Profitable production and sustainable cash-flow – key highlights
NEW TECHNOLOGIES, NEW WAYS OF WORKING
Technology and innovation are helping to strengthen our business and make work safer and easier
HORIZON 1

The foundational phase of our Modernisation journey focuses on visualising our operations through real time data
ASSOCIATED GROUP RISKS
1 |
Covid-19 The impact of Covid-19 on our employees, communities and business plan |
2 |
Gold/foreign exchange Gold price and currency exchange rate volatility |
3 |
South Deep Loss of investor confidence due to non-achievement of the mine’s business plan |
6 |
Mining costs Rising mining costs, including those relating to ESG |
7 |
Safety Safety and health of our employees, including occupational illnesses |
8 |
Energy Security of power supply and cost of energy |
13 |
Water Water pollution, security and reduction in freshwater consumption |
14 |
Geotechnical Increased geotechnical risk underground and in open pits |
15 |
Ghana contractors Challenges with local mining contractors in Ghana |
16 |
Chile Delays and cost overrun relating to the Salares Norte project |
18 |
Infrastructure Ageing infrastructure |
19 |
I&T Failure to modernise operations |
RELATED SDG
GROUP OPERATIONAL PERFORMANCE
2021 Guidance | 2020 Actual | 2020 Guidance (revised) | 2019 Actual | |||||||
Prod | AIC | Prod | AIC | Prod | AIC | Prod | AIC | |||
Group | 2.30Moz – | US$1,310/oz – | 2.20Moz – | US$1,070/oz – | ||||||
---|---|---|---|---|---|---|---|---|---|---|
2.35Moz | US$1,350/oz | 2.24Moz | US$1,079/oz | 2.25Moz | US$1,090/oz | 2.20Moz | US$1,064/oz |
REGIONAL PERFORMANCES
SOUTH AFRICA REGION
2021 Guidance | 2020 Actual | 2020 Guidance (revised) | 2019 Actual | ||||||||
Prod | AIC | Prod | AIC | Prod1 | AIC | Prod | AIC | ||||
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South Deep | 9,000kg | R660,000/kg | 7,056kg | R663,635/kg | 7,000 | R610,000/kg | 6,907kg | R585,482/kg | ||
---|---|---|---|---|---|---|---|---|---|---|---|
(289koz) | (US$1,320/oz) | (227koz) | (US$1,260/oz) | (225koz) | (US$1,394/oz) | (222koz) | (US$1,259/oz) | ||||
1 Original guidance revised to take account of Covid-19 lockdown | |||||||||||
AMERICAS REGION
Prod | 2021 Guidance |
2020 Actual | 2020 Guidance |
2019 Actual | |
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Gold-only production | 130koz | 119koz | 158koz | 156koz |
---|---|---|---|---|---|
Copper production | 24.7kt | 24.9kt | 27.5kt | 31kt | |
Gold-equivalent production | 220koz | 207koz | 275koz | 293koz | |
AIC | US$1,060/oz | US$715/oz | US$575/oz | US$472/oz | |
AIC eq-oz | US$1,190/oz | US$1,119/oz | US$830/oz | US$810/oz | |
Australia region
2021 Guidance | 2020 Actual | 2020 Guidance | 2019 Actual | |||||||||
Prod | AIC | Prod | AIC | Prod | AIC | Prod | AIC | |||||
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St Ives | 360koz | A$1,410/oz | 385koz | A$1,266/oz | 360koz | A$1,320/oz | 371koz | A$1,385/oz |
|||
(US$1,060/oz) | (US$873/oz) | (US$910/oz) | (US$963/oz) | |||||||||
Agnew | 240koz | A$1,625/oz | 233koz | A$1,528/oz | 225koz | A$1,440/oz | 219koz | A$1,656/oz |
||||
(US$1,220/oz) | (US$1,053/oz) | (US$995/oz) | (US$1,152/oz) | |||||||||
Granny Smith | 265koz | A$1,600/oz | 270koz | A$1,465/oz | 265koz | A$1,415/oz | 275koz | A$1,325/oz | ||||
(US$1,200/oz) | (US$1,010/oz) | (US$975/oz) | (US$922) | |||||||||
Gruyere | 140koz | A$1,330/oz | 129koz | A$1,350/oz | 135koz | A$1,150/oz | 50koz | A$4,170/oz | ||||
(50%) | (US$1,000/oz) | (US$931/oz) | (US$795/oz) | (US$2,900/oz) | ||||||||
Region | 1,005koz | A$1,500/oz | 1,017koz | A$1,388/oz | 985koz | A$1,350/oz | 914koz | A$1,418/oz | ||||
(US$1,125/oz) | (US$957) | (US$932/oz) | (US$986/oz) |
WEST AFRICA REGION
2021 Guidance | 2020 Actual | 2020 Guidance | 2019 Actual | |||||||||
Prod | AIC | Prod | AIC | Prod | AIC | Prod | AIC | |||||
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Tarkwa | 510koz | US$1,075/oz | 526koz | US$1,017/oz | 510koz | US$970/oz | 519koz | US$958/oz | |||
Damang | 275koz | US$790/oz | 223koz | US$1,035/oz | 215koz | US$1,030/oz | 208koz | US$1,147/oz | ||||
Asanko¹ | 106koz | US$1,400/oz | 112koz | US$1,316/oz | 115koz | US$1,130/oz | 113koz | US$1,214/oz | ||||
Region | 891koz | US$1,025/oz | 862koz | US$1,060/oz | 840koz | US$1,006/oz | 840koz | US$1,039/oz | ||||
1 45% stake, equity-accounted |
OVERVIEW AND HISTORY
The core focus of Gold Fields’ strategy is to grow its FCF margin and sustain this in the long term. Therefore, when looking at growth within Gold Fields, we focus not on increasing our levels of production, but rather on reducing Group AIC, increasing the FCF margin per ounce of gold produced and sustainably extending the average reserve life per operation. The Group targets an FCF margin of at least 15% at a notional long-term planning gold price of US$1,300/oz. This provides a degree of downside resilience should the price decline below that level in the short term. At the same time, it means we can improve our margins should the gold price exceed that level – which has been the case for the last two years.
Our progress towards our target is supported by the gradual decline of Group AIC to below US$1,100/ oz over the past few years. In Q4 2012 – the last quarter before the Sibanye Gold unbundling – Group AIC amounted to US$1,621/oz. All the while, our production levels held steady at around 2.20Moz.
The improved cost performance at stable production levels and the higher gold price received, as well as the gradual easing of our capex programme, ensured that net cash-flow from operating activities improved steadily over the past few years, culminating in inflows of US$631m in 2020. This translated into an FCF margin of 28% at a gold price of US$1,771/oz, meaning that we successfully exceeded our 15% target for four consecutive years. During 2021, our US$508m capex programme at Salares Norte will push up AIC temporarily.
GROUP AIC AND CASH-FLOW TRENDS FROM 2012 TO 2020

1 Net cash-flow from operating activities after taking account of net capital expenditure and environmental payments