Gold Fields FY 2019 results Nick Holland: CEO 13 February 2020
Forward looking statement 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 or joint ventures, 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. Further details of potential risks and uncertainties affecting Gold Fields are described in Gold Fields’ filings with the Johannesburg Securities Exchange and the US Securities and Exchange Commission, including in Gold Fields’ Annual Report on Form-20F for the year ended 31 December 2017, Gold Fields’ Integrated Annual Report 2017 and Gold Fields’ Annual Financial Report 2017 FY 2019 results | 13 February 2020 2
A globally diversified gold miner FY 2019 results Gold Fields Group Mines: 9 Projects: 1 Countries: 5 Att. production: 2,195koz AIC: US$1,064/oz Mine net cash flow*: US$552m inflow Net cash flow: US$249m inflow West Africa region Mines: Tarkwa, Damang and Asanko Att. production: 768koz AIC: US$1,039/oz Net cash flow*: US$245m inflow Americas region Mine: Cerro Corona (Peru) Australia region Att. production: 291koz (Au eq) AIC: US$810/eq oz Mines: St Ives, Granny Smith, South Africa region Net cash flow: US$86m inflow Agnew and Gruyere Project ect: Salares Norte (Chile) Att. production: 914koz Mine: South Deep AIC: US$986/oz Att. production: 222koz Net cash flow*: US$206m inflow AIC: US$1,259/oz Net cash flow: US$15m inflow Net cash flow = Cash flow from operating activities less net capital expenditure and environmental payments and finance lease payments * Group mine net cash flow excludes Gruyere project capital expenditure of US$67m and Damang project capital expenditure of US$71m FY 2019 results | 13 February 2020 3
Positioned for sustainable cash flow generation ● Over the past 3 years, Gold Fields has been focused on reinvesting for the future ● We have built two new mines (Gruyere and Damang) and completed a project feasibility study (Salares Norte) ̵ Will extend life at lower cost ̵ Funded largely from operational cash flow ● Decision made to proceed with Salares Norte ● Net cash flow from operations of US$249m in 2019; US$179m from the sale of investments in 2019 ● Net debt was expected to increase in 2019, instead there was a reduction of US$356m ● Final dividend of 100 SA cents declared bringing total dividend for the year to 160 SA cents ● Tactical hedges undertaken to protect the balance sheet and underwrite further debt reduction ̵ No more hedges expected once the hedge book rolls off ● No need for big M&A ̵ We have been countercyclical and invested through the cycle – now focused on delivering cash flow ̵ All assets have organic potential ̵ With Salares Norte we can sustain production of 2.0-2.5Moz for the next 10 years FY 2019 results | 13 February 2020 4
̵ ̵ ̵ ̵ ̵ ̵ ̵ ̵ ̵ ̵ ̵ ̵ ̵ ̵ ̵ ESG Highlights ● Safety Ms M Ramela was fatally injured at South Deep as a result of rockburst (2018: 1 fatality) We recorded 12 serious injuries (2018: 16) The duration rate (average days lost per lost time injury, LTI) was 29 (2018: 48) Board, Exco and corporate, regional and site leadership teams trained in Courageous Safety Leadership Critical controls for the highest priority regional material unwanted events (MUEs) were externally verified ● Closure The Group closure cost estimate (CCE) for 2019 was US$436m (2018: $400m) Rolling 3-year progressive rehabilitation plans were developed for the first time in 2018. We achieved 83% of the 2019 plans, against a target of 75% ● Environment We recorded no Level 3-5 environmental incidents (2018: 2 Level 3 incidents), the first time we have achieved this milestone We saved 1,125ML (7.4%) of freshwater, significantly higher than the planned savings of 415ML (3%). Total water recycled/reused was 68%, well above the target of 65%. ● Energy and climate resilience We saved a record 504TJ (2018: 411TJ), a 4.8% energy saving Carbon saving of 171kt CO 2 e vs. 149kt CO 2 e in 2018 Our scope 1 and 2 CO 2 e emissions were 1.45Mt (2018: 1.37Mt) We published our inaugural TCFD report in October 2019 Solar plant at Agnew Commissioned 4MW solar plant at Agnew and 7MW solar plant at Granny smith FY 2019 results | 13 February 2020 5
Cash flow inflection ahead of plan Capital expenditure 900 ● Net cash flow* of US$249m in 2019 800 700 compared to an outflow of US$122m 600 500 in 2018 400 300 ● Mine net cash flow of US$552m 200 100 (excluding projects) in 2019 compared 0 2013 2014 2015 2016 2017 2018 2019 Sustaining capital Project capital to US$345m in 2018 ● Net cash inflow of US$125m over Net Cash Flow* 400 2017, 2018 and 2019 despite having 300 spent US$640m in project capital and 200 100 US$172m on Salares Norte over that US$m 0 period -100 -200 -300 2013 2014 2015 2016 2017 2018 2019 *Net Cash Flow = Cash flow from operating activities less net capital expenditure and environmental payments and finance lease payments FY 2019 results | 13 February 2020 6
Balance Sheet in good shape ● Net debt (before IFRS16 adjustments) of US$1,331m at 31 December 2019 ̵ Net debt to EBITDA of 1.08x ● Net debt (after IFRS16 adjustments) of US$1,664m at 31 December 2019 ̵ Net debt to EBITDA of 1.29x ● Maturity extended and staggered through bond issues and new RCF agreements concluded in 2019 ● Unutilised facilities of US$1,514m, R4.1bn and A$260m ● Remaining US$601m of 2020 bond to be repaid out of operational cash flows and unutilised debt facilities if necessary Net debt (US$m) and Net debt/EBITDA – pre IFRS16 Debt facilities US$m 4 500 2 000 2,0 4 000 1 800 1 600 3 500 1,5 1 400 3 000 1 200 2 500 US$m 1 000 1,0 2 000 800 600 1 500 0,5 400 1 000 200 500 0 0,0 FY 2013 H1 2014 FY 2014 H1 2015 FY 2015 H1 2016 FY 2016 H1 2017 FY 2017 H1 2018 FY 2018 H1 2019 FY 2019 0 US$ facilities Rand facilities A$ facilities Total facilities Utilised Unutilised Net debt Net debt/EBITDA FY 2019 results | 13 February 2020 7
Growing R&R December 2019 December 2018 Managed Attributable Managed Attributable Gold equivalent 146.8Moz 114.0Moz 140.5Moz 108.2Moz Resources Gold equivalent 54.1Moz 50.2Moz 54.0Moz 50.3Moz Reserves Att. Au equivalent Reserves: Dec-2019 Att. Au equivalent Reserves: Dec-2018 Americas: Highlights: Americas: 7.0 7.4 ● 31% YoY increase in St Ives’ Reserves net of depletion – largest Australia: Australia: Reserve since 2011 6.9 6.4 ● 38% YoY increase in Agnew’s Reserves net of depletion ● 2% YoY increase in Tarkwa’s South South Africa: Africa: West West Reserves net of depletion 29.8 29.8 Africa: 6.7 Africa: 6.5 At end-2019, 20.5Moz of Gold Fields’ attributable gold equivalent Reserves (excluding Gold Fields’ 45% interest in the Asanko Gold Mine) were outside South Africa, representing 41% of the Group’s Reserve base Note: Group numbers do not include Gold Fields’ 45% interest in Asanko Price assumptions for gold equivalent ounce calculation: Reserves: Gold: US$1,200/oz, Copper: US$2.8/lb, Silver: US$17.5/oz. Resources: Gold: US$1,400/oz, Copper: US$3.2/lb, Silver: US$20/oz The metallurgical recovery rate has not been applied to the conversion FY 2019 results | 13 February 2020 8
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