Gold Fields South Deep Rebase...

Gold Fields South Deep Rebase Plan

Media Site Visit Presentation

March 2017

2

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 planned 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 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 of unanticipated events.

South Deep Reabse Plan, 9 March 2017

3

Overview of South Deep performance in 2016

Reached key milestone of cash breakeven

● Strong safety performance with a TRIFR of

2.42 (FY 2015: 2.91)

● FY16 production and costs beat revised

guidance

● Cash positive for the first time

Net cash flow of US$12m (R175m)

generated in 2016

● Most of the key skills are now in place

Resignation of Nico Muller in December –

the search for a replacement is ongoing

● Rebase Plan announced

Steady state production of 500koz at AIC

below US$900/oz

FY

2016

FY

2015

Q4

2016

Q3

2016

Production koz 290.4 198.0 80.9 69.4

AISC US$/oz 1,207 1,490 1,097 1,289

AIC US$/oz 1,234 1,559 1,122 1,317


0

200

400

600

800

1000

1200

1400

1600

1800

0

50

100

150

200

250

300

350

2013 2014 2015 2016

Production (koz) and AIC (US$/oz)

Production AIC

0

200

400

600

800

1000

1200

1400

1600

-140

-120

-100

-80

-60

-40

-20

0

20

2013 2014 2015 2016

Net Cash Flow (US$m) and gold price (US$/oz)

Net CF Gold price

Operational strategy and progress

5

Fix the base - Business improvement

Strategy and Progress

ProgramTotal

Projects

Projects

Completed2017 2018

People 9 7 2 -

Health and Safety 5 3 2 -

Fleet and Fleet Management 11 5 4 2

Infrastructure 16 6 6 4

Mining 15 2 8 5

Mineral Resource Management 10 5 4 1

Financial and Administration 2 1 1 -

TOTAL 68 29 27 12

• Management Team

• Technical Support

• Mechanised Mining Up-Skilling Program

People

• Ensure Statutory Compliance

• Safety Incident / Behaviour Management System

• Implement tracking and flagging system (ISOMETRIX)

Health and Safety

• Fleet Renewal

• Underground Workshop Stores

• Fleet Conditions Assessment

• Equip and Commission 93L Workshop

Fleet

• Rail Bound Equipment Proximity Management System

• Twin Shaft Skip Loading Facility RehabilitationInfrastructure

• Footwall Ripping to Hanging wall Ripping

• Basic Equipment AppreciationMining

• High Profile destress Stoping

• South Deep Rebase Project

• Regional Pillar Layout

• VCR Economic Potential

Mineral Resource Management

• Improve Business Analyses and ReportingFinancial and Administration

Key projects completed:


6

Skills and fleet


Description 2017 2018 2019 2020 2021 2022

Management 22 23 23 23 23 23

Core 4 291 4 142 4 081 4 058 4 023 4 028

Services 1 262 1 276 1 212 1 212 1 212 1 212

SLP 574 574 574 574 574 574

Total 6 149 6 015 5 890 5 867 5 832 5 837

Full skills and fleet complement in place

Description 2017 2018 2019 2020 2021 2022

Category 1 108 111 106 105 100 95

Category 2 91 91 91 91 91 91

Total 199 202 197 196 191 186

Trackless fleet schedule

Critical skills

7

Positive operating trends achieved

Setting a solid foundation


-

100

200

300

400

500

600

700

2014 2015 2016

metres Development - monthly average

Development Linear (Development)

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2014 2015 2016

m3 Backfill Placed - monthly average

Backfill Linear (Backfill )

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2014 2015 2016

tonnes Longhole Stoping - monthly average

LHS Linear (LHS)

20%

69%

-

500

1,000

1,500

2,000

2,500

3,000

2014 2015 2016

m2 Destress - monthly average

Low Profile High Profile

8

• No compromise on safety and health

• Infrastructure maintenance and renewal

• Safe mining methods (mechanisation & automation, seismic controls, safe design)

• Secondary support capacity designed to match requirement

Safety and Health

• Geology block model updates, Geotechnical, Seismic Hazard Analyses

• Mining methods validated

• Mining system capacity analyses

• Infrastructure capacity

• Independent reviews (Gold Fields Technical, GRB, Consulting firms)

Technical Assurance

• Drive towards positive cash flow build up

• Increase operating margins with volume growth

• Capital expenditure efficiency

• Apply technological advancements for increased efficiency

• Sustainability

Profitability

• Full SLP compliance (targets aligned to operational status)

• Full environmental compliance

• Continued support for LED and Joint Alliance projects

• Community relations key priority

Social Licence

Sustainability and profitability

Rebase Plan strategy and objectives


Orebody, mine design and geotechnical considerations

10

A world class orebody


Ramp-up profile only incorporates Current Mine and North of Wrench

SoW-W

SoW-E

NoW

CM

VCR

610 m

1,4

20 m

1,4

90 m

980 m

● Corridors increased from 4 to 6 based on

regional pillar changes

● 240m horizontal destress span decreased to

180m

● Converted from low (2.2m) to high (5.5m)

profile destress stoping. Increased yield pillar

width from 2.5m (low profile) to 6.0m (high

profile)

● Introduced rib pillar design (8 x 20m)

11

A world class ore body

slot

Corridor progression 3 active cuts

40 – 60 kt/month

High Profile Destress & Longhole Stoping

slotslotslotslotDevelopment

Twin Footwall Cross Cut

Drain Hole

Shaft

Stope Access &

Infrastructure Cut 1 : Mature

Cut 2 : LHS Starts

Cut 3 : Destress

Starts

Return Ventilation Pass

Intake Ventilation Pass

Ore Pass


12

Capital infrastructure

Capital Development - 2016 - 2022

2017

2018

2019

2020

2021

2022

2W Main Crusher

Feeds rock to 100 level and

105 level conveyers

4W Main Crusher

Feeds 105 level conveyor

Corridor 2A

Cross Cut

Development

100-1A and 1B

Cross Cut

Development

Corridor 4

Cross Cut

Development

Corridor 3

Cross Cut

Development

Corridor 2B

Cross Cut

Development

105 level conveyor

100 level conveyor

95 level

93 level

Twin Shaft

South Shaft

93 Level access to 1W (2018)

• Return air ways

• Access to 93 level workshop100 level

workshop


13

Geotechnical considerations: Seismicity

-

20,000

40,000

60,000

80,000

100,000

120,000

0

50

100

150

200

250

Jan'

11

Mar

'11

May

'11

Jul'1

1

Sep

'11

Nov

'11

Jan'

12

Mar

'12

May

'12

Jul'1

2

Sep

'12

Nov

'12

Jan'

13

Mar

'13

May

'13

Jul'1

3

Sep

'13

Nov

'13

Jan'

14

Mar

'14

May

'14

Jul'1

4

Sep

'14

Nov

'14

Jan'

15

Mar

'15

May

'15

Jul'1

5

Sep

'15

Nov

'15

Jan'

16

Mar

'16

May

'16

Jul'1

6

Sep

'16

Nov

'16

tonnes

Seis

mic

Energ

y (

MJ)

Seismicity (Energy) vs Production

Seismic Energy (MJ)

Destress (tons)

Massive (tons)

Crush pillars in LP Destress Stopped for

secondary support

All HP DestressCombined

LP & HP

-

10,000

20,000

30,000

40,000

50,000

60,000

0

20

40

60

80

100

120

140

Jan'

11

Mar

'11

May

'11

Jul'1

1

Sep

'11

Nov

'11

Jan'

12

Mar

'12

May

'12

Jul'1

2

Sep

'12

Nov

'12

Jan'

13

Mar

'13

May

'13

Jul'1

3

Sep

'13

Nov

'13

Jan'

14

Mar

'14

May

'14

Jul'1

4

Sep

'14

Nov

'14

Jan'

15

Mar

'15

May

'15

Jul'1

5

Sep

'15

Nov

'15

Jan'

16

Mar

'16

May

'16

Jul'1

6

Sep

'16

Nov

'16

Destr

ess (

tonnes)

No. of E

vents

Seismicity (Events) vs Destress Production

No. of Events

Destress (tons)

Crush pillars in LP Destress Stopped for

secondary support

All HP DestressCombined

LP & HP

Strong correlation with destress stoping volumes

Lower energy release rates (potency) due to improved mining methods (increased regional stiffness)


Mine planning and production profile

15

Mine planning


Ramp-up in LHS will drive future production

56 49 53 47 64

43 41

24 24

39 35

33

31 33

64 80

82 110

113 150 160

0

50

100

150

200

250

2016 2017 2018 2019 2020 2021 2022

kt/m

th

Development Destress Stoping

153

174

Longhole Stoping

47%

8 Rigs

26 Stopes

57%

9 Rigs

26 Stopes

54%

9 Rigs

30 Stopes

67%

11 Rigs

35 Stopes

68%

12 Rigs

35 Stopes

52%

8 Rigs

19 Stopes

44%

6 Rigs

15 Stopes

144

235224

210192

Production ramp-up achieved through:

● Increased contribution from longhole stoping

● Increased mining footprint (increase in number of available faces/stopes)

● Increased productivity

16

LoM tonnage profile: Average tonnes per month


70 years of steady state mining

0

5

10

15

20

25

30

0

50

100

150

200

250

3002

01

6

201

8

202

0

202

2

202

4

202

6

202

8

203

0

203

2

203

4

203

6

203

8

204

0

204

2

204

4

204

6

204

8

205

0

205

2

205

4

205

6

205

8

206

0

206

2

206

4

206

6

206

8

207

0

207

2

207

4

207

6

207

8

208

0

208

2

208

4

208

6

208

8

209

0

209

2

209

4

Au P

roduction (

t)

Ore

Pro

duction (

kt/m

th)

Current

Mine

NoW

SoW East

80kt/mth

SoW West

150 kt/mtht Au

Steady state from

Current Mine and North of Wrench

2022 ≈ 10 years

South of Wrench

(East and West)

Destress starts in 2033 ≈ 63 years

230

17

Production profile: Tonnes and ounces

Steady build-up to full production

● 2016 saw a step change in production as the base was reset

● Production build up will be much steadier over the next six years as South Deep approaches full

production

● Mining from North of Wrench increases from 36% to 73% at full production

● At steady state:

Production = 15.5t (500koz)

AIC = R400,000/kg (US$900/oz)


36%46%

64%68%

75% 69%73%

64%

54%

36%32%

25% 31%27%

0

2

4

6

8

10

12

14

16

0

50

100

150

200

250

2016 2017 2018 2019 2020 2021 2022

TonnesKtpm Production profile

North of Wrench Current mine Annual production (rhs)

0

1

2

3

4

5

6

0

50

100

150

200

250

300

350

400

450

500

2016 2017 2018 2019 2020 2021 2022

g/tkoz Ounces produced vs. recovered grade

Annual production Recovered grade

18

Cost and capital profiles


Most of the capital is sunk

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2016 2017 2018 2019 2020 2021 2022

Rm South Deep capital profile

Sustaining capex Growth capex

0

200

400

600

800

1000

1200

1400

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

2016 2017 2018 2019 2020 2021 2022

AIC: R/kg and US$/oz

R/kg US$/oz (rhs)

● Most of the operating expenditure is in the cost base

70% - 80% of South Deep’s cost base is fixed

● Significant improvement in unit costs as volumes ramp up

● Total growth capital of R2,280m will be spent over the next six years – mainly on underground

infrastructure (R1,044m) and follow-on development (R724m)

Executive summary and risks

20

Executive summary (in 2017 money terms)

Long Term Guide

1. Gold production remains at

circa 500koz per annum from

2023 to 2031 and thereafter

reduces to circa 480 koz per

annum due to a reduction in

grade.

2. Operating costs remains at

circa R4.5bn per annum after

2022.

3. Sustaining capex reduces

from R1b in 2022 to circa

R800m per annum from 2026

onwards.

4. Growth capex increase

steadily from R250m in 2022

to R880m in 2027 to account

for South of Wrench

expenditure, and thereafter

steadily reduces to R200m

per annum in 2040.

5. South of Wrench capex

commences in 2024 and

escalates to a peak of R600m

in 2031 before dropping off.

6. All in Costs remain below

US$900/oz after 2022 and

reduce to US$800/oz from

2044.

Description Unit 2016 2017 2018 2019 2020 2021 2022

Tonnes Milled kt 2 249 2 452 2 868 2 733 2 687 2 766 2 861

Underground Reef kt 1 634 1 829 2 085 2 300 2 518 2 691 2 815

Underground Waste kt 107 56 182 183 168 75 46

Surface kt 508 567 600 250 - - -

Recovered Grade g/t 4.02 4.00 3.88 4.47 5.10 5.56 5.40

Underground g/t 5.16 5.17 4.89 4.91 5.10 5.56 5.40

Surface g/t 0.08 0.08 0.08 0.08 - - -

Gold Produced kg 9 032 9 800 11 136 12 224 13 698 15 385 15 454

Ounces Produced koz 290 315 358 393 440 495 497

All-In-Cost Rm 5 248 5 734 6 325 6 736 6 428 6 425 6 217

Operating Cost Rm 4 003 4 296 4 650 4 685 4 736 4 755 4 790

Capital Expenditure Rm 1 145 1 291 1 559 1 952 1 590 1 562 1 318

Other Cost Rm 101 147 115 99 103 108 108

All-In-Cost R/kg 583 059 585 129 567 910 551 004 469 273 417 647 402 273

All-In-Cost US$/oz 1 234 1 280 1 240 1 195 1 020 905 875

Operating Expenditure Rm 4 003 4 296 4 650 4 685 4 736 4 755 4 790

Labour Rm 1 872 2 060 2 254 2 227 2 239 2 217 2 220

Stores Rm 896 971 1 034 1 068 1 092 1 120 1 145

Outsourced Services Rm 382 384 298 293 293 292 292

Utilities Rm 436 513 547 577 590 600 608

Other Rm 417 369 516 519 522 524 525

Capital Expenditure Rm 1 145 1 291 1 559 1 952 1 590 1 562 1 318

Sustaining Capex Rm 1 030 1 004 1 135 1 370 1 237 1 289 1 066

Growth Capex Rm 115 287 424 582 353 274 253


Investor Relations Contacts Media Contact

Avishkar Nagaser

Tel: +27 11 562 9775

Mobile: +27 82 312 8692

E-mail:

[email protected]

Sven Lunsche

Tel: +27 11 562 9763

Mobile: +27 83 260 9279

E-mail:

[email protected]

Thomas Mengel

Tel: +27 11 562 9849

Mobile: +27 72 493 5170

E-mail:

[email protected]

mailto:[email protected]



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