3.2.1 Strategic focus areas - Free cash flow
During 2015, Gold Fields generated a US$123 million net cash flow compared to US$235 million in 2014. This was achieved despite the fact that the gold price for 2015, at US$1,140/oz, was 9% lower than the US$1,249/oz realised in 2014. Gold Fields has generated positive net cash flow in all but one of the past 10 quarters. A free cash flow (FCF) margin of 8% was achieved compared with 13% in 2014. This is a good achievement in view of the lower gold price received. Indeed, if the price received is normalised to our long-term planning price of US$1,300/oz the FCF margin would have been 15%.
In fact, to put our net cash flow generation in context, during 2015 our international mines in Australia, Ghana and Peru collectively generated US$334 million of net cash flow. Of that US$80 million was re-invested into our developing South Deep mine in South Africa, which is not yet at a steady state of production, and US$73 million was used to further reduce our debt.
This demonstrates the robustness of our international portfolio of assets and the improved cash generating potential of the portfolio once the South Deep mine achieves cash breakeven level, which is targeted for the end of 2016.