Fourth Quarter and Year-end Results Fourth Quarter and ... All figures in US$ million Gold ......

Fourth Quarter and Year-end Results

Market Presentation14 February 2013

Fourth Quarter and Year-end Results Period ending 31 December 201214 February 2013Nick HollandChief Executive Officer

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.

In particular, the forward looking statements in this document include among others those relating to the Damang Exploration Target Statement;

the Far Southeast Exploration Target Statement; commodity prices; demand for gold and other metals and minerals; interest rate expectations;

exploration and production costs; levels of expected production; Gold Fields’ growth pipeline; levels and expected benefits of current and

l d it l dit f t d th i li ti l l d th t t f t ffi i i d i t bplanned capital expenditures; future reserve, resource and other mineralisation levels; and the extent of cost efficiencies and savings to be

achieved. 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; 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 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 taxation and environmental regulations; and new legislation affecting mining and mineral rights;changes in government regulations, particularly taxation and environmental regulations; and new legislation affecting mining and mineral rights;

changes in exchange rates; currency devaluations; the availability and cost of raw and finished materials; the cost of energy and water; inflation

and other macro-economic factors, industrial action, temporary stoppages of mines for safety and unplanned maintenance reasons; and the

impact of the AIDS and other occupational health risks experienced by Gold Fields’ employees.

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

f ti i t d t

Gold Fields Limited | Q4 2012 & F2012 Results Market Presentation | 14 February 2013

of unanticipated events.

Overview

Q4 2012 Salient Features

• Attributable production of 754,000 gold equivalent ounces (811koz)

- KDC and Beatrix down 30% quarter on quarter due to strike- KDC and Beatrix down 30% quarter on quarter due to strike

- International operations up 11%

Strike impact mitigated through improved international performance- Strike impact mitigated through improved international performance

• Total cash cost US$946/oz (Q3 - US$916/oz)

Distorted by strike• NCE US$1,476/oz (Q3 - US$1,448/oz)

• NCE margin of 13% (Q3 - 13%)

y

• Operating profit R5.0bn (Q3 - R5.1bn)

• 2H 2012 Dividend of 75 SA cents per share• 2H 2012 Dividend of 75 SA cents per share

Strong International Performance Partially Offsets Strike Action in SA


F2012 Salient Features

• Attributable production of 3.25 million gold 1 200

Earnings - SA cents per sharep g

equivalent ounces (F2011 - 3.49Moz)

T t l h t US$894/

973

778

1 003 939 1 000

1 200

• Total cash cost US$894/oz (F2011- US$795/oz)

• NCE US$1,376/oz (F2011 – US$1,173/oz)400

492

778

396

578 529 600

800

• Operating profit to R21.0bn (F2011 - R21.1bn)

• NCE margin of 17% (F2011 - 25%)

400

161

396

200

400

NCE margin of 17% (F2011 25%)

• Normalised earnings R6.8bn (F2011 - R7.2bn)

-2008 2009 2010 2011 2012

EPS Normalised EPS

Strong First Half, Challenging Second Half


F2012 Achievements

• SA production stable in H1, disrupted by YaRona fire and strikes in H2

• Strikes at KDC and Beatrix well managed from a safety perspective

• South Deep physical infrastructure completed• South Deep physical infrastructure completed

• New “24/7/365” operating model at South Deep agreed and being implemented

• Conversion to owner mining completed at St Ives open pit operations

• GFI ranking on the Dow Jones Sustainability Index (DJSI) mining index improved to 3rd (2011: 4th)

• Portfolio review completed


Unbundling of Sibanye Gold

Proforma Results – new Gold Fields

Q4 2012 F2012

Attributable production koz 534 2,031

Cash costs US$/oz 793 784

NCE US$/oz 1,365 1,365

NCE i % 19 18NCE margin % 19 18

EBITDA US$ m 506 1,868

Mine capital expenditure US$ m 312 1,155

Project capital US$m 17 58

FSE expenditure US$m 16 65

Cash generated by international operations

US$m 177 276

Cash invested in South Deep US$m 43 167

Net cash generated by new Gold Fields mines

US$m 134 109


Financial Strategy

Leverage the Balance Sheet

Financial Targets

Leverage the Balance SheetProforma

All figures in US$ millionGold

FieldsSibanye

Gold

Net Debt – 31 Dec 2012 1,263 443• Leverage balance sheet in particular,

the long end

• Strive for long-term Net Debt / EBITDA

,

EBITDA – C2012 1,868 694

Net Debt/EBITDA – 31 Dec 2012 0.68 0.64

C itt d tili d f iliti 700 207 Strive for long term Net Debt / EBITDA

ratio ≤1.0x

Liquidity and Funding PolicyDebt Maturity Post Unbundling

Committed unutilised facilities (Post unbundling) 700 207

Cash From Operations – C2012 962 480

• Maintain strong liquidity and improve

debt maturity profile800

1 000

1 200

on

y g

• Continue to diversify financing sources

away from bank funding

Balance Sheet720

1 000

200

400

600

$ m

illio

• Conservative debt maturity schedule40 40 - 50 - --

2013 2014 2015 2016 2017 2018 2019 2020

GFI (excl. Sibanye) Sibanye

Conservative Approach


Financial Strategy

Commitment to return cash to shareholdersCommitment to return cash to shareholders

re 1003

38%33%

30%35%40%

1000

1200

Dividend (SA cps)F2008 to F2012

A ce

nts

per s

har

Pay-

out r

atio

396

578 529

1003939

22%26%

25%

10%15%20%25%30%

200

400

600

800

• Final dividend: R0.75 per share

F ll di id d R2 35 h

SA

150 130 140330 235

0%5%

0

200

2008 2009 2010 2011 2012

• Full-year dividend: R2.35 per share

• Annual pay-out ratio: 25%40%

50%

60%Dividends as a % of EPS

10%

20%

30%

40%

0%2007 2008 2009 2010 2011

Gold Fields Peer Average* Peer average pay-out ratio based on Bloomberg estimates of peer group on 13/02 2012

Conservative Approach


The New Gold FieldsI ’ bIt’s not about ouncesIts about cash!

However we have not met their expectations

Investors expect us to deliver leverage to the gold price

However, we have not met their expectations…

Note: Data indexed to 13 January 2006; index made up of 8 major gold producers’ total return indexes weighted by market capitalisation; Major Gold producers defined as: AngloGold Ashanti, Barrick, Harmony, Kinross, Goldcorp, Gold Fields, Newmont and Newcrest

Source: Bloomberg


Regaining Investor Confidence Requires a Paradigm Shift

The Way Forward for Gold Fields

It is not about ounces at any cost. Its about cash!It is not about ounces at any cost. Its about cash!

Focus on cash generation

• Review portfolio to optimise cash generation

• Understand and manage all-in costs – Notional Cash Expenditure (NCE)

• Prioritise low risk, high return brownfields growth opportunities1

Deliver South Deep

, g g pp

• Pursue greenfields projects only if they offer truly attractive returns

2• Transition from construction to ore body development and build-up

Deliver South Deep2

• 700koz per annum run-rate by end of 2015

Financial gearing3 • Leverage balance sheet for growth on a per share basis

Strong dividend policy4

• Dividends prioritised to have first call on cash flows

• 25% to 35% pay-out of normalised earnings25% to 35% pay out of normalised earnings

Sustainable development5 • Focus on long-term sustainability of the business


development Focus on long term sustainability of the business

Portfolio Review

Unbundling Sibanye GoldUnbundling Sibanye GoldShareholders

GFIMSAGold Fields

GFIMSAKDCBeatrix

InternationalTarkwaDamang

Limited

BeatrixService Entities

DamangSt IvesAgnewgCerro Corona South DeepOther subsidiaries and Investments

T I d d t C iGold Fields Limited | Q4 2012 & F2012 Results Market Presentation | 14 February 2013

Two Independent Companies

Portfolio Review

Rationale for Unbundling Sibanye GoldRationale for Unbundling Sibanye Gold

Create fit-for-purpose, sustainable, long-life operations

Install a specialist, dedicated and focussed management team

Ring-fence SA cash flows for SA projects and dividends

R d li i d ti t dReverse declining production trends

Optimise extraction of reserves & resources and extend life of mines

Harness technology for challenges of deep level, hard rock, labour intensive miningg

Act as catalyst for consolidation in SA gold industry

A N F t F KDC d B t iGold Fields Limited | Q4 2012 & F2012 Results Market Presentation | 14 February 2013

A New Future For KDC and Beatrix

International Diversification

A more balanced portfolioGold Fields

Before UnbundlingGold Fields

Post Unbundling

A more balanced portfolio

40%9%

17%28%24%

ctio

n ed

)13%

29%

8%26%

9%35%

13%

Prod

uc(m

anag 43%15%

C2012 C2016

RSA - Sibanye West AfricaAustralia South AmericaRSA – South Deep

22%

10%6%

erve

s2na

ged)

53%19%

4%6%

62%22%

Res

e(m

an

53%

18%


1 Adjusts 2012 production for South Deep at full production of 700koz2 Reserves as at 31 December 2011 for New Gold Fields and as at 31 December 2012 for Sibanye Gold

Portfolio Review

GFI After Sibanye Gold UnbundlingGFI After Sibanye Gold UnbundlingFINLAND

Arctic Platinum Project

MALIYanfolila

GHANAPERU PHILIPPINES

Vancouver

Denver

GHANATarkwaDamang

PERUCerro CoronaChucapaca AUSTRALIA

AgnewSt Ives

Far Southeast

AccraLima

Manila

SOUTH AFRICASouth Deep

PerthJohannesburg

Santiago

South America West Africa South Africa Australasia Sub-total Projects Total

Offices Mines Exploration Projects: GFI 100% | CIR Option | JV GFI Operated

Resources1 8 Moz 25 Moz 81 Moz 9 Moz 123 Moz 32 Moz 155 MozReserves1 6 Moz 14 Moz 40 Moz 4 Moz 64 Moz - 64 MozAnnual production 342koz 885koz 270koz 626koz 2.1 Moz - 2.1 MozNumber of mines 1 2 1 2 6 - 6


1. Managed gold equivalent Mineral Resources and Reserves as at 31 December 2011 2. The total managed gold equivalent Mineral Resources as at 31 December 2011 includes the managed gold equivalent ounces of the growth projects

Portfolio Review

U d t d d M All i C t (NCE)Understand and Manage All-in Costs (NCE)

1 6001 800

US$/oz

26%

New GFI Excluding South DeepNew GFI Including South Deep

1 6001 800

US$/oz

800 1 000 1 200 1 400 1 600 26%

NCEMargin

8001 000 1 200 1 400 1 600 19%

NCEMargin

-200 400 600

08 08 08 09 09 09 09 10 10 10 10 11 11 11 11 12 12 12 12

-200 400 600 800

8 8 8 9 9 9 9 0 0 0 0 1 1 1 1 2 2 2 2

Jun-

0S

ep-0

Dec

-0M

ar-0

Jun-

0S

ep-0

Dec

-0M

ar-1

Jun-

1S

ep-1

Dec

-1M

ar-1

Jun-

1S

ep-1

Dec

-1M

ar-1

Jun-

1S

ep-1

Dec

-1

Gold price Total cash costs NCE

Jun-

08S

ep-0

8D

ec-0

8M

ar-0

9Ju

n-09

Sep

-09

Dec

-09

Mar

-10

Jun-

10S

ep-1

0D

ec-1

0M

ar-1

1Ju

n-11

Sep

-11

Dec

-11

Mar

-12

Jun-

12S

ep-1

2D

ec-1

2



Targeting a 25% NCE Margin

Portfolio Review

R i P tf li f C h G tiReview Portfolio for Cash Generation

Group • Corporate Office and Regional structures rationalisedGroup • Greenfields exploration spend cut to US$80 million p.a.

St Ives • Owner mining conversion completed St Ives • High cost heap leach operation closed

Agnew • Low grade Main and Rajah ore bodies stoppedF hi h d Ki b dAgnew • Focus on high grade Kim ore body

Tarkwa • High cost South Heap leach operation stoppedTarkwa High cost South Heap leach operation stopped

Damang • Focus to improve NCE margin to + 25%Pit t b k d d d ti l d

N M i l O !

g • Pit cut-back and underground options explored


No Marginal Ounces!

Portfolio Review

P i iti L Ri k Hi h R t B fi ld G th O t itiPrioritise Low Risk, High Return Brownfields Growth Opportunities

Tarkwa Tarkwa Expansion Phase 6 (TEP6)

Damang Optimise extraction of 10Moz ore bodyDamang Optimise extraction of 10Moz ore body

Cerro Corona Sulphides Expansion ProjectOxides Project

L Ri k St t T G C h G ti M hiGold Fields Limited | Q4 2012 & F2012 Results Market Presentation | 14 February 2013

Low Risk Strategy To Grow Cash Generation Machine

Portfolio Review

Pursue Greenfields Projects Only For Attractive ReturnsPursue Greenfields Projects Only For Attractive Returns

Construction Decision (+ve feasibility study)

Indicated and Inferred Resources (+ve pre-feasibility study)

FS

1

APPFar Southeast

Chucapaca

GFI Target Confirmed(+ve scoping study)

Resource Development

4 Far SoutheastDamangYanfolila

Talas

Economic Intersection(with requisite size potential)

Advanced Drilling

3 WoodjamSalares Norte

Bedrock Drill Target Defined(and available)

Initial Drilling

13

Target Definition8


Greenfields Project Pipeline – December 2012

Portfolio Review

Pursue Greenfields Projects Only For Attractive ReturnsPursue Greenfields Projects Only For Attractive Returns

Peru Chucapaca Project • Start small if possible

• Advance only projects with attractive returns

• Enforce stringent stage gatesPhilippines Far Southeast Project

• Where appropriate de-risk through financial or technical partnerships

Finland Arctic Platinum Project

• It is not about ounces!Mali Yanfolila Project

N U li ti P d ti T tGold Fields Limited | Q4 2012 & F2012 Results Market Presentation | 14 February 2013

No Unrealistic Production Targets

Operations Review

South Deep Project – South Africa

Managed ProductionKoz

60 70 80 90

gF2012 F2011

Managed production koz 270 273

EBITDA (operating profit) US$ m 148 131

1020 30 40 50 Contribution to New GFI EBITDA 8% 7%

Total cash cost US$/oz 1,105 1,073

NCE US$/oz 2 283 2 091-10

Mar

-10

Jun-

10

Sep-

10

Dec

-10

Mar

-11

Jun-

11

Sep-

11

Dec

-11

Mar

-12

Jun-

12

Sep-

12

Dec

-12

NCE US$/oz 2,283 2,091

Internal contribution to capital 52% 55%

Capex US$ m 315 275

2 500

3 000

Managing NCE$/ozResource – 31 Dec 2011 81.4Moz

Reserves – 31 Dec 2011 39.6Moz

1 000

1 500

2 000

2013 Guidance*

-

500

Mar

-10

un-1

0

Sep-

10

Dec

-10

Mar

-11

un-1

1

Sep-

11

Dec

-11

Mar

-12

un-1

2

Sep-

12

Dec

-12

2013 Guidance

• Managed production: 305 - 320koz

• Total cash cost: ~US$1,100/oz (~R317,000/kg)

• NCE: ~US$1,800/oz (~R520,000/kg)


M J S D M J S D M J S D


NCE: US$1,800/oz ( R520,000/kg)

* Exchange rate used for guidance: US$1=R9.00

South Deep Project – South Africa

Deliver South Deep

Landmark Union Agreement on new Operating Model – 2 October 2012

Deliver South Deep

Production build-up to run-rate of 700koz by end of 2015

De-stress development increased 75% year on year.

Self-funding by end of 2013

Major progress on key infrastructure: on budget and on timeMajor progress on key infrastructure: on budget and on time

2010 2011 2012 2013E 2014E 2015E Status94 Level Refrigeration Plant On schedule

CommissionedPhase1 commissioned Commission machines 3, 4 and 5 with 100 and 105 Level BACs

Twin Vent Shaft Deepening CommissionedOct 2012

Tailings Storage Facility Commissioned April 2011

Plant Expansion 330 Ktpm Commissioned N 2012

Hoisting builds up as per mine plan

p p Nov 2012Backfill Infrastructure Commissioned

New Mine Development On-going

Backfill pipe extensions in the 95-1W, 95-2W and 95-3W


Key Infrastructure Projects Completed – Transition to Build-up Underway

Tarkwa Gold Mine - Ghana


150

200

250

gF2012 F2011



50

100

150 Contribution to New GFI EBITDA 39% 38%

Total cash cost US$/oz 673 556

NCE US$/oz 1,049 913-

Mar

-10

Jun-

10

Sep-

10

Dec

-10

Mar

-11

Jun-

11

Sep-

11

Dec

-11

Mar

-12

Jun-

12

Sep-

12

Dec

-12

NCE US$/oz 1,049 913

NCE Margin 39% 42%

Resource – 31 Dec 2011 15.1Moz

1 400 1 600 1 800

Managing NCE$/ozReserves – 31 Dec 2011 10.3Moz

• Steady, world-class producer• High costs South Heap Leach Operations

600 800

1 000 1 200 stopped

• Brownfields expansion – CIL options to replace Heap Leach under consideration

-200 400

Mar

-10

un-1

0

Sep-

10

Dec

-10

Mar

-11

un-1

1

Sep-

11

Dec

-11

Mar

-12

un-1

2

Sep-

12

Dec

-12

2013 Guidance• Managed production: 640 - 650koz

• Total cash cost: ~US$785/oz


M J S D M J S D M J S D

Gold price Total cash costs NCE• NCE: ~US$1,190/oz

Damang Gold Mine - Ghana


50

60

70

gF2012 F2011



10

20

30



NCE US$/oz 1,630 1,056-

Mar

-10

Jun-

10

Sep-

10

Dec

-10

Mar

-11

Jun-

11

Sep-

11

Dec

-11

Mar

-12

Jun-

12

Sep-

12

Dec

-12

NCE $ 1,630 1,056

NCE Margin 2% 33%


1 600 1 800 2 000


• A mine in transition• Mine to be recapitalised to harness value of

600 800

1 000 1 200 1 400 10.0Moz resource position

• Recapitalisation planned to bring production to ~200 – 250koz at NCE of ~$1,200/oz

-200 400

ar-1

0

un-1

0

ep-1

0

ec-1

0

ar-1

1

un-1

1

ep-1

1

ec-1

1

ar-1

2

un-1

2

ep-1

2

ec-1

2

2013 Guidance• Managed production: 165 – 180koz

• Total cash cost: ~US$1,010/oz


M Ju Se De M Ju Se De M J u Se De

Gold price Total cash costs NCE• NCE: ~US$1,650/oz

Cerro Corona Gold Mine - Peru

Managed Equivalent ProductionKoz

80

100

120

g qF2012 F2011



20

40



NCE US$/oz 775 592-

Mar

-10

Jun-

10

Sep-

10

Dec

-10

Mar

-11

Jun-

11

Sep-

11

Dec

-11

Mar

-12

Jun-

12

Sep-

12

Dec

-12

NCE $ 775 592

NCE Margin 51% 60%


1 600 1 800 2 000


• World class mine• Brownfields opportunities: Oxides Project and

600 800

1 000 1 200 1 400

pp jSulphide Plant expansion

• 5 year pay back achieved in 2013 with 18 years left to mine

-200 400

ar-1

0

un-1

0

ep-1

0

ec-1

0

ar-1

1

un-1

1

ep-1

1

ec-1

1

ar-1

2

un-1

2

ep-1

2

ec-1

2

2013 Guidance• Managed production: 270 - 280koz*

• Total cash cost: ~US$600/oz




* Stated on an equivalent ounce basis based on a gold price of US$1,700 per ounce and a copper price of US$8,000 per tonne

• NCE: ~US$920/oz

St Ives Gold Mine - Australia


120

125

130

gF2012 F2011



100

105

110



NCE US$/oz 1,608 1,28795

Mar

-10

Jun-

10

Sep-

10

Dec

-10

Mar

-11

Jun-

11

Sep-

11

Dec

-11

Mar

-12

Jun-

12

Sep-

12

Dec

-12

NCE $ 1,608 1,287

NCE Margin 4% 19%


1 600 1 800 2 000


• Harnessing cost benefit of 2012 re-investment - Owner-mining from 2013

600 800

1 000 1 200 1 400 • High cost heap leach closed

• Promising new exploration targets identified: Invincible and Greater Neptune

-200 400

ar-1

0

un-1

0

ep-1

0

ec-1

0

ar-1

1

un-1

1

ep-1

1

ec-1

1

ar-1

2

un-1

2

ep-1

2

ec-1

2

2013 Guidance*


• Total cash cost: ~US$970/oz (~A$930/oz)




* Exchange rate used for guidance: A$1 = US$1.04

• NCE: ~US$1,405/oz (~A$1,350/oz)

Agnew Gold Mine - Australia


40

50

60

gF2012 F2011



10

20



NCE US$/oz 1,191 1,096-

Mar

-10

Jun-

10

Sep-

10

Dec

-10

Mar

-11

Jun-

11

Sep-

11

Dec

-11

Mar

-12

Jun-

12

Sep-

12

Dec

-12

NCE $ 1,191 1,096

NCE Margin 29% 32%


1 600 1 800 2 000


• Restructured for cash flow• High cost, low grade Main and Rajah closed

600 800

1 000 1 200 1 400

g g j• Focus on high-grade Kim Lode• Significant exploration opportunities

-200 400

ar-1

0

un-1

0

ep-1

0

ec-1

0

ar-1

1

un-1

1

ep-1

1

ec-1

1

ar-1

2

un-1

2

ep-1

2

ec-1

2

2013 Guidance*


• Total cash cost: ~US$730/oz (A$700/oz)

NCE: US$1 035/oz (A$990/oz)




* Exchange rate used for guidance: A$1 = US$1.04

• NCE: ~US$1,035/oz (A$990/oz)

Conclusions

Group Guidance for 2013

Managed production koz 1,910 to 1,990

Attributable production koz 1,825 to 1,900

Cash cost US$860/oz (R250,000/kg)

NCE US$1,360/oz (R395,000/kg)

Exchange rates US$1=R9.00U$1 = A$0.962


Conclusion

A smaller, more focussed, yet solid platform for growth

Focus on cash generation and a superior return on all funds investedFocus on cash generation and a superior return on all funds invested

Cash generation takes priority over production targetsCash generation takes priority over production targets

Dividends have first call on cash flows – 25% to 35% of normalised earningsDividends have first call on cash flows 25% to 35% of normalised earnings

Judiciously advance only low-risk, high return, brownfields and best greenfields j tprojects

Seek opportunistic M&A of in production assets where path to value is clearpp p p

Maintain current approach to focus on gold and continue international diversification


pp g

Fourth Quarter and Year-end Results Fourth Quarter and ... All figures in US$ million Gold ......

Documents

Transcript of Fourth Quarter and Year-end Results Fourth Quarter and ... All figures in US$ million Gold ......