HARNESSING THE GOLD BULL MARKET Focus on total cost of production, - - PowerPoint PPT Presentation

HARNESSING THE GOLD BULL MARKET Focus on total cost of production, free cash flow and margin growth

Merrill Lynch & Co,. Inc Global Metals, Mining & Steel Conference Tuesday, May 13, 2008

Nick Holland

Chief Executive Officer Gold Fields Limited

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Introduction Cautionary Statement

This document and any materials distributed in connection with this document are not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such 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 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 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 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

• r circumstances after the date of this document or to reflect the occurrence of unanticipated events.

STRATEGY

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Operating mines Developing mine

Production: 4 moz Reserves: 92moz Resources: 252moz Mines: 9

Peru Cerro Corona Ghana Tarkwa Damang South Africa Driefontein Kloof Beatrix South Deep Australia St Ives Agnew

Simple corporate structure Diversified - 40% EBITDA from outside SA Unhedged

.

Liquid - 100% free float Daily volume 8 million shares Listed on the NYSE, JSE, DFIX

STRATEGY The Gold Fields Franchise

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STRATEGY Leadership Changes

SEAMLESS TRANSITION, FOCUSED LEADERSHIP

Operational Executive Nick Holland Chief Executive Officer Terence Goodlace Chief Operating Officer

Vishnu Pillay Head of Operations South Africa Glenn Baldwin Head of Operations Australia & Ghana Juan Luis Kruger Head of Operations South America

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Securing the Future Operational Excellence Growing Gold Fields STRATEGY Our Strategic Commitment

SAFE PRODUCTION = PROFITABLE PRODUCTION

Notional Cash Expenditure Free Cash Flow Margin Growth

UNHEDGED

SAFETY!

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100 200 300 400 500 600 700 800 900 1000 Q1F07 Q2F07 Q3F07 Q4F07 Q1F08 Q2F08 Q3F08 Q4F08

Gold Fields Margin

Revenue(US$/oz) Cash Costs (US$/oz)

STRATEGY Our Strategic Commitment

42%

FOCUS ON THE MARGIN

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STRATEGY Our Commitment Unfolding

SOUTH AFRICA Stabilisation of power allocation CERRO CORONA Commissioning June 08, Production & Shipment Q1 F09 TARKWA CIL expansion on track for Q1 F09 start-up SOUTH DEEP A development project gaining momentum ST IVES Developing new underground mines EXPLORATION Rule of Five’s →Rule of Two’s for exceptional returns

IMPROVED CASH GENERATION IN F2009

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FINANCIAL

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CAPTURING THE GOLD PRICE

Attributable production down 14% to 827koz Unit total cash costs US$513/oz (US$467/oz) Operating profit up 17% to US$ 347 million (US$300 million) Core earnings US$138 million (US$88 million) Core earnings up 62% to US$0.21cps Cash flow from operations less all capital ~ US$130 million Interim dividend of ~ US$0.08 (R0.65 per share)

FINANCIAL Q3 F08 Salient Features

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SIGNIFICANT INWARD INVESTMENT

US$m Cash from operations 408 Sustaining capex

South Africa 72 Australia 34 Ghana 25

Subtotal 131 Project capex

Driefontein 9 shaft 8 South Deep 26 Tarkwa CIL Plant 35 Cerro Corona 77

Subtotal 146 Total capex 277

FINANCIAL Q3F08 Capital Expenditure Analysis

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Q3 2008 Q2 2008 Cash

Rm

1,944 1,321 Debt (6,635) (6,412) Long term

Rm

(5,951) (6,037) Short term

Rm

(684) (375) Net debt

Rm

(4,691) (5,091) Net debt

US$m

(586) (727)

FULLY EXPOSED TO THE GOLD PRICE

Western Areas Hedge Closed Out February 2007 1 million ounce hedge retired at US$622/oz ~US$300 million benefit

FINANCIAL Q3F08 Balance Sheet

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GROWING GOLD FIELDS

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100 200 300 400 500 600 700 800 900 1,000

2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 2029 Financial Years

Gold Produced (k oz)

Expansion Base case

Moz sold Expansion Base Case HL 3.6 4.9 CIL 8.0 5.8 Total 11.7 10.7

~750 kozpa

COMPLETION SEPTEMBER 2008

GROWING GOLD FIELDS Tarkwa CIL Expansion 80koz to 100koz ADDITIONAL OUNCES PER ANNUM

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South Deep Project

Current State

Insufficient installed shaft capacity for planned build-up and ore reserve development Conventional VCR depleted 100 Day Plan (Refocus, Restructure, Repair)

Next 18 Months

Focus on completing Twin Shaft Infrastructure Focus on Ore Reserve Development Maintain Production at 80,000 to 100,000 tonnes per month (200koz per annum) New Geological models and build-up plan due after June 08

GROWING GOLD FIELDS South Deep Project

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GROWING GOLD FIELDS South Deep Project

59.3m drop

Vent Raise Shaft Main Shaft Vent Shaft

95 Level

1 May, 2008 ACCIDENT SITE

100 DAYS TO REPAIR

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Schematic Diagram Hoisting Capacity 220 ktpm

Main Vent

Hoisting Capacity 202 ktpm

South Deep

51 Level pump station 84 Level pump station

90 93 95 100 105 110 110A

South

3 SV 2 SV

50 90

Hoisting Capacity 176 ktpm

• 230.9 m
• 225 m

Collar (BD)

• 2,426 m
• 1,334 m
• 1,510 m
• 2,750 m

Vent Raise

95 Level (+-100 000tpm)

1 SV

70 53 56 58 60 63 65 68 71 72 75 78 80 83 85

3 SV Bottom

• 2,993 mbd

2 SV Bottom

• 3,006 mbd

1 SV Bottom

• 2,214 mbd

95A belt level

• 2,940 mbd

Main # Bottom

• 3,221 mbd

95

Decline Length 3,146m at 8º

120 115 125 135 130

(-3495 m)

Kloof

22 23 39 41 43 45

• No. 4

4SV 4 # Bottom

• 3,723 mbd

4 SV Bottom Upgrade to 180,000 tpm Hoisting Capacity 164 ktpm

Surface conveyor

Kloof /South Deep Project

GROWING GOLD FIELDS South Deep Project

PRE-FEASIBILITY STUDY UNDERWAY

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* South Deep projections as per feasibility study Phase 2 ex Kloof Kloof inc 4 # Uncle Harry’s SD phase 2 Phase 1 Current mine

GROWING GOLD FIELDS South Deep Project

Kloof /South Deep Production Profile Mt* ACCELLERATING PRODUCTION

800koz pa

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Jumbo Drill Rig Low Profile Drill Rig Drill Rig

GROWING GOLD FIELDS South Deep Project

THE MINE OF THE FUTURE

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CERRO CORONA ON TRACK

Q3 F08 PROJECT MILESTONES

Mechanical Work Completed:17 April 08 (Crusher, Filtration and Storage Areas) Energization of 220kV power line and Cerro Corona Substation Initiated water storage behind TMF embankment Commissioning Manager and Team appointed Project-Operational transition team and plan in place Approval for Concentrate Shipment and Port EIA

GROWING GOLD FIELDS Cerro Corona Project

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PRODUCTION: JULY 2008

START-UP SCHEDULE

Final Completion of Plant – May Commissioning – June TMF Completion - July Shipping Concentrates – August

GROWING GOLD FIELDS Cerro Corona Project

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CERRO CORONA WILL DELIVER VALUE

Key Performance Indicators Unit Average Yearly Life

• f Mine

Ounces produced

Equivalent koz

~350 Cash Cost

US$/oz

~330 Sustaining Capital

US$/oz

~50 All-in Cost

US$/oz

~400 Project capital US$450m

GROWING GOLD FIELDS Cerro Corona Project

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CONCLUSIONS

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CONCLUSIONS

Outlook

PRODUCTION GROWTH

Q4 F2008 Safety efforts stepped up South African production up 4% International production steady Group costs steady Q1 F2009 South Deep recommence development below 95-level Cerro Corona starts production Tarkwa CIL Plant commissioning commence St Ives underground mines ramping up

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500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 Q3F08 Annualised Pro-forma Cerro Corona Australia Ghana South Africa

Attributable Gold Production

(per annum) (koz)

3,308 4,075

A FOUR MILLION OUNCE PRODUCER

40% 60% CONCLUSIONS

Proforma Production Outlook

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Securing the Future Operational Excellence

Growing Gold Fields

CONCLUSIONS

Growth Strategy

AGGRESSIVE INTERNATIONAL GROWTH

Notional Cash Expenditure Free Cash Flow Margin Growth

UNHEDGED

Maintain the Franchise of Few, Large, High Quality Assets BUT Also Smaller Projects For Exceptional Returns Leverage Existing Positions Strategic Alliances With Juniors Balancing the Portfolio Targeted Exploration Programme

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CONCLUSIONS

Compelling Investment Outlook

HARNESSING THE GOLD BULL MARKET

STABILISING SOUTH AFRICA GHANA & AUSTRALIA POSITIVE PIPELINE BEING DELIVERED URANIUM OPPORTUNITY AGGRESSIVE GROWTH STRATEGY

BOSTON INVESTOR RELATIONS OFFICE Willie Jacobsz

Head of Investor Relations

wjacobsz@gfexpl.com Office: 1 (508) 358-0188 Mobile: 1 (857) 241-7127 www.goldfields.co.za

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Main supply and services cost drivers during FY0 8 YTD:

Steel Products ( 4 0 -5 0 % w eighted) , Fuel ( 5 0 % ) , Tim ber ( 2 4 % ) , Steel Balls ( 5 0 % ) , Foodstuffs ( 1 4 % ) , Services/ Labour Hire ( 1 1 % ) , Cyanide ( 2 0 % )

Steel FY0 8 Quarter 3 and 4 To Date I ncreases: > 6 0 %

6 0 % Steel increases YTD = 1 0 % im pact on Gold Fields Supply and Services basket spend

Gold Fields South Africa FY0 8 I nflation Basket:

March FY0 8 = 1 0 -1 1 % end-FY0 8 est. = 1 2 -1 4 %

PPI?

Gold Fields South Africa Spend Basket: FY0 9 est. im pact > 2 0 %

* Cost Excludes Power and Labour

Q3 F08 FINANCIAL REVIEW

SA Supply & Services Spend

JUST IN TIME NO LONGER APPLIES

?

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Main supply cost drivers during FY0 8 YTD:

Diesel ( 1 5 % ) , Lim e ( 3 0 % ) , Cem ent ( 1 6 % ) , Cyanide ( 1 9 % ) , Steel balls ( 7 % ) , LPG ( 1 6 % )

Gold Fields Australia FY0 8 I nflation Basket:

March FY0 8 = 7 -1 0 % end-FY0 8 est. = 7 -1 0 %

Australian PPI YOY March0 8 : 4 .8 % I nflation for W estern Australian and Mining is higher than general PPI the past couple of years Diesel?

* Cost Excludes Power, Contractors and Labour

Q3 F08 FINANCIAL REVIEW

Australia Supply Spend View

? ? ? ? ?

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Main supply cost drivers during FY0 8 YTD:

Diesel ( 1 5 % ) , Cyanide ( 1 0 % ) , Steel balls ( 1 3 % ) , Tyres ( 2 0 % ) , Am m onia ( 5 9 % )

Ghana CPI YOY Feb0 8 : 1 3 .2 % Mining industry im ported inflation higher than general CPI Gold Fields Ghana FY0 8 I nflation Basket:

March YTD = 1 3 -1 5 % end-FY0 8 est. = 1 4 -1 6 %

* Cost Excludes Power, Contractors and Labour

Q3 F08 FINANCIAL REVIEW

Ghana Supply Spend View

? ?

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OPERATIONAL EXCELLENCE

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NOT GOOD ENOUGH

Fatal accidents despite other improving trends Comprehensive external audit to be initiated Review of pillar & remnant mining Health and Safety plans Technology plans

OPERATIONAL EXCELLENCE Safety

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MANAGING POWER AND SAFETY

685 689 657 520 543 210 196 208 218 218 173 153 159 153 153 200 400 600 800 1,000 1,200 Q4 F07 Q1 F08 Q2 F08 Q3 F08 Q4 F08E

South Africa Ghana Australia

Managed Ounces Estimate

OPERATIONAL EXCELLENCE Production

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SHIELDED BY THE RAND

US$/ounce

• 100

200 300 400 500 600 700 Q4 F07 Q1 F08 Q2 F08 Q3 F08 Q4 F08E Ghana Australia South Africa Group

Estimate

OPERATIONAL EXCELLENCE Costs

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MANAGE THE BASICS WELL

Safety, Health, Environment, Community Volume, Value, Quality Cost Leadership Utilities and Energy Capital

OPERATIONAL EXCELLENCE Strategic Priorities