Second Quarter 2011 and Interim Results Period ending 30 June 2011 - - PowerPoint PPT Presentation

Second Quarter 2011 and Interim Results Period ending 30 June 2011

11 August 2011

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. 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 forward looking statements. Such risks, uncertainties and other important factors include among

• thers: 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; 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 environmental regulations; and new legislation affecting mining and mineral rights; changes in exchange rates; currency devaluations; inflation and other macro-economic factors, industrial action, temporary stoppages of mines for safety and unplanned maintenance reasons; and the impact of the temporary stoppages of mines for safety and unplanned maintenance reasons; and the impact of the AIDS crisis in South Africa. These forward looking statements speak only as of the date of this document. The company undertakes no obligation to update publicly or release any revisions to these forward The company 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

• ccurrence of unanticipated events.

2

Overview

June 2011 Salient Features

NCE margin (%) Increased production, good cost control and higher gold price boost earnings

• 5% increase in equivalent production to

872,000 ounces

NCE margin (%)

21% 21% 21%

• Operating margin increased to 47%
• NCE margin of 21% for Q1 2011 and H1 2011

14%

• Good cost control across the Group
• Rand denominated net operating costs up 1% y/y

and 5% q/q

14%

• Net earnings1 increase 15% to

R1.3 billion, SA184 cps

Q1 2011 Q2 2011 H1 2010 H1 2011

4

1 Normalised net earnings

June 2011 Salient Features

DPS (SA cents per share) Delivering the gold price to shareholders

• Free cash flow of R669 million1

DPS (SA cents per share)

100

• Concluded the acquisition of minority interests

in Peru and Ghana

70 70

• Good progress made on growth portfolio

50

• Interim dividend of SA100 cps

Dec-09 Jun-10 Dec-10 Jun-11

1 Cash generated from operations less capex

5

Growing the NCE Margin

1600 US$/oz 1400

21%

1000 1200 800 400 600 Jun 2008 Dec 2008 Jun 2009 Dec 2009 Jun 2010 Dec 2010 Jun 2011 Jun 2008 Dec 2008 Jun 2009 Dec 2009 Jun 2010 Dec 2010 Jun 2011 Gold Price Cash Costs NCE

6

Creating a Globally Diversified Company

63% 59% 52% 50% 47% 37% 41% 48% 50% 53% 37%

H1 2008 H1 2009 H1 2010 H1 2011 Pro-forma H1 2011 H1 2008 H1 2009 H1 2010 H1 2011 Pro-forma H1 2011 International Production SA Production

1

7

1 Gold equivalent attributable production

Improving the Profitability of the Portfolio

45 1 100 000 Ounces % 35 40 800 000 900 000 1 000 000 20 25 30 500 000 600 000 700 000 10 15 20 200 000 300 000 400 000 500 000 5 100 000 200 000 H1 2008 H1 2009 H1 2010 H1 2011 H1 2008 H1 2009 H1 2010 H1 2011 International Production (lhs) International NCE margin (rhs)

1

8

1 Gold equivalent managed production

Australasia Region Overview

• Q2 production of 159,000oz (Q1: 158,000oz)



Significant turnaround at Agnew

 33% increase in production to 50,400oz at Agnew

• Transition to owner mining at St Ives (U/G) completed
• Athena construction completed – ramping up to full

production

Brisbane

Agnew St Ives

production

• Hamlet construction underway
• Aim to replenish reserve depletion during 2011

Perth Sydney Melbourne Kalgoorlie

NCE margin; H1 y/y (%) Contribution to Group EBITDA; H1 2011

21 13 21 June 2010 June 2011

South Africa Region Overview

• 9% increase in production to 447,000oz

Safety: the key to sustainable delivery

 Solid performance from Beatrix - 32% increase in production to

98,000oz and an NCE margin of 23%

• Business Process Re-engineering delivering results



Absorbed cost inflation (6% / increase in operating costs)

D b Bloemfontein Johannesburg

South Deep KDC

Pretoria

Beatrix



Absorbed cost inflation (6% y/y increase in operating costs)

• Shaft

Full Potential Programme aimed at stabilising production at KDC between 1.0 and 1.1Moz per annum

Cape Town Durban

14

NCE margin; H1 y/y (%) Contribution to Group EBITDA; H1 2011

6 4 14

• 4

June 2010 June 2011 Incl South Deep Excl South Deep Incl South Deep Excl South Deep

10

South America Region Overview

• Q2 gold equivalent production1 101,000oz

(Q1 2011 108 000 )

A major cash generator

(Q1 2011: 108,000oz)

• 2% decrease in NCE to US$526/oz
• Buy-out of minority shares concluded

Cerro Corona Chucapaca PERU

Lima

y y  Ownership increased to 98.5% from 80.7%

• Oxides and Resource expansion projects progressing well

Chucapaca Project

NCE margin; H1 y/y (%) Contribution to Group EBITDA; H1 2011

52 61 June 2010 June 2011

11

1 Managed

West Africa Region Overview

Acquisition of minorities completed

• Q2 production1 of 237,200oz (Q1: 241,600oz)
• NCE of US$885/oz, 6% lower q/q

MALI Bamako

• Concluded acquisition of minority interest

 Ownership increased to 90.0% from 71.1%

• Transition to owner mining and maintenance

at Damang completed

Accra

Tarkwa Damang

GHANA Bamako

Yanfolila Project

at Damang completed  US$7 million in cost savings realised in Q2 2011  Cost per ton:

• Pre transition

$4.00 /t Q2 2011 $2 70 /t (i l 30% l t i it i )

NCE margin; H1 y/y (%) Contribution to Group EBITDA; H1 2011

Damang

• Q2 2011

$2.70 /t (incl. 30% electricity increase)

32 37 June 2010 June 2011

12

1 Managed

Growth Portfolio

South Deep Project – South Africa

800

Production Build-up (ounces)

Building a world-class mine

• Production of 76 100oz 3% increase q/q

400 600

Production of 76,100oz, 3% increase q/q

• Infrastructure projects tracking well
• Development and de-stress mining rates

i i

200 C2009 A C2010 A C2011 E C2012 E C2013 E C2014 E

improving  11% increase q/q in de-stress mining to 5,529m F2010 F2011 C2012 F2013 F2014 Status



Capital Programme

Refrigeration Plant



Twin Vent Shaft



Tailings Storage Facility



g g y Plant Expansion



New Mine Development



14

Damang Super Pit Project - Ghana

Damang Reserves (‘000 ounces)

6 000

Targeting a four-fold increase in reserves to 4Moz at Damang Super Pit

• Grade control model extrapolated to depth

and evaluated for mining potential

5 000 6 000

• 25,000m Proof of Concept Drilling

completed to test extrapolated continuity

4 000

• Second drilling campaign of 45,000m 50%

complete

2 000 3 000

• Pre Feasibility Study scheduled for early

2012

1 000

• Production growth and life extension

June 2008 June 2009 Dec 2010 Target Damang Super Pit Other

15

Damang Super Pit Project - Ghana

Damang Pit Cut-Back

Huni Damang Juno

180m at 2.4 g/t Au 122m at 1.7 g/t Au 605m at 0 6 g/t Au 408m at 0.5 g/t Au

current pit shell drill hole intersection surface topography drill hole trace

72m at 3.9 g/t Au 270m at 1.0 g/t Au 605m at 0.6 g/t Au 425m at 0.7 g/t Au g 144m at 3.9 g/t Au 351m at 1.2 g/t Au

drill hole trace

72m at 0.8 g/t Au 189m at 0.6 g/t Au 181m at 0.5g/t Au 351m at 0.8g/t Au 300m at 1.3 g/t Au 402m at 1.1 g/t Au 168m at 0.6g/t Au 355m at 0.8 g/t Au 240m at 1.0 g/t Au 349m at 1.1 g/t Au

N

500m 16

Damang Super Pit Project - Ghana

Damang Super Pit Project

Current Pit Reserve Shell ($1,000/oz) Reserve Shell ($1,000/oz) Greater Damang Extensional Shell ($925/oz) 3 km 3 km

Chucapaca JV Project - Peru

• Phase II drilling underway

Twelve drill rigs on site working on infill step out and geotechnical drilling

Drilling extending current resource

Twelve drill rigs on-site working on infill, step-out and geotechnical drilling 90,000 meters of drilling to date

• Canahuire drilling returning positive results

Deposit open to the West and at depth Improving grades

• Updated resource expected September 2011
• Updated resource expected September 2011
• Initial metallurgical test work complete and optimisation study in progress

f

• Environmental baseline study work for EIA underway
• Feasibility Study targeted for completion by H2 2012

18

Chucapaca JV Project - Peru

5.6 Million Ounce au-eq (May 2010) Resource Shell

1.3km 1.3km 350m

Grades improving Model extending

19

Arctic Platinum Project - Finland

A 12Moz palladium-rich 2PGE+Au Resource in a low risk country

Suhanko Mining Area

• Pilot plant metallurgical test work on

schedule

• Pilot flotation campaign completed

p g p

• Integrated refinery pilot plant campaign

underway

• Overall metal recoveries compare favourably

t j ti f b h l t t k to projections from bench-scale test work data

• Results expected H2 2011

KONTTIJÄRVI

36Mt 2.25g/t 2PGEAu 0.18% Cu

VAARALAMPI

26Mt 0.98g/t 2PGEAu 0.17% Cu 0.18%Ni

TUUMASUO

23Mt 0.88g/t 2PGEAu 0.19% Cu 0.21%Ni

• Environmental Impact Assessment

process initiated

• Pre Feasibility Study underway

AHMAVAARA

95Mt 1.66g/t 2PGEAu 0.26% Cu 0.09%Ni 0.18% Cu 0.07%Ni

• Pre-Feasibility Study underway

20

Yanfolila Project - Mali

Targeting 1.5 – 2.0Moz starter Resource

• Resource delineation drilling delivering positive results
• Four rigs on the Komana East, Komana West and Kabaya South deposits

38 000 d illi l t d

• ~38,000m drilling completed
• Current estimated Resource 1Moz compared to 740,000 oz at end of 2010
• Target definition work and initial drilling on several other targets located within a 20km

radius of Komana East radius of Komana East

• Scoping Study scheduled for Q4 2011

21

Yanfolila Project – Mali

• Approximately 13,000m of drilling completed

Komana East Deposit

• Positive results returned from infill and extension drilling
• Deposit open to the North and at depth

Komana East – Long Section

KRC0265 – 36m @ 5.01g/t KRC0263 – 25m @ 4.54g/t KRC0267 – 19m @ 4.21g/t KRCD0224 – 16m @ 4.42 g/t

N S

KRCD0407 – 20.4m @ 1.58 g/t Current Design

• Dec. 2010 Pit-Shell

KRCD0243 – 13m @ 23.51g/t KRCD0218 – 26m @ 11.69g/t KRCD0279A – 9.75m @ 6.26g/t KRCD0270 – 15.6m @ 3.48g/t KRCD0272 – 25.7m @ 3.67g/t

400m

KDD0617 – 12.6m @ 5.88g/t

22

400m

Far Southeast Project – Philippines

• Eight diamond underground drill rigs turning
• Completed

22 000m of drilling

• Completed ~22,000m of drilling
• Approval for surface drilling obtained – ground preparation commenced
• Early drill results to date support the existence and extent of the known core of

mineralisation and further extensions, both laterally and at depth, outside of this core

• Geotechnical programme underway
• Updated Gold Fields Resource model scheduled for March 2012

23

Far Southeast Project – Philippines

Tubo Shaft

TUBO SHAFT

NW SE Geological Setting Victoria: Prod.1997-present; Victoria : Prod. 1997 Victoria : Prod. 1997-

• present;

present; 18 Mt @ 7.7 g/t Au

Victori a i

18 Mt @ 7.7 g/t Au 18 Mt @ 7.7 g/t Au

veins

New Drilling New Drilling coverage from coverage from 700 level 700 level

SEA LVL.

24

Far Southeast Project – Philippines

Horizontal projection of 2011 drilling

N

500m

25

Far Southeast Project – Philippines

D ill H l FSU115003 Drill Hole FSU115003

Current EOH @ 1,775m

26

@ 1,775m

Far Southeast Project – Philippines

Horizontal Projection of 2011 Drill Results

Drill Hole Id Cut-

• ff

(Au From (m) Int. (m) Au (g/t) Cu (%) Au eq (g/t) Incl Cut-

• ff

(Au From (m) Int. (m) Au (g/t) Cu (%) Au eq (g/t) (Au eq) (g/t) (Au eq) (g/t) FSU111001 0.5 360.0 967.5 0.29 0.43 1.10 1.5 455.0 67.5 0.39 0.85 1.97 1.5 577.5 120.0 0.39 0.54 1.40 FSU114002 0.5 280.0 1155.0 0.67 0.46 1.54 1.5 605.0 155.0 1.34 1.08 3.36 1.5 900.0 277.5 1.12 0.53 2.12 FSU115003 0.5 385.0 872.3 1.06 0.55 2.09 1.5 602.5 552.5 1.49 0.73 2.99

Gold equivalent based on US$1,000/oz gold and US$2.72/lb copper

27

Conclusion

• Growth projects progressing well
• Increased international production diversification

Hi h ld i i d i d h fl

• Higher gold price - improved margins and greater cash flow

28

Q&A

Investor Relations

Zakira Amra Senior Vice President Investor Relations & Corporate Affairs (office) +27 11 562 9775 (mobile) +27 79 694 0267 zakira.amra@goldfields.co.za Nikki Catrakilis-Wagner Investor Relations Manager (office) +27 11 562 9706 (mobile) +27 83 309 6720 ikki t kili @ ldfi ld nikki.catrakilis-wagner@goldfields.co.za Willie Jacobsz Senior Vice President Head of Investor Relations

A Deep Value Opportunity

(office) 508 839-1188 (mobile) 857 241-7127 willie.jacobsz@gfexpl.com