Overview of the South Deep Project Investors Visit 08 February 2013 - - PowerPoint PPT Presentation

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Overview of the South Deep Project Investors Visit 08 February 2013 - - PowerPoint PPT Presentation

Overview of the South Deep Project Investors Visit 08 February 2013 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


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SLIDE 1

Overview of the South Deep Project Investors Visit

08 February 2013

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SLIDE 2

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 occurrence of unanticipated events.

Forward looking statements

Page 2 South Deep Site Visit, 8 February 2012

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SLIDE 3

Our Vision and Values

Page 3 South Deep Site Visit, 8 February 2012

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SLIDE 4

Locality – Witwatersrand Gold Fields

GREYLINGSTAD

POTCHEFSTROOM

KROONSTAD VREDEFORT

WELKOM KLERKSDORP

South Deep

Central Rand Group

West Rand Group LEGEND

EVANDER

JOHANNESBURG

100KM

CARLETONVILLE

WESTERN DEEP LEVELS

Scale

Historic production: > 1 600 000 000 oz of gold 4.5bn tons of ore treated at an average grade of

9.0g/t

Page 4 South Deep Site Visit, 8 February 2012

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SLIDE 5

Locality – South Deep

Page 5 South Deep Site Visit, 8 February 2012

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History

  • 1950: Prospecting in the area commenced
  • 1961: Production at Western Areas Gold Mine (WAGM)

commenced

  • 1999: Placer Dome Western Areas (PDWA) Joint Venture

(JV) formed

  • 2000: Name changed to South Deep Gold Mine
  • 2005: Twin Shaft Complex opened
  • 2006 Gold Fields acquired Barrick’s 50% JV interest in the

PDWA JV

  • 2007: Gold Fields acquired all remaining WAL shares to own

100% of South Deep Gold Mine WAL listing terminated

  • 2007: Retired inherited 1,000,000 ounce hedge at

US$622/ounce at cost of US$ 300 million – savings to date US$ 1 Billion

Page 6 South Deep Site Visit, 8 February 2012

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SLIDE 7

Safety

0.93 0.07 0.12 0.06 0.4 0.8 1.2 F2008 F2009 F2010 F2011 C2011 C2012

LDIFR

21.29 5.78 2.8 2.4 2.3 1.9 5 10 15 20 25 F2008 F2009 F2010 F2011 C2011 C2012

SIFR

6.66 2.11 1.1 0.84 1.09 0.98 2 4 6 8 F2008 F2009 F2010 F2011 C2011 C2012

FIFR

Page 7 South Deep Site Visit, 8 February 2012

WORLD CLASS SAFETY STANDARDS

KM

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SLIDE 8

Overview – building a world class mine

  • Landmark Union Agreement on new Operating Model – 2 October 2012
  • Production build-up to run-rate of 700 Koz by end of 2015
  • De-stress development increased 75% year on year.
  • Self-funding by end of 2013

World class reserve well understood Major progress on key infrastructure: on budget and on time

2010 2011 2012 2013E 2014E 2015E Status

94 Level Refrigeration Plant On schedule Twin Vent Shaft Deepening Commissioned Oct 2012 Tailings Storage Facility Commissioned April 2011 Plant Expansion 330 Ktpm Commissioned Nov 2012 Backfill Infrastructure Commissioned New Mine Development On-going

Phase1 commissioned Backfill pipe extensions in the 95-1W, 95-2W and 95-3W Commission machines 3, 4 and 5 with 100 and 105 Level BACs Hoisting builds up as per mine plan Page 8 South Deep Site Visit, 8 February 2012

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SLIDE 9

New Operating Model

1 Vision:

Horizon 1 Rebasing the mine Horizon 2 Setup for success Horizon 3 Deliver the ramp-up

Phase 1: CHANGE Phase 2: OPTIMISE Phase 3: IMPROVE

6 union engagement initiatives General business processes Future operating model initiatives

Business Optimisation Capital Infrastructure Maintenance Optimisation Mining Optimisation Bu

2.5

ives

2.1

Operating Infrastructure Op p Op

2.2

Mi

2.3

Ma

2.4

July 2012 Jan 2013 Jan 2014 Dec 2015 Leadership Pipeline and Capacity

1A

Hearts and Minds Culture Change

1B

Partnerships for success Business Improvement Six Sigma; Lean; Theory of Constraints (TOC)

3.2

Continuous skills development

3.3 3.1

Job grading Maintenance management Flexibility in mining Fle Fle

E D

Total rewards

B C

Rebase agreements Reb Re

F

FULCO

A

PAYROLL BONUS RECRUITING AND TRAINING SHIFTS, SHAFTS, LOGISTICS ORG UNIT DESIGN MAINTENANCE MANAGEMENT MINING FLEXIBILITY CHANGE OFFICE SETUP R

1.5

B

1.4

  • n e

O

1.1

P

1.3

n M ng M

1.6

n M nt M

1.7

C

1.8

S

1.2

1

Phase 1 & 2 overseen by the Change Office… …transitioning into a longer term BI FUNCTION

Multi-phased approach to support South Deep ramp-up by 2015

Page 9 South Deep Site Visit, 8 February 2012

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SLIDE 10

Our People

  • Employ approximately 3,500 people on operation – full

production will employ 4,000 people (excluding working cost contractors)

Additional ~2,800 people in capital expansion project

  • Diverse workforce
  • Well trained and qualified personnel
  • Well paid and incentivised personnel
  • World class medical facilities
  • Wellness programme

“24 hours in the life of a miner”

  • Unionised labour force

72% NUM, 15% UASA and 14% non-affiliated

Page 10 South Deep Site Visit, 8 February 2012

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SLIDE 11

Sustainable Development

  • Management of environmental aspects in

line with latest legislative requirements

  • Environmental Management Systems

according to best practice international standards (ISO14001 certified)

  • Water Management – Water use license
  • International Cyanide Management

Institute (ICMI) compliant

Environmental Management

Page 11 South Deep Site Visit, 8 February 2012

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SLIDE 12

Geology - Exploration

Surface

Pretoria Group

Black Reef Chuniespoort Group

Base at ± 1800mbc

VCR

Klipriviersberg Group

Base at ± 3000mbc

Upper Elsburgs

D7 D8 Orig. D1 D2 D3 D4 D5 D6

Page 12 South Deep Site Visit, 8 February 2012

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Geology - Orebody

Page 13 South Deep Site Visit, 8 February 2012

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Geology – Down-dip extension

Surface South Deep Phase 2 VCR Upper Elsburg Subcrop Ezulwini Cooke 3 Shaft Ezulwini # South Shaft SV1 / SV3 South Deep Current Mine Phase 1

3 4 0 0 m 24 0 0 m 15 0 0 m 10 0 0 m

South Shaft Cooke 3 2500 m

2439 m 2439 m 2439 m

Twins Shafts

Mining Areas

Page 14 South Deep Site Visit, 8 February 2012

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Mineral Resources

Tonnes (Mt) Grade (g/t) Gold (‘000 oz) Classification Dec 11 Dec 10 Jun 10 Dec 11 Dec 10 Jun 10 Dec 11 Dec 10 Jun 10 Underground Measured 51.4 41.5 40.5 7.3 7.7 7.4 12,015 10,331 9,684 Indicated (AI) 199.0 250.5 125.7 7.0 6.6 8.7 44,606 53,523 35,016 Total Above Infrastructure 250.4 292.0 166.2 7.0 6.8 8.4 56,621 63,854 44,700 Indicated (BI) 77.9 42.3 92.6 7.1 7.0 6.3 17,784 9,568 18,898 Total Below Infrastructure 77.9 42.3 92.6 7.1 7.0 6.3 17,784 9,568 18,898 Total 328.3 334.3 258.8 7.0 6.8 7.6 74,405 73,422 63,598

Measured and Indicated

Page 15 South Deep Site Visit, 8 February 2012

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Mineral Resources

Tonnes (Mt) Grade (g/t) Gold (‘000 oz) Classification Dec 11 Dec 10 Jun 10 Dec 11 Dec 10 Jun 10 Dec 11 Dec 10 Jun 10 Underground Inferred (AI) 10.6 17.2 78.0 8.8 6.3 5.8 3,012 3,460 14,566 Inferred(BI) 16.9 21.8

  • 6.6

6.5

  • 3,557

4,572

  • Total

27.5 39.0 78.0 7.4 6.4 5.8 6,569 8,032 14,566 Grand Total

355.8

373.3 336.8

7.1

6.8 7.2 80,974 81,454 78,164

Inferred Total, including Measured, Indicated and Inferred

Page 16 South Deep Site Visit, 8 February 2012

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Mineral Reserves

Managed

Tonnes (Mt) Grade (g/t) Gold (‘000 oz)

Classification

Dec 2011 Dec 2010 June 2010 Dec 2011 Dec 2010 June 2010 Dec 2011 Dec 2010 June 2010

CM – Proved 15.2 14.9 14.1 6.0 6.5 5.9 2,929 3,113 2,700 CM – Probable 6.6 1.8 3.7 4.2 5.5 4.2 885 308 505 NOW - Probable 63.5 56.2 42.5 6.1 6.6 6.6 12,539 11,968 8,991 SOW – Probable 81.9 83.3 17.5 5.2 5.0 6.6 13,581 13,378 3,703 OM – Probable 0.4 3.8 5.0 8.7 72 1,044 Total AI 167.6 156.1 81.6 5.6 5.7 6.5 30,007 28,766 16,943 Probable (BI) – Ph2 57.4 36.5 66.6 5.2 4.9 5.8 9,577 5,767 12,315 Total 225.0 192.6 148.2 5.5 5.6 6.1 39,584 34,533 29,258

Page 17 South Deep Site Visit, 8 February 2012

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LoM Sequencing

Current to 2025

Stoping in Phase-1 SoW West (Block-B) Corridor-4 starts in 2018 Development in Phase-1 SoW East (Block-A) Reaches Corridor 3 & 4 by 2025

Page 18 South Deep Site Visit, 8 February 2012

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LoM Sequencing

Stoping in Phase-1 SoW West (Block-B) Corridor-4 starts in 2018 Development in Phase-1 SoW East (Block-A) Reaches Corridor 3 & 4 by 2025

Current to 2035

Production from SoW reaches 200 Kt/m

Page 19 South Deep Site Visit, 8 February 2012

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LoM Sequencing

Stoping in Phase-1 SoW West (Block-B) Corridor-4 starts in 2018 Development in Phase-1 SoW East (Block-A) Reaches Corridor 3 & 4 by 2025

Current to 2060

Phase-1 NoW (corridors) depleted by 2054 Current Mine depleted by 2047 (95 Oline)

Page 20 South Deep Site Visit, 8 February 2012

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LoM Sequencing

Stoping in Phase-1 SoW West (Block-B) Corridor-4 starts in 2018 Development in Phase-1 SoW East (Block-A) Reaches Corridor 3 & 4 by 2025

Current to 2080

End of extended LOM (2080)

Page 21 South Deep Site Visit, 8 February 2012

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Mining Philosophy

Mining a massive orebody at depth

Destress stope M B

Front abutment stress 500 Mpa 72 500 psi stress 75 Mpa 11 000 psi De - stressed zone 30 - 40 Mpa 3000 - 4500 psi Depth 2600m below surface Depth Equivalent 1200m below surface

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South Deep Site Visit, 8 February 2012

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Mining Philosophy

Mining a massive orebody at depth: Destress envelope

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Achieving the de-stress schedule is the keystone to executing the plan

Destress performance to date

13548 14743 17652 11088 9986 25704 10000 20000 30000 40000 50000 2010 2011 2012

Destressing since C2010

Current Mine Future Mine

Page 24 South Deep Site Visit, 8 February 2012

75% Improvement year on year

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Backfill placement in 2012

5000 10000 15000 20000 25000 30000 35000 40000 45000 C2010 C2011 C2012 Jan 12 Feb 12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12

Backfill (m³)

Actual

Page 25 South Deep Site Visit, 8 February 2012

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Workshop Progress

WASHBAY ACCESS WAY

DUMPTRUCK BAY

ACCESS WAY RIG BAY 1 RIG BAY 2 RIG BAY 3 LHD BAY 1 LHD BAY 2 LHD BAY 3 OFFICE 1 OFFICE 3 OFFICE 2 ASSEMBLY BAY 93 RAW EAST A 93 RAW EAST B

Phase-1 Mining completion Oct ’12 Secondary support Mar ’13 Wetcrete Apr ’13 Phase-2 Mining completion Apr ’13 Secondary support July ’13 Wetcrete Sep ’13 Phase-3 Mining completion Aug ’13 Secondary support Feb ’14 Wetcrete Aug ’14

Construction and completion of workshops

93L Workshop

Page 26 South Deep Site Visit, 8 February 2012

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SLIDE 27

Mining Methods: De-stress Mining

Main-access-drive

2.2m

Recently filled stoping drive

Stoping-drive

1 Stoping-drive mining 3 Stoping-drive completion 2 Advance stope-access-drive

Page 27 South Deep Site Visit, 8 February 2012

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Mining Methods: Drift and Bench Mining

Bench access

Mining direction

Bench mining

Mining direction

Primary drift mining

1 3 2

Drift access Bench access

Page 28 South Deep Site Visit, 8 February 2012

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Mining Methods: Longhole stoping

1 2

Longhole stope access Slot development

Slot raise

3 4 5

Slot development Stoping Stoping

Completed slot Slot access

Page 29 South Deep Site Visit, 8 February 2012

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Mining Methods: Combined

De-stress Stope Drives Long hole stoping Drifts De-stress Stope Access Drives Drives

3D View of planned mining

Page 30 South Deep Site Visit, 8 February 2012

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Existing Mine Infrastructure

Station Statio

33 Lvl 48 Lvl 49 Lvl 50 Lvl 53 Lvl 56 Lvl 58 Lvl 60 Lvl 63 Lvl 65 Lvl 68 Lvl 70 Lvl 70a Lvl 71 Lvl 72 Lvl 75 Lvl 78 Lvl 80 Lvl 83 Lvl 85 Lvl 87 Lvl 90 Lvl 90 Lvl 93 Lvl 93 Lvl 94 Lvl 95 Lvl 95 Lvl 100 Lvl 100 Lvl 105 Lvl 105 Lvl 110 Lvl 110 Lvl 110a Lvl

Colour Coding: Red Up Cast. Green Down Cast Gold Rock Handling Capacity Rock Capacity 120ktpm Rock Capacity 175ktpm Rock Capacity 195ktpm 94 Level Refrigeration SV 1 50 Level Plugs Shaft damaged South Shaft SV 3 80 Level Pumps & Refrigeration Plants 83 Level Backfill Plant 95a Level Pump Station Intermediate Pump Stations Twins Ventilation Shaft Twins Main Shaft 51 Level Pump Station 84 Level Pump Station Metallurgical Plant SV 2 Deepened Section 110a Pump Challenge is the limited Storage from 95 Level to 95a Level

1.4km

Page 31 South Deep Site Visit, 8 February 2012

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Tailings Storage Facility

Page 32 South Deep Site Visit, 8 February 2012

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Backfill Infrastructure

Full Plant Tailings – Backfill plant at South Shaft

Page 33 South Deep Site Visit, 8 February 2012

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Metallurgical Plant Expansion

Milling, Crushing & Thickening

Page 34 South Deep Site Visit, 8 February 2012

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New Mine Rock Handling Infrastructure by 2014

In-stope Truck Tips 95-1W 95-2W 95-3W

The Silos are required for life of mine, where traditional ore passes would fail with short life spans between costly rehabilitation. The additional costs for the Silos was approved in the NMD C.O.S. February 2012

100L 105L 110L 110AL 5 4

315m 35m 40m 80m x 2 85m x 2

1 3 2

Feb’13 Dams and settlers: Dec’14

Phase -1, Silos No.3 and 5 commissioned by September 2013 Phase -1 Sink, line & equip Sept‘13

Tip Box Front Completed Sinking required

Settlers

1

Phase - 2, Silos No.1, 2 and 4 commissioned by December 2014 Phase -2 Sink, line & equip Dec’14 Phase -2 Sink, line & equip Dec’14 Phase -1 Sink, line & equip Sept‘13

Sinking completed

VENTILATION #

Crusher Conveyor

3 2 5

Page 35 South Deep Site Visit, 8 February 2012

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SLIDE 36

Annual capital spend

0.540 0.540

1.578

R ‘Bn

Actual to-date and Forecast to project scope completion

Page 36 South Deep Site Visit, 8 February 2012

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1.599 0.957 1.982 2.576 1.884 1.672

0.000 0.500 1.000 1.500 2.000 2.500 3.000 F2010 C2010 - H2 C2011 C2012 C2013 C2014 C2015 C2016

Capex Actual Capex Forecast

Sustaining Capital

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SLIDE 37
  • Ventilation Shaft infrastructure hoisted the first skip on the 16th October 2012
  • Temporary Ore Pass system was commissioned at the end of September 2012
  • Metallurgical Plant expansion project was completed as planned in Q4 2012
  • The Backfill Full Plant Tailings (FPT) project achieved targets planned in C2012

Highlights of 2012

Project status is at 42 months out of 60 months program Operational

  • Good safety performance in 2012, improvement on 2011
  • ± 3.7m fatality free shifts
  • Destress improved with 75% from 2011 to 2012
  • Backfill placement improved with 52% from 2011 to 2012
  • The new on-site TM3 training centre has been completed
  • The mine moved over to a New Operating Model

Page 37 South Deep Site Visit, 8 February 2012

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Production indicators

Steady state R/ton Milled 800 Tons Milled (‘000) 3,960 Working cost R/kg 150,000 Ounces Produced (‘000) 700 Average Cash Cost US$700/ounce Average NCE US$900/ounce

Page 38 South Deep Site Visit, 8 February 2012

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SLIDE 39

Thank you