Mineral resource and mineral reserve summary

GOLD FIELDS MINERAL RESOURCES AND MINERAL RESERVES ESTIMATES

Mineral Resources headline numbers¹

Operational summary¹

Mineral Reserves headline numbers¹

Operational summary¹

The consolidated summary of Gold Fields’ Mineral Resources and Mineral Reserves in this section should be read in conjunction with the Gold Fields Mineral Resource and Mineral Reserve Supplement (the Supplement), which can be found on our website at www.goldfields.com/integrated-annual-reports.php. The Supplement sets out important and detailed technical information on the Company’s Mineral Resources and Mineral Reserves as at 31 December 2019. It is prepared in line with the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves, 2016 edition (SAMREC Code) and other leading standards as well as stock exchange regulations.

The management of the Company’s Mineral Resources and Mineral Reserves is central to delivering on its strategic goals and key performance targets. The significant focus on internal portfolio investment is secured through the funding of near-mine exploration, reinvestment in the sustainability and growth of the operations, embedded Business Improvement and modernisation programmes, and the advancement of value-accretive projects.

The Group continued with its strategy of focusing on near-mine exploration to extend mine life during the year. The multi-year investment in exploration has delivered one of the best operational Reserves replacement years for Gold Fields during 2019. The emphasis at all mine sites is to drive Resources to Reserves conversion, strive for Mineral Reserves growth that replaces annual depletion, improve cash-flow and cost per ounce, and to deliver on the strategic opportunities to extend the life-of-mines.

Key projects supporting the Company’s Resources and Reserves development strategy continued during 2019. Apart from the progress at Salares Norte, these projects included embedding the operating model restructuring at South Deep, delivering on key milestones of the Damang Reinvestment plan, completing the Feasibility study for the Cerro Corona life extension and, critically, commencing production at Gruyere.

Headline numbers

As at end-2019, the Group had total managed gold Resources, including projects, of 123.4Moz (2018: 115.3Moz), and gold Reserves of 53.2Moz (2018: 51.9Moz) for operating mines, inclusive of the Asanko gold mine (AGM), of which 45% is attributable to Gold Fields, and the Salares Norte project. The Group total managed Resources, including the Far Southeast (FSE) project in the Philippines, reporting all metal as gold equivalent ounces, is 148.7Moz (2018: 140.5Moz) and the Reserves is 55.2Moz (2018: 54.0Moz). The total attributable gold-equivalent Reserves are 51.3Moz (2018: 50.3Moz), with the contribution to Group Reserves from outside of South Africa growing to 21.5Moz (2018: 20.5Moz).

The attributable gold Resources for operating mines, including AGM and Salares Norte, has increased year-on-year by 8.4% to 96.1Moz (2018: 88.7Moz), and attributable Reserves reflect a 2.6% increase to 49.3Moz (2018: 48.1Moz), both net of annual production depletion (2.4Moz).

Notable Resources highlights include year-on-year increases of 23% at Agnew, 12% at St Ives, 9% at Tarkwa, 7% at South Deep and 6% at Granny Smith, all net of annual depletion. This reflects a strengthening of the Resources base and project pipeline in Australia and Ghana, which is fundamental to providing the platform for the next generation mining fronts in these regions.

Notable Reserves highlights include the outstanding year-on-year increases of 31% at St Ives, 38% at Agnew and 2% at Tarkwa, all net of annual production depletion. This reflects the largest Reserve at St Ives since 2011, the largest Reserve at Agnew since 2014, and the first time Tarkwa has fully replaced Reserves depletion in 15 years.

Governance

The Group’s December 2019 Mineral Resource and Mineral Reserve estimate is compiled in accordance with the requirements of the SAMREC Code, 2016 edition and the South African Code for the Reporting of Mineral Asset Valuation (2016 SAMVAL Code). The SAMREC Code covers public reporting and information that is prepared for investors or potential investors and their advisers, as well as other interested parties. Reporting is also in accordance with section 12 of the Johannesburg Stock Exchange (JSE) Listings Requirements and takes cognisance of other relevant international codes where geographically applicable including Industry Guide 7 for reporting on the United States (US) Securities and Exchange Commission (SEC).

For reporting Mineral Resources and Mineral Reserves, Gold Fields’ overarching principle is to ensure transparency, materiality and competency in reporting, compliance with public regulatory codes and internal standards, and to inform all stakeholders of relevant material issues regarding the status of the Group’s fundamental asset base. In this regard important information on the ‘key developments and material issues’ summarised for each operating asset and for the Salares Norte project should be referenced in the Supplement.

The Competent Persons (CPs) designated in terms of SAMREC, who take responsibility for the reporting of Gold Fields’ Mineral Resources and Mineral Reserves with the respective regions, are the relevant operation-based Geologists, Resource Estimators, Geotechnical Engineers, Mine Planning Engineers, Processing Engineers, Technical Managers and relevant Project Managers, as listed in the Supplement. Corporate governance on the overall regulatory compliance of these figures has been overseen and consolidated by the Gold Fields CP, Tim Rowland, who is a member of the Corporate Technical Services team.

Gold Fields follows an embedded process of third-party reviews in line with company policy that directs each operation or material project will be reviewed by an independent third-party on average no more than once every three years or when triggered by a material new Mineral Resource and/or Mineral Reserve declaration. This process provides expert independent assurance regarding the Mineral Resource and Mineral Reserve estimates and compliance to the appropriate reporting codes on a routine basis.