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

2.2.4 A message of thanks

I would like to give my thanks to Dr Mamphela Ramphele, who tendered her resignation as Chair of Gold Fields in February 2013 to seek a different direction – including renewed activity in the political sphere. Dr Ramphele has been a source of valuable input and advice during her time on the Board – and, indeed, of personal guidance to myself during the year. We wish her well in the pursuit of her new endeavours.

At the same time, I would like to congratulate Cheryl Carolus on her new role as Chair of Gold Fields – and thank her for stepping in to take Dr Ramphele’s place. Cheryl has been on the Board of Gold Fields since 2009, playing a number of key roles, particularly in relation to the sustainability of our business, safety issues and transformation. She knows the company extremely well – which will help ensure a seamless transition.

I would also like to thank the other directors on the Board for their sound advice and strong support to myself and the executive management team over the past year. I would also like to thank Sello Moloko, who stepped down from the Gold Fields Board to chair Sibanye Gold. His experience will prove invaluable as Sibanye Gold charts its new course.

As they embark on their new journey I want to once again thank my former colleagues at Sibanye Gold for their hard work over the years and the dedication they have shown to Gold Fields. I am confident that their new company will set new benchmarks for the South African gold mining industry.

Finally I would like to thank my fellow executives and employees for their support and hard work over the past year, and the last few months in particular. The portfolio review process and subsequent corporate transactions have required their utmost dedication in sometimes very difficult circumstances. But they persevered and the successful outcome of these efforts testimony to their commitment and a credit to all of them. The last few months have really demonstrated to me the incredible capacity and commitment of Sibanye Gold and Gold Fields people, which bodes well for the future. After all, people are our business.

Yours in health and safety,

Nick Holland
Chief Executive Officer

26 March 2013

Portfolio Review Maximising new Gold Fields cash generation potential

The unbundling of Sibanye means Gold Fields is now in a strong position to carve a new path – including a new, strong focus on cash generation. This is based on:
Portfolio Review: A wide ranging review to ensure all of our operations and growth projects are fully geared towards cash generation
Notional Cash Expenditure (NCE): Reporting our performance in terms of NCE, to ensure we understand and manage ‘all‑in’ costs
Near-mine growth: Prioritisation of low-risk, high-return near-mine growth opportunities
Commercially robust greenfields growth: The pursuit of greenfields projects only if they offer truly attractive returns

By applying these approaches, our aim is to achieve a long-term NCE margin of at least 25%. Gold Fields (excluding Sibanye Gold) already demonstrates an NCE margin of 26% excluding South Deep.

Figure 2.1: NCE margin

New Gold Fields including South Deep   New Gold Fields excluding South Deep
New Gold Fields including South Deep   New Gold Fields excluding South Deep

Greenfi elds exploration budget for 2013

2 Moz
Added to Group attributable Mineral Resources

In the short- to medium-term, our efforts to expand high-margin production are focused on near-mine opportunities at our Cerro Corona, Damang and Tarkwa mines. These are set out below.

Figure 2.3: Immediate focus on near-mine growth opportunities

Low-risk, high-return near-mine growth opportunities
Cerro Corona • Sulphides Expansion Project • Oxides Project
Damang • Optimisation of the extraction of the mine’s 10 million ounce ore body
Tarkwa • Implementation of Tarkwa Expansion Phase 6 (TEP6)

In the longer term, our growth efforts will be focused on the development of greenfi elds opportunities in Northern Europe, South America, South-East Asia, and West Africa – but only where they can demonstrate strong project returns. Our approach to the development of new projects will be characterised by:

  • Starting small where possible
  • The enforcement of stringent commercial stage gates
  • The de-risking of projects (where appropriate) through fi nancial or technical partnerships