q4 f2010
play

Q4 F2010 www.goldfields.co.za Q4F2010 - PDF document

Q4 F2010 www.goldfields.co.za Q4F2010 ResultsPresentationTranscript 05August2010 GoldFields Q4F2010ResultsPresentation 05/08/2010 Gold Fields Q4F2010 Results


  1. Q4 F2010 www.goldfields.co.za Q4F2010 Results�Presentation�Transcript� 05�August�2010�

  2. Gold�Fields� Q4F2010�Results�Presentation� 05/08/2010� � � � � � � � Gold Fields Q4F2010 Results Johannesburg, 5 August 2010 1 � � � Ladies�and�gentlemen,�thank�you�very�much�for�joining�us�here�this�morning�for�the�final�quarter�results�for� F2010.�It’s�also�the�year�end�results.�We�will�follow�the�normal�procedures�with�the�presentation�today.�We� will� start� off� with� Nick,� who� will� give� a� brief� overview,� and� then� Paul� will� take� us� through� some� of� the� financials.� Vishnu� will� talk� about� the� South� African� operations,� Peter� Turner� about� the� West� African� operations,� Richard� Weston� Australasia,� and� then� Juancho� Kruger� will� talk� about� the� South� American� operations.�After�that�we�will�have�a�time�for�questions.�May�I�ask�before�we�start�to�make�sure�that�your�cell� phones�are�switched�off?�� � From� a� safety� point� of� view,� in� the� unlikely� event� that� something� goes� wrong� in� this� room� you� can� exit� through�the�doors�against�that�wall�and�through�the�back�and�the�front�doors.�And�if�you�could�meet�on�the� lawns�far�to�the�north�of�the�building,�where�further�instructions�will�be�given.�We�will�also�be�broadcasting� this�presentation�and�we�welcome�the�people�who�are�watching�on�television�or�through�the�webcast�on�the� internet.�We’ll�get�started�now.�I�hand�over�to�Nick�to�get�us�going.�Thank�you�very�much.� 2 Q4F2010�Results�Presentation�

  3. Gold�Fields� Q4F2010�Results�Presentation� 05/08/2010� � Introduction Programme Introduction Nick Holland Financial review Paul Schmidt Region operational summaries • South Africa region Vishnu Pillay • West Africa region Peter Turner • South America region Juancho Kruger • Australasia region Richard Weston Conclusion Nick Holland � 3 � Thank�you,�Willie,�and�good�morning�everybody.�First�of�all�it�gives�me�great�pleasure�to�welcome�Richard� Weston�to�the�team.�Richard�has�taken�over�the�running�of�our�Australasia�region.�Richard�is�Executive�Vice� President�and�Head�of�Australasia,�and�he’s�sitting�here�next�to�Juancho�Kruger.�Most�of�you�haven’t�met� Richard�before,�and�I’d�like�to�welcome�him�to�the�group.�He’s�now�been�with�us�for�about�three�months,� and�he’s�slotted�into�the�team�very�quickly.�So�we’re�pleased�to�have�him�on�board.� � Introduction Q4F2010 Highlights • Best safety year ever – SA gold industry leader • Attributable gold production up 13% to 898koz • Record production quarter at Tarkwa • Total cash cost and NCE down 2% & 3%, respectively • NCE margin up from 9% to 18% • Earnings triple to R900 million Free Cash Flow of R1.8bn 4 � � Well,�it�wouldn’t�be�complete�to�start�a�presentation�like�this�if�we�didn’t�talk�about�safety�because�safety�is� 3 Q4F2010�Results�Presentation�

  4. Gold�Fields� Q4F2010�Results�Presentation� 05/08/2010� � our�number�one�value.�We’ve�had�the�best�safety�year�ever�in�Gold�Fields,�and�that�was�on�the�back�of�our� best�safety�ever�last�year.�We’ve�shown�a�20%�improvement�in�our�fatality�rate,�around�a�15%�improvement� in�our�serious�injury�rate,�and�we�are�now�the�SA�gold�industry�leaders�in�safety.�And�that’s�a�record�that�I� intend�for�us�to�hold�on�to�and�to�build�upon�in�2011�fiscal�year�and�beyond.� � Also�over�this�last�quarter�we�showed�an�increase�of�13%�in�our�attributable�production�up�to�just�under� 900,000�ounces.�And�that’s�similar�to�the�levels�that�we�were�producing�in�the�December�quarter�of�last� year.�And�it’s�nice�to�be�able�to�show�an�increase�in�production�at�a�time�when�the�gold�price�is�also�gone�up� in�Rand�terms,�in�US�Dollar�terms�and�in�Australian�Dollar�terms.�And�you�can�see�that�that’s�reflected�in�free� cash�flow�for�the�quarter�of�R1.8�billion.�So�we�have�delivered�the�gold�price�to�the�bottom�line,�and�we’ve� delivered�it�on�a�safer�basis�that�what�we’ve�done�before.� � There’s� been� a� record� production� quarter� at� Tarkwa.� Tarkwa� managed� to� produce� 200,000� ounces� this� quarter.�We’ve�never�hit�that�target�before,�so�that’s�a�tremendous�achievement�for�Peter�Turner�and�his� team.�And�I�look�forward�to�them�trying�to�emulate�this�again�into�the�future.� � Despite�Eskom�increases�of�around�25%,�despite�the�fact�that�in�South�Africa�we’re�into�the�winter�electricity� tariffs,�which�are�typically�about�50%�higher�than�what�they�are�the�rest�of�the�year,�we‘ve�still�managed�to� reduce�our�cash�costs.�We’ve�also�managed�to�contain�our�overall�NCE�despite�the�significant�investment� that�we’re�making�into�this�company�for�the�future,�in�particular�into�South�Deep.� � And�you�know�that�I’ve�talked�about�notional�cash�expenditure�for�some�time�now�as�being�the�real�measure� of�cash�flow.�And�you�also�know�that�we’re�the�only�gold�producer�in�the�world�who�presents�you�with�the� picture�on�notional�cash�expenditure.�We�will�continue�to�do�that.�And�against�that�metric�you�can�see�we’ve� doubled�our�NCE�margin�from�9%�to�18%.�Our�earnings�have�tripled�to�R900�million�for�the�quarter.�So�I� believe�overall�it’s�been�a�good�quarter�for�Gold�Fields�and�we’ve�demonstrated�that�we�can�make�money�for� shareholders.�� � Introduction F2010 Scorecard • Attributable production up 2% to 3.5m oz • South Deep up 52% from 175koz to 265koz • Cerro Corona* up 80% from 219koz to 394koz • Tarkwa* up 20% from 612koz to 721koz Sweating our assets • NCE margin • Up 2% from 13% to 15% • Reviewing processes & structures to improve margins *Managed Improving the Margin per oz � 5 � 4 Q4F2010�Results�Presentation�

More recommend