Our business model
Gold Fields has firmly positioned itself as a global diversified gold producer with a quality portfolio of mechanised underground and open-pit mines. Our business model explains how we aim to fulfil our strategic objectives, as well as how we create, preserve or erode value for our stakeholders over time.
- Inputs
- Business Process
- Outputs
- OUTCOMES FOR THE BUSINESS AND STAKEHOLDERS DURING 2020
Input
- 5,641 employees
- 12,771 contractors
- Ethical, accountable and transparent leadership
- Attracting and retaining a steady supply of the right skills in a highly competitive environment
- Sourcing the right skills from our host communities
- Increasing the diversity of our leadership teams
- 13,128 TJ of energy consumption
- 21.7 GL water withdrawn
- The impact of climate change on our mines and surrounding communities
- Operating in water-stressed regions
- Security of power supply and cost of energy
- Inclusive Stakeholder Engagement and Relationship Policy
- Sound and transparent working engagements with governments at national, regional and local levels
- Open and honest relationships with our host communities
- The trust gap between mining companies, governments and communities
- US$584m capital expenditure
- US$868m cash generated
- The impact of market sentiment and geopolitical developments on the gold price and foreign exchange rates
- Nine operating mines (including our Asanko JV) and one project
- US$409m sustaining capital and US$175m growth capital
- Strong Mineral Reserves and Resources position
- Ageing infrastructure at our older mines
- Balancing the requirement of modernising our mines with cost reductions
- Innovation and technology that improve cost, safety and productivity
- Modernisation strategy
- Business improvement initiatives
- Developing the right talent to meet the future needs of an increasingly mechanised, modernising and automated mining industry
- Reskilling the existing workforce to ensure we can retain their experience and knowledge
BUSINESS PROCESS
Our active portfolio management approach has enabled us to build a geographically diversified portfolio with nine mines and one project in five countries. We focus on the following elements:
Gold Fields manages its business with the overriding strategic objective to continually improve the quality of its portfolio by lowering All-in costs (AIC), thereby increasing free cash-flow (FCF) margin per ounce of gold produced.
-
1
EXPLORATION
Acquiring or developing lower-cost (than Group average), longer-life assets
- 2
DEVELOPMENT
Extending the life of current assets through near-mine brownfield exploration
-
3
MINING
In-country opportunities to leverage off our existing footprint, infrastructure and skills set, and capitalise on the experience we have gained from operating in these jurisdictions
- 4
PROCESSING
Disposing of
higher-cost, shorter-life assets that management believes can be better served by a company that has more time and resources to commit to them - 5
MINE CLOSURE
Environmental stewardship, through which we protect and enhance relationships between our operations and host communities
Outputs
2.24Moz
of attributable gold-eq production
24.8kt
of attributable copper production
141Mt
mining waste produced
59Mt
of tailings waste
10.0Gl
of freshwater used
1.942Mt
CO2e emissions
OUTCOMES FOR THE BUSINESS AND STAKEHOLDERS DURING 2020
Positive
Negative
US$480m paid in salaries and benefits
US$6.8m spent on training and development
One fatal incident
10 deaths among our people (March 2020 – March 2021) due to Covid-19-related illnesses
10 new cases of Silicosis submitted to health authorities
Six serious injuries
20% of our total workforce are women, including women in leadership
Related SDGs
Zero Level 3 – 5 environmental incidents for the second consecutive year
Recycled 71% of water withdrawn and reduced our freshwater intake by 3%
Achieved an A score in the CDP's Water Disclosure Project, demonstrating leadership in water stewardship and reporting transparency
1.97Mt CO2e
200Mt of total material moved
All mines, implemented at least 93% of their progressive rehabilitation plans
12 community grievances relating to environmental stewardship
Related SDGs
US$17m invested in programmes and projects that benefit our host communities
Employment for 8,752 members of our host communities (53% of our total workforce)
US$536m spent with host community enterprises (29% of total procurement costs)
86% of our employees are from our countries of operation and 96% of all goods and services are procured in-country
US$381m paid to governments in taxes and royalties
139 community grievances
Released our first Report to Stakeholders, providing increased transparency on the impact of our operations on key stakeholders
Related SDGs
US$868m in mine cash-flow
US$253m paid in interest and dividends
Net debt decreased to US$1,069m (2019: US$1,664m)
JSE share price up 46%; NYSE share price up 42%
Total dividend of R4.80/ share declared, up 200% from 2019
US$467m in gross mining closure liabilities
US$30m spent on
Covid-19-related programmes to assist our employees, communities and governments
Related SDGs
US$112m spent on Salares Norte project, with construction ahead of plan
Invested US$50m in near-mine exploration (including Salares Norte)
Damang Reinvestment project in Ghana providing strong returns
South Deep and Cerro Corona closed for a number of days as part of nationwide lockdowns in response to Covid-19
Lost 3.5% of production against original market guidance due to impact of the Covid-19 pandemic
Replaced 103% of depleted Mineral Reserves
Lower production and higher costs at the Cerro Corona mine due to Covid-19-related actions
Continued improvement in production and costs at the South Deep mine amid successful implementation of restructuring initiatives
Related SDGs
Completed one of the world’s largest renewable energy microgrids at Agnew and installed a microgrid at Granny Smith
Installed an advanced collision avoidance system in Ghana to reduce worksite accidents and injuries
Continued investment in South Deep, South Africa’s largest bulk, mechanised, underground gold mine
Salares Norte signs contract to instal 26MW microgrid, including 10MW solar
Salares Norte signs contract to use dry-stack tailings, one of the most environmentally responsible tailings solutions
Increased use of real-time data to enable decisions that facilitate safer and more productive mines
Introduction of drones underground for tasks like cavity scanning, remote drill hole surveying and cleaning
Related SDGs
