Value creation for stakeholders
2020 PERFORMANCE
Total value created for our stakeholders amounted to US$2.85bn (2019: US$2.58bn)
Provided over US$3.3m in support of governments’ and communities’ Covid-19 programmes
Of our total value created, US$676m remained with our host communities
Achieved a strong share price performance, and paid R4.80/share in dividends
Payments to governments amounted to US$381m (2019: US$254m) in the form of taxes and royalties
Payments to business suppliers totalled US$1,786m (2019: US$1,744m)
Paid a total of US$412m in wages and benefits to our employees (2019: US$395m)
Published our first Report to Stakeholders
The mining industry significantly impacts the countries and communities in which it operates. For Gold Fields, the stakeholders most material to our business are those who have a substantial influence on our ability to create value or secure our regulatory licenses, and those in our host communities who can influence our social licence to operate. We build relationships that are open, transparent and constructive, and actively engage with our key stakeholders on the issues they care about the most at the local level.
It is important that our local stakeholders receive material, real benefits from the mining activities taking place in their midst. Since 2013, our total value creation has ranked between US$2.4bn – US$3bn a year in the form of payments to suppliers, salaries and wages to employees, taxes and royalties to governments, dividend and interest payments to capital providers, as well as investments in socio-economic development (SED) in our host communities.
In addition, Gold Fields continues to focus on maximising in-country economic impact. Of our procurement spend, 96% is to in-country suppliers, while, on average, 86% of our employees are in-country nationals.
In recent years, our host communities have emerged as the most critical stakeholder for our mines, and their success is essential for our operational sustainability. By creating jobs among our workforce for host community members, procuring goods and services from host community enterprises and investing in community projects, we deliver enduring value, while contributing to our communities' social and economic growth and development. Our performance during 2020 illustrates this:
- Along with our contractors, we employed 8,752 people, or 53% of our workforce, from host communities
- Host community procurement amounted to US$536m, or 29% of total spend
- Our investment in SED projects in our host communities totalled US$17m, and also created 672 non-mining jobs
Our initiatives ensured that US$676m, or 28% of our total value creation, remained with our host communities in 2020. In 2015, before we commenced our community value-creation programme the following year, total community value distribution amounted to a mere US$16m, as we did not actively promote or measure host community employment and procurement. Our cumulative host community value creation from 2016 – 2020 was US$3.54bn. This is a shift in approach from community contribution to delivering enduring value to our stakeholders.
IN-COUNTRY EMPLOYEE AND HOST COMMUNITY WORKFORCE
IN-COUNTRY AND HOST COMMUNITY PROCUREMENT SPEND
HOST COMMUNITY VALUE CREATION RELATIVE TO SED SPEND
