HARNESSING THE BULL MARKET HARNESSING THE BULL MARKET FOR FREE CASH - PowerPoint PPT Presentation

HARNESSING THE BULL MARKET HARNESSING THE BULL MARKET FOR FREE CASH FLOW FOR FREE CASH FLOW Glenn Baldwin Executive Vice President and Head of Australasia

Forward Looking Statements INTRODUCTION INTRODUCTION 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. 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; decreases in the market price of gold; hazards associated with underground and surface gold mining; labour disruptions; changes in government regulations, particularly environmental regulations; changes in exchange rates; currency devaluations; inflation and other macro-economic factors; and the impact of the AIDS crisis in South Africa. These forward looking statements speak only as of the date of this document. The company 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

Strategy To Release Value KEY DELIVERABLES KEY DELIVERABLES PRESENTED 9 MAY 2008 Notional FREE FREE Cash Expenditure CASH CASH (NCE) SAFETY SAFETY Total cash costs FLOW FLOW + All Capital TARGET ~4 moz run rate annualised UNHEDGED NCE of ~US$725/oz @ R:US$8.00 (Copper at US$6,000/ton and Gold at US$800/oz) BUILDING UP TO 4 MOZ 3

Strategy To Release Value GOALS ACHIEVED GOALS ACHIEVED STRATEGIC FOCUS 1. Step Change In Safety 2. Complete Infrastructure Rehabilitation 3. Deliver Capital Growth Projects 4. Sweat The Assets 5. No M & A Heroics SOUND BASE 4

Strategy To Release Value GOALS ACHIEVED GOALS ACHIEVED STEP CHANGE IN SAFETY Fatal injury frequency rate 0.35 0.30 0.25 0.20 0.15 0.10 0.05 0.00 F1998 F1999 F2000 F2001 F2002 F2003 F2004 F2005 F2006 F2007 F2008 F2009 Serious injury frequency rate F2009 – year to March; Frequency Rate per million hours worked IF WE CANNOT MINE SAFELY WE WILL NOT MINE IF WE CANNOT MINE SAFELY WE WILL NOT MINE 5

Strategy To Release Value GOALS ACHIEVED GOALS ACHIEVED DELIVER CAPITAL PROJECTS • CIL plant expansion – commissioning problems Tarkwa CIL resolved Expansion • Achieving 1 mtpm design capacity • Achieving stability Cerro Corona • Capital high in F2010 - completing starter dams Ramp-up • Delivered on production of 28 000 tons copper and 140 000 oz gold • Underground mines increased production by 10% St Ives • Reserve Extensions at Belleisle and Argo • Athena: > 1moz of resource inventory Underground • Conceptual study – Jun 09 MAJOR CAPITAL SPENT 6

Strategy to Release Value GOALS ACHIEVED GOALS ACHIEVED PRODUCTION INCREASING STEADILY Actual Estimate F2007 F2008 F2009 1 Attributable Production MEDIUM-TERM TARGET ~ 950K - 1 MOZ PER QUARTER 7

Strategy To Release Value KEY DELIVERABLES KEY DELIVERABLES CASH COSTS IMPROVING US$/oz Actual Estimate 700 650 600 550 500 450 400 350 300 Q1F08 Q2F08 Q3F08 Q4F08 Q1F09 Q2F09 Q3F09 Q4F09E S outh Afric a Ghana Aus tralia Peru Group Q4 estimate at US$1: R9.00 IMPACT OF INCREASED PRODUCTION 8

Strategy To Release Value GOALS ACHIEVED GOALS ACHIEVED SOUTH DEEP CAPITAL BUILD UP IN F2010 Actual Estimate US $ 'm 350 300 250 200 150 100 50 0 Q1F 08 Q2F 08 Q3F 08 Q4F 08 Q1F 09 Q2F 09 Q3F 09 Q4F 09E F2008 F2009 S A G hana Aus tralia C erro C orona Q4 estimate at US$1: R9.00 CAPEX = US$225 MILLION PER QUARTER 9

Strategy To Release Value GOALS ACHIEVED GOALS ACHIEVED NCE TARGET ACHIEVED Actual Estimate 1000 900 800 NCE TARGET 700 US$/oz 600 500 400 300 Q1F08 Q2F08 Q3F08 Q4F08 Q1F09 Q2F09 Q3F09 Q4F09E S outh Africa Ghana Australia Peru Group NC E Q4 estimate at US$1: R9.00 STRONG CASH GENERATION 10

11 F2009 Strategy To Release Value IMPROVED MARGINS CASH POSITIVE F2008 F2007 GOALS ACHIEVED GOALS ACHIEVED

Strategy To Release Value SOUTH DEEP SOUTH DEEP SOUTH DEEP BUILD-UP • F2010 Target SV1 SV-1 Shaft ~ 300 koz p.a. AREA � Accelerate South OLD Shaft refurbishment MINE � Accelerate depletion South Shaft Complex of current mine 87 L Twin Shaft • F2014 Target CURRENT Complex MINE 95 L 800 koz p.a PHASE � 750 koz from 1 Wrench mechanised mining UNCLE Fault HARRY’S (Upper Elsburgs) � 50 koz from low PHASE 2 110 L profile mechanised mining (VCR) 300K OZ BY F2010 12

Strategy To Release Value ST IVES ST IVES ARGO-ATHENA-HAMLET ARGO Reserve : 1.37Mt@6.47g/t for 285Koz Resource : 4.42Mt @ 7.34g/t for 1.04Moz Drill Holes Drill Holes 750Koz 1.5Moz Ounces are inventory 12m@21.9g/t 6.1m@6.1g/t unless otherwise indicated 9m@10.3g/t 15m@14.3g/t 13m@7.6g/t 7.6m@7.4g/t SIGNIFICANT CAMP DEVELOPING 13

Strategy To Release Value URANIUM URANIUM Resource Process Historic Under- Tailings ground • Drilling completed • SAMREC Resource in Jun 09 Resource 402 205 mt • Pre feasibility studies close to Metal grade - complete g/t 55 95 U 3 O 8 • External review – completed in Jun 09 Metal grade – 0.34 - g/t Au • Combined bankable feasibility Metal content - study – completed by Dec 09 58 41 mlbs U 3 O 8 Metal content – • Board decision early 2010 4.2 - moz Au THE FIFTH MINE IN SOUTH AFRICA 14

Strategy To Release Value REGIONALISATION REGIONALISATION South America West Africa Australasia TARGET: ~1 MOZ TARGET: ~1 MOZ TARGET: ~1 MOZ South Africa Base load: ~2.3moz Leverage existing footprint Four autonomous, incentivized regions Rule of fives now rule of twos Exploration success FOUR AUTONOMOUS REGIONS 15

Strategy To Release Value REGIONALISATION REGIONALISATION APP Toodoggone JV Vancouver Mines Denver Talas JV Exploration Offices Australasia Jinshu JV TARGET: ~1 Moz Near Mine Exploration West Africa 100% Gold Fields TARGET: ~1 Moz Batangas JV JV’s Gold Fields Operated Sankarani Bamako JV’s Partner Operated Northern Ghana Komana Nabire Bakti JV Accra SW Ghana Hualgayoc JV Lima Chucapaca Regional Kisenge South America Mt Carlton JV Chucapaca JV Agnew TARGET: ~1 Moz Tacna St Ives SBX JV’s Perth Clancy JV’s South Africa Delamarian Santiago BASE LOAD: ~2.3Moz to 2.5Moz Talas JV Talas JV Chucapaca Komana and Sankarani Chucapaca Komana and Sankarani • Preliminary resource – July 2009 • Preliminary resource – July 2009 • Exciting new discovery • Camp-scale project • Exciting new discovery • Camp-scale project • Initial scoping study – Jan 2010 • Initial scoping study – Jan 2010 • Robust widths and grades • Multiple deposits feeding central mill • Robust widths and grades • Multiple deposits feeding central mill • District scale potential – largely • District scale potential – largely • Scoping study – Mar 2010 • Reasonable infrastructure • Scoping study – Mar 2010 • Reasonable infrastructure untested untested • 51% - 49% JV with Buenaventura • Well developed gold industry • 51% - 49% JV with Buenaventura • Well developed gold industry • World class belt • World class belt LEVERAGE OFF EXISTING FOOTPRINT 16

Chucapaca JV (BVN) EXPLORATION EXPLORATION CP08-21 N 54m @ 2.64g/t Au CP08-27 (246m) 170m @ 3.3g/t Au (80m) Include 64m @ 5.8g/t CP08-05 (to EOH) CP08-28 59.8m @ 3.13g/t Au, 15g/t 44.05m @ 8.95g/t (182.4m) Ag & 0.49% Cu (157m) 58.7m @ 1.94g/t Au (241m) LITHOLOGY Heterolithic breccia Sedimentary breccia Quartzites CP08-14 Limestone - mudstone 95.8m @ 1.44g/t Au, 15.6g/t Ag & 0.2% Cu Sandstones CP08-18A (42.6m) Sandstones & shales 45.7m @ 3.36g/t Au (176m) CP08-20 Carbonaceous shales 130.1m @ 1.99g/t Au, 13.4g/t 200 m Ag & 0.36% Cu (122m) Drillholes Greenfields Discovery 17

Komana and Sankarani JVs (GCE) EXPLORATION EXPLORATION BM East Selen 1 BOKORO Fie River YATELA SADIOLA Yanfolila belt LOULO MORILA FINGUANA KOMANA KOMAN Finguana W SYAMA KALANA Sindo KOMANA Bada KABAYA S KOMANA WEST Section 1241800N Looking NE 18

Talas JV EXPLORATION EXPLORATION Building a presence Southern Tian Shan Northern and middle Tian Shan Porphyry Copper 0 250 500 km Major mesothermal-type gold deposits Russia Kazakhstan Talas JV Uzbekistan Mongolia +3Moz Talas-Fergana Fault China Ulaanbata r Kharmagtai Almat Arxi > 5 Moz y 5Moz Bishkek Tuwu Tashkent Suture Daugystau Kumtor 10Moz . 6 Moz. Muruntau Beijing Kyrgyzstan 110 Moz. China Tajikistan Zarmita Oyu Tolgoi 50Moz Almalyk n >2BT @ 6 Moz. Jilau 0.4% Cu 3 Moz. 0.4g/t Au Requires a long term approach 19

20 FUNDAMENTALS COMPELLING WELL SUPPORTED The Gold Market CONCLUSION CONCLUSION

Strategy To Release Value CONCLUSION CONCLUSION HIGHER GOLD PRICE + Higher production + Lower input costs Lower Lower NCE NCE + Lower capex IMPROVED FREE CASH FLOW 21