near mine exploration maintaining the base load...damang gold fields a deep value opportunity 4 what...
TRANSCRIPT
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Near Mine Exploration – Maintaining the Base Load
Diggers and DealersKalgoorlie, Western Australia2nd August 2011
Justin OsborneGeneral Manager Near Mine Exploration – Gold Fields
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Certain statements in this document constitute “forward looking statements” within themeaning of Section 27A of the US Securities Act of 1933 and Section 21E of the USSecurities Exchange Act of 1934.
Such forward looking statements involve known and unknown risks, uncertainties andother important factors that could cause the actual results, performance or achievementsof the company to be materially different from the future results, performance orachievements expressed or implied by such forward looking statements. Such risks,uncertainties and other important factors include among others: economic, business andpolitical conditions in South Africa, Ghana, Australia, Peru and elsewhere ; decreases inthe market price of gold and/or copper; hazards associated with underground and surfacegold mining; labour disruptions; availability terms and deployment of capital or credit,changes in government regulations, particularly environmental regulations; and newregulation affecting mining and mineral rights; changes in exchange rates; currencydevaluations; inflation and other macro-economic factors, industrial action, temporarystoppages of mines for safety and unplanned maintenance reasons; and the impact of theAIDS crisis in South Africa. These forward looking statements speak only as of the date ofthis document.
The company undertakes no obligation to update publicly or release any revisions to theseforward looking statements to reflect events or circumstances after the date of thisdocument or to reflect the occurrence of unanticipated events.
Forward Looking Statements
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A Growth StoryGold Fields
Building a global company
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South AfricaKDCBeatrix
MaliYanfolila
South Deep
Chucapaca
FinlandAPP
PhilippinesFSE
PeruCerro Corona
2001
AustraliaAgnewSt Ives
GhanaTarkwaDamang
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Gold Fields
A deep value opportunity4
What Gold Fields Offers ….
77 million ounces of reservesQuality Reserve
3.6 million ounces annualisedSolid Production Base
US$154 million1 (Q1 2011)Robust Free Cash Flow
Targeting at least 5moz by 20152Strong Growth Pipeline
Net debt only 0.3 of EBITDA3Strong Balance Sheet
If we cannot mine safely, we will not mineCommitment to Safety
Full exposure to gold priceUnhedged
1. Cash flow before financing activities and dividend payments2. In production or development3. Calendar 2010
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Free Cash Flow
Our Value Proposition
Unhedged
Grow cash flow margin per ounce
Grow ouncesper share Sustainability
SecureOur Future
GrowingGold Fields
Optimise OurAssets
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Targeting 5 million ounces by 2015** In production or development
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Growth Portfolio
Strong pipeline in support of growth strategy
Cerro Corona
South Deep
Chucapaca
Far Southeast Arctic Platinum
Yanfolila WoodjamTalas
Exploration projects in 13 CountriesExploration
Scoping
Pre-feasibility
Feasibility
Construction
Production Athena(St Ives)
Hamlet(St Ives)
Cerro Corona Oxides
Damang Super PitCerro Corona Resource
Conversion Project
Argo-Athena Camp (St Ives)Agnew Life Extension, Tarkwa
TOTOS
Regional Exploration at St Ives, Agnew, Damang and Cerro Corona
Greenfields Projects Near Mine Projects
Track record of delivery
Maintaining the Base LoadGrowing Gold Fields
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Exploration underpins the growth strategyExploration and Growth
Near Mine Activities Focus on Prolonging our Assets
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Far South East
Athena - Hamlet
Greater Damang
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Growth Projects – Our FutureChucapaca – Au-Ag-Cu - Peru
• Canahuire initial resource of 5.6 Moz eq
• Scoping study results positive
• Feasibility study fast-tracked
• 100,000m drilling for FS
Arctic Platinum – PGE-Au-Cu-Ni - Finland
• 12Moz 2PGE+Au Resource
• Platsol Pre-Feasibility ongoing
• Aim to start Feasibility study
Yanfolila - Gold - Mali
• Significant land package - 180 x 60km
• Drill intensive project
• Scoping study Q3 2011
A Diversified Advanced PortfolioAA DDiiversiiffiiedd A
5000m in the Andes
Sub-Saharan Mali
Arctic Finland
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Growth Projects - Far Southeast
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Drilling a world-class deposit
Well established mining district
Gold and Copper porphyry• Exceptional grades and scale • Significant exploration upside• Potential Giant deposit
Established infrastructure• Tarred access roads• Existing power lines and substations• Proximity to port facilities• Established camp, and facilities• Local landing strip• Tailings facilities with capacity
Established workforce • Local and supportive• Based on site• Established mining culture
Existing mineral tenure
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Growth Projects - Far SoutheastA massive mineral system – 8 Drill Rigs working Underground
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Exceptional grades – mineralisation open in every direction
100 m
-200 m
FSEAu-Cu
Porphyry
Historic ProductionVictoria 18Mt @ 7.71g/t AuEnargite 40Mt @ 3.05g/t Au, 2.25% Cu
500m
1,60
0m
?
Some historic drill intersections:691m at 2.5g/t Au, 0.9% Cu907m at 1.5g/t Au, 0.5% Cu613m at 0.8g/t Au, 0.8% Cu460m at 3.2g/t Au, 1.0% Cu
Drilling level
Enargite
• Option signed Sept 2010
• Proof of Concept Drilling
• Initial 80000m planned
• Holes upto 2000m long
• Drilling to determine:• Geology• Grade confirmation• Scale
After Hedenquist et al. 2002
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St Ives Mine – a Great Gold Camp
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St Ives District
• One of Australia’s premier gold camps
• 10.8 Moz produced to June 2011
• 5.8 Moz Resource Dec 2010
• Multi-million ounce exploration potential
Athena-Hamlet
• Greenfields discovery in 2006 - 2007
• Combined reserve of 1.1 Moz Dec 2010
• Reserve additions of 525 koz H2 2010
• Established an UG baseload supporting St Ives longer term future
-Hamlet
St Ives Gold Mine
A 20 Million Ounce Camp*
*Historic production plus Resource plus exploration potential endowment
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Athena UndergroundDevelopment to Production
• Capital Project Completed
• Ore drives developed and full production stoping commenced
• Ore body consistent with expectation
Reserve Growth
• Dec 2010: 2.15Mt @ 6.3g/t, 437Koz
• Increase of 104koz - June to Dec ‘10
• Considerable exploration and extensional potential remains
Athena Undergground
R
•
•
•North end
9143 Jupiter OD
South end
$100M Project – Delivered on time and on budget
Underground drilling
St Ives Gold Mine
Reserve price Dec 2010 = A$1225; Resource price Dec 2010 = A$1350
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Hamlet Underground
Resource Development
• Focused Resource conversion H2 2010
• Approx 25,000m drilled to convert resources
• FS completed and construction commenced
Reserve Growth
• Dec 2010 Reserve: 4.2Mt @ 4.89g/t, 659Koz
• Increase of 423koz from June 2010
• Open down plunge potential
• Synergies with Argo-Athena have resulted in formation of a single mining centre
Inferred to Development in 6 Months
June 2010 Reserve
December 2010 Reserve
St Ives Gold Mine
Reserve price Dec 2010 = A$1225; Resource price Dec 2010 = A$1350
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Base load underground for a 10 year mine life
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St Ives Gold MineHamlet Underground
Project Progress
• Project commenced Dec 2010
• 1000m development to date
• Fresh Air Rise Complete
• Interim primary ventilation planned for commissioning end of July
• Finalising power and dewatering strategy
• Primary Vent rise civil commenced
Decline DesignMain access moved to south
Primary Vent Rise in construction
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St Ives Gold Mine
Defined endowment >3.5Moz – with upside potential
The Argo-Athena-Hamlet Corridor
15Resource figures as of December 2010 ** Total Historic Production to June 2011Reserve price Dec 2010 = A$1225; Resource price Dec 2010 = A$1350
Pollux
Hero Zeus
Dido
Yorick
Macbeth
West East
A’A
F2010 DrillTargets
Undrilled Potential
Argo1.3 Moz produced**398Koz Resource
Athena777Koz Resource
Hamlet955koz Resource*
Apollo110 koz produced
Underground drillholes testing for repeats
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The Greater Damang Project
Tarkwa and Damang• Largest gold producer in Ghana• Minority acquisition of IAMGold’s 18.9% stake
approved in the June 2011 quarter• US$667M for:
• Additional 181koz annual production• $540/oz current cash cost and $940/oz NCE• Additional 2.14Moz Reserve & 3.27Moz Resource
Greater Damang Upside• Major open pit expansion opportunity• Combined Huni-Damang-Juno complex• Targeting a substantial growth profile
Tarkwa Upside• TOTOS – mine optimisation project
Adding to the production base
A major expansion opportunity in Ghana
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Bamako
MALI
GHANA
Yanfolila Project
AccraTarkwa Gold MineDamang Gold Mine
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163
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Current Strike Length
JunoDamang Pit Cut BackHuni
v
Potential Strike Length
Potential Depth
Nth Sth
A major expansion opportunity in GhanaThe Greater Damang Project
Targeting a 4Moz Damang Reserve
• Conceptual modelling demonstrates a significant size potential
• Grade control model extrapolated to depth and evaluated for mining potential
• Evaluation demonstrated conceptual pit with >2Moz potential
• 25,000m Proof of Concept Drilling completed to test extrapolated continuity
• Pre Feasibility Study in progress targeting a major cut-back opportunity
• Mining, Environmental, Processing studies
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Current Depth
Reserve price Dec 2010 = US$1000; Resource price Dec 2010 = US$1100Dec 2010 total Damang Gold Mine Reserve = 2.08Moz
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Greater Damang Project
Drilling in the Active Pit – A Logistical Challenge
A complex project in all ways
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D illi i th A ti Pit A L i ti l Ch ll
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Greater Damang ProjectThe Damang Deposit – Cross Section 25710mN
19Drilling results are not true width. These drill holes are drilled down the steep dipping stratigraphy to define overall continuity of mineralisation. Individual flat lodes are intersected and demonstrate higher grade mineralisation consistent with mined ores
Proof of Concept Drilling – Defining Continuity of Mineralisation
Initial conceptual pit shell
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Greater Damang ProjectDetailed Cross Section 25710mN – High Grade Lodes
Initial concept pit shell
High grade lodes intersected to depth – consistent with mined lodesLodes are schematic and for illustrative purposes. Drill intersections represent mineralisation at an approximate 0.6g/t cut-offwith maximum 3m internal dilution, and based on geological interpretation
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The Greater Damang Project
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current pit shelldrill hole intersectionsurface topographydrill hole trace
N 500m
Huni Damang Juno
current pit shellN 500m
72m at 0.8 g/t Au
72m at 3.9 g/t Au
180m at 2.4 g/t Au
181m at 0.5g/t Au
351m at 0.8g/t Au
240m at 1.0 g/t Au
349m at 1.1 g/t Au
300m at 1.3 g/t Au
402m at 1.1 g/t Au
168m at 0.6g/t Au
189m at 0.6 g/t Au
122m at 1.7 g/t Au
270m at 1.0 g/t Au605m at 0.6 g/t Au
425m at 0.7 g/t Au408m at 0.5 g/t Au
144m at 3.9 g/t Au
355m at 0.8 g/t Au
351m at 1.2 g/t Au
Continuity of the Damang Mineralised System
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The Future of Damang
Pre Feasibility Study commenced May 2011
• 45,000m drilling to an 80 x 40m spacing
• To approx 350m below current pit
• 14,000m geotechnical drilling
• Pre Feasibility studies ongoing
• Targeting completion by Q1 2012
• Targeting a total Damang Reserve of 4Moz
Growing Gold Fields - Securing Our Future – Optimising Assets
The Greater Damang ProjectThe Future of Damanggg
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• Growth portfolio developing rapidly
• Global diversification accelerating
• Growing free cash flow margin per ounce
• Growing ounces per share
• A leader in sustainability
A deep value opportunityConclusions
Towards being the global leader in sustainable gold mining
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A DEEP VALUE OPPORTUNITY
Investor Relations
Zakira AmraSenior Vice President Head of Investor Relations(office) +27 11 562 9775(mobile) +27 79 694 [email protected]
Nikki Catrakilis-WagnerInvestor Relations Manager(office) +27 11 562 9706(mobile) +27 83 309 [email protected]