COMMENTARY Outlook for 2023

We are on track to achieve the Group production and cost guidance provided in February 2023 at both guidance and forecast exchange rates. Given the operational performance in H1 2023, production guidance has been updated (positively or negatively) on an individual mine basis. Mining inflation continued to be high and the cost guidance has also been updated on an individual mine basis.

For 2023, attributable gold equivalent production (excluding Asanko) is expected to be between 2.25Moz and 2.30Moz.

AISC (excluding Asanko) is expected to be between US$1,300/oz and US$1,340/oz, with AIC (excluding Asanko) expected to be US$1,480oz to US$1,520/oz.

This excludes any costs on renewable projects at St Ives.

The exchange rates used for our 2023 guidance are: A$1/US$0.70 and US$1/R17.00. The forecast exchange rates are A$1/US$0.67 and US$1/R18.53.

Total capex for the Group for the year is expected to be between US$1.110bn and US$1.170bn.

The above is subject to safety performance which limits the impact of safety-related stoppages and the forward-looking statement.

Basis of preparation

The unaudited consolidated interim financial statements for the six months ended 30 June 2023 have been prepared in accordance with International Financial Reporting Standard (IFRS), IAS 34 ‘Interim Financial Reporting’, the IFRS and the requirements of the South African Companies Act of South Africa 71 of 2008 (Companies Act), as amended, and the JSE Limited Listings Requirements.

The consolidated interim financial statements are prepared on a going concern basis.

The consolidated interim financial statements are presented in United States Dollars, which is Gold Fields Limited’s presentation currency. The accounting policies applied in the preparation of these condensed consolidated financial statements are in terms of IFRS and are consistent with those applied in the previous annual financial statements.

Pro forma financial information

The preliminary financial statements contain certain non-IFRS financial measures in respect of the Group’s financial performance, the statement of financial position and cash flows presented in order to provide users with relevant information and measures used by the Group to assess performance. These measures constitute pro forma financial information in terms of the JSE Limited Listings Requirements and are the responsibility of the Group’s Board of Directors. They are presented for illustrative purposes only and due to their nature, may not fairly present Gold Fields’ financial position, changes in equity, results of operations or cash flows.

The key non-IFRS measures used and defined in the media release include:

Normalised profit attributable to owners of the parent which is defined as profit excluding gains and losses on foreign exchange, financial instruments and non-recurring items after taxation and non-controlling interest effect;
Normalised profit per share attributable to owners of the parent;
Net debt which is calculated as borrowings plus the current portion of borrowings and lease liabilities plus current portion of lease liabilities less cash and cash equivalents;
Net debt (excluding lease liabilities) which is calculated as borrowings plus the current portion of borrowings less cash and cash equivalents;
Adjusted free cash flow is calculated as cash flow from operating activities less net capital expenditure, environmental payments, lease payments and redemption of Asanko preference shares;
Adjusted free cash flow from operations is calculated as cash flow from operating activities less net capital expenditure, environmental payments and lease payments from the eight mining operations;
Adjusted EBITDA is required to be determined in terms of loan and revolving credit facilities agreements to evaluate compliance with debt covenants;
Sustaining capital expenditure represents the majority of capital expenditures at existing operations, including mine development costs, ongoing replacement of mine equipment and other capital facilities and other capital expenditures at existing operations;
Non-sustaining capital expenditure represents capital expenditures for major growth projects as well as enhancement capital for significant infrastructure improvements at existing operations; and
AISC and total all-in cost AIC are presented to provide transparency into the costs associated with producing and selling an ounce of gold and is a common measure presented within the gold mining industry.

This pro forma financial information has not been reported on by the Group’s auditors, being PricewaterhouseCoopers Inc.

MINERAL RESOURCES AND MINERAL RESERVES

There were no material changes to the Mineral Resources and Mineral Reserves from what was previously reported by the Group at 31 December 2022.

Class action settlement

The Tshiamiso Trust has been established to carry out the terms of the class action settlement agreement reached between six gold mining companies (including Gold Fields) and claimant attorneys in the silicosis and TB class action. The Tshiamiso Trust is responsible for ensuring that all eligible current and former mineworkers across southern Africa with silicosis or work-related TB (or their dependants where the mineworker has passed away) are compensated pursuant to the silicosis and TB class action settlement agreement and Tshiamiso Trust Deed (collectively the “Settlement Agreement”).

Financial provision

Gold Fields has provided for the estimated cost of the class action settlement based on actuarial assessments and the provisions of the Settlement Agreement. At 30 June 2023, the provision for Gold Fields’ share of the settlement of the class action claims and related costs amounts to US$9.3m (R174.8m) (December 2022: US$10.5m (R178.9m)). The nominal value of this provision is US$12.4m (R232.8m). The ultimate outcome of this matter however remains uncertain, with the number of eligible workers successfully submitting claims and receiving compensation being uncertain.

The provision is consequently subject to adjustment in the future.

R2.5 billion revolving credit facilities

In April 2023, Gold Fields entered into four bilateral revolving credit facilities with South African banks for a total of R2.5bn. The final maturity date of all the facilities is five years from the effective date.

Gold Fields first sustainability linked revolving credit facility

In June 2023, Gold Fields refinanced its US$1,200 million 2019 RCF. For the first time, the new facility is linked to the achievement of three of Gold Fields’ key ESG priorities: gender diversity, decarbonisation and water stewardship.

Key terms of the new facility are:

A principal loan amount of US$1,200 million, with an option to increase the facility by up to US$400 million.
Maturity of five years, with an option to extend the tenor through two one-year extensions.
A competitive margin, subject to rating margin adjustments and sustainability margin adjustments.

Segment reporting

The net profit (excluding Asanko) per the income statement reconciles to the net profit in the segmental operating and financial results as follows:

Six months ended 30 June 2023	US$'m

Net profit	474.6
– Operating segments	494.2
– Corporate and projects	(19.6)*

Six months ended 30 June 2023	US$'m

Net profit	533.6
– Operating segments	583.3
– Corporate and projects	(49.7)*

Comprises mainly of non-mine interest and other costs.

Martin Preece

Interim Chief Executive Officer

17 August 2023