West Africa region

Ghana

Tarkwa

Gold production increased by 2 per cent from 264,400 ounces for the six months ended 30 June 2018 to 270,900 ounces for the six months ended 30 June 2019 mainly due to higher yield in line with the plan.

Total tonnes mined, including capital stripping, increased by 7 per cent from 45.2 million tonnes for the six months ended 30 June 2018 to 48.5 million tonnes for the six months ended 30 June 2019 due to improved contractor fleet performance. Ore tonnes mined increased by 19 per cent from 6.7 million tonnes to 8.0 million tonnes. Operational waste tonnes mined increased by 91 per cent from 10.8 million tonnes to 20.6 million tonnes due to higher operational waste stripping required to expose ore in line with the 2019 plan. Capital waste tonnes mined decreased by 28 per cent from 27.7 million tonnes to 19.9 million tonnes in line with the 2019 plan. Grade mined decreased by 3 per cent from 1.29 grams per tonne to 1.24 grams per tonne in line with the 2019 plan. The strip ratio decreased from 5.7 to 5.1.

The CIL plant throughput increased marginally from 6.88 million tonnes for the six months ended 30 June 2018 to 6.89 million tonnes for the six months ended 30 June 2019. Realised yield from the CIL plant increased by 3 per cent from 1.19 grams per tonne to 1.22 grams per tonne due to higher grade ore fed from mining and stockpiles and improved plant recovery which increased from 96.6 per cent to 97.3 per cent.

Cost of sales before amortisation and depreciation, increased by 5 per cent from US$150 million for the six months ended 30 June 2018 to US$157 million for the six months ended 30 June 2019 as a result of higher operational tonnes mined, partially offset by a higher gold-in-process credit. The six months ended 30 June 2019 resulted in a US$13 million build-up of stockpiles compared with a drawdown of US$11 million for the six months ended 30 June 2018.

At the end of June 2019, 5.6 million tonnes at 0.90 grams per tonne remained on the ROM stockpile and 6.0 million tonnes at 0.64 grams per tonne on the low grade stockpile. At the end of June 2018, 4.8 million tonnes at 0.86 grams per tonne remained on the ROM stockpile and 4.3 million at 0.64 grams per tonne on the lowgrade stockpile.

Capital expenditure decreased by 19 per cent from US$84 million to US$68 million mainly due to lower capital waste stripping and increased operational waste mined.

All-in sustaining costs and total all-in cost decreased by 1 per cent from US$954 per ounce for the six months ended 30 June 2018 to US$940 per ounce for the six months ended 30 June 2019 due to higher gold sold and lower capital expenditure, partially offset by higher cost of sales before amortisation and depreciation.

Damang

Gold production increased by 25 per cent from 89,500 ounces for the six months ended 30 June 2018 to 111,800 ounces for the six months ended 30 June 2019 mainly due to higher head grade and higher volumes processed.

Total tonnes mined, including capital stripping, decreased by 28 per cent from 23.9 million tonnes for the six months ended 30 June 2018 to 17.1 million tonnes for the six months ended 30 June 2019 in line with the 2019 operational plan as the Amoanda pit comes to completion.

Ore tonnes mined increased by 50 per cent from 1.8 million tonnes to 2.7 million tonnes. Operational waste tonnes mined decreased by 21 per cent from 3.4 million tonnes to 2.7 million tonnes as a result of the Amoanda pit getting deeper with its associated operational constraints. Total capital waste tonnes decreased by 37 per cent from 18.7 million tonnes to 11.7 million tonnes. Capital waste of 11.7 million tonnes was mined at the Damang DPCB complex for the six months ended 30 June 2019. This compared with 4.4 million tonnes mined at the Amoanda pit and 14.3 million tonnes at the Damang complex for the six months ended 30 June 2018, comprising 12.4 million tonnes from DPCB and 1.9 million tonnes from the Saddle area.

Head grade mined decreased by 12 per cent from 1.79 grams per tonne to 1.58 grams per tonne due to lower grade ore mined from Saddle pit. The strip ratio decreased from 12.7 to 5.4 in line with the 2019 operational plan.

Tonnes processed increased by 7 per cent from 2.16 million tonnes for the six months ended 30 June 2018 to 2.32 million tonnes for the six months ended 30 June 2019 as a result of higher plant overall equipment effectiveness and optimisation work carried out at the crushing circuit. Yield increased by 16 per cent from 1.29 grams per tonne to 1.50 grams per tonne due to higher mined grade material treated from Amoanda pit. For the six months ended 30 June 2019, tonnes milled were sourced as follow: 1.92 million tonnes at 1.66 grams per tonne from the pits, 0.40 million tonnes at 1.78 grams per tonne from stockpiles. This compared with 1.52 million tonnes at 1.75 grams per tonne from the pits, 0.64 million tonnes at 0.63 grams per tonne from stockpiles for the six months ended 30 June 2018. The increase in yield notwithstanding the lower head grade mined is due to the processing of higher grade stockpiles previously mined at Amoanda pit.

Cost of sales before amortisation and depreciation, decreased by 6 per cent from US$63 million to US$59 million due to a gold-inprocess credit to cost of US$7 million for the six months ended 30 June 2019, compared with US$5 million for the six months ended 30 June 2018, as well as lower cost.

Capital expenditure decreased by 32 per cent from US$73 million to US$50 million, with US$45 million spent on capital waste stripping.

Sustaining capital expenditure decreased by 43 per cent from US$7 million to US$4 million due to the expenditure incurred on the SAG mill shell replacement in the six months ended 30 June 2018. Non-sustaining capital expenditure decreased by 30 per cent from US$66 million to US$46 million mainly due to lower capital waste tonnes mined.

All-in sustaining costs decreased by 21 per cent from US$829 per ounce for the six months ended 30 June 2018 to US$652 per ounce for the six months ended 30 June 2019 due to higher gold sold, lower cost of sales before amortisation and depreciation and lower sustaining capital.

All-in costs decreased by 33 per cent from US$1,585 per ounce for the six months ended 30 June 2018 to US$1,061 per ounce for the six months ended 30 June 2019 due to the same reasons above, as well as lower non-sustaining capital expenditure.

At the end of the June 2019 quarter, and 30 months into the Damang Reinvestment Project (DRP), total material mined amounted to 103 million tonnes, 19 per cent ahead of the project schedule. Gold produced during the same period was 436,185 ounces, 27 per cent above the DRP ounces of 344,332. The project capital spent to date is US$320 million versus the original DRP budget to date of US$275 million, largely driven by the additional capital waste tonnes mined.

Asanko (Equity accounted Joint Venture)

Gold production was 122,500 ounces for the six months ended 30 June 2019. The following statistics are also shown for the six months ended 30 June 2019.

Total tonnes mined were 16.9 million tonnes. Ore tonnes mined were 2.6 million tonnes. Head grade mined was 1.48 grams per tonne.

Total waste tonnes mined were 14.3 million tonnes. The strip ratio was 5.6.

The plant throughput was 2.6 million tonnes. Yield was 1.47 grams per tonne.

Cost of sales before amortisation and depreciation was US$94 million.

Total capital expenditure was US$36 million.

Sustaining capital expenditure was US$28 million and included deferred stripping of US$23 million. Non-sustaining capital expenditure was US$8 million and related to the Esaase business readiness and Tetrem relocation.

Gold Fields' 45 per cent share of gold produced and gold sold amounted to 55,100 ounces and 53,900 ounces for the six months ended 30 June 2019, respectively. Gold Fields' share of cost of sales before amortisation and depreciation was US$42 million for the six months ended 30 June 2019. Gold Fields' share of sustaining capital expenditure was US$13 million for the six months ended 30 June 2019. Gold Fields' share in non-sustaining capital expenditure for the six months ended 30 June 2019 was US$3 million.

All-in sustaining costs and total all-in cost of US$1,155 per ounce and US$1,235 per ounce for the six months ended 30 June 2019.