 31 December 2016

GFI Mineral Resources and Mineral Reserves | Tim Rowland | 12th April 2017

Resource: International 57.4 Moz South Deep 63.0 Moz Reserve: International 14.8 Moz South Deep 37.3 Moz

Gold Prices: Resource US$1,400/oz (1,500), A$1,850/oz (1,750), ZAR 650,000/Kg (550,000) Reserve US$1,200/oz (1,300), A$1,600/oz (1,550), ZAR 550,000/Kg (500,000)

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Resource and Reserve – Key Messages

Company strategy has delivered a strong headline Reserve position, despite US$100/oz lower gold price for planning and with 2.3 Moz depletion Au Resources have decreased by ~1% (Mines + Projects) – 120.4Moz (121.5 Moz) Au Reserves have increased by ~4% (Including Gruyere) – 52.1Moz (50.1 Moz) Reserve figure includes Gruyere but excludes Salares Norte – PFS in progress

Group

Australia R&R shows strong increase (+37% Resource and +62% Reserve, with Gruyere included) West Africa R&R stable (Resources steady and +1% Reserve) South Deep Reserves flat but Resources down -8% due to MSO / minimum mining width exercise America’s Gold Resource & Reserve +2% and -16% respectively, due to Cerro Corona depletion and inclusion of Salares Norte, where the Gold Resource is up 13%

Region Despite lower metal prices, Group Reserves have increased by 4% YOY

GFI Mineral Resources and Mineral Reserves | Tim Rowland | 12th April 2017

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Mineral Resource and Mineral Reserve 2016

Corporate Governance

Compliance with all relevant regulatory codes:

  • SAMREC 2016
  • JSE Section 12 listing requirements
  • US SEC / Industry Guide 7
  • SOX

Minimum 3-year external audit coverage for operating assets and major growth projects 2016 Audit compliance certificates issued for:

  • South Deep: Shango Solutions (Geology), Optiro (Mineral Resource) and RPA (Mineral Reserve

and LoM plan)

  • Cerro Corona: AMC (Mineral Reserve and LoM plan); AMEC conducted Resource review in 2015

Comprehensive information on all Group mining assets and projects is provided in the Resource and Reserve Supplement to the Integrated Annual Report and is available on the Gold Fields website

Materiality, Transparency and Competency Creating value from the fundamental asset in the ground

GFI Mineral Resources and Mineral Reserves | Tim Rowland | 12th April 2017

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2016 Strategy In Action

 Damang Re-investment

 South Deep Re-base  Gold Road Gruyere JV  Granny Smith Resource and Reserve growth  Australia Exploration strategy bearing fruit  Salares Norte moving to maiden Reserve

Tarkwa evaluating new

hydrothermal deposits and UG potential  Agnew focused on Resource to Reserve conversion and extension / discovery  Cerro Corona LoM expansion project assessing all options  St Ives continuing to explore Invincible camp potential

HIGHLIGHTS OPPORTUNITIES

Positive Developments underpin robust R&R – and OPPORTUNITIES remain Commitment to Exploration, Reinvestment, M&A, Growth Projects and Business Optimisation has retained a positive outlook

GFI Mineral Resources and Mineral Reserves | Tim Rowland | 12th April 2017

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Mineral Resource and Mineral Reserve

Managed Gold Mineral Resources change per Region

Changes driven by Resource (mining) depletion (2.4Moz), as well as:  GFA: Acquisition of Gruyere (3.3Moz); growth at Granny Smith UG (1.4Moz); decrease at Agnew due to updated modelling (0.3Moz)  South Deep – 5m minimum block width applied to resource model (-7.3Moz) offset by in-design material (+2.6Moz)  Americas: Growth at Salares Norte GFI Mineral Resources and Mineral Reserves | Tim Rowland | 11th April 2016

11,3 15,5 1,0 5.2 0,0 2,0 4,0 6,0 8,0 10,0 12,0 14,0 16,0 18,0 Dec 2015 Mined Depletion Growth Dec 2016 Gold (Moz)

Australia Region

15,1 15,1 0,7 0.7 0,0 2,0 4,0 6,0 8,0 10,0 12,0 14,0 16,0 Dec 2015 Mined Depletion Growth Dec 2016 Gold (Moz)

West Africa Region

68,4 63,0 0,3 5,2 0,0 10,0 20,0 30,0 40,0 50,0 60,0 70,0 80,0 Dec 2015 Mined Depletion Growth Dec 2016 Gold (Moz)

South Africa Region

6,1 6,3 0,3 0.4 0,0 1,0 2,0 3,0 4,0 5,0 6,0 7,0 Dec 2015 Mined Depletion Growth Dec 2016 Gold (Moz)

Americas Region (gold only)

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Mineral Resource and Mineral Reserve

Managed Gold Mineral Reserve change per Region

Changes driven by Reserve (mining) depletion (2.3Moz), as well as:  GFA: Acquisition of Gruyere (+1.8Moz); growth at Granny Smith UG (+0.7Moz); discovery & cost reduction at St Ives (+0.5Moz)  Ghana: Reinvestment plan at Damang excluding Rex & Huni (+0.9Moz) and the US$100/oz lower Au price at Tarkwa (-0.8Moz)  South Deep: inclusion of two additional corridors – one in Current Mine and the other in SoW GFI Mineral Resources and Mineral Reserves | Tim Rowland | 11th April 2016

3,6 5,8 1,0 3.2 0,0 1,0 2,0 3,0 4,0 5,0 6,0 7,0 Dec 2015 Mined Depletion Growth Dec 2016 Gold (Moz)

Australia Region

37,3 37,3 0,3 0,3 0,0 5,0 10,0 15,0 20,0 25,0 30,0 35,0 40,0 Dec 2015 Mined Depletion Growth Dec 2016 Gold (Moz)

South Africa Region

7,7 7,8 0,7 0.8 0,0 1,0 2,0 3,0 4,0 5,0 6,0 7,0 8,0 9,0 Dec 2015 Mined Depletion Growth Dec 2016 Gold (Moz)

West Africa Region

1,5 1,3 0,2 0,0 0,0 0,2 0,4 0,6 0,8 1,0 1,2 1,4 1,6 1,8 2,0 Dec 2015 Mined Depletion Growth Dec 2016 Gold (Moz)

Americas Region (gold only)

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West Africa Region

Tarkwa Overview 2016

Mineral Resources and Reserves 2016

Operation Tonnes (Mt) Grade .g/t) Gold (Moz) Tarkwa Resources 251.7 1.12 9.1 (9.4) Tarkwa Reserves OP Only 127.7 1.24 5.1 (5.8) Tarkwa Reserves – total* 196.1 0.96 6.1 (6.7)

  • DA assisting to protect cut-off grades
  • Expand hydrothermal & palaeoplacer exploration to assess

brownfield potential

  • Assess Kottraverchy UG potential
  • Maintain capital waste strip rates to secure a steady flow of

consistent grade ore

  • Assess options to reduce increasing waste long haul costs
  • Resources -4% & Reserves -10% (depletion & gold price)
  • Open pit grade stable YOY at 1.24 g/t
  • Development Agreement (DA) in place
  • Genser power commissioned
  • Hydrothermal prospects showing potential

Key Developments Focus Areas

Efficient, stable cash generator with 15 year life (incl. SHL & stocks)

* Low grade stockpiles (SHL) will be mined at the end of LoM GFI Mineral Resources and Mineral Reserves | Tim Rowland | 12th April 2017

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West Africa Region

Damang Overview 2016

Mineral Resources and Reserves 2016

Operation Tonnes (Mt) Grade (g/t) Gold (Moz) Damang Resources 84.7 2.19 6.0 (5.6) Damang Reserves 31.8 1.64 1.7 (1.0)

  • Repositioned mine with Reinvestment Plan (LoM 8 years)
  • Transformational increase in Reserves up 72% and LoM

grade up 15% (1.43g/t to 1.64g/t)

  • Development Agreement (DA) in place
  • Genser power commissioned
  • Contractor mining model bedding down
  • Damang Project Execution Plan (PEP) ensuring traction &

momentum on the intensive waste strip

  • Potential future flexibility from Rex & Huni pits
  • Scheduled completion of FETSF Stage 1 by year-end
  • Continue exploration to generate additional site flexibility

Key Developments Focus Areas

Reinvestment Plan will deliver value from a strong ore body

GFI Mineral Resources and Mineral Reserves | Tim Rowland | 12th April 2017

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Americas Region

Cerro Corona Overview 2016

Mineral Resources and Reserves 2016

Operation Tonnes (Mt) Grade Gold (Moz) Copper (Mlb) Cerro Corona Resources (Au g/t) 97.6 0.79 2.5 (2.8) Cerro Corona Resources (Cu %) 90.5 0.41 815 (914) Cerro Corona Reserves (Au g/t) 46.1 0.88 1.3 (1.5) Cerro Corona Reserves (Cu %) 46.1 0.45 456 (534)

  • Complete LoM expansion & oxide treatment studies to go

>2023 – alternative off-site TSF location being assessed

  • Optimise TSF capital expenditure over LoM and in-pit tailings
  • Assess nearby exploration potential
  • Complete increased processing throughput studies (from

930tph) in the context of the LoM expansion options

  • Independent Reserve audit successfully completed
  • Resource -11% and Reserve -16% due to mined depletion
  • Updated resource model with increased resolution on

lithology, alteration, structure and grade

  • Strong community involvement and development

Key Developments Focus Areas

Work continues to select most value accretive LoM extension option

GFI Mineral Resources and Mineral Reserves | Tim Rowland | 12th April 2017

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Americas Region

Salares Norte 2016

Mineral Resources and Reserves 2016

  • Land easement for 30 years and water rights for project

granted December 2016

  • Current drill season campaign will provide data for next

geology and resource model updates

  • PFS in process
  • Resource model to be updated during 2017
  • Ongoing drilling has driven improvements to the resource

size and confidence levels

  • Total project gold resource increased from 3.3Moz (29%

Indicated) to 3.8Moz (52% Indicated)

  • Total project gold grade improved from 3.9g/t to 4.6g/t
  • Brecha Principal Indicated Resource grew from 42% to 79%
  • Growth of ~280koz gold (Inferred) at Agua Amarga

Key Developments Focus Areas

Completion of the PFS will support reporting a maiden Reserve

GFI Mineral Resources and Mineral Reserves | Tim Rowland | 12th April 2017 Operation Tonnes (Mt) Grade Gold (Moz) Silver (Moz) Salares Norte Resources (Au g/t) 25.6 4.6 3.8 (3.3) Salares Norte Resources (Ag g/t) 25.6 53.1 43.8 (42.1)

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Australia Region

Granny Smith Overview 2016

Mineral Resources and Reserves 2016

Operation Tonnes (Mt) Grade (g/t) Gold (Moz) Granny Smith Resources 35.2 5.76 6.5 (5.3) Granny Smith Reserves 9.9 5.30 1.7 (1.3)

  • Continue drill campaigns to extend Wallaby Reserves
  • Goanna open pit potential cut-back being reviewed
  • Second lode targeted at Granny Smith UG
  • Exploration - find and delineate new surface ore sources
  • Resources +24% and Reserve +29%
  • Great performance and impact from Wallaby drilling –

Zones 100 and 120 continue to grow

  • Maiden Inferred Resource for Wallaby Zone 135 (770koz)
  • Improved resource model at Granny Smith OP and UG
  • Plant upgrades continue to sustain improved recoveries

Key Developments Focus Areas

Another great year for exploration and resource conversion at Wallaby

GFI Mineral Resources and Mineral Reserves | Tim Rowland | 12th April 2017

Wallaby Deposit Ore Lodes

Zone 250 Zone 60 Zone 70 1.9km Zone 80 Zone 90 Zone 100 Zone 110 Zone 120 Zone 150 Zone 135 Intrusive Legend Syenite-Monzonite Syenite Porphyry

View to the West

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Australia Region

St Ives Overview 2016

Mineral Resources and Reserves 2016

Operation Tonnes (Mt) Grade (g/t) Gold (Moz) St Ives Resources 30.1 3.40 3.3 (3.1) St Ives Reserves 21.5 2.52 1.7 (1.5)

  • Emphasis on exploration securing additional mining fronts and

OP opportunities in Central Corridor / Playa area

  • Advance pre-resource opportunities at Invincible Deep, Yacht

Club and Speedway Shear prospects

  • Scoping study for the palaeochannel project including ~58,000m
  • f aircore drilling and geophysical surveys to refine models
  • Drive open pit operating efficiencies and unit costs to protect cut-
  • ff grades

Focus Areas

  • Trend reversed with +13% growth in Reserves and +5% in

Resources

  • Discovery ounces (~464koz) from extensions to Invincible pit,

Invincible UG, Invincible South and Neptune

  • Invincible UG AFE approved with Invincible South and Deeps

showing potential

  • Maiden Reserve for Invincible South (188 koz)

Key Developments

Multi-year investment in exploration and discovery bearing fruit

GFI Mineral Resources and Mineral Reserves | Tim Rowland | 12th April 2017

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Australia Region

Agnew Overview 2016

Mineral Resources and Reserves 2016

Operation Tonnes (Mt) Grade (g/t) Gold (Moz) Agnew Resources 12.5 5.31 2.1 (2.6) Agnew Reserves 3.0 5.39 0.5 (0.7)

  • Seek short term incremental opportunities and pursue major

discoveries to extend the LoM

  • Leverage conversion of resources to reserves (37% Inferred)
  • Bringing Waroonga North on stream and define max. potential
  • Drive mine extensional exploration at Waroonga and at the

New Holland prospects, Sheba South, Genesis 600, NH Upper and Cinderella extensions

  • Decline in Resources -19% and Reserves -23% due to

depletion and detailed resource model updates, offsetting discovery at Waroonga North and FBH

  • Development of key take-over mining fronts at FBH and

Cinderella continues on plan

  • Brownfield exploration targeting high grade UG Waroonga

North analogues and the potential across wider tenement package

Key Developments Focus Areas

Intensified focus on Life Extension and establishing Waroonga North

Waroonga Complex looking east GFI Mineral Resources and Mineral Reserves | Tim Rowland | 12th April 2017

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Australia Region

Gruyere JV 2016 All figures reported as 50% attributable

Mineral Resources and Reserves 2016

Operation Tonnes (Mt) Grade (g/t) Gold (Moz) Gruyere JV Resources 76.8 1.34 3.3 (n/a) Gruyere JV Reserves 45.8 1.2 1.8 (n/a)

  • Deliver Gruyere development plan and ramp up
  • Initial capital spend for Plant and infrastructure construction

and pre-strip to open up the ore body

  • Initial mining of oxides in 2018-19 will include transitional

and fresh ore in 2020 and predominantly fresh ore from 2021

  • Exploration drilling to assess potential at Attila, Alaric and

Toto JV prospects

  • Under first time GFI reporting – acquisition numbers reported
  • Open pit feasibility study used US$1,095/oz (A$1,500/oz)

generating a reserve with a 13 year life

  • Projected AIC of US$805/oz (AISC + development capital)

and AISC of US$690/oz

  • Mine to be developed and operated under GFI management

and the JV Committee

Key Developments Focus Areas

Construction of a new mine in WA - 13 year LoM

GFI Mineral Resources and Mineral Reserves | Tim Rowland | 12th April 2017

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South Africa Region

South Deep Overview 2016

  • Embed mining methods and ore handling processes
  • Increase resolution on long term steady state production
  • Deliver AISC targets / leverage cost curve
  • Assess remnant extraction methods in Current Mine
  • Further development of people – Artisan & supervisory

mechanised skills

Mineral Resources and Reserves 2016

Operation Tonnes (Mt) Grade (g/t) Gold (Moz)

South Deep Resources 340.0 5.76 63.0 (68.4) South Deep Reserves 217.6 5.34 37.3 (37.3)

  • Rebase plan delivered in February 2017
  • Incorporates all revisions and improvements in mine

design, scheduling, geotechnical parameters and necessary supporting infrastructure, equipment & labour

  • Steady state production of 230ktpm and circa 500koz per

annum from 2022 in the Current Mine & NoW areas

  • Resource reconfigured at a 5m minimum mining width
  • External compliance audits of the Resource and Reserve

successfully completed

Key Developments Focus Areas

Increasing traction on delivery from a world class, long life ore body

GFI Mineral Resources and Mineral Reserves | Tim Rowland | 12th April 2017

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South Deep design comparison year-on-year

Dec’15 versus Dec’16

Current Mine NoW SoW East SoW West

Twin Shafts

105 and 110 level SoW W access development

Dec’15 Dec’16

93 and 95 level SoW E access development New 90-1aW Project New 105 1W Project

Current Mine NoW SoW East SoW West VCR VCR

GFI Mineral Resources and Mineral Reserves | Tim Rowland | 12th April 2017

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South Deep Current Mine versus NoW mine design

GFI Mineral Resources and Mineral Reserves | Tim Rowland | 12th April 2017

zx

Current Mine North of Wrench

95 Level 100 Level Longhole stoping (Bulk mining) Conventional stoping (destress) Horizontal destress Drifting and benching (Selective mining) Corridor ramps Target Horizon Rail bound ore-handling Ore handling with trucks to crushers and conveyers

Section along the dip of the reef

Longhole stoping Access ramps

Moving to a bulk mining method improves Resource to Reserve conversion

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South Deep Resource to Reserve conversion

Section through Current Mine (95-2W) Section through NoW (100-3W)

  • Ounces directly underneath existing voids

are not reserved (no mining under backfill)

  • Future work will determine what proportion
  • f these resources will be reserved

Existing voids (mined out) Resourced ounces Reserved ounces

  • These wedges are not reserved due to

elevated stresses formed by the original destress stopes

  • These wedges are not reserved due to

elevated stresses formed by the destressing

  • The reserved ounces are based on a non-

selective mining method (LHS)

  • This results in a greater extraction ratio

Current Mine - Mining method targeting selective areas around existing excavations NoW / SoW - Bulk mining method applied maximizing extraction ratio

Moving to a bulk mining method improves the conversion

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Questions?

GROUP MINERAL RESOURCES & MINERAL RESERVES