d all Asanko e picture and “send to back” Gold Fields West Africa ALFRED BAKU Executive Vice President and Head of Region May 2019
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. 2
The Operating Environment ● The ruling New Patriotic Party (NPP) is in its 3 rd year ● Next elections in 2020 ● Permitting takes longer but usually successful ● The 2017-18 campaign to clamp down on illegal mining POLITICAL ENVIRONMENT • Ongoing Political stability • Focus on strengthening ● Successful exit of US$918M IMF Program: 2 Apr existing frameworks and expanding the tax net (Tax ● Financial Sector Reform which started in 2018 Identification Numbers + continues Digital Addresses, Ghana ID ● Private management of state owned Card). • Gold and now Oil are still ̵ Electricity Company major foreign exchange ̵ Ports earners 3
Fastest growing economy in Africa FX Overview Inflation Rate • 9.2% (Feb 2019) Target: 8.0% BoG Policy Rate • 16% (Feb 2019) 2018/19 Inflation Trend • The USD/GHS reached an all time high of 5.60 in March 2019. Mainly due to market speculation & Ghana’s import led economy • Relief so far in Q1 2019 has been brought mainly by oversubscribed US$3B bond issuance in March & exit 2015-19 Policy Rate Trend of the IMF Program 2019 Growth Outlook – World Bank • Ghana's economy is expected to pick up strongly on the back of Agriculture and Oil & Gas • 7.6% expected 2019 growth rate compared with Government’s 7.2% projection 4 Source: Ghana Government
Ghana is now the largest producer of gold in Africa • Gold continues to account for over 90% of total mining Gold Production by company revenues • Gold Mining = 8% of national GBP 0.06% 4.65% 4.18% • Dependent on its policies, Ghana is well positioned to gain 4.89% 5.12% 20.19% regional competitive advantage 7.31% Gold Production vs Global Gold 16.87% 7.42% 8.75% 12.44% 8.12% Gold Fields Ghana- Tarkwa Newmont Golden Ridge Limited- Akyem Newmont Ghana Gold Limited- Ahafo AngloGold Ashanti Iduapriem Limited Chirano Gold Mines Perseus Mining (Ghana) Limited Asanko Gold Mines Abosso Goldfields Limited- Damang Golden Star Wassa Limited Golden Star Bogoso Prestea Limited Adamus Resources Limited AngloGold Ashanti Limited- Obuasi 5 Source: Ghana Chamber of Mines (2017) Source: Fitch
West Africa Region Region consists of 2 mines Tarkwa & Damang and a JV, Asanko, all in Ghana 1 Includes 45% of Asanko Gold for August – December 2018 2 TFIFR – Total Recordable Injury Frequency Rate Injuries per 1 million hours worked, including employees and contractors 3 Net cash flow = cash-flow from operating activities less net capital expenditure, environmental payments and finance lease payments. If growth capital is excluded the numbers in US$m would have been: 2017: 179 & 2018: 149 6
West Africa Region WA Gold Produced (Oz) and All-in-cost (AIC) Tarkwa Oz AIC Gold Produced (Oz) & All-in-cost (AIC) 700 1,400 Guidance 600 1,200 West Africa 500 1,000 Oz AIC Gold Produced (Oz) & All-in-cost (AIC) 400 800 900 1,600 Guidance 300 600 800 1,400 200 400 700 1,200 100 200 600 1,000 0 0 2013 2014 2015 2016 2017 2018 2019 500 Actual Oz Plan Oz Actual AIC Plan AIC 800 400 Oz AIC Gold Produced (Oz) & All-in-cost (AIC) 600 Guidance 250 2,500 300 400 200 200 2,000 200 100 150 1,500 0 0 2013 2014 2015 2016 2017 2018 2019 100 1,000 Actual Oz Plan Oz Actual AIC Plan AIC 50 500 0 0 2013 2014 2015 2016 2017 2018 2019 Actual Oz Plan Oz Actual AIC Plan AIC Damang 7
25 Years in Ghana 8
Our Contribution and Recognition 1. 2. Corporate tax and royalties Dividend payments to the Government Contribution to of Ghana US$1.28 billion US$107.3 million the State 3. 4. Damang Road Gold Fields Ghana Foundation spend on US$26 million community development US$60 million 5. Amount of money accrued to Government of Ghana from employees’ pay -as-you-earn (PAYE) US$266.2 million 2018 Awards 9
Community Development Gold Fields Ghana Foundation US$60M invested in our ● 2002: Establishment of Gold Fields Trust Fund communities, their dreams, ● 2004: Registered as Gold Fields Ghana Foundation, a and their future charitable non-profit organization ● Main objective: generate funding for the development of host communities ● Funding : US$1 per ounce of gold produced + 1.5% of profit before tax Key Foundation Commitments 33km Tarkwa-Damang road Apinto Government Hospital refurbishment Tarkwa T&A Park reconstruction 10
What are the goals we have set? AIC of US$900/oz for the region Sustaining operations through continued investment and brownfields exploration Meet Production & Cost Guidance Genser Energy Power Project Development Agreement Damang Reinvestment Plan M&A: Identify High Quality Assets 11
Development Agreements 2019: 2015: 2018: 2016: New DAs Newmont AngloGold Gold Fields (re- Obuasi ??? (new) negotiated) (new) Minerals & Mining Act, 2006 (Act 703): Stability Agreement for a period no more than 15 years Minimum US$500 Million investment for a Development Agreement (no period stated) Benefits: No adverse effects from new enactments or actions that impose obligations No adverse effects of subsequent changes to: customs or other duties on inputs necessary for mining operations Royalties, taxes, fees Exchange controls, transfer of capital and dividend remittance Some challenges in administration but DA provisions PREVAIL 12
Power Purchase Agreement with Genser Energy Aug 2015 - Phase 1 1 Jan 2018 – Phase 3 1 Aug 2019 – Phase 5 1 Jan 2017 – Phase 2 1 May 2019 – Phase 4 Commissioning Commissioning Commissioning Damang Mine Commissioning Final approval NG gas pipe line to Tarkwa Tarkwa Mine - - 27MW Control Panel for PPA with and Damang Mine Tarkwa Mine - 25MW 42MW Island mode option Genser Tarkwa Rates Tarkwa Rates for Tarkwa Power 10US¢ / kWh 13.5US¢ / kWh Tarkwa Rates station. Damang rates 12US¢ / kWh Damang rates 14US¢ / kWh Damang rates 16US¢ / kWh 16US¢ / kWh Tarkwa Mine – 42MW Power Station Damang Mine – 27MW Power Station Damang Tarkwa Power Power Station - parallel Station – with grid Island Mode A World Class Mine Gas Pipe line route to Tarkwa and Damang Length -73km Work pressure - 165bar NG Temp - 23ºC 13
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