Outcomes

Results, Scorecard and Impacts

Gold Fields generates significant value for all the societies in which it operates – some of which can be quantified and others not. The most important means by which Gold Fields generates quantifiable value are outlined below:

TOTAL AND NATIONAL VALUE DISTRIBUTION

National value distribution by region and type 2016 (US$m) Government Business Employees/
contractors		Socio-Economic Development Capital
providers		 National
value
distribution		  
Americas 35  147 40 9  3 234  
Australia 99  720 138 0.3  0 958  
South Africa 21 197 153 42 5 361  
West Africa 94  584 104 3  2 787  
Corporate 6  – 47 –  112 165  
Total Gold Fields 235  1,648 482 16  122 2,505  
1 South Deep does not yet pay income tax as it is in a loss-making position
2 This includes spending from the South Deep Community and Education Trusts and SLP commitments.

MANAGING OUR IMPACTS

The nature of our mining operations requires that we understand and manage and minimise the impact of our operation.

Community impacts in 2016  
community  
   
Environmental laboratory, Tarkwa, Ghana  
 
Community investments: US$16m
Funding of projects that directly benefit our host communities
Host community workforce employment: 8,567 people
Just under half of our total workforce is sourced from host communities
Host community procurement: US$558m
During 2016 Gold Fields procured 38% of its goods and services from host community enterprises

Environmental impacts in 2016  
Environmental  
   
Tailings storage facility at Cerro Corona, Peru  
Water withdrawal:
30.3Gℓ
CO2 emissions:
1.96m tonnes
Mining waste:
187m tonnes
Energy usage:
11.7m GJ
Truck fleet  
Truck fleet at St Ives, Australia  

CREATING SHARED VALUE




Government
Business
Employees/
contractors
Communities
Capital providers		  
Payments include
Mining royalties and land-use payments, taxes, duties and levies dividends Operational and capital procurements Salaries and wages, benefits and bonus payments (including shares and payroll taxes) SED spending, including on infrastructure, health and wellbeing, education and training, local environmental initiatives and donations Interest and dividend payments to shareholders  

 

Why these stakeholders matter  
Governments provide us with access to ore bodies by granting mining and other licences. They also deliver the infrastructure necessary to build and maintain our mines, including roads, electricity and water supply Our supply chain businesses provide the equipment and services needed to develop and maintain our operations The technical skills, experience and activity of our people drive the day-to-day operations of our business Host communities are the source of a significant portion of our workforce and a key component of our social licence to operate Financial institutions, shareholders and bond holders invest with us, thus enabling us to fund the development, maintenance and growth of our operations and our overall business  

 

What we contributed in 2016  
 
  • We paid governments US$235m (2015: US$196m) in taxes and royalties, 9% of total value distribution (2015: 8%)
  • In addition, the Ghanaian government receives dividends relating to its 10% shareholding in Gold Fields Ghana, depending on the Company's performance
  
  • We paid US$1,648m to suppliers and contractors, representing 66% of total value creation (2015: US$1,663m/69%)
  • Of the total 2016 procurement expenditure, US$1,360m or 83%, was spent on businesses based in operating countries (2015: US$1,268m/76%)
  • Within this figure, US$558m, or 41%, was spent on suppliers and contractors from host communities (2015: US$514m/40%)
  
  • We paid US$482m (2015: US$435m) to employees in terms of salaries, dividends and benefits, representing 19% of total value distribution (2015: 18%)
  • We also provide employees (where legislated) with additional benefits such as retirement savings, healthcare assistance, life and disability insurance, housing assistance and personal accident cover
  
  • We invested US$16.2m (2015: US$13.7m) in terms of SED investment
  • Independently, the South Deep trusts spent R19.3m (US$1.4m) in 2016 (2015: R24.3m/ US$1.9m)
  • 48% of our workforce is drawn from host communities (2015: 59%)
  • See p99 for an analysis of our host community employment and procurement as well as other benefits and investment in communities
  
  • We paid US$122m (2015: US$117m) to the providers of debt and equity capital, mainly in the form of interest and dividends
  • Net debt was reduced by a further US$214m to US$1,166m during 2016
  

Results and Impacts

                    Financial                    
                   
Category		 2016       2015   2014   2013  
Gold price received (US$/oz) 1,241     1,140    1,249   1,386   
Revenue (US$/m) 2,750     2,545    2,869   2,906   
Operating profit (US$/m) 1,362     1,089    1,191   1,239   
Headline earnings/(loss) (US$/m) 208     (28)   27   (81)  
Normalised earnings (US$/m) 191     45    85   58   
Capital expenditure (US$/m) 650     634    609   739   
Net cash-flow (US$/m)1 294     123    235   (235)  
Free cash-flow margin (%) 17     8    13   n/a   
Dividend (SA cent/share) 110     25    40   22   
Total net debt (US$/m) 1,166     1,380    1,453   1,735   
Net debt: adjusted EBITDA2 ratio 0.95     1.38    1.30   1.50   
1 Net cash-flow from operating activities after taking account of net capital expenditure and environmental payments.
2 Net operating profit before depreciation and amortisation, adjusted per exploration expenses and certain other costs.

 

                    Business Optimisation                    
Category		 2016       2015   2014   2013  
TRIFR (rate per million)3 2.27     3.40   4.04   4.14  
Fatalities 1     3   3   2  
Gold produced – attributable (Moz) 2.15     2.16   2.22   2.02  
All-in Sustaining Cost (US$/oz) 980     1,007   1,053   1,202  
All-in Cost (US$/oz) 1,006     1,026   1,087   1,312  
Attributable Gold Mineral Resources (Moz) 101.494     102.210   108.843   113.398  
Attributable Gold Mineral Reserves (Moz) 48.112     46.064   48.123   48.608  
Attributable Copper Mineral Resources (Mlb) 5,813     5,912   6,873   7,120  
Attributable Copper Mineral Reserves (Mlb) 454     532   620   708  
Brownfields exploration (US$m) 79     72   58   32  
Brownfields exploration – metres drilled 694,527     651,189   349,511   250,138  
3 Total recordable injury frequency rate.

 

                    Licence to Operate                    
Category		 2016       2015   2014   2013  
Total value distribution (US$m) 2,505      2,425   2,650   2,980  
SED spending (US$m) 16.2      13.7   17.4   17.2  
Workforce from host communities (%) 484     59   57   –  
In-country procurement (US$m) 1,360      1,270   1,440   1,440  
Host community procurement (US$m) 558      514   600   430  
Environmental incidents (Level 3 and above) 3      5   4   3  
Water recycled/reused (Mℓ) 44,274      43,120   42,409   33,453  
Water withdrawal (Mℓ) 30,321      35,247   30,207   30,302  
Electricity (MWh) 1,400,422      1,322,353   1,338,075   1,382,106  
Diesel (TJ) 6,608      6,930   6,066   5,509  
CO2 emissions (’000 tonnes) 1,964      1,753   1,694   1,731  
Mining waste (’000 tonnes) 187,036      167,357   138,522   190,007  
Gross closure costs provisions (US$m) 381      353   391   355  
4 2016 reduction due to a change in definition applied at South Deep (p99).

 

                    People                    
Category		 2016       2015   2014   2013  
Total employees 8,964     9,052   8,954   10,167  
Contractors 9,127     7,798   6,486   6,685  
HDSA employees in SA (%)5 72     71   71   70  
Female employees (%) 15     14   14   11  
Employee wages and benefits (US$m) 482     435   468   595  
Ratio of basic salary men to women 1.31     1.09   1.10   1.20  
Employee turnover (%) 12     8   20   10  
5 Includes white women as historically disadvantaged South Africans (HDSA).

2016 Performance drop against 2015
2016 Performance on par with 2015
2016 Performance improvement on 2015 or achievement in line with strategy