Near Mine Exploration – Maintaining the Base Load Justin Osborne General Manager Near Mine Exploration – Gold Fields Diggers and Dealers Kalgoorlie, Western Australia 2 nd August 2011
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. 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 ; 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 environmental regulations; and new regulation affecting mining and mineral rights; changes in exchange rates; currency devaluations; inflation and other macro-economic factors, industrial action, temporary stoppages of mines for safety and unplanned maintenance reasons; 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.
Gold Fields A Growth Story Finland APP Mali Yanfolila Philippines FSE Ghana Tarkwa Peru Damang Cerro Corona Chucapaca 2001 Australia South Africa Agnew KDC St Ives Beatrix South Deep Building a global company 3
Gold Fields What Gold Fields Offers …. Quality Reserve 77 million ounces of reserves Solid Production Base 3.6 million ounces annualised US$154 million 1 (Q1 2011) Robust Free Cash Flow Targeting at least 5moz by 2015 2 Strong Growth Pipeline Net debt only 0.3 of EBITDA 3 Strong Balance Sheet Commitment to Safety If we cannot mine safely, we will not mine Unhedged Full exposure to gold price A deep value opportunity 1. Cash flow before financing activities and dividend payments 2. In production or development 4 3. Calendar 2010
Our Value Proposition Free Cash Flow Grow cash flow Grow ounces Sustainability margin per ounce per share Optimise Our Growing Secure Assets Gold Fields Our Future Unhedged Targeting 5 million ounces by 2015* * In production or development 5
Growth Portfolio Track record of delivery Near Mine Projects Greenfields Projects Production Athena Cerro (St Ives) Corona Hamlet Construction South Deep (St Ives) Feasibility Cerro Corona Chucapaca Oxides Damang Super Pit Far Southeast Pre-feasibility Cerro Corona Resource Arctic Platinum Conversion Project Argo-Athena Camp (St Ives) Scoping Yanfolila Woodjam Agnew Life Extension, Tarkwa Talas TOTOS Exploration Regional Exploration at St Ives, Agnew, Exploration projects in 13 Countries Damang and Cerro Corona Growing Gold Fields Maintaining the Base Load Strong pipeline in support of growth strategy 6
Exploration and Growth Exploration underpins the growth strategy Far South East Greater Damang Athena - Hamlet Near Mine Activities Focus on Prolonging our Assets 7
Growth Projects – Our Future 5000m in the Andes Chucapaca – Au-Ag-Cu - Peru • Canahuire initial resource of 5.6 Moz eq • Scoping study results positive • Feasibility study fast-tracked • 100,000m drilling for FS Arctic Finland Arctic Platinum – PGE-Au-Cu-Ni - Finland • 12Moz 2PGE+Au Resource • Platsol Pre-Feasibility ongoing • Aim to start Feasibility study Sub-Saharan Mali Yanfolila - Gold - Mali • Significant land package - 180 x 60km • Drill intensive project • Scoping study Q3 2011 A Diversified Advanced Portfolio A Diversified A
Growth Projects - Far Southeast Drilling a world-class deposit Gold and Copper porphyry • Exceptional grades and scale • Significant exploration upside • Potential Giant deposit Established infrastructure • Tarred access roads • Existing power lines and substations • Proximity to port facilities • Established camp, and facilities • Local landing strip • Tailings facilities with capacity Established workforce • Local and supportive • Based on site • Established mining culture Existing mineral tenure Well established mining district 9
Growth Projects - Far Southeast A massive mineral system – 8 Drill Rigs working Underground • Option signed Sept 2010 • Proof of Concept Drilling • Initial 80000m planned Enargite • Holes upto 2000m long • Drilling to determine: 1,600m Drilling • Geology level • Grade confirmation • Scale FSE Au-Cu Some historic drill intersections: Porphyry 691m at 2.5g/t Au, 0.9% Cu 500m 907m at 1.5g/t Au, 0.5% Cu 100 ? 613m at 0.8g/t Au, 0.8% Cu m 460m at 3.2g/t Au, 1.0% Cu Historic Production Victoria 18Mt @ 7.71g/t Au -200 Enargite 40Mt @ 3.05g/t Au, 2.25% Cu After Hedenquist et al. 2002 m Exceptional grades – mineralisation open in every direction 10
St Ives Gold Mine St Ives Mine – a Great Gold Camp St Ives District • One of Australia’s premier gold camps • 10.8 Moz produced to June 2011 • 5.8 Moz Resource Dec 2010 • Multi-million ounce exploration potential Athena-Hamlet • Greenfields discovery in 2006 - 2007 • Combined reserve of 1.1 Moz Dec 2010 - Hamlet • Reserve additions of 525 koz H2 2010 • Established an UG baseload supporting St Ives longer term future A 20 Million Ounce Camp* 11 *Historic production plus Resource plus exploration potential endowment
St Ives Gold Mine Athena Underground Athena Underground Development to Production • Capital Project Completed • Ore drives developed and full production stoping commenced • Ore body consistent with expectation Underground R Reserve Growth drilling • Dec 2010: 2.15Mt @ 6.3g/t, 437Koz • 9143 Jupiter OD • Increase of 104koz - June to Dec ‘10 • • Considerable exploration and • North end extensional potential remains South end $100M Project – Delivered on time and on budget Reserve price Dec 2010 = A$1225; Resource price Dec 2010 = A$1350
St Ives Gold Mine Hamlet Underground December 2010 Resource Development June 2010 Reserve Reserve • Focused Resource conversion H2 2010 • Approx 25,000m drilled to convert resources • FS completed and construction commenced Reserve Growth • Dec 2010 Reserve: 4.2Mt @ 4.89g/t, 659Koz • Increase of 423koz from June 2010 • Open down plunge potential • Synergies with Argo-Athena have resulted in formation of a single mining centre Inferred to Development in 6 Months Reserve price Dec 2010 = A$1225; Resource price Dec 2010 = A$1350
St Ives Gold Mine Hamlet Underground Primary Vent Rise in construction Project Progress • Project commenced Dec 2010 • 1000m development to date • Fresh Air Rise Complete • Interim primary ventilation planned for commissioning end of July • Finalising power and dewatering strategy • Primary Vent rise civil commenced Decline Design Main access moved to south Base load underground for a 10 year mine life 14
St Ives Gold Mine The Argo-Athena-Hamlet Corridor Apollo Argo Hamlet East West 110 koz produced 1.3 Moz produced** 955koz Resource* A’ 398Koz Resource A Dido Macbeth Undrilled Yorick Potential Pollux Underground Athena drillholes testing 777Koz Resource for repeats Zeus Hero F2010 Drill Targets Defined endowment >3.5Moz – with upside potential Resource figures as of December 2010 ** Total Historic Production to June 2011 15 Reserve price Dec 2010 = A$1225; Resource price Dec 2010 = A$1350
The Greater Damang Project A major expansion opportunity in Ghana Tarkwa and Damang • Largest gold producer in Ghana • Minority acquisition of IAMGold’s 18.9% stake approved in the June 2011 quarter • US$667M for: MALI • Additional 181koz annual production • $540/oz current cash cost and $940/oz NCE • Additional 2.14Moz Reserve & 3.27Moz Resource Bamako Yanfolila Project Greater Damang Upside • Major open pit expansion opportunity • Combined Huni-Damang-Juno complex GHANA Damang Gold Mine • Targeting a substantial growth profile Accra Tarkwa Gold Mine Tarkwa Upside • TOTOS – mine optimisation project Adding to the production base 16
The Greater Damang Project A major expansion opportunity in Ghana Sth Huni Damang Pit Cut Back Juno Nth Current Depth Potential Depth 1 v 1 9 Current Strike Length 1 6 6 6 3 Potential Strike Length 3 • Conceptual modelling demonstrates a significant size potential • Grade control model extrapolated to depth and evaluated for mining potential • Evaluation demonstrated conceptual pit with >2Moz potential • 25,000m Proof of Concept Drilling completed to test extrapolated continuity • Pre Feasibility Study in progress targeting a major cut-back opportunity • Mining, Environmental, Processing studies Targeting a 4Moz Damang Reserve Reserve price Dec 2010 = US$1000; Resource price Dec 2010 = US$1100 17 Dec 2010 total Damang Gold Mine Reserve = 2.08Moz
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