Gold Fields In Australia DELIVERY & GROWTH WA Mining Club, 27 July 2017
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 occurrence of unanticipated events. Gold Fields – Delivery & Growth 2
Gold Fields overview Attributable reserves Group: FY 2016 As at 5 May 2017 R43.10/$3.16 Share price (JSE/ADR) Attributable production 2,146koz Australia; West Africa; 7.0Moz 5.8Moz 2,596 Market capitalisation ($m) AIC US$1,006/oz Americas; 3,837 Enterprise value ($m) Mine net cash flow US$444m 1.3Moz 25 Average daily value traded ($m) 3.5 EV/EBITDA (x) South Africa; 34.1Moz Ghana Region Att. production: 644koz (32% of group) All in costs: US$1,020/oz Net cash flow: US$100m inflow Australia Region Att. production: 942koz (43% of group) All in costs: US$941/oz Net cash flow: US$256m inflow (A$343m) Americas Region Att. production: 269koz (12% of group) All in costs: US$762/oz South Africa Region Net cash flow: US$77m inflow Att. production: 290koz (13% of group) All in costs: US$1,234/oz Net cash flow: US$12m inflow Gold Fields – Delivery & Growth 3
Gold Fields vs. global peers 1,200 Kinross AngloGold 1,100 Newmont Sibanye Gold Fields 1,000 All-in Costs (US$/oz) Agnico Goldcorp 900 Randgold Barrick 800 Newcrest 700 600 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 Production (koz) Note: Size of bubble indicates current market cap Putting Gold Fields into a global context Gold Fields - Reinvesting for the future, Diggers and Dealers, August 2017 4
Gold Fields in Australia
Gold Fields Australia – 2016 performance • Production: 942koz • AIC: A$1,261/oz Gold Fields Australia (US$941/oz) • Net cash flow: US$256m • Production: 363koz • AIC: A$1,273/oz St Ives (US$949/oz) • Net cash flow: US$113m • Production: 284koz • AIC: A$1,119/oz Granny Smith (US$834/oz) • Net cash flow: US$137m • Production: 229koz • AIC: A$1,301/oz Agnew (US$971/oz) • Net cash flow: US$64m • Production: 66koz • AIC: A$1,662/oz (US$1,238/oz) Darlot • Net cash flow: US$1m • Divestment underway 43% of group production, 58% of group net cash flow Gold Fields – Delivery & Growth 6
Gold Fields in an Australian context 2016 Production Ozs & AISC Australian gold producers: Production vs. AISC 1,800 1,200 1,600 1,000 1,400 1,200 800 1,000 600 800 600 400 400 200 200 0 0 Newmont Aus Newcrest Aus GFA Evolution Northern Star AngloGold Aus OceanaGold St. Barbara Regis Saracen Note: AISC as reported by the companies Production (koz) AISC (US$/oz) (rhs) Gold Fields is the 3 rd largest producer in Australia, and growing Gold Fields – Delivery & Growth 7
Historical Gold Production Profile - Australia Consistency of Delivery = CREDIBILITY Australian Gold Production Ozs Barrick Yilgarn South Acquisition Oct 2013 1,000,000 800,000 Darlot 600,000 Granny Smith Agnew St Ives 400,000 200,000 - 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Consistency of Production Delivery for 16 Years Gold Fields – Delivery & Growth 8
Reserve Life Sustainable reserves supported by Exploration Investment Reserve life 14 12.1 12 10.1 10 8 6.9 6.2 6.1 5.9 6 4 2.8 2 0 Northern Star Saracen GFA Regis Evolution St. Barbara OceanaGold Gold Fields – Delivery & Growth 9
Regional Safety Performance Q1 2017 Recordable Injuries 2017 TRIFR C2016 St Ives 10.82 7% Agnew 12.38 7% Sprain and strain 27% 6% Laceration Granny Smith 6.95 Fracture Darlot 4.67 Foreign Body GFA 9.43 Contusion 53% Gold Fields Australia TRIFR 12 Month Moving Average 2012 - 2017 28 Vital Behaviours 26 since 2014 24 22 20 18 16 14 V B Challenging start 2017 12 10 8 2012 2016 10
Gold Fields Australia – What sets us apart? Empowerment of Operations Regional operating model Regional technical, financial, logistical support General Managers are our strength & have empowerment at their sites General Managers have a seat at the Regional Leadership Table as equals Responsibility & Accountability Adherence to Values – this is how we manage our business We know who our CEO is!!! Communication & engagement Monthly & Quarterley with Gold Fields EXCO & CEO – regional leaders, site managers, key personnel We get together a lot! Rewarded for performance Multiple mine sites & a project development site Quality asset base Diversity of operations – career development & advancement Exploration commitment for core growth Consistency Of Delivery over 16 Years 11
Gruyere, Western Australia South Deep, South Africa Significant investment in WA
Three Pillars for Growth in Australia Delivering Sustainability of Operations Focused Mergers & Margin Exploration Acquisitions Improvement 2002: A$28 Mill 2002: St. Ives & Agnew Re-structure in 2013 (2 Mines) 2003-2004: A$38-A$41.6 Mill Focus on Free Cash Flow & 2005: A$27.8 Mill 2013: Granny Smith, New Margin Holland, Darlot 2006-2014: A$33 Mill (4 Mines) Margin Improvement Plan increasing to A$63.9 Mill 2016/2017 2015-2017: A$90-A$100 Mill 2016: Gruyere (50%) (5 Year Strategy) In development Business Improvement (5 Mines) Technology focus (future) Quality Life-Of Mines Gold Fields – Delivery & Growth 13
Exploration Expenditure Sustained & Growing Investment Exploration Expenditure – Gold Fields In Australia 120.0 100.0 Gold downturn Company restructure St. Ives Mill Granny Smith, Lawlers, 80.0 Upgrade Darlot acquisition 60.0 4 Mines 40.0 Agnew St. Ives Granny Smith Darlot 2 MInes 20.0 Agnew St. Ives - 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Gold Fields – Delivery & Growth 14
̵ ̵ Gruyere adds life and quality in WA LOM Plan First gold Late 2018/early 2019 Life of mine 13 years Annual production (100% basis) 270koz AISC A$945/oz (US$690/oz) AIC A$1,103/oz (US$805/oz) Total capital cost (100% basis) A$532m (US$399m) IRR at A$1,500/oz gold after taking into account 6% acquisition cost Payback period 4.5 years ● Total purchase consideration = A$350m A$250m paid on deal completion A$100m payable according to an agreed construction cash call schedule ● Additional 1.5% net smelter royalty on GFL’s share of production after mine production exceeds 2Moz ● Acquisition cost of A$199 per reserve ounce and A$106 per resource ounce Exposure to a new and emerging goldfield in Western Australia Gold Fields – Delivery & Growth 15
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