LEVERAGE TO THE GOLD PRICE Tommy McKeith Paydirt Conference – Perth 15 March 2010
Forward Looking Statements INTRODUCTION Certain statements in this document constitute “forward looking statements” within the meaning of 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 Section 27A of the US Securities Act of 1933 and Section 21E of the US Securities Exchange Act of 1934. 1934. Such forward looking statements involve known and unknown risks, uncertainties and other 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 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 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 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 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 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 with past and future acquisitions, exploration and development activities; decreases in the market p price of gold and/or copper; hazards associated with underground and surface gold mining; labour 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 disruptions; availability terms and deployment of capital or credit; changes in government regulations, particularly environmental regulations; and new legislation affecting mining and regulations, particularly environmental regulations; and new legislation affecting mining and mineral rights; changes in exchange rates; currency devaluations; inflation and other macro- mineral rights; changes in exchange rates; currency devaluations; inflation and other macro- economic factors, industrial action, temporary stoppages of mines for safety reasons; and the economic factors, industrial action, temporary stoppages of mines for safety reasons; and the impact of the AIDS crisis in South Africa. These forward looking statements speak only as of the impact of the AIDS crisis in South Africa. These forward looking statements speak only as of the date of this document. date of this document. The company undertakes no obligation to update publicly or release any revisions to these forward 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 looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events. the occurrence of unanticipated events. 2
Our value proposition INTRODUCTION No hedging 81Moz of reserves Rising production outlook Growth opportunities at operations Rapidly developing exploration portfolio Gold Fields - Leverage to the gold price 3
Our value proposition INTRODUCTION 2009 Trailing EV / EBITDA 18 16 14 12 10 8 6 4 2 0 AU ABX NEM GFI Source: BMO Nesbitt Burns 4
Our strategy INTRODUCTION F2010 Production Production Split International Diversification Split* Target – 5 Years 5-year target 40% 42% 58% 60% West Africa ~1Moz South Africa South Africa International International * F2010 YTD annualised Deliver consistency South America South Africa Australasia ~ 1Moz ~ 2.2 to ~2.5Moz ~ 1Moz Grow existing assets Exploration success Growth on a per share basis - no M&A heroics 5
Generating free cash flow INTRODUCTION US$/oz Koz 1,200 920 1,100 900 Free Cash Flow 1,000 880 900 163 3 3 800 860 Investment 700 840 600 820 500 400 800 Total Cash Costs 300 780 200 760 100 - 740 Q1 F2009 Q2 F2009 Q3 F2009 Q4 F2009 Q1 F2010 Q2 F2010 Production Gold price Cash costs NCE * NCE = Operating costs plus all capital (sustaining and growth) Increasing margin after significant inward investment 6
Leverage to the gold price INTRODUCTION Gold production Steady at 900koz Gold price Up 14% to US$1,096/oz 163 Total cash cost Up 5% to US$613/oz NCE Up 3% to US$900/oz 112 Operating profit Up 30% to US$463 million Operating margin Up 13% to 43% 20 Net earnings Up 45% to US$187 million *Changes relative to Q1 F2010 Results * NCE = Operating costs plus all capital (sustaining and growth) Gold price up 14% delivers operating profit up 30% 7
Our strategy INTRODUCTION Free Cash Flow Unhedged Revenue less NCE Grow Gold Fields Sweat Our Assets Secure Our Future To be the Global Leader in Sustainable Gold Mining * NCE = Notional Cash Expenditure – Total cash cost plus all capital (sustaining and growth) 8
Presentation focus INTRODUCTION • Sweating our assets • South Deep developing a world class mine • St Ives exploring a world class camp • Agnew delivering continuously • Growing Gold Fields • Chucapaca discovering a mine in Peru • Yanfolila exploring an emerging camp in Mali To be the Global Leader in Sustainable Gold Mining 9
Developing a world class mine SOUTH DEEP PROJECT Production Development 80 3,000 70 2,500 196 60 163 Gold Production (Koz) 163 2,000 Development (m) 50 112 112 40 1,500 30 1,000 20 20 20 500 10 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 F2009 F2009 F2009 F2009 F2010 F2010 F2009 F2009 F2009 F2009 F2010 F2010 On track for 300Koz in F2010 10
Developing a world class mine SOUTH DEEP PROJECT Colour Coding: Red Up Cast. GreenDown Cast Gold Rock Handling Capacity Twins Twins Ventilation Main Shaft Shaft South Shaft South Shaft 1.4km Metallurgical Plant 196 196 SV 2 SV 2 SV 3 SV 3 SV 1 SV 1 1 16 163 163 51 Lvl 50 Lvl 50 Lvl 0 Lvl Rock Capacity 195ktpm Rock Capacity 175ktpm 112 Rock Capacity 120ktpm Rock Capacity 120ktpm 112 112 70 70 Lvl 70 Lvl 71 Lvl 71 Lvl Initial mining to Initial mining to focus on 78 focus on 78 78 78 78 78 78 78 78 78 Lvl 78 78 78 L l 78 78 78 78 78 78 78 8 8 Lvl Lvl L l L l L l Lvl Lvl Lvl L Lvl Lv vl l 20 20 20 20 20 2 20 2 0 east 0 east Level Level Level – east Leve – east 84 Lvl Shaft Complex Shaft Complex 20 20 90 Lvl 90 Lvl 90 Lvl 95 Lvl 95 Lvl 95 Lvl Will increase base case hoisting 100 Lvl 105 Lvl capacity from 330 to 450Ktpm 110 Lvl Deepened Section 110a Pump Refurbishing south shaft creating additional upside 11
Developing a world class mine SOUTH DEEP PROJECT Year Item F2010 F2011 F2012 F2013 F2014 94 Level Refrigeration Plant No 2 Twin Vent Shaft (for rock hoisting) Tailings Storage Facility Plant Expansion to 330ktpm or above New Mine Development Phase 1 Total Capital (All R1,770M R1,875M R2,079M R1,484M R1,198M projects) Note: Capital estimates in July 2009 money Capital programme on track 12
Developing a world class mine SOUTH DEEP PROJECT Koz US$/oz 900 1,800 800 1,600 700 1,400 600 1,200 500 1,000 400 800 300 600 200 400 100 200 0 0 F2010 F2011 F2012 F2013 F2014 F2015 F2016 Gold Production (koz) Operating Costs (US$/oz) NCE (US$/oz Notes: Excludes VCR Further optimisation in progress Exchange rate R7.50 : US$1.00 Building up to +750Kozpa in F2015 13
Exploring a world class camp ST IVES MINE Gold first discovered at Red Hill 1897, mined to 1930’s 14
Exploring a world class camp ST IVES MINE Re-started in 1980 10Moz production milestone in December 2009 15
Exploring a world class camp ST IVES MINE Endowment ‘000s oz 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 - Victory Area Revenge Area Junction Argo-Athena Area Intrepide Area Orchin Area Santa Ana Area Cave Rocks Nelsons Fleet Area Kambalda Dome Clifton Area Other WMC Production GFA Production Reserve 09 • Multiple ore sources • Lefroy Mill 4.2Mtpa – 2004 • Four +2Moz sources 16
ST IVES MINE Ounces Produced (millions) 10.0 12.0 0.0 2.0 4.0 6.0 8.0 F1980 in 21 years 5.6Moz WMC F1981 F1982 WMC Ounces F1983 F1984 F1985 F1986 F1987 Exploring a world class camp F1988 F1989 F1990 F1991 GFA Ounces F1992 F1993 F1994 F1995 F1996 F1997 F1998 F1999 F2000 Cumulative Grade F2001 F2002 in 9 years 4.5Moz Gold Fields F2003 F2004 F2005 F2006 F2007 F2008 F2009 F2010 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 Grade (g/t) 17
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