Integrated Annual Review 2012 Annual Financial Report 2012 Mineral Resources and Mineral Reserves Regional overview  

6.1 Linking growth, diversification and sustainability

Our Vision of being the global leader in sustainable gold mining requires us to:

  • Believe in gold: This means we are – and will remain – a miner of gold (and other metals present with gold), and will not hedge against the gold price
  • Create the greatest enduring value from gold: This means delivering optimal financial returns to our investors
  • Consistently deliver what we promise across all our operations: This means achieving and maintaining stability, predictability and consistency at our operations – and only providing guidance for what we know we can deliver

It is these requirements that sit behind our strategic objective of ‘growing Gold Fields’.

Relevant stakeholder promises:
  • A quality portfolio of productive mines and assets under exploration and development: The quality of our asset portfolio is key to our success – but what is most important is that we maximise the value this can generate and that we pursue asset returns rather than just ounces in production
  • The best return on gold: In order to be an appealing long-term investment, we must deliver leverage to the gold price and attractive returns relative to our peers

Ground inspection at Salares Norte, Chile
Ground inspection at Salares Norte, Chile

During his July 2012 keynote speech to the Melbourne Mining Club, Gold Fields CEO Nick Holland, identified the key challenge for the global gold mining industry: To provide investors with attractive returns in absolute terms and relative to our peers. This is not only our guiding principle as we seek to ‘optimise our operations’ (p72), but also sits behind our approach to ‘growing Gold Fields’.

We have taken a hard look at our current growth portfolio – as well as our historical goal of having 5 million ounces in production or development by 2015 – to ensure we are well-positioned to meet the challenge. This has resulted in some tough decisions that, whilst potentially impacting on future production volumes, will ensure we invest in – and deliver – only high-margin, cash-generating growth projects.

Because of this, our previous 2015 goal is no longer our primary point of reference. Instead, our focus is on:

  • Delivering superior growth in shareholder value and avoiding growth for growth’s sake (and by implication, avoiding the development of marginal projects)
  • Ensuring project development places particular emphasis on the optimisation of project returns
  • Building a focused, steady pipeline of cash-generating projects that will, over time, further enhance Gold Fields overall cash returns

This approach will continue to help us diversify our production base – and secure the long-term sustainability of our business by adding to and upgrading the quality of our portfolio.