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CREATING A GLOBAL, SUSTAINABLE PORTFOLIO – KEY HIGHLIGHTS

Processing plant at Gruyere, Australia

TECHNOLOGY AT SALARES NORTE

New technologies are helping the team to connect, keep informed and adapt in real time

MINERAL RESOURCES AND RESERVES

Mineral resources and mineral reserves

NICK HOLLAND

Challenges for the industry

ASSOCIATED GROUP RISKS

3

South Deep

Loss of investor confidence due to non‑achievement of the mine’s business plan

4

Resource nationalism

Resource nationalism, regulatory uncertainty and government imposts

5

Mineral Resources and Mineral Reserves

Replacing Mineral Resources and Mineral Reserves in Australia, Ghana, Peru and Chile

6

Mining costs

Rising mining costs, including those relating to ESG

16

Chile

Delays and cost overrun relating to the Salares Norte project

18

Infrastructure

Ageing infrastructure

19

I&T

Failure to modernise operations

RELATED SDGs

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Decent work and Economic growth

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Industrial innovation and infrastructure

GOLD FIELDS’ NON-CORE INVESTMENTS (31 DECEMBER 2020)

Investment Shareholding
%
  Market value  
(US$m)
 
Galiano Gold (formerly Asanko Gold) 9.8   25   
Rusoro Mining 25.7    
Chakana Copper1 16.8    
Magamatic Resources 10.9    
Lefroy Exploration 18.0    
Orsu Metals 6.1    
Woodjam Copper 16.3    
Maverix Metals warrants     13   
Total value     60   
1 This shareholding was increased to 19.9% in February 2021

 OVERVIEW AND HISTORY

Gold Fields’ overriding strategic objective is to improve the quality of its portfolio by lowering Group AIC, thereby increasing our free cash-flow (FCF) to create value for our stakeholders. To achieve this, we employ various elements in the portfolio management process, including:

  • Acquiring or developing lower-cost (than Group average), longer-life assets
  • Extending the life of current assets through near-mine brownfields exploration
  • Focusing on in-country opportunities to leverage off our existing footprint, infrastructure and skills set
  • Disposing of higher-cost, shorter-life assets

All assets in our portfolio are subject to the Group's annual strategic planning process, which assesses how each operation can best maximise cashflow, life-of-mine and margin.

The composition and geographic distribution of Gold Fields’ portfolio The composition and geographic distribution of Gold Fields’ portfolio of assets fundamentally changed in 2013. The most significant changes were the unbundling of the legacy South African gold mines into Sibanye Gold in February 2013, as well as the acquisition of the Yilgarn South Assets (Darlot, Granny Smith and Lawlers) from Barrick Gold in Western Australia during October of that year. Before this, our South African assets accounted for 50% of total production. Now, our Australian mines comprise just under half of our portfolio.

We have been on an investment drive since 2017 to improve the sustainability of our production base. During this time, we invested US$347m into the Damang Reinvestment project, spent A$350m to acquire 50% of the Gruyere project and A$329m to build the mine, paid US$185m for a 45% interest in the Asanko mine in Ghana, and invested US$13m to restructure South Deep. Furthermore, in 2020, our Board gave the go-ahead for construction of the US$860m Salares Norte mine in Chile after spending US$161m in the preceding four years on project and exploration costs.

We promote the sustainability of our portfolio by investing in nearmine exploration, which averaged between US$50m – US$80m a year over the past five years. Since 2013, our Mineral Reserves position has remained relatively stable at around 50Moz as our successful exploration drives have replaced and exceeded the volumes of depleted Mineral Reserves.

Now, Gold Fields has a portfolio of nine mines and one project. We believe that a portfolio of no more than 10 mines is optimal, allowing management to properly focus on operations and maintain safe and profitable production of between 2.0Moz – 2.5Moz per year for the next 10 years.

ATTRIBUTABLE GOLD-EQ PRODUCTION

  2010 2015 2020
Americas
9% 13% 9%
Australia
22% 44% 46%
South Africa
50% 9% 10%
West Africa
19% 34% 38%

ATTRIBUTABLE GOLD-EQ MINERAL RESERVES

  2010 2015 2020
Americas
5% 3% 13%
Australia
5% 8% 14%
South Africa
79% 74% 61%
West Africa
11% 15% 12%
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