Commentary Basis of preparation

The condensed consolidated financial statements as set out on Income Statement to All-in Sustaining Costs and All-in Cost Gross of By-product Credits per Equivalent Ounce of Gold Sold (Unreviewed) are prepared in accordance with the requirements of the JSE Limited Listings Requirements for preliminary reports and the requirements of the Companies Act of South Africa. The JSE Limited Listings Requirements require preliminary reports to be prepared in accordance with the framework concepts and the measurement and recognition requirements of International Financial Reporting Standards (IFRS) and the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by the Financial Reporting Standards Council and to also, as a minimum, contain the information required by IAS 34 Interim Financial Reporting.

The condensed consolidated financial statements do not include all the disclosures required for complete annual financial statements prepared in accordance with IFRS as issued by the International Accounting Standards Board. The condensed consolidated financial statements are prepared on a going concern basis. The Board is satisfied that the liquidity and solvency of the Company is sufficient to support the current operations for the next 12 months.

The condensed consolidated 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 International Financial Reporting Standards 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;
• 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;
• 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;
• Free cash flow margin is used as key metric in the determination of the long-term incentive plan;
• 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 represents capital expenditures for major growth projects as well as enhancement capital for significant infrastructure improvements at existing operations; and
• All-in sustaining costs and total all-in cost 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 mining industry.

Auditor’s review

The condensed consolidated financial statements of Gold Fields Limited for the year ended 31 December 2021 have been reviewed by the Company’s auditor, PricewaterhouseCoopers Inc.

The auditor’s report does not necessarily report on all of the information contained in this media release. Shareholders are therefore advised that in order to obtain a full understanding of the nature of the auditor’s engagement they should refer to Salient feature and cost benchmarks and Underground and Surface of the media release for a copy of the auditor’s report.

The pro forma financial information has been reported on by the Group’s auditors, being PricewaterhouseCoopers Inc. Their unqualified reporting accountant’s report thereon is available on Salient feature and cost benchmarks and Underground and Surface of this report.

Silicosis and Tuberculosis Class Action Settlement

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

As of 11 February 2022, 1,771 claimants have received benefits from the Trust in the aggregate amount of R162.3m.  Further information on the progress in the implementation of the object of the Tshiamiso Trust and other details can be found at https://www.tshiamisotrust.com/

Provision raised

Gold Fields has provided for the estimated cost of the above settlement based on actuarial assessments and the provisions of the silicosis and TB class action settlement Agreement. At 31 December 2021, the provision for Gold Fields’ share of the settlement of the class action claims and related costs amounted to US$13m (R210m). The nominal value of this provision is US$17m (R270m). 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.

Facilities refinancing

US$150 million Gold Fields La Cima revolving credit facility

In April 2021, Gold Fields La Cima entered into a US$150m revolving credit facility. The final maturity date of this facility is three years from the effective date.

Syndicated revolving credit facilities extension

In July 2021, the US$1,200m Revolving Credit bank facilities were extended by a further one year. The facilities will now run as follows:

• Tranche A: US$600m up to 25 July 2022 then US$550m to 25  July 2023; and then US$505m to 25 July 2024.
• Tranche B: US$600m up to 25 July 2024 then US$505m to 25 July 2025 and then US$460m to July 2026.

US$100 million Gold Fields Ghana revolving credit facility

In September 2021, Gold Fields Ghana entered into a US$100m revolving credit facility. The final maturity date of the new facility is 13 October 2024.

Deferred tax asset raised

A deferred tax credit of US$87m was raised at Salares Norte in 2021. At 31 December 2021, there has been significant progress with the construction of the Salares Norte project as indicated by total project progress at 62.5%, construction progress at 55% and the early forecast curve being aligned with the scheduled finish of Q1 2023.  The project is expected to deliver significant value and all tax credits are expected to be fully utilised before they expire.

Segment reporting

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

Additional notes include:

• Debt maturity ladder on Debt maturity ladder (Reviewed);
• Reconciliation of headline earnings with net profit/(loss) on Reconciliation of headline earnings;
• Fair value hierarchy on Fair value hierarchy (Reviewed);
• Capital commitments on Capital Commitments; and
• Hedging/derivatives on Hedging/Derivatives (Reviewed).

Chris Griffith

Chief Executive Officer

17 February 2022