Quarterly Results Quarterly Results Q3 F2008 Johannesburg 9 May 2008
SAFETY Introduction In Case Of Emergency ….. Siren will sound and announcement made over public address system Evacuate building through exit points Congregate across street where safety wardens will g g y provide further information 2
Quarterly Results Quarterly Results Q3 F2008 Johannesburg 9 May 2008
Cautionary Statement Introduction This document and any materials distributed in connection with this document are not directed to, or intended for distribution to or use b by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such i h i i i id l d i l li h j i di i h h distribution, publication, availability or use would be contrary to law or regulation. This presentation does not constitute or form part of an offer to sell or issue, or any solicitation of an offer to buy or subscribe for, any securities referred to herein. The capital raising and other information in connection with the capital raising in certain jurisdictions may be restricted by law and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the th l b t d b h t i ti A f il t l ith th t i ti tit t i l ti f th securities laws of any such jurisdiction. The securities mentioned herein have not been, and will not be, registered under the U.S. Securities Act of 1933 (the "Securities Act"), and may not be offered or sold in the United States (as such term is defined in Regulation S under the Securities Act) unless they are registered under the Securities Act or pursuant to an exemption from registration. No public offer of the securities is being made in the U it d St t United States. This document is not an offer of securities for sale in any jurisdiction. Certain statements in this presentation 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: overall economic and business conditions in South Africa, Ghana, Australia, Venezuela and elsewhere; the ability to achieve anticipated efficiencies and other cost savings in connection with past and future acquisitions; the success of exploration and development activities; decreases in the market price of gold; the occurrence of hazards associated with underground and surface gold mining; the occurrence of labor disruptions; availability, terms and deployment of capital; changes in relevant government ld i i th f l b di ti il bilit t d d l t f it l h i l t t regulations, particularly environmental regulations and potential new legislation affecting mining and mineral rights; fluctuations in exchange rates, currency devaluations and other macroeconomic monetary policies; and political instability in South Africa, Ghana, regionally in Africa or in Venezuela. 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. i t ft th d t f thi d t t fl t th f ti i t d t 4
5 Safety Introduction
Safety Introduction If we cannot mine safely we will not mine Step change in safety is needed Board has approved external safety audit SAFE PRODUCTION IS OUR COMMITMENT SAFE PRODUCTION IS OUR COMMITMENT 6
Quarterly Results Quarterly Results Q3 F2008 Johannesburg 9 May 2008
Nick Holland Chief Executive Officer Chief Executive Officer INTRODUCTION INTRODUCTION 8
Leadership Changes INTRODUCTION Operational Executive Terence Goodlace Chief Operating Officer Nick Holland Chief Executive Officer Vishnu Pillay Glenn Baldwin Juan Luis Kruger Head of Operations Head of Operations Head of Operations Head of Operations Head of Operations Head of Operations South Africa Australia & Ghana South America SEAMLESS TRANSITION, FOCUSED LEADERSHIP SEAMLESS TRANSITION, FOCUSED LEADERSHIP 9
Our Strategic Commitment INTRODUCTION Notional Notional Cash Expenditure Free Cash Flow Margin Growing g Growth Gold Fields Operational Excellence Securing the Future UNHEDGED SAFE PRODUCTION = PROFITABLE PRODUCTION SAFE PRODUCTION = PROFITABLE PRODUCTION 10
Our Commitment Unfolding INTRODUCTION Growing Gold Fields Operational Excellence Securing the Future Stabilisation of power allocation Stabilisation of power allocation SOUTH AFRICA SOUTH AFRICA Commissioning June 08, Production & Shipment Q1 F09 g , p CERRO CORONA CIL expansion on track for Q1 F09 start-up TARKWA A development project gaining momentum SOUTH DEEP Developing new underground mines ST IVES Rule of Five’s → Rule of Two’s for exceptional returns EXPLORATION IMPROVED CASH GENERATION IN F2009 IMPROVED CASH GENERATION IN F2009 11
Q3F08 Headlines INTRODUCTION Growing Gold Fields Operational Excellence Securing the Future Attributable production down 14% to 827koz Attributable production down 14% to 827koz Unit total cash costs R122,920/kg (US$513/oz) , g ( $ ) Operating profit up 26% to R2,566m Core earnings up 67% to 155(SA)cps Cash flow from operations less all capital ~ R1 billion Interim dividend of R0.65 per share GOLD PRICE BENEFIT GOLD PRICE BENEFIT 12
Growing Gold Fields Operational Excellence Securing the Future Nick Holland Chief Executive Officer Chief Executive Officer FINANCIAL REVIEW FINANCIAL REVIEW 13
Q3 F08 FINANCIAL REVIEW Salient Features Growing Gold Fields Q3 2008 Q3 2008 Q2 2008 Q2 2008 Operational Excellence Securing the Future Gold Produced 1 827 960 000oz Exchange rate 7.45 6.76 ZAR/US$ 1,008 886 A$/oz 921 784 US$/oz Revenue 220,612 170,488 R/kg 6,109 6 109 5,430 5 430 Rm Rm Operating costs, net 3,543 3,392 Rm 283 265 R/ton O Operating costs ti t 974 715 SA ug R/t Operating profit 2,566 2,037 Rm Operating margin 42 38 % Total cash costs 122,920 101,532 R/kg 513 513 467 467 US$/oz US$/oz 14 1 Atrributable
Q3 F08 FINANCIAL REVIEW Operating Cost Analysis Growing Gold Fields Operational Excellence Securing the Future 3,392 88 121 (11) 3,543 (47) Rm 3345 0 3345.0 3345.0 3345 0 3433 0 3433.0 3543 0 3543.0 Q2F2008 SA Operating Costs International Operating Translation Adjustments GIP Q3F2008 Costs MAINLY TRANSLATION ADJUSTMENTS MAINLY TRANSLATION ADJUSTMENTS 15
Q3 F08 FINANCIAL REVIEW Income Statement Growing Q3 2008 Q3 2008 Q2 2008 Q2 2008 Gold Fields Operational Excellence Securing the Future Operating profit 2,566 2,037 Rm Amortisation & depreciation 714 763 Rm Net operating profit 1,852 1,274 Rm Interest paid, net I t t id t (88) (88) (92) (92) Rm R Foreign exchange gain/(loss) 38 (5) Rm Gain/(loss) on financial instruments ( ) 262 (188) ( ) Rm Other expenses (32) (10) Rm Exploration (58) (79) Rm Profit before tax & exceptional items 1,974 901 Rm Exceptional items (41) 1,417 Rm Mining & income tax Mining & income tax (567) (567) (418) (418) Rm Rm Discontinued operations - 118 Net profit 1,366 2,018 Rm 16
Q3 F08 FINANCIAL REVIEW Income Statement Growing Gold Fields Operational Excellence Q3 2008 Q3 2008 Q2 2008 Q2 2008 Securing the Future 1,248 1,938 Rm Net profit attributable to ordinary shareholders 191 297 (SA)cps 1,009 603 Rm Net profit excluding gains and losses on foreign exchange, financial instruments and exceptional items exceptional items 155 93 (SA)cps 17
Q3 F08 FINANCIAL REVIEW Cash Flow Statement Growing Gold Fields Q3 2008 Q3 2008 Q2 2008 Q2 2008 Operational Excellence Securing the Future Cash flow from operations Cash flow from operations 3,039 3,039 1,148 1,148 Rm Rm Dividends Rm - - Capital expenditure - additions p p (2,086) ( ) (2,476) ( ) Rm Capital expenditure - disposals 3 2 Rm Other investing activities (273) 2,252 Rm Net loans received/(repaid) (253) (1,081) Rm Other financing activities 39 12 Rm Net cash inflow/(outflow) 469 (143) Rm Currency translation adjustment 154 (6) Rm Cash at beginning of period 1,321 1,470 Rm Cash at end of period 1,944 1,321 Rm NOTIONAL CASH EXPENDITURE NOTIONAL CASH EXPENDITURE 18
Q3 F08 FINANCIAL REVIEW Capital Expenditure Analysis Q3 08 Gold Price: US/$ 921/oz Growing Gold Fields Rm Operational Excellence Q3 Average Exchange Rate : R/US$ 7.45 Securing the Future Sustaining capex Sustaining capex South Africa 536 Australia 255 Ghana 189 Subtotal 980 Project capex Driefontein 9 shaft 61 S South Deep th D 196 196 Tarkwa CIL Plant 264 Cerro Corona 576 Subtotal 1,097 Total capex 2,077 SIGNIFICANT INWARD INVESTMENT SIGNIFICANT INWARD INVESTMENT 19
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