Top five risks per region in 2020

Americas

		RISK		MITIGATING ACTION

1		Covid-19 The impact of Covid-19 on our employees and host communities		Management in Peru has implemented comprehensive Covid-19 mitigation and education programmes with strict adherence to government protocols. Robust control measures were implemented, including hygiene awareness campaigns, working from home, social distancing programmes, screening, testing and monitoring of employees. Community and government support programmes were developed.

2		Life-of-mine Life-of-mine extension at Cerro Corona		The accelerated mining and stockpiling to facilitate early in-pit tailings is on plan and is being complimented by low-grade stocks to reduce the risk of ore availability. Further work is being carried out on the feasibility study for the 2030 life-of-mine extension with ongoing support from the Corporate Technical Services team.

3		Salares Norte Delays to the project due to Covid-19 and relocation of the protected Short-tailed Chinchilla		The team at Salares Norte have implemented robust project control systems, with weekly and monthly monitoring of performance against project schedule, to date the project is performing well. There is strict adherence to government-related Covid-19 restrictions, rules and laws with increased camp capacity to accommodate social distancing protocols. The team also maintains close working relationships with authorities, environmentalists and local communities on the Chinchilla relocation project.

4		Gold/copper Gold and copper prices and exchange rate volatility		There is a robust and mature monthly and quarterly business performance monitoring processes in place and adjustments are made where required to ensure that the mine remains profitable amid varying market conditions. All our mines have business improvement structures and processes in place. For 2021, we have put copper hedges in place to provide guaranteed cash-flow.

5		Social licence Local social pressures, conflicts and increased community expectations due to national elections		The South American teams are extremely proactive in building community and stakeholder relationships through meaningful engagement. There is a stringent follow-up and feedback process in place to ensure integrity on all community commitments. Government authorities, both at national and regional level, are involved in community projects where feasible.

Australia

		RISK		MITIGATING ACTION

1		Life-of-mine Mineral Reserve life at our Australian mines		There is a significant near-mine exploration programme in place at all our mines with the necessary staff and budget to delineate further Mineral Reserves. For 2020 and 2021, this includes accelerated exploration interventions at Agnew and St Ives. The region has also acquired JV ground near St Ives, which is under focused exploration assessment. The exploration process is being optimised through I&T.

2		Skills Turnover of key personnel and the impact thereof on operational performance		Employee development programmes have been reviewed and improved, more regular pay benchmarking undertaken and retention strategies for core skills strengthened. Flexible working arrangements have been introduced to facilitate greater work-life balance and talent discussions are held quarterly at leadership level, with adjustments to critical roles. We have also raised the number of graduates taken in for scarce skills.

3		Native Title Native Title compensation		We continue to work closely with the Yilka and Sullivan Edwards people, the determined Native Title holders of the land on which Gruyere operates. At all other mines, where native title is being determined, we continue to engage the claimants. We also look for ways to sustain and grow employment and business opportunities, as well as support health, education and other programmes for the local Aboriginal communities.

4		Covid-19 The impact of Covid-19 on our employees		In the Australia region, crisis management protocols were initiated successfully resulting in zero Covid-19 cases in the entire region. Infectious disease managers have been appointed at sites to further enhance the control systems. Social distancing, health screening and hygiene requirements are being maintained. The region will be following the vaccine roll-out planned in Australia from Q1 2021.

5		Safety Ongoing safety performance		Weekly review are conducted on all serious potential incidents by regional leadership teams with learnings communicated throughout the region. The Vital Behaviours programme has been revised and CSL sessions held at all sites and the Perth office, with 95% of workforce trained.

South Africa

		RISK		MITIGATING ACTION

1		Covid-19 The impact of Covid-19 on our employees and host communities		South Deep has implemented a leading practice Covid-19 programme with strict adherence to WHO recommendations, country-specific regulations, guidelines from the Minerals Council South Africa, government decrees and protocols. South Deep is in a position to help government with facilities, infrastructure and experience as we prepare for the vaccines roll-out.

2		Operational delivery Loss of investor confidence due to non-achievement of the mine's business plan		South Deep achieved its Covid-19 risk-adjusted business plan of 7,000kg (225koz) at AIC of R610,000/kg (US$1,394/oz). The South Deep team will continue to drive disciplined execution of the mine's business plan, while implementing business improvement initiatives across the value chain.

3		Skills Unavailability of skills to drive the execution of South Deep's business plan		South Deep is proactively managing the skills gaps in core and critical skills with career path development programme, compiling a personal development strategy plan for each department, highlighting digital skills requirements and identifying, developing and recruiting successors for critical roles. Training programmes are in place for identified skills.

4		Mining costs The impact of rising costs on operations and margins		Cost performance is monitored and managed through our monthly and quarterly business review process where non-performance is timeously identified, discussed and remediated through mutually agreed actions. The mine is also busy with cost reviews with suppliers and focus on increasing production and cutting unnecessary cost.

5		Ezulwini and Cooke 3, 2 AND 1 Impacts of Ezulwini and Cooke 3, 2 and 1 closure on South Deep		Judgement was handed down in Gold Fields' favour regarding the closure of Ezulwini in January. This means Sibanye-Stillwater will have to continue pumping. Following this, Sibanye have applied for the closure of Cooke 3, 2 and 1 to which we have objected. In the meantime, to safeguard our employees, the reinforced concrete water plugs between South Deep and Ezulwini are subject to a robust inspection, planned maintenance and condition monitoring programme.

West Africa

		RISK		MITIGATING ACTION

1		Covid-19 The impact of Covid-19 on our employees and host communities		The Ghana region has implemented detailed awareness campaigns, as well as social distancing, work-from-home protocols, adherence to government restrictions on movement, including local and international travel. Negotiations have taken place with OEMs to increase in-country capacity to ensure the availability of parts. We have also contributed to national Covid-19 initiatives.

2		Resource nationalism Fiscal and government policy changes		Our primary focus has been to adherence to the principles and conditions in the Development Agreement (DA) with the Ghana government with ongoing legal input and strategies when needed. There is frequent engagement with relevant government departments on a number of issues, including awareness of the contributing mining makes to the country. There is also an engagement process through the Chamber of Mines.

3		Mining contractor Challenges with local mining contractor in Ghana		We are working closely with the two Ghanaian mining contractors at Tarkwa and Damang to ensure that they meet their contractual obligations to the mines while at the same time remaining financially sound. This has required renegotiations of their contracts and bringing in original equipment manufacturers to provide technical assistance for fleet maintenance, as well as financial support to provide debt relief and to procure additional fleet.

4		Damang Execution of the Damang Reinvestment project		All capital on the Damang re-investment plan has been recouped. The Damang team ensures ongoing monitoring of grade, volume and cost milestones, as well as strategic management of contractors. The pit-wall has been de-risked through continuous implementation of geotechnical recommendations.

5		Life-of-mine Mineral Reserve depletion at Tarkwa and Damang, along with inadequate organic growth of the Asanko JV		A step-out exploration programme is in place to test for potential life extension at Tarkwa and Damang. The Asanko JV life-of-mine plan is being finalised, which includes recommendations on the future strategy of Gold Fields' investment in the Asanko JV.

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