| Introduction
The Gold Fields (GFI) portfolio consists of eight operating
assets and a limited number of exploration or early stage
projects, which are grouped into four regions. The Australia
region consists of the St Ives, Granny Smith, Agnew and Darlot
operations, as well as the FSE project. The Americas region
comprises the Cerro Corona mine and the Salares Norte and
Woodjam projects. South Deep Gold Mine is the only operation
in the South Africa region, while the Tarkwa and Damang mines
in Ghana comprise the West Africa region.
The strategic decision in 2013 to focus the Group on ‘ounces
in production’, coupled with the key strategic decision to focus
on quality, cash-accretive ounces, rather than greenfields
exploration and project development, resulted in the majority
of the growth projects being classified as ‘assets for sale’.
The Mineral Resource Management strategy clearly positions
the group for margin, cash flow and growth, on a per share
and per ounce basis. To date three ‘non-core’ projects: Talas in
Kyrgyzstan, Yanfolila in Mali and Chucapaca in Peru have been
successfully divested. Both the FSE project in the Philippines
and the Salares Norte project in Chile, continue to demonstrate
the potential for significant future shareholder value and with a
focus on realising this, they remain key assets in the portfolio.
In response to the downturn of the gold price, a number of
initiatives have been implemented to assist in protecting the
viability of the operations and building a sustainable business
that continues to deliver cash flow and superior growth in
shareholder value. This is all undertaken while effectively still
retaining longer-term optionality, so the portfolio can remain
leveraged to future gold price fluctuations.
The key initiatives include:
| • |
Use of a consistent planning gold price of US$1,300/oz and
US$3.0/lb for copper but with a targeted margin of 15% to
protect the quality of the ore bodies and to ensure the Mineral
Reserve is resilient to metal price changes |
| • |
Surface Mineral Resources are constrained by open-pit shells
based on metal prices of US$1,500/oz for gold and US$3.5/lb
for copper and underground Mineral Resources are spatially
constrained within estimated mining volumes. This approach
is adopted to eliminate the inclusion of non-contiguous
mineralisation from Mineral Resource estimates |
| • |
Elimination of marginal mining at all the operations, as a result
of higher cut-off grades generally applied at each mine |
| • |
A commitment to ongoing near-mine exploration to drive the
development of a focussed and steady pipeline of highquality
Brownfield projects that will, over time, further enhance
overall cash returns |
| • |
Rationalisation of capital expenditure to underpin increased
cash flow without compromising the future integrity of the
assets |
| • |
Corporate, regional and operational structures have been
rationalised in conjunction with the strengthening of the
regionalised model. The regions are now appropriately
resourced to focus on building a sustainable business |
Importantly, the Mineral Resources and Mineral Reserves
are anchored at the operations by the maintenance of sound
stakeholder relationships based on Shared Value creation, aimed
at supporting community development. Combining the latter
with rigorous quality control on environmental compliance and
an emphasis on the security of water and power, the Group’s
Mineral Reserves enjoy a strong, sustainable development
underpin.
At the end of December 2014, Gold Fields has total
managed Mineral Resources, inclusive of growth projects,
of 128.2 (136.7) million ounces (Moz) of gold and 13,666
(14,038) million pounds (Mlb) of copper respectively. Managed
Mineral Resources (excluding projects) are 103.9 (108.0)
Moz gold and 1,006 (1,124)Mlb copper net of depletion.
The corresponding total managed gold and copper Mineral
Reserves are 52.1 (52.6)Moz net of 2.1Moz depletion, and
623 (712)Mlb, net of 71Mlb depletion respectively.
The Gold Fields Mineral Resource and Mineral Reserve guiding
principle is to ensure integrity, transparency and materiality
in reporting, compliance with public regulatory codes and
internal standards, and to inform all stakeholders on the status
of the Group’s fundamental asset base. Gold Fields is a midtier,
unhedged producer of gold, with attributable, annualised
production of ~2.0Moz of gold and ~70Mlb of copper from
eight operating mines located in Australia, South Africa, Peru
and Ghana.
The Mineral Resources and Mineral Reserves outlined in this
overview provide the key anchor point for sustained operational
excellence, the generation of cash and margin, asset net
present values and a secure future for Gold Fields. The
information in this report is presented on a Group and regional
basis in appropriate detail, summarising the current status and
changes at each operation and growth project. This report
should be read in conjunction with the Integrated Annual Report
(IAR), which provides additional information regarding the
operations and their financial performance.
Important notices
| 1. |
All Mineral Resource and Mineral Reserve figures reported
are managed by Gold Fields unless otherwise stated. |
| 2. |
Mineral Resources are reported inclusive of Mineral
Reserves and Mineral Resources include stability
pillars when appropriate (December 2013 statement’s
numbers are shown in brackets). |
| 3. |
The Mineral Resources and Mineral Reserves are estimates
at a point in time and will be affected by changes in the
gold price, US dollar currency exchange rates, permitting,
changes in legislation, costs and operating parameters. |
| 4. |
Rounding-off of figures in this report may result in minor
computational discrepancies. Where this occurs it is not
deemed significant. |
| 5. |
All references to tonnes (t) are metric units |
| 6. |
The 31 December 2014 Mineral Resource and Mineral
Reserve figures are net of depletion. |
| 7. |
Locations on maps are for indication only. |
| 8. |
All metals (gold, platinum, palladium, silver, copper
and nickel) are reported individually and not as metal
equivalents. |
Note: For abbreviations refer to page 134 and for glossary of terms refer to page 135 –‘Mineral Resource and Mineral Reserve Supplement 2014’. |
