Quarterly Results Quarterly Results Q3 F2008 Johannesburg 9 May - - PowerPoint PPT Presentation
Quarterly Results Quarterly Results Q3 F2008 Johannesburg 9 May 2008 SAFETY Introduction In Case Of Emergency .. Siren will sound and announcement made over public address system Evacuate building through exit points Congregate across
Johannesburg 9 May 2008
Introduction SAFETY
2
Johannesburg 9 May 2008
Introduction Cautionary Statement
This document and any materials distributed in connection with this document are not directed to, or intended for distribution to or use b i h i i i id l d i l li h j i di i h h by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation. This presentation does not constitute or form part of an offer to sell or issue, or any solicitation of an offer to buy or subscribe for, any securities referred to herein. The capital raising and other information in connection with the capital raising in certain jurisdictions may be restricted by law and persons into whose possession any document or other information referred to herein comes should inform th l b t d b h t i ti A f il t l ith th t i ti tit t i l ti f th themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction. The securities mentioned herein have not been, and will not be, registered under the U.S. Securities Act of 1933 (the "Securities Act"), and may not be offered or sold in the United States (as such term is defined in Regulation S under the Securities Act) unless they are registered under the Securities Act or pursuant to an exemption from registration. No public offer of the securities is being made in the U it d St t United States. This document is not an offer of securities for sale in any jurisdiction. Certain statements in this presentation 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: overall economic and business conditions in South Africa, Ghana, Australia, Venezuela and elsewhere; the ability to achieve anticipated efficiencies and other cost savings in connection with past and future acquisitions; the success of exploration and development activities; decreases in the market price of gold; the occurrence of hazards associated with underground and surface ld i i th f l b di ti il bilit t d d l t f it l h i l t t gold mining; the occurrence of labor disruptions; availability, terms and deployment of capital; changes in relevant government regulations, particularly environmental regulations and potential new legislation affecting mining and mineral rights; fluctuations in exchange rates, currency devaluations and other macroeconomic monetary policies; and political instability in South Africa, Ghana, regionally in Africa or in Venezuela. 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 i t ft th d t f thi d t t fl t th f ti i t d t 4
Introduction Safety
5
Introduction Safety
6
Johannesburg 9 May 2008
Nick Holland Chief Executive Officer
Chief Executive Officer
8
INTRODUCTION Leadership Changes
Operational Executive Terence Goodlace Chief Operating Officer Nick Holland Chief Executive Officer
Vishnu Pillay Head of Operations Glenn Baldwin Head of Operations Juan Luis Kruger Head of Operations Head of Operations South Africa Head of Operations Australia & Ghana Head of Operations South America
9
INTRODUCTION Our Strategic Commitment
Notional Notional Cash Expenditure Free
Growing
Cash Flow Margin Growth
Operational Excellence g Gold Fields Securing the Future
UNHEDGED
10
INTRODUCTION Our Commitment Unfolding
SOUTH AFRICA Stabilisation of power allocation
Securing the Future Operational Excellence Growing Gold FieldsSOUTH AFRICA Stabilisation of power allocation CERRO CORONA Commissioning June 08, Production & Shipment Q1 F09 g , p TARKWA CIL expansion on track for Q1 F09 start-up SOUTH DEEP A development project gaining momentum ST IVES Developing new underground mines EXPLORATION Rule of Five’s →Rule of Two’s for exceptional returns
11
INTRODUCTION Q3F08 Headlines
Attributable production down 14% to 827koz
Securing the Future Operational Excellence Growing Gold FieldsAttributable production down 14% to 827koz Unit total cash costs R122,920/kg (US$513/oz) , g ( $ ) Operating profit up 26% to R2,566m Core earnings up 67% to 155(SA)cps Cash flow from operations less all capital ~ R1 billion Interim dividend of R0.65 per share
12
Nick Holland Chief Executive Officer
Chief Executive Officer
13
Q3 F08 FINANCIAL REVIEW
Salient Features Q3 2008 Q3 2008 Q2 2008 Q2 2008
Gold Produced1
000oz
827 960
Securing the Future Operational Excellence Growing Gold FieldsExchange rate
ZAR/US$
7.45 6.76
A$/oz
1,008 886 Revenue
US$/oz
921 784
R/kg
220,612 170,488
Rm
6 109 5 430
Rm
6,109 5,430 Operating costs, net
Rm
3,543 3,392 O ti t
R/ton
283 265 Operating costs
SA ug R/t
974 715 Operating profit
Rm
2,566 2,037 Operating margin
%
42 38 Total cash costs
R/kg
122,920 101,532
US$/oz
513 467
14
US$/oz
513 467
1 Atrributable
Q3 F08 FINANCIAL REVIEW
Operating Cost Analysis
Securing the Future Operational Excellence Growing Gold Fields3,392 (47) 88 121 (11) 3,543
Rm
3345 0 3345 0 3433 0 3543 0 3345.0 3345.0 3433.0 3543.0
Q2F2008 SA Operating Costs International Operating Costs Translation Adjustments GIP Q3F2008
15
Income Statement
Q3 F08 FINANCIAL REVIEW
Q3 2008 Q3 2008 Q2 2008 Q2 2008 Operating profit
Rm
2,566 2,037
Securing the Future Operational Excellence Growing Gold FieldsAmortisation & depreciation
Rm
714 763 Net operating profit
Rm
1,852 1,274 I t t id t
R
(88) (92) Interest paid, net
Rm
(88) (92) Foreign exchange gain/(loss)
Rm
38 (5) Gain/(loss) on financial instruments
Rm
262 (188) ( ) ( ) Other expenses
Rm
(32) (10) Exploration
Rm
(58) (79) Profit before tax & exceptional items
Rm
1,974 901 Exceptional items
Rm
(41) 1,417 Mining & income tax
Rm
(567) (418) Mining & income tax
Rm
(567) (418) Discontinued operations
Net profit
Rm
1,366 2,018
16
Q3 F08 FINANCIAL REVIEW
Income Statement
Q3 2008 Q3 2008 Q2 2008 Q2 2008
Securing the Future Operational Excellence Growing Gold FieldsRm
1,248 1,938 Net profit attributable to ordinary shareholders
(SA)cps
191 297 Net profit excluding gains and losses on foreign exchange, financial instruments and exceptional items
Rm
1,009 603 exceptional items
(SA)cps
155 93
17
Q3 F08 FINANCIAL REVIEW
Cash Flow Statement
Q3 2008 Q3 2008 Q2 2008 Q2 2008 Cash flow from operations
Rm 3,039 1,148
Securing the Future Operational Excellence Growing Gold FieldsCash flow from operations
Rm 3,039 1,148
Dividends
Rm
Rm (2,086) (2,476)
p p
( ) ( )
Capital expenditure - disposals
Rm 3 2
Other investing activities
Rm (273) 2,252
Net loans received/(repaid)
Rm (253) (1,081)
Other financing activities
Rm 39 12
Net cash inflow/(outflow)
Rm 469 (143)
Currency translation adjustment
Rm 154 (6)
Cash at beginning of period
Rm 1,321 1,470
Cash at end of period
Rm 1,944 1,321
18
Q3 F08 FINANCIAL REVIEW
Capital Expenditure Analysis
Securing the Future Operational Excellence Growing Gold FieldsQ3 08 Gold Price: US/$ 921/oz Q3 Average Exchange Rate : R/US$ 7.45
Rm Sustaining capex Sustaining capex
South Africa 536 Australia 255 Ghana 189
Subtotal 980 Project capex
Driefontein 9 shaft 61 S th D 196 South Deep 196 Tarkwa CIL Plant 264 Cerro Corona 576
Subtotal 1,097 Total capex 2,077
19
Q3 F08 FINANCIAL REVIEW
Balance Sheet
Q3 2008 Q3 2008 Q2 2008 Q2 2008 Cash
Rm
1 944 1 321
Securing the Future Operational Excellence Growing Gold FieldsCash
Rm
1,944 1,321 Debt (6,635) (6,412) Long term
Rm
(5 951) (6 037) Long term
Rm
(5,951) (6,037) Short term
Rm
(684) (375) Net debt
Rm
(4 691) (5 091) Net debt
Rm
(4,691) (5,091) Net debt
US$m
(586) (727)
Western Areas Hedge Closed Out February 2007 1 million ounce hedge retired at US$622/oz g $ ~US$300 million benefit
20
Q3 F08 FINANCIAL REVIEW
SA Supply & Services Spend
Main supply and services cost drivers during FY0 8 YTD: PPI? * Cost Excludes Power and Labour during FY0 8 YTD:
Steel Products ( 4 0 -5 0 % w eighted) , Fuel ( 5 0 % ) , Tim ber ( 2 4 % ) , Steel Balls ( 5 0 % ) , Foodstuffs ( 1 4 % ) ,
PPI?
( 5 0 % ) , Foodstuffs ( 1 4 % ) , Services/ Labour Hire ( 1 1 % ) , Cyanide ( 2 0 % )
Gold Fields South Africa FY0 8 I nflation Basket: Steel FY0 8 Quarter 3 d 4 T D t
March FY0 8 = 1 0 -1 1 % end-FY0 8 est. = 1 2 -1 4 %
?
and 4 To Date I ncreases: > 6 0 %
6 0 % Steel increases YTD = 1 0 % im pact on Gold Fields Supply and Services Fields Supply and Services basket spend Gold Fields South Africa Spend Basket: FY0 9 est im pact > 2 0 %
21
FY0 9 est. im pact > 2 0 %
Q3 F08 FINANCIAL REVIEW
Australia Supply Spend View
Main supply cost drivers during FY0 8 YTD:
Diesel ( 1 5 % ) , Lim e ( 3 0 % ) , Cem ent ( 1 6 % ) , Cyanide ( 1 9 % ) , Steel b ll ( 7 % ) LPG ( 1 6 % )
Diesel?
?
balls ( 7 % ) , LPG ( 1 6 % )
Gold Fields Australia
?
Gold Fields Australia FY0 8 I nflation Basket:
March FY0 8 = 7 -1 0 % end-FY0 8 est. = 7 -1 0 %
? ?
Australian PPI YOY March0 8 : 4 8 %
? ?
March0 8 : 4 .8 % I nflation for W estern Australian and Mining is higher than general PPI th t l f
22
the past couple of years
* Cost Excludes Power, Contractors and Labour
Q3 F08 FINANCIAL REVIEW
Ghana Supply Spend View
Main supply cost drivers d i FY0 8 YTD during FY0 8 YTD:
Diesel ( 1 5 % ) , Cyanide ( 1 0 % ) , Steel balls ( 1 3 % ) , Tyres ( 2 0 % ) , Am m onia ( 5 9 % )
?
( 5 9 % )
Gold Fields Ghana FY0 8 I nflation Basket:
March YTD = 1 3 -1 5 % end FY0 8 est = 1 4 1 6 %
?
Gh CPI YOY F b0 8
end-FY0 8 est. = 1 4 -1 6 %
Ghana CPI YOY Feb0 8 : 1 3 .2 % Mining industry im ported inflation hi h h l
23
higher than general CPI
* Cost Excludes Power, Contractors and Labour
Terence Goodlace Chief Operating Officer
Chief Operating Officer
24
Q3 F08 OPERATIONAL REVIEW Safety Trends
Securing the Future Operational Excellence Growing Gold Fields0 40
FATAL INJURY FREQUENCY RATE SERIOUS INJURY FREQUENCY RATE (per million hours worked)
0.32 0.32 0.33 0.32 0.31 0.23 0.27 0.18 0.29 0.19 0.32
0.20 0.25 0.30 0.35 0.40
(per million hours worked)
10.00 10.44 9.15 7.12 7.99 6.49 6.91 6.39 6.08 5.50
7.00 9.00 11.00
(per million hours worked)
0.00 0.05 0.10 0.15 F1998 F1999 F2000 F2001 F2002 F2003 F2004 F2005 F2006 F2007 YTD
4.21 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1.00 3.00 5.00 28.46 27.32
25.00 30.00
LOST DAY INJURY FREQUENCY RATE (per million hours worked)
F1998 F1999 F2000 F2001 F2002 F2003 F2004 F2005 F2006 F2007 YTD
Fatal accidents despite other improving trends
19.00 13.96 18.63 13.90 14.27 13.06 12.36 10.47 7.96 5 00 10.00 15.00 20.00
Comprehensive external audit to be initiated Review of pillar & remnant mining
0.00 5.00 F1998 F1999 F2000 F2001 F2002 F2003 F2004 F2005 F2006 F2007 YTD
Health and Safety plans Technology plans 25
Gold Production Q3 F08 OPERATIONAL REVIEW
Securing the Future Operational Excellence Growing Gold Fields1 200
Estimate
173 153 159 1 000 1 200
es
210 196 208 218 218 153 153 600 800
ged Ounc
685 689 657 43 400 600
Manag
520 543 200 Q4 F07 Q1 F08 Q2 F08 Q3 F08 Q4 F08E
South Africa Ghana Australia
26
Cash Costs Q3 F08 OPERATIONAL REVIEW
Securing the Future Operational Excellence Growing Gold Fields700
Estimate
500 600
$/ounce
400 500
US
200 300
Q4 F07 Q1 F08 Q2 F08 Q3 F08 Q4 F08E Q4 F07 Q1 F08 Q2 F08 Q3 F08 Q4 F08E Ghana Australia South Africa Group 27
Capital Expenditure Q3 F08 OPERATIONAL REVIEW
Securing the Future Operational Excellence Growing Gold FieldsEstimate
350 30 27 34 34 48 300 350
$ million
90 96 57 51 54 61 80 27 34 200 250
US$
90 87 96 77 78 100 150 122 104 124 105 121 50 Q4 F07 Q1 F08 Q2 F08 Q3 F08 Q4 F08E
South Africa Peru Ghana Australia 28
Strategic Priorities Q3 F08 OPERATIONAL REVIEW
Securing the Future Operational Excellence Growing Gold Fields29
Strategic Priorities Q3 F08 OPERATIONAL REVIEW
Securing the Future Operational Excellence Growing Gold FieldsCerro Corona project commissioning Q1 F2009 Tarkwa CIL expansion Q1 F2009 Project Pipeline St Ives underground mine build up Q2 F2009 St Ives underground mine build up Q2 F2009 South Deep expansion and KSDO F2008 -
30
Vishnu Pillay Head of Operations: South Africa
Q3 F08 OPERATIONAL REVIEW Q3 F08 OPERATIONAL REVIEW
31
Q3 F08 OPERATIONAL REVIEW Driefontein Gold Mine
Q3 F08 Q3 F08 Q2 F08 Q2 F08 KEY ISSUES KEY ISSUES Gold
Kg
6,530 7,451 1 Million fatality free shifts
Securing the Future Operational Excellence Growing Gold Fieldsproduction
koz
1 Million fatality free shifts Production impacted by power rationing and Christmas break. Interim closure of 6 and 7 shafts and 210 240 Total cash t
R/kg
104,870 94,390 Interim closure of 6 and 7 shafts and mothballing of 9 shaft. 2 Metallurgical plants dedicated to mineralised waste costs
US$/oz
438 434 Operating profit
Rm
736 523 mineralised waste Capex
Rm
227 267 OUTLOOK OUTLOOK Q4 F08 Production only 4% higher , total cash costs similar (Public holidays, safety checks and 14 day closure of 10 Shaft) No 6 Shaft production ready awaiting labour No 6 Shaft production ready, awaiting labour 7 Shaft services only, mining from 8 Shaft Impact of reduced pillar mining to be reviewed
32
Q3 F08 OPERATIONAL REVIEW Driefontein Gold Mine
Guidance For Q3 F08 Actual Q3 F08 Guidance For Q4 F08 Revised Guidance For Q4 F08
Securing the Future Operational Excellence Growing Gold Fields25/02/08 Q3 F08 25/02/08 09/05/08
Gold Production 5 900 6 530 6 800 6 800 (kg) 5,900 6,530 6,800 6,800 Total Cash Costs Total Cash Costs (R/kg) 116,250 104,870 102,150 104,000 Power Consumption Power Consumption (% of historical average) 90 84 90 90 to 95 Shafts Affected 6, 7 & 9 6, 7 & 9 6, 7 & 9 6, 7 & 9
33
Kloof Gold Mine Q3 F08 OPERATIONAL REVIEW
Q3 F08 Q3 F08 Q2 F08 Q2 F08 KEY ISSUES KEY ISSUES Gold
Kg
5,458 7,179
Securing the Future Operational Excellence Growing Gold FieldsGold production
koz
Production severely impacted by restricted power supply compounded by Christmas break and fire 176 231 Total cash
R/kg
112,514 91,029 Partial closure of 8 and 3 shafts 3 shaft at 50% operation Total cash costs
US$/oz
470 419 Operating fit
Rm
555 528 profit Capex
Rm
212 226 OUTLOOK OUTLOOK Q4 F08 production only 3% higher , cash costs to increase Lower grades being mined at 7 shaft Lower grades being mined at 7 shaft Build up at 8 and 3 shafts Reducing pillar mining
34
Kloof Gold Mine Q3 F08 OPERATIONAL REVIEW
Guidance For Q3 F08 Actual Q3 F08 Guidance For Q4 F08 Revised Guidance For Q4 F08
Securing the Future Operational Excellence Growing Gold Fields25/02/08 Q3 F08 25/02/08 09/05/08
Gold Production 5 450 5 458 5 910 5 600 (kg) 5,450 5,458 5,910 5,600 Total Cash Costs 115 200 112 514 104 061 115 000 (R/kg) 115,200 112,514 104,061 115,000 Power Consumption (% of historical average) 90 88 90 90 to 95 Shafts Affected 3 & 8 3 & 8 3 & 8 3 & 8
35
Beatrix Gold Mine Q3 F08 OPERATIONAL REVIEW
Q3 F08 Q3 F08 Q2 F08 Q2 F08 KEY ISSUES KEY ISSUES Gold
Kg
2,542 3,698
Securing the Future Operational Excellence Growing Gold FieldsGold production
koz
, , 1 Million Fatality Free Shifts Production impacted by power rationing, 82 119 Total cash
R/kg
160,071 108,031 Christmas break and mine call factor issues Grade gap between blasted and belt (35% to 40%) Total cash costs
g US$/oz
668 497 Operating
Rm
146 209 profit
Rm
146 209 Capex
Rm
150 142 OUTLOOK OUTLOOK Q4 F08 production to increase by 30%, cash costs to reduce in line with increase in production Strong focus on Quality and Mine Call Factor
36
Beatrix Gold Mine Q3 F08 OPERATIONAL REVIEW
Guidance For Q3 F08 Actual Q3 F08 Guidance For Q4 F08 Revised Guidance For Q4 F08
Securing the Future Operational Excellence Growing Gold Fields25/02/08 Q3 F08 25/02/08 09/05/08
Gold Production 2 644 2 542 3 733 3 300 (kg) 2,644 2,542 3,733 3,300 Total Cash Costs 150 908 160 071 108 210 125 000 (R/kg) 150,908 160,071 108,210 125,000 Power Consumption p (% of historical average) 90 90 90 90 Shafts Affected
South Deep Project Q3 F08 OPERATIONAL REVIEW
Q3 F08 Q3 F08 Q2 F08 Q2 F08 KEY ISSUES KEY ISSUES Gold
Kg
1,637 2,104
Securing the Future Operational Excellence Growing Gold Fieldsproduction
koz
Production decreased due to termination of VCR mining, Christmas break and Eskom power rationing 53 68 Total cash
R/kg
194,258 147,719 power rationing Plans for redeployment of excess staff under review costs
US$/oz
811 680 Operating profit
Rm
37 37 profit Capex
Rm
196 204 OUTLOOK OUTLOOK OU OO OU OO Q4 F08 production to decline to ~1,200kg (Termination of VCR, accident related stoppages and repairs and restructuring) 100-day plan : Vent Hole Raise repair and replacement of winder Finalisation of structure and labour complement
38
South Deep Project Q3 F08 OPERATIONAL REVIEW
Securing the Future Operational Excellence Growing Gold FieldsGuidance For Q3 F08 Actual Q3 F08 Guidance For Q4 F08 Revised Guidance For Q4 F08 25/02/08 Q3 F08 25/02/08 09/05/08
Gold Production 1 400 1 637 1 200 1 200 (kg) 1,400 1,637 1,200 1,200 Total Cash Costs 237 200 194 258 250 000 250 000 (R/kg) 237,200 194,258 250,000 250,000 Power Consumption p (% of historical average) 90 95 90 90 Shafts Affected No Shafts or people directly affected by power rationing. Restructuring due to depletion of VCR above 95-level.
39
South Deep Project Q3 F08 SOUTH AFRICA REVIEW
Main Shaft Vent Shaft 95 Level Vent Raise Shaft 95 Level
Accident on 1 May 2008 Conveyance fell 59 m to 110A 9 persons fatally injured p y j Memorial service held
59.3m drop
1 May, 2008 ACCIDENT SITE
Memorial service held
40
Key Focus Areas Q3 F08 OPERATIONAL REVIEW
Securing the Future Operational Excellence Growing Gold FieldsAccommodation Unskilled Accommodation Wellbeing
Skilled Retention Training and Skilled Training and Leadership pipeline
Implementation of Technology Review Pillar and Remnant Mining
Review Pillar and Remnant Mining Plan for Secondary Support
41
Glenn Baldwin Head of Operations: West Africa and Australia
Q3 F08 OPERATIONAL REVIEW Q3 F08 OPERATIONAL REVIEW
42
Tarkwa Gold Mine Q3 F08 OPERATIONAL REVIEW
Q3 F08 Q3 F08 Q2 F08 Q2 F08 KEY ISSUES KEY ISSUES Gold
koz
165 158
Securing the Future Operational Excellence Growing Gold Fieldsproduction
koz
165 158 Grade up Input cost increases offset stronger production Total cash costs
US$/oz
436 413 South pads upgrade completed Tyre shortage, being remediated Operating profit
US$m
79 61 Capex
US$m
54 46 OUTLOOK OUTLOOK Gold production steady C h t li htl d i t t Cash costs slightly up – energy and maintenance costs Increase in capital expenditure - CIL expansion and capital stripping
43
Damang Gold Mine Q3 F08 OPERATIONAL REVIEW
Q3 F08 Q3 F08 Q2 F08 Q2 F08 KEY ISSUES KEY ISSUES Gold
Securing the Future Operational Excellence Growing Gold FieldsGold production
koz
53 44 Damang Pit Cut Back performed to plan Total cash costs
US$/oz
546 605 O Multiple ore sources give flexibility Plant performing well Operating profit
US$m
19 9 Capex
US$m
8 8 Capex
US$m
8 8 OUTLOOK OUTLOOK OUTLOOK OUTLOOK Gold production similar Cash costs slightly higher - energy
44
Glenn Baldwin Head of Operations: West Africa and Australia
Q3 F08 OPERATIONAL REVIEW Q3 F08 OPERATIONAL REVIEW
45
St Ives Gold Mine Q3 F08 OPERATIONAL REVIEW
Q3 F08 Q3 F08 Q2 F08 Q2 F08 KEY ISSUES KEY ISSUES Gold
koz
104 110
Securing the Future Operational Excellence Growing Gold Fieldsproduction
koz
104 110 Cave Rocks and Belleisle late Cave Rocks permitting delays and positive geological model re- Total cash costs
US$/oz
592 521 Operating interpretation Belleisle water intersection (infrastructure now in place) Operating profit
US$m
31 28 Capex
US$m
27 26 Capex
US$m
27 26 OUTLOOK OUTLOOK Gold production similar, with cash costs higher - volume royalty trigger Underground grades for Cave Rocks exceeding expectations First Belleisle stope in Q4 F08
46
Agnew Gold Mine Q3 F08 OPERATIONAL REVIEW
Q3 F08 Q3 F08 Q2 F08 Q2 F08 KEY ISSUES KEY ISSUES Gold
Securing the Future Operational Excellence Growing Gold FieldsGold production
koz
49 49 Record underground production in March Exploration program accelerated Total cash costs
US$/oz
473 419 Exploration program accelerated Operating profit
US$m
19 11 Capex
US$m
8 8 OUTLOOK OUTLOOK G ld d ti i il d h t 10% hi h d t l d S t k il Gold production similar and cash costs 10% higher due to low grade Songvang stockpile replacing high grade stocks Surface stockpiles depleted in mid-Q1 F09 150koz/pa underground producer once stockpiles depleted Exploration program expenditure doubles in F2009
47
Juan Luis Kruger Head of Operations: South America
Q3 F08 OPERATIONAL REVIEW Q3 F08 OPERATIONAL REVIEW
48
Cerro Corona Project Q3 F08 OPERATIONAL REVIEW
Q3 F08 PROJECT MILESTONES
Securing the Future Operational Excellence Growing Gold FieldsMechanical Work Completed for Crusher, Filtration and Storage Areas Energization of the 220kV power line and Cerro Corona Substation I iti t d t t b hi d TMF b k t Initiated water storage behind TMF embankment Commissioning Manager and Team appointed g g pp Project-Operational transition team and plan in place Approval for Concentrate Shipment and Port EIA
49
Cerro Corona Project Q3 F08 OPERATIONAL REVIEW
Mechanical Work Completed on April 17th Commissioning and OperationsTeam In Place Pl t C l ti M Plant Completion – May Commissioning Timing Process – June g g TMF Completion - July Shipping Concentrates – August
50
Cerro Corona Project Q3 F08 OPERATIONAL REVIEW
Securing the Future Operational Excellence Growing Gold Fields51
Cerro Corona Project Q3 F08 OPERATIONAL REVIEW
Securing the Future Operational Excellence Growing Gold FieldsKey Performance Indicators Unit Average Yearly Life
Ounces produced
Equivalent koz
~350 Cash Cost
US$/oz
~330 Sustaining Capital
US$/oz
~50 All-in Cost
US$/oz
~400 All-in Cost
US$/oz
~400 Project capital US$450m
52
Nick Holland Chief Executive Officer
Chief Executive Officer
53
CONCLUSIONS
Outlook
Securing the Future Operational Excellence Growing Gold FieldsS f t ff t t d Q4 F2008 Safety efforts stepped up South African production up 4% International production steady Q4 F2008 te at o a p oduct o steady Group costs steady South Deep recommence development below 95-level Q1 F2009 South Deep recommence development below 95-level Cerro Corona starts production Tarkwa CIL Plant commissioning commence St Ives underground mines ramping up
54
CONCLUSIONS
Corporate Strategy
Notional Notional Cash Expenditure Free
Growing
Cash Flow Margin Growth
Operational Excellence Gold Fields Aggressive International Growth Securing the Future Few, Large, High Quality Assets Smaller Projects For Exceptional Returns
UNHEDGED
Leverage Existing Positions
SAFETY
55