Review of Operations

Six months ended 30 June 2020 compared with six months ended 30 June 2019

Figures may not add as they are rounded independently

South Africa region

South Deep

Despite the impact of COVID-19 South Deep showed improvements in most measures during H1 2020 compared to H1 2019. This is largely due to the fact that H1 2019 was subject to organisational realignment post the labour restructuring and industrial action towards the end of 2018. Ore mined and gold produced increased by 14% and 10% respectively. Had it not been for the COVID-19 interventions, the improvements would likely have been more significant.

Development decreased by 32% as 2019 included catch up lead on development. Destress increased by 47% as South Deep continued its migration to North of Wrench from Current Mine. Waste mined decreased by 69% as a result of the increased focus on destress mining and the decrease in stope access development in Current Mine.

Secondary support decreased by 28% and backfill by 20% during the six months ended 30 June 2020 as these activities were reinstated later than production post the COVID-19 lockdown restrictions. The period ended 30 June 2019 included catch up secondary support and backfill not repeated in the six months ended 30 June 2020.

Surface re-mining and processing increased dramatically by 623% due to fully utilising the separate processing circuit to maximise value from this operation and supplying sufficient underground backfill quantities. Total reef yield was negatively impacted by the increased surface re-mining volume and decreased by 38%, underground reef yield compares well with a 6% reduction. The relatively high grade recovered is a result of improved stoping performance together with an improvement in the ratio of higher-grade stoping tonnes to development and destress tonnes. Grade was also favourably impacted by the increase in volumes from North of Wrench as extraction from the higher-grade 3W and 4W proximal corridors gradually increased.

Total all-in cost decreased by 6% to R654,537/kg (US$1,234/oz) for the six months ended 30 June 2020 from R698,982/kg (US$1,529/oz) for the six months ended 30 June 2019 mainly due to higher gold sold and lower capital expenditure, partially offset by slightly higher cost of sales before amortisation and depreciation.

Capital expenditure decreased by 3% to R242 million (US$15 million) for the six months ended 30 June 2020 from R250 million (US$18 million) for the six months ended 30 June 2019 as explained below.

Sustaining capital expenditure decreased by 8% to R231m (US$14m) for the six months ended 30 June 2020 from R250m (US$18m) for the six months ended 30 June 2019 mainly due to reduced overall spending as a result of the COVID-19 pandemic. Non-sustaining capital expenditure increased to R11m (US$1m) for the six months ended 30 June 2020 from Rnil m (US$nil m) for the six months ended 30 June 2019. This increase was mainly due to the preparation for the development growth capital in 2020.

South Deep generated net cash inflow of R79m (US$5m) for the six months ended 30 June 2020 compared to an outflow of R238m (US$18m) for the six months ended 30 June 2019.

West Africa region

Ghana*

Total production decreased by 4% to 420koz for the six months ended 30 June 2020 from 438koz for the six months ended 30 June 2019 mainly due to decreased production at Damang following the completion of the Amoanda pit in H1 2019.

All-in cost increased by 9% to US$1,093/oz in June 2020 from US$1,007/oz for the six months ended 30 June 2019.

The region produced net cash flow (excluding Asanko) of US$139m for the six months ended 30 June 2020 compared to US$72m for the six months ended 30 June 2019. Gold Fields received US$37.5m on the redemption of preference shares from Asanko for the six months ended 30 June 2020. If included the total cash flow for the six months ended 30 June 2020 would be US$176.7m

Tarkwa

Gold production increased marginally to 271,700oz for the six months ended 30 June 2020 from 270,900oz for the six months ended 30 June 2019 mainly due to higher tonnes milled. Yield decreased by 5% to 1.16/t for the six months ended 30 June 2020 from 1.22g/t for the six months ended 30 June 2019 due to lower ore tonnes mined and feeding of lower grade stockpiles. Ore rehandled from stockpiles was 1,782kt at a head grade of 0.78g/t for the six months ended 30 June 2020 compared to 270kt at a head grade of 0.83g/t for the six months ended 30 June 2019.

Total tonnes mined, including capital waste stripping, decreased by 7% to 45.3 million tonnes for the six months ended 30 June 2020 from 48.5 million tonnes or the six months ended 30 June 2019 in line with the 2020 mine plan.

All-in cost increased by 5% to US$988/oz for the six months ended 30 June 2020 from US$940/oz for the six months ended 30 June 2019 due to higher cost of sales before amortisation and depreciation and higher royalty tax, partially offset by higher gold sold and lower capital expenditure.

Capital expenditure decreased by 1% to US$67.5 million for the six months ended 30 June 2020 from US$68.3 million for the six months ended 30 June 2019.

Tarkwa generated net cash flow of US$129m for the six months ended 30 June 2020 from US$62m for the six months ended 30 June 2019 mainly due to a higher gold price received.

Damang

Gold production decreased by 21% to 87,800oz for the six months ended 30 June 2020 from 111,800oz for the six months ended 30 June 2019 mainly due to lower yield. Yield decreased by 25% to 1.12g/t for the six months ended 30 June 2020 from 1.50g/t for the six months ended 30 June 2019 due to lower feed grade following the completion of the Amoanda and Saddle pits in 2019 as well as the lower grade material mined while transitioning through the Huni Sandstone in the main pit Complex during H1 2020. In addition, ore rehandled from stockpiles was 663kt at a head grade of 0.94g/t for the six months ended 30 June 2020 compared to 396kt at a head grade of 1.78g/t for the six months ended 30 June 2019.

Total tonnes mined decreased by 19% to 13.9 million tonnes for the six months ended 30 June 2020 from 17.1 million tonnes for the six months ended 30 June 2019 due to the completion of mining in the Amoanda and Saddle pits in line with the plan.

Capital waste tonnes, included in total waste tonnes, decreased by 100% to 0.01 million tonnes for the six months ended 30 June 2020 from 11.7 million tonnes for the six months ended 30 June 2019 due to the completion of capital waste stripping following the intersection of the main orebody at the Damang Complex pits.

Operational waste tonnes increased by 330% to 11.7 million tonnes for the six months ended 30 June 2020 from 2.7 million tonnes for the six months ended 30 June 2019 due to the completion of capital waste stripping in H1 2020 with all waste now mined classified as operational waste.

Ore tonnes mined decreased by 18% to 2.2 million tonnes for the six months ended 30 June 2020 from 2.7 million tonnes for the six months ended 30 June 2019 as a result of the completion of mining at Saddle and Amoanda pits.

Gold mined decreased by 23% to 104,800oz for the six months ended 30 June 2020 from 136,900oz for the six months ended 30 June 2019 due to lower ore tonnes and grade mined as a result of the completion of mining at Saddle and Amoanda pits.

All-in cost increased by 34% to US$1,425/oz for the six months ended 30 June 2020 from US$1,061/oz for the six months ended 30 June 2019 due to lower gold sold and higher cost of sales before amortisation and depreciation, partially offset by lower capital expenditure.

Capital expenditure decreased by 83% to US$8.4 million for the six months ended 30 June 2020 from US$49.7 million for the six months ended 30 June 2019. Non-sustaining capital expenditure decreased by 90% to US$4.7m for the six months ended 30 June 2020 fromUS$45.7m for the six months ended 30 June 2019. The decrease in capital expenditure is mainly due to lower capital waste tonnes mined.

At the end of the June 2020 quarter, 42 months into the Damang reinvestment project (DRP), total material mined amounted to 134 million tonnes, 14% ahead of the project schedule. Gold produced for the same period was 620,550oz, 13% above the DRP plan of 550,568oz. Project capital spent as at 30 June 2020 was US$355m versus the DRP budget of US$336m, largely driven by the additional capital waste tonnes mined.

Damang generated net cash flow of US$10m for the six months ended 30 June 2020 compared to US$9m for the six months ended 30 June 2019.

Encouragingly, mining transitioned through the bulk of the Huni Sandstone during H1 2020, with minimal volumes of Huni Sandstone remaining. Damang is on track to deliver the 2020 production guidance, with mining occurring in the higher grade Tarkwa Phyllites during H2 2020 where mined grade is expected to improve. Gold production will thus be higher in the second half of the year relative to the first half. This is expected to have a favourable impact on AISC and AIC in H2 2020 and for the full year.

Asanko (Equity accounted Joint Venture)

All figures in table on a 100% basis.

Gold production increased by 11% to 135,400oz (100% basis) for the six months ended 30 June 2020 from 122,500oz (100% basis) for the six months ended 30 June 2019 mainly due to higher tonnes milled which increased 17%.

All-in cost decreased by 12% to US$1,083/oz for the six months ended 30 June 2020 from US$1,235/oz for the six months ended 30 June 2019 underpinned by an 8% increase in gold sold and a decrease in capital expenditure.

Total capital expenditure (100% basis) decreased by 21% to US$28 million for the six months ended 30 June 2020 from US$36 million for the six months ended 30 June 2019 due to reduced capital strip at the Esaase pit as the pit advances.

South America region

Peru

Cerro Corona

Since 15 March 2020, the Cerro Corona operation has been impacted by the State of Emergency declared by the Peruvian Government in response to the COVID-19 pandemic, with the quarantine limiting (to varying degrees) the team's ability to transport people and concentrate. In addition, the new health protocols that were implemented in response to the pandemic, have limited the capacity at the camp, which has negatively impacted the mining operation and construction projects.

Gold production decreased by 20% to 64,300oz for the six months ended 30 June 2020 from 80,800oz for the six months ended 30 June 2019, while copper production decreased by 19% to 12,989 tonnes for the six months ended 30 June 2020 from 16,122 tonnes for the six months ended 30 June 2019, both due to lower grades processed. Equivalent gold production decreased by 31% to 108,700oz for the six months ended 30 June 2020 from 157,100oz for the six months ended 30 June 2019 underpinned by lower gold and copper grades processed as lower grade stockpiles were used to supplement the fresh ore mined due to the COVID-19 restrictions during the six months (31Koz), together with a lower price factor (17Koz).

All-in cost per gold ounce increased by 144% to US$709/oz for the six months ended 30 June 2020 from US$290/oz for the six months ended 30 June 2019 mainly due to higher capital expenditure, lower by-product credits and lower gold sold. All-in cost per equivalentounce increased by 41% to US$984 per equivalent ounce for the six months ended 30 June 2020 from US$698 per equivalent ounce for the six months ended 30 June 2019 due to lower equivalent ounces sold and higher capital expenditure.

Total capital expenditure increased by 19% to US$19.3 million for the six months ended 30 June 2020 from US$16.3 million for the six months ended 30 June 2019. This increase was underpinned by the construction of the Arpon waste storage facility, as well as the culmination of the infrastructure relocation activities related to the expansion of the life of mine until 2030, which started at the end of 2019. This included relocation of roads, the explosive storage facility and warehouses.

Despite the challenges, Cerro Corona generated net cash flow of US$49m for the six months ended 30 June 2020 compared with US$52m for the six months ended 30 June 2019.

Australia region

*Includes Australia consolidated tax paid and working capital movements of A$71.0m (US$46.8m) in H1 2020 and A$52.9m (US$37.6m) in H1 2019, respectively.

Gold production increased by 14% to 494koz for the six months ended June 2020 from 435koz for the six months ended June 2019 mainly due to the inclusion of Gruyere, with the operation reaching commercial levels of production at the end of September 2019.

All-in cost (which included capital expenditure on Gruyere) decreased by 13% to A$1,463/oz (US$960/oz) for the six months ended June 2020 from A$1,677/oz (US$1,185/oz) for the six months ended June 2019.

The region produced net cash flow of A$317m (US$208m) for the six months ended June 2020 compared with A$130m (US$92m) for the six months ended June 2019.

St Ives

Gold production for the six months ended 30 June 2020 was 188,100oz, similar to production of 187,600oz for the six months ended 30 June 2019 as a 12% increase in tonnes milled was offset by a 11% decrease in yield.

At the underground operations, ore mined increased by 30% to 842,000t for the six months ended 30 June 2020 from 646,000t for the six months ended 30 June 2019 with ramp-up of ore production at Hamlet North. The underground grade mined increased by 26% to 5.12g/tfor the six months ended 30 June 2020 from 4.05g/t for the six months ended 30 June 2019 as a result of the commencement of production stope mining at the Hamlet North mine.

At the open pits total ore tonnes mined decreased by 17% to 1.42 million tonnes for the six months ended 30 June 2020 from 1.72 million tonnes for the six months ended 30 June 2019. Stage 6 of the Invincible open pit was completed during 2019, bringing mining of the Invincible open pit to an end. In 2020, all open pit ore was sourced from the Neptune pit. Subsequently, grade mined decreased by 18% to 1.40g/t for the six months ended 30 June 2020 from 1.70g/t for the six months ended 30 June 2019 as grades in the current stages of the Neptune pit are lower than grades in the Invincible open pit.

All-in cost decreased by 4% to A$1,376/oz (US$904/oz) for the six months ended 30 June 2020 from A$1,427/oz (US$1,008/oz) for the six months ended 30 June 2019 mainly due to lower capital expenditure and increased gold sold, partially offset by higher cost of sales before amortisation and depreciation.

Capital expenditure decreased by 21% to A$57 million (US$37 million) for the six months ended 30 June 2020 from A$72 million (US$51 million) for the six months ended 30 June 2019. During 2019 the Invincible and Hamlet North underground mines were being developed.

St Ives generated net cash flow of A$152m (US$100m) for the six months ended 30 June 2020 compared with A$92m (US$65m) for the six months ended 30 June 2019.

Agnew

Gold production decreased by 6% to 105,900oz for the six months ended 30 June 2020 from 113,300oz for the six months ended 30 June 2019 due to a decrease in grade of ore mined and processed in line with the plan. The reduced grade was due to additional lower grade stopes mined in the Kath lode at Waroonga and at New Holland. This was partially offset by an increase in ore tonnes mined and processed due to additional stopes mined.

Tonnes processed increased by 19% to 698,000t in the six months ended 30 June 2020 from 586,000t for the six months ended 30 June 2019. This increase can be attributed to the additional production days, increased crusher availability through maintenance practices, change in grinding media and instrumentation upgrades to manage tank settling.

All-in cost decreased by 2% to A$1,723/oz (US$1,131/oz) for the six months ended 30 June 2020 from A$1,753/oz (US$1,238/oz) for the six months ended 30 June 2019 due to lower capital expenditure and increased gold sold, partially offset by increased production cost as a result of expediting development from H2 in order to derisk the H2 production plan.

Capital expenditure decreased by 48% to A$40 million (US$26 million) for the six months ended 30 June 2020 from A$78 million (US$55 million) for the six months ended 30 June 2019 driven by an 85% decrease in non-sustaining capital expenditure to A$7m (US$5m) for the six months ended June 2020 from A$48m (US$34m) for the six months ended June 2019. Additional expenditure was incurred in 2019 to establish the new accommodation village A$31m (US$22m) and to develop the Waroonga North decline A$6m (US$4m).

The second stage of the electricity supply project was concluded in 2020, with EDL commissioning the 13MW battery plant in March 2020 and the 18MW wind farm in May 2020. More than 50% of Agnew's energy needs are now generated from renewable and low-carbon sources. The completed micro-grid consists of a 23MW power station which integrates solar with gas, diesel generation, the new battery plant and wind farm, it is owned and operated by EDL, who will recoup its investment via the electricity supply agreement with Agnew.

Agnew generated net cash flow of A$63m (US$42m) for the six months ended 30 June 2020 compared with A$18m (US$13m) for the six months ended 30 June 2019.

Granny Smith

Gold production for the six months ended 30 June 2020 was 134,100oz, similar to production of 134,000oz for the six months ended 30 June 2019.

All-in cost increased by 16% to A$1,473/oz (US$967/oz) for the six months ended 30 June 2020 from A$1,268/oz (US$895/oz) for the six months ended 30 June 2019 due to increased production cost (increased ore mined and processed at lower grade) and increased capital expenditure. The increase in mining cost is mainly due to increased ore development as well as additional support and hauling costs as a result of mining the deeper ore zones.

Capital expenditure increased by 6% to A$49 million (US$32 million) for the six months ended 30 June 2020 from A$46 million (US$33 million) for the six months ended 30 June 2019. The increase in capital expenditure was mainly due to the purchase ofa new underground development drill rig in 2020.

Granny Smith generated net cash flow of A$115m (US$75m) for the six months ended 30 June 2020 compared with A$73m (US$52m) for the six months ended 30 June 2019.

The increase in sustaining capital expenditure and decrease in non-sustaining capital expenditure was due to the reclassification of the Zone 110/120 areas which turned cash flow positive during H1 2020 which resulted in capital costs moving from non-sustaining to sustaining in accordance with World Gold Council guidelines.

Gruyere

Mine physicals in table on a 100% basis.

Gold production for the six months ended 30 June 2020 was 131,500oz. Production commenced in July 2019, with commercial production achieved by the end of September 2019.

Total tonnes mined were up by 8% for the six months ended 30 June 2020 compared to the six months ended 30 June 2019. The mix of ore and waste was substantially different with a 61% increase in ore mined during the six months ended 30 June 2020 while the focus was on capital stripping in the six months ended 30 June 2019 as the mine was being established.

All-in cost for the six months ended 30 June 2020 was A$1,282/oz (US$842/oz).

Capital expenditure (on a 50% basis) decreased by 83% to A$15 million (US$10 million) for the six months ended 30 June 2020 from A$93 million (US$65 million) for the six months ended 30 June 2019. The period ended June 2019 marked the final phase of project construction and commissioning.

Gruyere generated net cash flow (on a 50% basis) of A$58m (US$38m) for the six months ended 30 June 2020 compared with a cash outflow of A$92m (US$65m) for the six months ended 30 June 2019.