Overview of our portfolio and growth strategy

Gold Fields follows a deliberate counter-cyclical investment strategy and spends the necessary levels of sustaining capital throughout the cycle. We invested significantly into our portfolio over the past four to five years to enhance our asset base's quality and life, and to ultimately increase the free cash-flow (FCF) per ounce of gold we produce.

Our high-quality, global production base is the result of focusing on low-cost, longer-life assets in a limited number of mining-friendly jurisdictions. Reinvesting in the Gold Fields portfolio will help us maintain an attractive production profile over the next decade at globally competitive costs.

Our portfolio's production base for the next six years, at least, is based on four key areas:

• The Australian region is set to produce approximately 1Moz until 2030
• Average annual output of 500koz at Salares Norte from 2024 until 2029
• Steady-state annual production of 380koz a year from 2025 onwards at South Deep
• Approximately 600,000koz annual production from Tarkwa, under which we will consolidate our production in Ghana from 2024 onwards

With this 2.20Moz – 2.40Moz annual production base, Group production (excluding our 45% holding in Asanko) is guided to be approximately 2.30Moz in 2023, 2.75Moz in 2024 and 2.80Moz in 2025, as depicted in the graph below.

Gold Fields production outlook

The following assets in our portfolio are maturing and reaching the end of their lives:

• Damang had its last year of steady-state production in 2022 after our reinvestment in the pit cutback. From 2024, the mine will process only stockpiles and produce approximately 150koz per year
• Cerro Corona will continue to produce at current levels until 2025, after which its production level will drop significantly as it will process only stockpiles. This lower production level will continue until the mine's end of life at the end of the decade

Addressing longer-term production sustainability

Gold Fields built its portfolio and strategic reputation by targeting smaller, bolt-on acquisitions that do not overly stress the balance sheet. Examples of this approach include our acquisition of the Yilgarn assets in Western Australia from Barrick in 2013; 50% of Gruyere from Gold Road Resources in Western Australia in 2016; and 45% of the Asanko mine in Ghana from our JV partner Galiano Gold, which manages the mine, in 2018.

The Group focuses more on the quality and profitability of every ounce of gold we produce rather than on the absolute level of production. However, gold assets are finite by nature and it is necessary to continue investing in the portfolio in addition to looking at external growth opportunities. The organic growth options in our current portfolio are more limited and, as such, we need to pursue inorganic opportunities to bolster our pipeline and address our production profile's longer-term decline.

The proposed acquisition of Yamana Gold was intended to address the longer-term challenges facing Gold Fields and the global gold sector by providing immediate cash-flow and a pipeline of longer-term growth or replacement options in favourable mining jurisdictions. The acquisition would have increased the quality of Gold Fields' portfolio in one deal rather than in several smaller transactions.

Management and the Board still believe it was the right composite solution, but not one that should have been pursued at any price. We were not prepared to be drawn into a bidding war which, we believe, would have destroyed value for our shareholders.

The Board reaffirmed its support for Gold Fields' strategy and provided its backing for the Company to continue exploring alternative replacement and growth options. However, it is unlikely that Gold Fields will pursue large-scale mergers or acquisitions like the Yamana Gold deal in the near future. Acquisitions of this nature have become more expensive as global gold production inches towards its peak and exploration activities have yielded limited success.

Looking forward, in addition to our existing focus on near-mine (brownfields) and district exploration, we will consider development projects, bolt-on acquisitions of producing assets and greenfields exploration. During 2022, we invested US$107m in brownfields exploration (of which 53% was at our Australian mines) to extend the life of our current asset base and capitalise on in-country opportunities to leverage off our existing footprint, infrastructure and skills. For more details see Life extension through near-mine exploration

Our investment in greenfields exploration includes exploration across targeted jurisdictions and taking minority stakes in exploration companies. For more details see Strategic investments

We consider all opportunities in line with our strict capital allocation approach and will only pursue an opportunity if it generates the required returns, which is one of our key strategic objectives. Production levels is only one of our focus areas: we pursue opportunities that are value accretive and enhance the portfolio's quality. We will not retain unprofitable or marginal ounces in the portfolio and will look to dispose of any assets management believes can be better served by a company with greater focus and resources.

Improving our portfolio's jurisdictional quality

In addition to the quality of individual assets, the quality of the jurisdiction in which they are located is an important part of our decision-making process. This approach has served the business well and we will continue to be selective regarding which jurisdictions we consider in our strategic options for the future.

In 2022, the political landscape in several of our operating countries became more challenging, specifically in Peru, Chile and Ghana. Political developments in Ghana are particularly concerning, with the government under significant financial strain and putting increased demands on corporates. We continue to monitor developments and maintain open lines of communication with our governmental stakeholders in these countries. For more details see Stakeholder overview

The Group continued to enhance its global footprint during 2022 by advancing the Salares Norte project in Chile, with first production expected in Q4 2023. This project will add an average 500koz of yearly gold-equivalent production from 2024 – 2029. Salares Norte will operate at extremely competitive costs, further enhancing the quality of our portfolio. We have budgeted US$389m in both project and sustaining capital for its continued development in 2023.

We remain selective when choosing the countries in which we deploy capital. South Deep is our only South African operation, and while it accounts for the majority of our Mineral Reserve base (46.1Moz at end-December 2022), our strategy over the past decade has targeted continued expansion outside of South Africa. Approximately 40% of our attributable gold Mineral Reserves (excluding our 45% interest in Asanko) were outside of South Africa at 31 December 2022, with 7.9Moz in Australia, 5.8Moz in Ghana, 1.1Moz in Peru and 4.6Moz in Chile.

Unlocking value and returning capital

Gold Fields remains committed to its strategy of generating cash to pay dividends to shareholders, reducing debt and sharing the value we create with our employees, host communities, governments, business partners and capital providers. Our capital allocation priorities for 2023 are:

• Funding Salares Norte capex
• Increasing capex to sustain production at our mines
• Degearing the balance sheet
• Paying dividends at between 30 – 45% of normalised earnings

We continue to focus on strategic levers to unlock value in our existing assets that is not yet fully reflected in market valuations. This includes completing construction and ramping-up production at Salares Norte and replacing our Australian operations' Mineral Reserves, thereby extending their lives-of-mine.

PROPOSED TARKWA JV

In line with our strategy of boosting growth through development projects or bolt-on acquisitions of producing assets, we announced a proposed JV in March 2023, involving our Tarkwa mine in Ghana and AngloGold Ashanti's neighbouring Iduapriem mine. The companies agreed in principle on the key terms, governance and managements structures, and commenced negotiations with the Ghanaian government and other stakeholders to formalise the JV as soon as feasible.

Excluding the interest to be held by the government of Ghana, proposed at 10% in line with its current holding in Tarkwa, Gold Fields will have an interest of 66.7% and incorporate the JV into Gold Fields Ghana. AngloGold Ashanti will have an interest of 33.3%.

If approved, the JV would create the largest gold mine in Africa, a high-quality operation supported by a substantial mineral endowment and an initial life spanning 18 years.

The benefits of the proposed JV include:

• Estimated average annual production (100% basis) of almost 900koz over the first five years and average annual production in excess of 600koz over the estimated life of operation
• Estimated AISC (in 2023 terms) of less than US$1,000/oz over the first five years and less than US$1,200/oz over the estimated life of operation
• Increased Mineral Reserves, exceeding the Reserves for the two stand-alone mines, due to the anticipated operational synergies

It is expected the JV will be operational before the end of 2023.

STRATEGIC INVESTMENTS

Over the years, Gold Fields has acquired strategic interests in several smaller exploration companies. After steadily reducing these non-core equity holdings in 2020 and 2021, in 2022 we changed our strategy and acquired stakes in two exploration companies that are managing prospective drilling programmes in Chile:

• We acquired a 15% stake for A$5.7m (US$3.8m) in ASX-listed Tesoro Gold, which is exploring the El Zorro gold project near our Salares Norte project in the Atacama province
• We invested C$15m (US$11.4m) for a 15% interest in TSX-listed Torq Resources, which is running drilling programmes at two gold-copper projects, Margarita and Santa Cecilia, that could complement our Salares Norte project

Our exploration investment portfolio also includes the following:

• We have an 18% stake in TSX-listed Chakana Copper, which is advancing the gold-copper-silver Soledad project in central Peru. In 2022 we participated in a rights issue to the amount of C$900k (US$700k), which did not change our shareholding
• We have a 14% stake in ASX-listed Lefroy Exploration, which is successfully exploring north of our St Ives mine in Western Australia

See the table below for a complete overview of our current strategic shareholdings.

Gold Fields¹ non-core investments (31 December 2022)

Investment	Shareholding	Market value (US$m)
Galiano Gold	9.8	11.7
Rusoro Mining	24.8	5.2
Chakana Copper	17.9	2
Magamatic Resources	6.5	1.2
Lefroy Exploration	13.6	3.8
Lunnon Metals	34.0	40.6
Hamelin Gold	10.0	1.1
Torq Resources	15.0	8.4
Tesoro Gold	14.9	4.6
Others		1.6
Total value		80.2

Far Southeast

Since early 2022, Gold Fields has sought to sell its 40% stake in Far Southeast Gold Resources, which manages the Far Southeast (FSE) project in the Philippines. Lepanto Consolidated Mining Company (Lepanto) in the Philippines holds the remaining 60% interest, as well as the mining rights and manages the existing mining operation adjacent to FSE. The carrying value we attribute to FSE has been written down from US$114m at the end of 2021 to zero.

In 2015, Lepanto, the owner of the underlying mineral rights including the FSE property, was unable to renew its 25-yearly mining licence when the Philippine government ruled Free Prior and Informed Consent (FPIC) was required for the renewal. This requirement was overturned during independent arbitration and, in 2018, by the country's Court of Appeals. In 2019, the government appealed this ruling in the Supreme Court. In December 2022, the Supreme Court ruled that FPIC was required. Lepanto and Far Southeast Gold Resources filed a motion for reconsideration of the decision in January 2023.

Gold Fields' monthly holding costs in FSE are approximately US$0.16m.

Salares Norte

Salares Norte is a 100% Gold Fields-owned gold-silver deposit. It is located between 3,900m and 4,700m above sea level in the Diego de Almagro municipality in the Atacama region of northern Chile. Its high-sulphidation epithermal system contains mineralisation, offering high-grade oxides. The project is currently in its construction phase, and we expect it to meaningfully change Gold Fields' future profile by accelerating production growth and reducing Group AIC.

Land easement for the project was granted for 30 years on 30 May 2016. In December 2016, we obtained water rights to meet the project's operational requirements. The Atacama Environmental Assessment Commission approved Salares Norte's Environmental Impact Assessment (EIA) on 18 December 2019 and the Board approved the project's construction and-development in February 2020.

Although the construction team has made significant progress since activities began in 2020, Covid-19 and severe weather conditions affected progress on-site during 2021 and 2022. Indications are that first production will now commence only in Q4 2023. We forecast production of 15koz – 35koz in 2023, which will improve strongly to 500koz in 2024 and 600koz in 2025. Average annual production for 2024 – 2029 is expected at 500koz, with AISC of US$660/au-eq oz. Life-of-mine production between 2024 – 2033 is expected at 355koz/year, at average AISC of US$745/au-eq oz.

We now estimate total project capex of US$1,020m, of which US$758m had been spent by December 2022 (US$97m during 2020, US$375m during 2021 and US$286m during 2022). 2023 will be another capital-intensive year for the project, with US$230m budgeted for project capital. Despite the delay and the higher costs, Salares Norte remains a world-class project with a sector-leading cost profile.

At end-December 2022, the construction progress was 86% complete (end-December 2021: 55%) and total project progress stood at 87% (end-December 2021: 62%). Some key milestones were finalised during 2022, including the heavy mine equipment shop and the freshwater system. The processing plant construction was 77% complete at end-December 2022, including significant progress on the grinding, crusher and stockpile areas.

Pre-stripping of the Brecha Principal pit was completed in October 2022, and 50.6Mt of waste has been moved to date. Ore stockpiling commenced in Q4 2022, with 422kt (79koz of contained gold) built up by end-December 2022.

In addition to the Agua Amarga and Brecha Principal ore bodies, which will be mined over the initial 10-year period, there is significant exploration potential in the surrounding area. Salares Norte controls 84,000ha of mineral rights in the Salares Norte district and has carried out extensive exploration within a 20km radius of the plant site. The operation spent US$34m on exploration in 2022 and drilled a total of 18,836m. We will continue to invest in exploration in the area to add to the production pipeline from 2025 onwards.

An important part of the project's EIA approval was relocating the endangered Short-tailed Chinchilla from the area. The relocation programme commenced in August 2020 but was halted by the environmental regulator in November 2020 after two of the four relocated Chinchillas died soon after they had been moved. We have continued to collaborate with the authorities to resolve the sanction proceedings by providing a comprehensive plan to safely relocate the remaining estimated 20 Chinchillas.

As part of the plan, we prepared and updated the required administrative and technical improvements in the relocation strategy. We also continue to engage with authorities and other stakeholders – including independent environmental experts – while we wait for the regulator to respond to our compliance programme and, hopefully, lift the suspension.

This relocation delay does not affect the project's construction schedule but, if the restrictions are not lifted, we may be required to implement an alternative mining plan.

While there are no Indigenous claims or community presence on the concession or the dedicated access routes, Salares Norte embarked on an extensive engagement programme with four Indigenous communities in its wider vicinity and has entered into long-term agreements with them. The project's principal area of social influence – and potential labour-sending area – is the Diego de Almagro municipality, which is approximately 125km away.