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

1.5 Strategy for the new Gold Fields

During 2012, Gold Fields undertook a major strategy review. This was marked by the replacement of our previous goal of having 5 million ounces in production or in development by 2015, to one focused on cash generation. Gold Fields thus aims to:

  • Deliver improved leverage and exposure to the price of gold, through a profitable, globally diversified production portfolio
  • Adopt a disciplined approach to growth and project development

Figure 1.7: The Way Forward for Gold Fields

  Strategy Implementation
Focus on cash generation
Review mine and project portfolio to optimise our current and future cash generation (Portfolio Review)
Understand and manage all-in costs using Notional Cash Expenditure (NCE)
Prioritise low risk, high return near-mine growth opportunities
Pursue greenfields growth opportunities only if they offer attractive returns
Deliver South Deep
Transition from construction to ore body development and production ramp-up
Achieve production of 700,000 oz a year by 2016
Optimise financial gearing
Leverage balance sheet for growth on a per share basis
Implement a strong dividend policy
Prioritisation of dividends so they have first call on cash flows
Pay out 25% – 35% of normalised earnings in dividends
Pursue sustainable development
Pursue Zero Harm
Focus on the long-term sustainability of the business
Create shared value for the countries and regions in which we operate

This strategy will continue to be supported by three strategic pillars:

Figure 1.8: Strategic pillars

Strategic pillars