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BMO Capital Markets Global Metals and Mining ConferenceCASH POSITIVE DESPITE THE LOWER GOLD PRICE
Nick Holland29 February 2016
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.
BMO Global Metals and Mining Conference, Nick Holland, 29 February 2016
3
Q4 and FY 2015 Results
BMO Capital Markets Global Metals and Mining Conference, Nick Holland, 29 February 2016
Salient features
Cash positive despite the lower gold price
Net cash flow from operating activities of US$47m (FY15: US$123m)
Attributable gold equivalent production up 2% QoQ to 566koz (FY15: 2,159koz)
All-in costs down 2% QoQ to US$942/oz (FY15: US$1,026/oz)
Normalised earnings of US$15m (FY15: US$45m)
Final dividend of 21 SA cents declared (FY15: 25 SA cents)
Net debt decreased US$47m QoQ to US$1,380m, net debt to EBITDA at 1.38x
South Deep – production up 24% QoQ to 68koz (FY15: 198koz)
FY16 guidance – production of 2.05-2.10Moz at AIC of US$1,035-1,045/oz
Impairments of US$300m – none of the significant operating assets affected
4
477000451,000
496,000
598,000
557,000 548,000559,000 556,000
501,000
535,000557,000 566,000
0
200
400
600
800
1000
1200
1400
1600
1800
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015
US
$/o
z
Ounces
Attr Gold Produced Gold Price AIC
Steady decrease in all-in costs
Q4 2015: production up 2%, all-in costs down 2%, gold price flat
Steady decrease in AIC through 2015
BMO Global Metals and Mining Conference, Nick Holland, 29 February 2016
2015
Production: 2,159koz
AIC: US$1,026/oz
2014
Production: 2,219koz
AIC: US$1,087/oz
2013
Production: 2,022koz
AIC: US$1,312/oz
5
Strong focus on cash generation
Net cash flow
US$123m net cash flow from operating activities generated in FY15
-45
-229
4
3854
65 6354
-29
30
75
47
1,625 1,3721,315
1,265 1,283 1,275 1,2651,179 1,198 1,174
1,103 1,092
-2,000
-1,500
-1,000
-500
0
500
1,000
1,500
2,000
-350
-250
-150
-50
50
150
250
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015
US
$/o
z
US
$ m
illio
n
Net cash flow Gold price
Net cash flow from operating activities after taking account of net capital expenditure, environmental payments, debt service costs and non-recurring items.
2013 2014
Gold: US$1,249/oz
Net cash: US$236mGold: US$1,386/oz
Net cash: (US$232m)
2015
BMO Global Metals and Mining Conference, Nick Holland, 29 February 2016
Gold: US$1,140/oz
Net cash: US$123m
6
Comfortable balance sheet, with flexibility
● Net debt of US$1,380m at 31 December 2015
● Net debt to EBITDA of 1.38x at end-Q4 2015
● Unutilised facilities of US$844m and R2.5bn
● First debt maturity in November 2017
Balance sheet
Continue to lower net debt
0.8
1.0
1.2
1.4
1.6
1.8
0
500
1,000
1,500
2,000
Q42013
Q12014
Q22014
Q32014
Q42014
Q12015
Q22015
Q32015
Q42015
US
$m
Net debt (US$m) and Net debt/EBITDA
Net debt Net debt/EBITDA
BMO Global Metals and Mining Conference, Nick Holland, 29 February 2016
0
500
1,000
1,500
2,000
2,500
3,000
3,500
US$ facilities Rand facilities Total facilities
US
$m
Debt facilities
Utilised Unutilised
950
1,000
1,050
1,100
1,150
1,200
1,250
1,300
0.00.20.40.60.81.01.21.41.61.8
Q42013
Q12014
Q22014
Q32014
Q42014
Q12015
Q22015
Q32015
Q42015
US
$/o
z
Net debt/EBITDA and gold price
Net debt/EBITDA Gold price
7
South Deep
Target is to reach breakeven by end-2016
• Required leadership in place
• Bedding down a performance driven culture
• Skills development strategy developed
• Significant improvement in safety performance
• Positive production trends emerging
• Simplified destress mining being implemented
• Targeting cash breakeven by end-2016
2016 Guidance
• Production: 257koz
• AISC: R550,000/kg
• AIC: R575,000/kg
• Capex: R999m
• Exchange rate: R14.14 = US$1.00
Q4
2015
Q3
20152015 2014
Production koz 68.1 54.9 198.0 200.5
AISC US$/oz 1,095 1,404 1,490 1,548
AIC US$/oz 1,156 1,431 1,559 1,732
49
36 39
55
68
0
500
1,000
1,500
2,000
2,500
0
10
20
30
40
50
60
70
80
Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015
Production (koz) and AIC (US$/oz)
Production AIC
-361
-398
-330
-266
-57
0
100,000
200,000
300,000
400,000
500,000
600,000
-450
-400
-350
-300
-250
-200
-150
-100
-50
0
Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015
Net Cash Flow (R million) and Gold Price (R/kg)
Net cash flow Gold Price
BMO Global Metals and Mining Conference, Nick Holland, 29 February 2016
Business performance
8
South Deep
● 98% of critical skills appointed
● Business improvement implementation
capacity established
● Fleet renewal
● Infrastructure upgrade and maintenance
● Improvement in underground working
conditions
● Employee motivation through improved
working conditions, safety performance,
reward programs and engagement
BMO Global Metals and Mining Conference, Nick Holland, 29 February 2016
Key factors underpinning performance improvements
Operating platform improving
Key Pillars
1. People
2. Safety and health
3. Mechanised Fleet
4. Infrastructure
5. Mining
6. Mine design and planning
7. Systems
BUSINESS IMPROVEMENT
● BI Team
Program Manager
Project managers
Execution teams
● 68 Projects
Project management
framework
Progress monitoring and
reporting in early stages
TRACKLESS FLEET
● Fleet Renewal
24 new units commissioned
3 old units decommissioned
Fleet size increased from 74 to 95
● Planned Maintenance
93L Workshop commissioned
OEM Maintenance contracts commenced in Q4
BUSINESS IMPROVEMENT TRACKLESS FLEET
9
South Deep
Positive trends
Underground operations gaining momentum
BMO Global Metals and Mining Conference, Nick Holland, 29 February 2016
0
20
40
60
80
100
120
140
160
Q1 2015 Q2 2015 Q3 2015 Q4 2015 2014 2015
Tonnes (
‘000)/
Q
Long Hole Stoping Production & Contribution
24% 22%
0
10
20
30
40
50
60
70
80
90
Q1 2015 Q2 2015 Q3 2015 Q4 2015 2014 2015
Num
ber
of
Ends
Destress Face Availability
0
10
20
30
40
50
60
70
80
Q1 2015 Q2 2015 Q3 2015 Q4 2015 2014 2015
Tonnes (
‘000)/
Q
Backfill Production (kt)
34%40%37%36%
0
200
400
600
800
1000
1200
1400
1600
Q1 2015 Q2 2015 Q3 2015 Q4 2015 2014 2015
m/Q
DevelopmentCurrent Mine
New Mine
10
South Deep
People / Skills / Organisational culture
Empowering the team
BMO Global Metals and Mining Conference, Nick Holland, 29 February 2016
30%
52%
6%12%
Employee Satisfaction Barometer (Q4 2015)
Strongly Satisfied
Satisfied
Strongly Dissatisfied
Dissatisfied
Experienced leadership team in place
143 of 146 core positions filled
Business Improvement team established
47 x Artisans in training
OEM Maintenance contracts (Q4 2015)
(26% of mining contribution)
Disciplined culture
Performance oriented
Personal engagement
Quality
Skills
Culture
11
FURTHER SAFETY IMPROVEMENTS
SUSTAINABLE IMPROVEMENT
257 KOZ GOLD
CASH BREAKEVEN BY YEAR-END
South Deep
BMO Global Metals and Mining Conference, Nick Holland, 29 February 2016
Looking forward
Targeting cash breakeven by end-2016 – continuous improvement thereafter
• Strong focus on basic
operational requirements
remain
• Operating conditions
• Workforce confidence and self
belief
BASICS
• Engineering skills
development program
continues
• Planned maintenance:
develop systems & business
processes
• Shafts and winders
ASSET MANAGEMENT
• High profile destress stoping
• Seismic risk correlation to
increased production
• Mining value chain
management and operational
flexibility
MINING METHODS
2016
12
Solid global portfolio
BMO Global Metals and Mining Conference, Nick Holland, 29 February 2016
Production and AIC (ex South Deep)
Operations cash positive at US$1,100/oz gold price
● Attributable production Q4 2015: 498koz (FY15: 1.96Moz)
● AIC Q4 2015: US$912/oz (FY15: US$944/oz)
● Net cash flow from international operations Q4 2015: US$86m (FY15: US$334m)
0
100
200
300
400
500
600
Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015
Equivalent production (koz)
0
200
400
600
800
1,000
1,200
Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015
AIC (US$/oz)
13
Australia: Exploring the Orogenic Mines
● Post depletion reserves expected to be
largely unchanged
● Resources expected to increase
between 10% and 15%
● Discovery of Invincible South
● Cinderella and FBH in development
● Strong reserve and resource addition
continues at Wallaby
● Comprehensive update of geophysics
program has provided definition of
structures and alteration under cover
generating new drill targets
BMO Global Metals and Mining Conference, Nick Holland, 29 February 2016
Return on the 2015 investment
Orogenic exploration continues to deliver
● A$86m planned for 2016
● Exploration drill drive to commence to
Waroonga North (Agnew)
● Continue to grow the Resource and
Reserve on the discoveries at Cinderella,
FBH, and Invincible South
● Complete resource growth and scoping
study on the Paleochannel Resources (St
Ives)
2016-2017 Focus
14
St Ives
● Additional Invincible style shoot located within the Speedway Trend
● Higher grade than previous shoots
● Initial Resource of 1.4 Mt @ 6.9 g/t (312koz) defined to a depth of 400m, open down plunge
● Pit and underground potential
● Q4 intercepts:
19.1m at 12.1 g/t Au
11.4m at 13.9 g/t Au
11.0m at 14.7 g/t Au
BMO Global Metals and Mining Conference, Nick Holland, 29 February 2016
Invincible South
A new high grade resource
~20
0m
750m
NW SE
15
St Ives
● Exploration focused on sparsely
tested flanks of camp
● 30km Speedway trend being
systematically explored targeting
Invincible analogues
● 21 new targets advanced in
exploration pipeline
● Reinterpretation of geology and
structure in an area of shallow
cover growing central corridor
● Lead to multiple ore grade
intersections in reconnaissance
diamond drilling at Retribution
BMO Global Metals and Mining Conference, Nick Holland, 29 February 2016
New exploration fronts
Still discovering mineralised systems on large tenement package
16
Agnew/Lawlers
Drill drive design to test multiple
targets on the way to Waroonga
North and expedite production
BMO Global Metals and Mining Conference, Nick Holland, 29 February 2016
Waroonga North
High grade Kim analogues
Target
Areas
Figure: Waroonga Complex looking east, orthogonal to Emu shear. 2015/2016 exploration drilling piercing points in red.
Au g/t
500m
Drill intersections
2015/16
Pre-2015
17
Agnew/Lawlers
BMO Global Metals and Mining Conference, Nick Holland, 29 February 2016
Cinderella
A growing resource and reserve base
● Accelerated development to open
up deposit (commenced Q4 2016)
● Incline provides access to drill below
Cinderella and Hidden Secret
targets
● Drilling plan to grow reserves
● First ore H2 2016
● Contained ounces
55koz reserve, 101koz LoM
Cinderella
Incline
N
New Holland
Open Pit
Face positions
as of end of
December
Hidden
Secret Open
Pit
Cinderella
Waroonga UG
Grey = As-mined
Blue = Planned stopes
Red = Vent drive
Other = Development
Cinderella
North
Target
Himitsu &
Hidden
Secret
Targets
Cinderella
East
Target
200m
18
Darlot
Exploration update – Assay highlights
BMO Global Metals and Mining Conference, Nick Holland, 29 February 2016
19
Granny Smith
Wallaby
Growing and growing and growing
Wallaby Underground
• Over 63km diamond core drilled in
2015 - 48km in plan for 2016
• Further extensions to Z100, Z110 and
Z120 expected in 2016
• Deep exploration drilling at Wallaby
continues to confirm the interpretation
of 5 lenses (Z125 to Z150) below
defined resources
• Excellent results from Z135 to date:
6.0m @ 9.70g/t 14.8m @ 13.66g/t
15.6m @ 17.87g/t 26.9m @ 9.13g/t
• The Wallaby system remains open at
depth
• Alternate Haulage Study to optimise
cash flow and production in progress
BMO Global Metals and Mining Conference, Nick Holland, 29 February 2016
Zone 250
Zone 60Zone 70
Zone 80
Zone 90
Zone 100
Zone 110
Zone 120
Thet’s Shear
Zone 150
Zone 140
Zone 135
Zone 125
Zone 130
1.9
km
dep
th
Current vertical extent
of reported R&R
Current vertical extent
of mine development
Advanced exploration
target area Z125-150
20
Granny Smith
Regional exploration
• Major evaluation of regional lease holding
commenced in 2015
• Over 56km of aircore drilled in 2015 –
returning an abundance of anomalous
intersections and highlighting several new
areas of interest. 96km of follow-up and
new programs in plan for 2016
• Establishing geological framework, as was
successfully applied at St Ives, key to
improved geological understanding and
future target generation
• Diamond drill testing at Alabama has
intersected (low grade) anomalous intervals
with visible gold observed in the core
• Studies to optimise a potential open pit
(~75koz) and underground (~350koz) at
Granny Smith are underway
• Least explored of all the Australian assets
BMO Global Metals and Mining Conference, Nick Holland, 29 February 2016
Aircore Drilling Completed 2015 – max Au
6m @ 6.88g/t
2m @ 2.56g/t
2m @ 4.88g/t
2m @ 1.57g/t
10m @ 0.41g/t
2m @ 1.57g/t
2m @ 1.14g/t
Northern Fleet Project
anomalous trend – +6km
Alabama Project Area
– visible Au in core
21
Conclusions
● Cash flow and margin – Make money at current prices
● Committed to delivering on our plans in terms of both production and costs
Near-mine exploration continues
Ongoing development of orebodies is critical
● Continue to reduce net debt – Targeting net debt/EBITDA of 1x
Balance sheet has flexibility with regards to capacity and maturity
● We are firmly focused on delivering a sustainable South Deep – encouraged by early signs
● Continue to evaluate value-accretive opportunities
BMO Global Metals and Mining Conference, Nick Holland, 29 February 2016
Strategic priorities
Focus on cash
● Attributable equivalent gold production: 2.05-2.10Moz
● AISC: US$1,000-1,010/oz
● AIC: US$1,035-1,045/oz
2016 Group guidance
Investor Relations Contacts
Avishkar Nagaser
Tel: +27 11 562 9775
Mobile: +27 82 312 8692
E-mail:
Francie Whitley
Tel: +27 11 562 9712
Mobile: +27 82 321 7433
E-mail: