Creating enduring value beyond mining
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GOLD FIELDS LIMITED INTEGRATED ANNUAL REPORT 2021

Our business model

INPUTS

Constraints to the availability of our inputs

Our employees and contractors provide the manpower, skills and expertise that drive our strategy.

  • 5,957employees
  • 16,153 contractors
  • Ethical, accountable and transparent leadership
  • Attracting, developing and retaining top skills in a highly competitive environment
  • Sourcing the right skills from our host communities
  • Increasing the diversity of our workforce

Water security and reliable energy supply are critical to our mining and processing activities, while access to land enables us to extract gold and copper resources.

  • 13.9PJ of energy consumption
  • 18.5GL water withdrawn
  • Mitigating the impact of climate change on our operations and host communities
  • Operating in water-stressed regions
  • Securing a steady power supply and managing the increased cost of energy

The quality and strength of our stakeholder relationships – including governments – as well as partnerships with host communities, support our licence to operate and the sustainability of our business.

  • 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
  • Addressing the trust gap between governments, miners and communities

We require financial capital to expand our footprint, which is provided by banks, shareholders and bond-holders.

  • US$1,089m capital expenditure (excluding Asanko)
  • US$463m adjusted free cash-flow generated
  • Managing the impact of market sentiment and geopolitical developments on the gold price and foreign exchange rates

Our manufactured capital refers to our investment in machinery, equipment, technology and ICT infrastructure at our mines and projects. It also includes the goods and services we need to develop and sustain these assets.

  • Nine operating mines (including our Asanko JV) and one project
  • US$576m sustaining capital and US$513m growth capital
  • Strong Mineral Reserves and Resources position
  • Maintaining and monitoring ageing infrastructure at our older mines
  • Balancing the requirement of modernising our mines with reducing costs

Our people and partners' intellectual input informs our strategic objectives, drives innovation and efficiencies, and aids risk management. This is underpinned by a strong ethos of good governance and ethics.

  • 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 PROCESSES

Our vision and new purpose statement manifests through our three strategic pillars, enabling us to deliver sustainable value for our stakeholders.

We have built a geographically diversified portfolio with nine mines and one project in five countries by focusing on:

EXPLORATION

DEVELOPMENT

MINING

PROCESSING

MINE CLOSURE

We manage our portfolio actively and aim to continually improve its quality by decreasing All-in Costs (AIC) and, ultimately, increasing free cash-flow (FCF) margin per ounce of gold produced.

Across these activities, we:

  • Acquire or develop lower-cost (than Group average), longer-life assets
  • Extend our current assets' lives-of-mine through near-mine brownfields exploration
  • Capture in-country opportunities to leverage our existing footprint
  • Dispose 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

OUTCOMES FOR THE BUSINESS AND STAKEHOLDERS DURING 2021

HUMAN CAPITAL

NATURAL CAPITAL

SOCIAL AND RELATIONSHIP CAPITAL

FINANCIAL CAPITAL

MANUFACTURED CAPITAL

INTELLECTUAL CAPITAL

US$463m paid in salaries and benefits

Zero Level 3 - 5 environmental incidents for the third consecutive year

US$16m invested in programmes and projects that benefit our host communities

US$913m in adjusted free cash-flow from operations

US$375m spent on Salares Norte project capital

Continued investment in South Deep, South Africa's largest bulk, mechanised, underground gold mine

US$8.3m spent on training and development

Recycled 75% of water withdrawn and reduced our freshwater intake by 35% against a 2018 baseline

54% of workforce employed from our host communities

US$457m paid in interest and dividends

Invested US$61m in near-mine exploration (including Salares Norte)

South Deep constructing a 50MW solar plant

One fatal incident

Achieved an A- score in the CDP's Water Disclosure Project

31% (or US$709m) of total procurement costs spent with host community enterprises

Net debt decreased to US$969m

Damang Reinvestment project set to reach peak production in 2022 before output falls

Salares Norte signs contract to use dry-stack tailings, one of the most environmentally responsible tailings solutions

17 deaths among our people due to Covid-19-related illnesses

2.26Mt CO2e emissions (2020: 2.12Mt CO2e)

86% of our employees are from our countries of operation and 96% of all goods and services are procured in-country

JSE share price up 27%; NYSE share price up 19%

Lost 29.6koz of production due to impact of the Covid-19 pandemic

Increased use of real-time data to enable decisions that facilitate safer and more productive mines

12 new cases of Silicosis submitted to health authorities

213Mt of total material moved

US$558m paid to governments in taxes and royalties

Total dividend of R4.70/share declared

Mineral Reserves down 7% post-depletion

Nine serious injuries

All mines implemented at least 93% of their progressive rehabilitation plans

65 community grievances (59 resolved during 2021)

US$510m in gross mining closure liabilities

20% rise in AIC, largely due to Salares Norte capex and stronger exchange rates

22% of our total workforce are women, including women in leadership (2020: 20%)

Six community grievances relating to environmental stewardship

US$29m spent on Covid-19-related programmes to assist our employees, communities and governments

Continued improvement in production and costs at the South Deep mine amid successful implementation of restructuring initiatives

+ Positive outcomes - Negative outcomes

+ Positive outcomes - Negative outcomes

HUMAN CAPITAL

US$463m paid in salaries and benefits

US$8.3m spent on training and development

One fatal incident

17 deaths among our people due to Covid-19-related illnesses

12 new cases of Silicosis submitted to health authorities

Nine serious injuries

22% of our total workforce are women, including women in leadership (2020: 20%)

NATURAL CAPITAL

Zero Level 3 - 5 environmental incidents for the third consecutive year

Recycled 75% of water withdrawn and reduced our freshwater intake by 35% against a 2018 baseline

Achieved an A- score in the CDP's Water Disclosure Project

2.26Mt CO2e emissions (2020: 2.12Mt CO2e)

213Mt of total material moved

All mines implemented at least 93% of their progressive rehabilitation plans

Six community grievances relating to environmental stewardship

SOCIAL AND RELATIONSHIP CAPITAL

US$16m invested in programmes and projects that benefit our host communities

54% of workforce employed from our host communities

31% (or US$709m) of total procurement costs spent with host community enterprises

86% of our employees are from our countries of operation and 96% of all goods and services are procured in-country

US$558m paid to governments in taxes and royalties

65 community grievances (59 resolved during 2021)

FINANCIAL CAPITAL

US$913m in adjusted free cash-flow from operations

US$457m paid in interest and dividends

Net debt decreased to US$969m

JSE share price up 27%; NYSE share price up 19%

Total dividend of R4.70/share declared

US$510m in gross mining closure liabilities

US$29m spent on Covid-19-related programmes to assist our employees, communities and governments

MANUFACTURED CAPITAL

US$375m spent on Salares Norte project capital

Invested US$61m in near-mine exploration (including Salares Norte)

Damang Reinvestment project set to reach peak production in 2022 before output falls

Lost 29.6koz of production due to impact of the Covid-19 pandemic

Mineral Reserves down 7% post-depletion

20% rise in AIC, largely due to Salares Norte capex and stronger exchange rates

Continued improvement in production and costs at the South Deep mine amid successful implementation of restructuring initiatives

INTELLECTUAL CAPITAL

Continued investment in South Deep, South Africa's largest bulk, mechanised, underground gold mine

South Deep constructing a 50MW solar plant

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