Gold Fields

Integrated
Annual Report

2018

 
 
 

Currently viewing: Our business model / Next: Value creation and distribution

Our business

Our business model

INPUTS

         

1

HUMAN CAPITAL

Our 5,601 employees and 12,010 contractors provide the manpower and skills to drive our business.

  

2

NATURAL CAPITAL

Water and energy are critical to support our mining process and business activities, while access to land allows us to extract a country’s gold resources.		  

3

SOCIAL AND RELATIONSHIP CAPITAL

The support of host communities and relationships with governments secure and maintain our social and regulatory licence to operate.
         
         

4

FINANCIAL CAPITAL

Banks, shareholders and bond holders provide the financial capital that funds the sustainability and growth of our operations.

  

5

MANUFACTURED CAPITAL

Contractors and suppliers supply the manufactured capital (goods and services) for the development and sustainability of our mines.

  

6

INTELLECTUAL CAPITAL

The intellectual input of our people and partners (OEMs and technology companies) inform the development of strategy, the efficient use of machinery and the management of key business risks.

OUR BUSINESS PROCESS


EXPLORATION   Near-mine and selected greenfields exploration focuses on resource extension to enhance the long-term sustainability of our portfolio.
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We seek to responsibly manage mine closure and optimise our mine closure liabilities through integrated mine closure planning and progressive rehabilitation.
4
   MINE
CLOSURE
     
DEVELOPMENT   We invest in the development of projects that will improve the cost and production profile of our portfolio.
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Physical and chemical processing of ore results in semipure gold doré and copper/gold concentrate. The doré is externally refined into gold bullion.
5
   PROCESSING
     
MINING   We extract gold and copper-bearing ore from mechanised mines in Australia, Ghana, Peru and South Africa – either by our own teams or by contractors.
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OUTPUTS

2.04Moz

attributable gold-eq produced

(Further details on Mineral Resources and Reserves summary)

185mt

mining waste

Further details on Waste and tailings)

1.85mt

CO2-e emissions

(Further details on Climate change)
     

41Mt

of tailings

(Further details on Waste and tailings)

US$2.58bn

revenue generated

Further details on Summarised Remuneration Report)

US$2.71bn

total value created

(Further details on Value creation and distribution)

OUTCOMES FOR THE BUSINESS AND STAKEHOLDERS DURING 2018

 

HUMAN CAPITAL

  • US$442m paid in salaries, dividends and benefits
  • US$14m spent on training
  • 1 fatal incident
  • Improvement in total recordable injury frequency rate (TRIFR) to 1.83
  • Improvement in total recordable injury frequency rate (TRIFR) to 1.83
  • Retrenchment of 1,092 employees and 420 contractors at South Deep
  • About 1,200 former employees now employed by new mining contractors at Tarkwa
  

NATURAL CAPITAL

  • 21.2GL water withdrawn, with 66% of water recycled
  • 2 Level 3 environmental incidents
  • 1,28TWh of electricity purchased
  • 1.85m tonnes of CO2 emissions
  • 184.7Mt of total material moved
  • 41Mt of tailings
  

SOCIAL AND RELATIONSHIP CAPITAL

  • US$26m invested in projects that directly benefit our host communities
  • Employment for 9,259 members of host communities (56% of total workforce, including contractors)
  • US$441m spent on host community enterprises procurement (22% of total procurement costs)
  • US$1,813m to suppliers and contractors, representing 67% of total value creation
  • 94% of total 2018 procurement expenditure by mines was spent on businesses based in operating countries
  • US$283m paid to governments in taxes and royalties
         
         

FINANCIAL CAPITAL

  • US$147m paid in interest and dividends
  • Increase in net debt to US$1,612m (2017: US$1,303m)
  • NYSE share price down 8%
  • Dividend of R0.40/share declared
  • US$400m in gross mining closure liabilities
  

MANUFACTURED CAPITAL

  • Eight operating mines (including our Asanko JV)
  • Two projects in Australia and Chile
  • Total attributable annual gold-equivalent production of 2.04Moz
  • Copper production of 32,000 tonnes
  

INTELLECTUAL CAPITAL

  • Fibre networks installed underground in certain operations
  • Drones deployed at Tarkwa and Damang to conduct remote surveying
  • Granny Smith, South Deep and St Ives improved their people and equipment tracking systems
  • Continued investment in South Deep, South Africa’s largest bulk, mechanised, underground gold mine

GOOD GOVERNANCE FOUNDATION

A strong ethos of good governance underpins everything we do. Our approach (detailed on Summarised corporate governance) goes beyond compliance – we believe it is an important differentiator, gaining us the support of communities, ongoing access to mines from governments, the buy-in from existing and potential employees and the trust of capital providers. We subscribe to numerous international best practice standards.