Gold Fields : FY 2019 Results Presentation

Gold Fields FY 2019 results

Nick Holland: CEO

13 February 2020

Forward looking statement

Certain statements in this document constitute "forward looking statements" within the meaning of Section 27A of the US Securities Act of 1933 and Section 21E of the US Securities Exchange Act of 1934.

In particular, the forward looking statements in this document include among others those relating to the Damang Exploration Target Statement; the Far Southeast Exploration Target Statement; commodity prices; demand for gold and other metals and minerals; interest rate expectations; exploration and production costs; levels of expected production; Gold Fields' growth pipeline; levels and expected benefits of current and planned capital expenditures; future reserve, resource and other mineralisation levels; and the extent of cost efficiencies and savings to be achieved. Such forward looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the company to be materially different from the future results, performance or achievements expressed or implied by such forward looking statements. Such risks, uncertainties and other important factors include among others: economic, business and political conditions in South Africa, Ghana, Australia, Peru and elsewhere; the ability to achieve anticipated efficiencies and other cost savings in connection with past and future acquisitions or joint ventures, exploration and development activities; decreases in the market price of gold and/or copper; hazards associated with underground and surface gold mining; labour disruptions; availability terms and deployment of capital or credit; changes in government regulations, particularly taxation and environmental regulations; and new legislation affecting mining and mineral rights; changes in exchange rates; currency devaluations; the availability and cost of raw and finished materials; the cost of energy and water; inflation and other macro-economic factors, industrial action, temporary stoppages of mines for safety and unplanned maintenance reasons; and the impact of the AIDS and other occupational health risks experienced by Gold Fields' employees.

These forward looking statements speak only as of the date of this document. Gold Fields undertakes no obligation to update publicly or release any revisions to these forward looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events.

Further details of potential risks and uncertainties affecting Gold Fields are described in Gold Fields' filings with the Johannesburg Securities Exchange and the US Securities and Exchange Commission, including in Gold Fields' Annual Report on Form-20F for the year ended 31 December 2017, Gold Fields' Integrated Annual Report 2017 and Gold Fields' Annual Financial Report 2017

FY 2019 results | 13 February 2020

2

A globally diversified gold miner

FY 2019 results

Gold Fields Group

Mines: 9

Projects: 1

Countries: 5

Att. production: 2,195koz

AIC: US$1,064/oz

Mine net cash flow*: US$552m inflow

Net cash flow: US$249m inflow

West Africa region

Mines: Tarkwa, Damang and Asanko

Att. production: 768koz

AIC: US$1,039/oz

Net cash flow*: US$245m inflow

Americas region

Mine: Cerro Corona (Peru)

Att. production: 291koz (Au eq)

AIC: US$810/eq oz

Net cash flow: US$86m inflowSouth Africa region

Project: Salares Norte (Chile)

Mine: South Deep

Att. production: 222koz

AIC: US$1,259/oz

Net cash flow: US$15m inflow

Net cash flow = Cash flow from operating activities less net capital expenditure and environmental payments and finance lease payments * Group mine net cash flow excludes Gruyere project capital expenditure of US$67m and Damang project capital expenditure of US$71m

FY 2019 results | 13 February 2020

Australia region

Mines:St Ives, Granny Smith, Agnew and Gruyere

Att. production: 914koz

AIC: US$986/oz

Net cash flow*: US$206m inflow

3

Positioned for sustainable cash flow generation

• Over the past 3 years, Gold Fields has been focused on reinvesting for the future
• We have built two new mines (Gruyere and Damang) and completed a project feasibility study (Salares Norte)
• • Will extend life at lower cost
  • Funded largely from operational cash flow
• Decision made to proceed with Salares Norte
• Net cash flow from operations of US$249m in 2019; US$179m from the sale of investments in 2019
• Net debt was expected to increase in 2019, instead there was a reduction of US$356m
• Final dividend of 100 SA cents declared bringing total dividend for the year to 160 SA cents
• Tactical hedges undertaken to protect the balance sheet and underwrite further debt reduction
• • No more hedges expected once the hedge book rolls off
• No need for big M&A
• • We have been countercyclical and invested through the cycle - now focused on delivering cash flow
  • All assets have organic potential
  • With Salares Norte we can sustain production of2.0-2.5Moz for the next 10 years

FY 2019 results | 13 February 2020

4

Solar plant at Agnew

ESG Highlights

• Safety
• • Ms M Ramela was fatally injured at South Deep as a result of rockburst (2018: 1 fatality)
  • We recorded 12 serious injuries (2018: 16)
  • The duration rate (average days lost per lost time injury, LTI) was 29 (2018: 48)
  • Board, Exco and corporate, regional and site leadership teams trained in Courageous Safety Leadership
  • Critical controls for the highest priority regional material unwanted events (MUEs) were externally verified
• Closure
• • The Group closure cost estimate (CCE) for 2019 was US$436m (2018: $400m)
  • Rolling3-year progressive rehabilitation plans were developed for the first time in 2018. We achieved 83% of the 2019 plans, against a target of 75%
• Environment
• • We recorded no Level3-5 environmental incidents (2018: 2 Level 3 incidents), the first time we have achieved this milestone
  • We saved 1,125ML (7.4%) of freshwater, significantly higher than the planned savings of 415ML (3%).
  • Total water recycled/reused was 68%, well above the target of 65%.
• Energy and climate resilience
• • We saved a record 504TJ (2018: 411TJ), a 4.8% energy saving
  • Carbon saving of 171kt CO2e vs. 149kt CO2e in 2018
  • Our scope 1 and 2 CO2e emissions were 1.45Mt (2018: 1.37Mt)

̵We published our inaugural TCFD report in October 2019

• Commissioned 4MW solar plant at Agnew and 7MW solar plant at Granny smith

FY 2019 results | 13 February 2020

5

Cash flow inflection ahead of plan

900

Capital expenditure

• Net cash flow* of US$249m in 2019 compared to an outflow of US$122m in 2018
• Mine net cash flow of US$552m (excluding projects) in 2019 compared to US$345m in 2018
• Net cash inflow of US$125m over 2017, 2018 and 2019 despite having spent US$640m in project capital and US$172m on Salares Norte over that period

*Net Cash Flow = Cash flow from operating activities less net capital expenditure and

800
700
600
500
400
300
200
100
0
2013	2014	2015	2016	2017	2018	2019
		Sustaining capital	Project capital

Net Cash Flow*

	400
	300
	200
US$m	100
0
	-100
	-200
	-300
	2013	2014	2015	2016	2017	2018	2019

environmental payments and finance lease payments

FY 2019 results | 13 February 2020

6

Balance Sheet in good shape

• Net debt (before IFRS16 adjustments) of US$1,331m at 31 December 2019
• • Net debt to EBITDA of 1.08x
• Net debt (after IFRS16 adjustments) of US$1,664m at 31 December 2019
• • Net debt to EBITDA of 1.29x
• Maturity extended and staggered through bond issues and new RCF agreements concluded in 2019
• Unutilised facilities of US$1,514m, R4.1bn and A$260m
• Remaining US$601m of 2020 bond to be repaid out of operational cash flows and unutilised debt facilities if necessary

US$m

Debt facilities

1. 500

1. 000

1. 500

1. 000

1. 500

1. 000

1. 500

1. 000
   500
   0

US$ facilities Rand facilities	A$ facilities	Total facilities
		Utilised		Unutilised

	Net debt (US$m) and Net debt/EBITDA - pre IFRS16
US$m												2,0
2 000
1 800
1 600												1,5
1 400
1 200												1,0
1 000
800
600												0,5
400
200
0	H1 2014		H1 2015		H1 2016		H1 2017		H1 2018		H1 2019	0,0
FY 2013	FY 2014	FY 2015	FY 2016	FY 2017	FY 2018	FY 2019
			Net debt			Net debt/EBITDA

FY 2019 results | 13 February 2020

7

Growing R&R

	December 2019	December 2018
	Managed	Attributable	Managed	Attributable
Gold equivalent	146.8Moz	114.0Moz	140.5Moz	108.2Moz
Resources
Gold equivalent	54.1Moz	50.2Moz	54.0Moz	50.3Moz
Reserves

Att. Au equivalent Reserves: Dec-2019		Att. Au equivalent Reserves: Dec-2018
	Americas:			Americas:
	7.0
				7.4
	Australia:			Australia:
	6.9
			6.4
South			South
Africa:
West		Africa:	West
29.8
Africa: 6.5		29.8	Africa: 6.7

Highlights:

• 31% YoY increase in St Ives' Reserves net of depletion - largest Reserve since 2011
• 38% YoY increase in Agnew's Reserves net of depletion
• 2% YoY increase in Tarkwa's Reserves net of depletion

At end-2019,20.5Mozof Gold Fields' attributable gold equivalent Reserves (excluding Gold Fields' 45% interest in the Asanko Gold Mine) were outside South Africa, representing 41% of the Group's Reserve base

Note: Group numbers do not include Gold Fields' 45% interest in Asanko
Price assumptions for gold equivalent ounce calculation: Reserves: Gold: US$1,200/oz, Copper: US$2.8/lb, Silver: US$17.5/oz. Resources: Gold: US$1,400/oz, Copper: US$3.2/lb, Silver: US$20/oz
The metallurgical recovery rate has not been applied to the conversion
FY 2019 results | 13 February 2020	8

Waroonga Complex - Dec 2019

North

Main

Rajah North

Waroonga	Kath
North

FBH

Kim South

Link

500m

South

450 South

Main

South

Yeoman

Drillhole pierce point

2019 Open Pit Reserve design

2019 Underground Resource MSO

2019 Underground Reserve design Mined

		2015	2016	2017	2018	2019
	Production (koz)	128	153	168	178	162
	Resource (koz)	1,374	1,098	1,069	1,121	1,281
	Reserve (koz)	558	402	484	448	494
	Note: Remnant mineralisation within 10m of mined stopes above 9800RL and 7m below 9800RL is sterilised and not reported as Resource	9
FY 2019 results | 13 February 2020

Invincible Complex - Dec 2019

NS

0 RL

Drake

					Fenton
							Invincible South
		Proterozoic					-400 RL
		Dyke
						Invincible Deeps
		Drill Intercept
		Reserve				Alpha Island Fault			-800 RL
		Resource			1km

FY 2019 results | 13 February 2020

10

Granny Smith Wallaby Deposit - December 2019

7,722 koz Resource

• 783 koz Measured
• 5,337 koz Indicated
• 1,601 koz Inferred

2,072 koz Reserve

• 130 koz Proven
• 1,943 koz Probable

Mined Production

• 291 koz

2018-2019

Year on Year Change

Resource

+427 koz (+6%)

Reserves*

-167 koz (-7%)

Zone 250-60

Zone 70

Zone 80

Zone 90

Zone 100

Zone 110-120

Zone 135

Zone 150

South

View looking West

1.9 km

TVD

North

• Reserve reduction due to increased pillar requirements in Zone 110, 120 and 135

FY 2019 results | 13 February 2020

11

Tarkwa Exploration

Pepe North

N

Down Dip Potential

Kottraverchy	Pit
Kottraverchy	Ulap Discovery
		Akontansi Pit

0 1 2 3

Kilometer

Unclassified Resources

Inferred Resources

Indicated Resources

Measured Resources

Pepe - Atuabo - Mantraim -Tebberebie (PAMTA)

Untapped down dip potential along 22km strike length

FY 2019 results | 13 February 2020

12

Update on projects

Gruyere

• First gold poured in June 2019, commercial levels of production achieved atend-September 2019
• Ramped up to nameplate capacity (8.2Mt) byend-December, quicker than expected
• Final capital cost was A$610m - lower than most recent guidance of A$621m
• • Gold Fields' share of the capital cost was A$329m
• FY 2019 production of 99koz (100% basis) at upper end of guidance range (75koz - 100koz)
• AISC for Q4 2019 were A$983/oz (US$684/oz)
• Gruyere generated net cash flow of A$31m (US$21m) in Q4 2019 (Gold Fields' share)
• Grade mined in Q4 2019 was slightly lower than planned
• • Included additional ore above thecut-off grade but below the average LoM grade identified during grade control drilling
  • Within existing pit shell (but outside the Reserve) and would otherwise have been classified as waste
  • This lower grade ore was stockpiled during the quarter
  • Mined grade will become more consistent as mining moves into the fresh rock from Q2 2020
• LOM expectations:
• • Annual production of c.300koz (100% basis)
  • AISC of A̴ $1,100/oz (US$775/oz)
  • 11-yearlife of mine (from 2020)

FY 2019 results | 13 February 2020

14

Damang

• The Damang Reinvestment Project (DRP) has restored the mine to a 200koz pa producer
• • Produced 208koz in 2019
  • Expected to produced 217koz in 2020
• Atend-December 2019 (36 months into the DRP):
• • Total material mined = 120Mt (17% above project schedule)
  • Gold produced = 533koz (17% above project schedule)
  • Project capital spent = US$347m vs. plan of US$313m driven by additional capital waste tonnes mined
• H2 2019 production impacted by lower grade as the mine transitioned through Huni sandstone lithology
• • Transition through Huni sandstone will continue during H1 2020 (less than 5% of Reserves)
  • Mining will occur in the higher grade Tarkwa phyllites from mid 2020
• Expect a strong H2 2020 through to 2023 underpinned by higher grade from the main pit
• • History has shown anover-reconciliation on the grade

FY 2019 results | 13 February 2020

15

Salares Norte

• Detailed Engineering 58% complete atend-December 2019
• • Plan is to be 80% complete bymid-2020 and 100% complete by end-2020
• Environmental Impact Assessment (EIA) approved on 18 December 2019, earlier than anticipated in the project schedule
• • Sectoral permits are in process under the approved EIA
• Updated feasibility study presented to the Board in February 2020 and final notice to proceed provided by the Board
• Funding sources for Salares Norte capital:
• • Capital raise announced
  • Operational cash flows
  • Existing debt facilities if necessary
• US$138m to be spent in 2020
• • US$111m of capital and US$27m ofpre-development to be spent in Q1 2020

• Updated feasibility study key metrics:
• • Capital cost estimate US$860m (2020 terms) scheduled over a33-month period commencing April 2020
  • 11.5-yearlife of mine
  • Average annual production of 450koz gold equivalent over first seven years (355koz gold equivalent over first 10 years)
  • AISC over LoM of US$552 per gold equivalent ounce
  • IRR of 23.4% at US$1,300/oz gold price and 7.5% discount rate
  • 2.3 year payback period at US$1,300/oz gold priceFY 2019 results | 13 February 2020

	Capex breakdown			Owner's Cost:
Prestripping:
	151
160
			Pre-
				development
				costs to be
				spent in Q2
		2020: 18
				Camp &
				Offices: 39
				Truck Shop 28
Process Plant				Pipeline: 13
& Others: 435		TSF:		17

16

Salares Norte: near-mine exploration

• Salares Norte Near Mine:
• • Brecha West:

• Target defined using geological mapping (maar-

diatreme confirmed), geophysical surveys and geochemistry

• • Exploratory drilling program to continue during 2020.
• Agua Amarga North:
• • SNDD551:
  • • 130 m outside the current resource and pit shell
    • 8.70m @ 2.07 g/t Au (from 209.90m - oxide)
    • 9.50m @ 3.64 g/t Au (from 223.00m - oxide)
  • North extension drilling program in place to check the continuity of the orebody during Q1/2020.

FY 2019 results | 13 February 2020

17

District exploration: Horizonte

• Horizonte:
• • 2019 (Punta de Opalo/Cruz Sur/Sol Naciente):
  • • Interesting near surface oxide intercepts (inclined):

05/2019	›	47.20m	@ 1.06 g/t Au (from 3.80m - HZDD044);
06/2019	›	20.20m	@ 1.00 g/t Au & 6.95 g/t Ag (from 35.80m - HZDD054);

• As well deeper oxide intercepts (inclined) with high grade:
• • 27.25m @ 3.21 g/t Au & 24.02 g/t Ag (from 375.75m - HZDD036);

03/2019		›14.00m @ 6.42 g/t Au & 11.50 g/t Ag (from 250.00m - HZDD042);
12/2019		›8.30m @ 2.93 g/t Au & 79.00 g/t Ag (from 157.20m - HZDD061);
	›6.50m @ 11.70 g/t Au & 24.10 g/t Ag (from 172.50m - HZDD062);
01/2020		›43.00m @ 4.66 g/t Au & 15.61 g/t Ag (from 138.00m - HZDD065)
	»Including 10.4m @ 13.18 g/t Au & 3.82 g/t Ag (from 169.60m)
02/2020		›16.68m @ 2.92g/t Au & 23.27 g/t Ag (from 124.6m -HZDD068)
	52.20m @ 1.43g/t Au & 6.14 g/t Ag (from 159.8m - HZDD068)

• 2020:
• • Continue the drilling program over shallow oxide targets (Cruz Sur and Sol Naciente target)

FY 2019 results | 13 February 2020

18

Salares Norte

Execution Schedule

Current Phase (EPS - 2020)

FY 2019 results | 13 February 2020

19

Regional overviews

Australia

			2019	2018	2020 guidance
	Att. Production	koz	914	886	985
40% of Group managed
AIC	US$/oz	986	943	930
production
	A$/oz	1,418	1,262	1,350
	Net cash flow*	US$m	206	192

• • Net cash flow excludes Gruyere project capital
• Gruyere: First gold in June 2019 and nameplate capacity reached byend-2019
• Agnew: New accommodation village opened during the year and10-year electricity supply agreement signed with EDL
• • 23MW power station commissioned on 20 November. This integrates solar (4MW) with gas and diesel (19MW)
  • Second stage of the microgrid will include 18MW of wind generation and a 13MW battery will be completed bymid-2020
• Granny Smith: Ore handling study ongoing
• Transition to underground continued at St Ives with mining at the Invincible open pit coming to an end during 2019
• 8% increase in Australian region's Reserves post depletion
• • 38% increase in Agnew's Reserves
  • 31% increase in St Ives' Reserves

FY 2019 results | 13 February 2020

21

Americas

			2019	2018	2020 guidance
	Au Eq production	koz	293	314	275
	Au Eq AIC	US$/oz	810	699	830
	Au only production	koz	156	150	158
13%of Group managed
Cu only production	kt	31	32	28
production
Au only AIC	US$/oz	472	282	575
	Net cash flow	US$m	86	112

• Feasibility study to extend life of mine to 2030 completed
• Initiated study to extend life of mine beyond 2030
• Orebody continues to reconcile closely to geological models
• 70% increase in capital expenditure in 2019 to US$56m due to new waste storage facility construction and infrastructure relocation expenses for the life extension plan

FY 2019 results | 13 February 2020

22

West Africa

			2019	2018	2020 guidance
37%of Group managed	Managed production	koz	840	750	840
AISC	US$/oz	942	926	980
production
	AIC	US$/oz	1,039	1,098	1,006
	Net cash flow*	US$m	245	170

• • Net cash flow excludes Damang project capital
    Numbers include 45% of Asanko Gold Mine, 2018 includes Asanko for five months
• Tarkwa: 2% YoY increase in Reserves
• • First time the mine has replaced Reserve depletion in 15 years
• Damang: Damang Reinvestment Project (DRP) nearing completion
• • Will mine the Tarkwa Phyllites at the base of the main pit frommid-2020

̵Damang generated a net cash inflow in 2019, the first year of positive cash flow since the DRP commenced

• Asanko: Updatedlife-of-mine model expected in Q1 2020

FY 2019 results | 13 February 2020

23

South Africa

			2019	2018	2020 guidance
	Att. Production	koz	222	157	257
	AISC	US$/oz	1,259	1,903	1,281
10%of Group managed	AIC	US$/oz	1,259	2,012	1,340
production	Net cash flow*	US$m	15	(128)

• • Excluding project capital
• South Deep restructuring announced atend-2018 was fully embedded during 2019
• 41% YoY increase in production to 6,907 kilograms (222koz), 15% ahead of guidance
• New Mine (North of Wrench) 60% of ore tonnes in 2019 vs. 45% in 2018
• South Deep generated a net cash inflow of US$15m in 2019 vs an outflow of US$128m in 2018
• Significant productivity improvements in 2019:
• • Destress increased 42% YoY to 26,606 m2
  • Longhole stoping volumes mined increased 36% YoY to 631kt
  • Record volume (426,338m3) of backfill was placed in 2019
  • Improvement in stope turnaround to 4.9 months in 2019 (2018: 7.8 months)
  • Overall productivity improved to 33.4 tonnes per employee in 2019 from 21.7 per employee in 2018
• New Mine development to commence in H2 2020
• Bulk of 2020 forecast production hedged at an average strike price of >R700,000/kg (spot price: c.R750,000/kg)
• • Increases level of confidence that the mine will generate positive free cash flow again in 2020

FY 2019 results | 13 February 2020

24

South Deep: key metrics

m/rig/monthDevelopment metres advanced

90
				78
80
69
70
			59
60
50
40
30
20
10
0
2017	2018	2019
			Development metres advance	No. of rigs (rhs)

tonnes/rig/month		Longhole stoping
14 000
		12 082
12 000
10 000		8 616	8 082
8 000

1. 000

1. 000

1. 000
   0

2017	2018	2019
		Longhole stoping tonnes	No. of rigs (rhs)

FY 2019 results | 13 February 2020

		m/rig/month				Destress metres advanced
14		45							41	9
12		40								8
	35			31				7
10
	30						26		6
8
	25								5
6		20								4
4		15								3
	10								2
2
	5								1
0		0								0
	2017	2018	2019
								Detress metres advance	No. of rigs (rhs)
		metres				Secondary support
9	9 700							9 670
8	9 600
7

1. 9 500

4	9 400	9 371
3		9 312
2	9 300
1

09 200

9 100

2017

2018

2019

25

Outlook

Tactical hedging

Underwriting debt reduction

• Oil hedgeAustralia:
• • 75 million litres at an equivalent Brent Crude swap price of US$57.4/bbl hedged for the period January 2020 to December 2022Ghana:
  • 123.2 million litres at an equivalent Brent Crude swap price of US$59.2/bbl hedged for the period January 2020 to December 2022

Volumes hedged represent 50% of annualised fuel consumption for the two regions

• Gold hedge
  Australia:
• • 210koz hedged using swaps with an average price of A$1,957/oz; 270koz hedged using zero cost collars with an average floor price of A$1,933/oz and an average cap price of A$2,014/oz. Both hedges are for the period January 2020 to December 2020

Ghana:

• 100koz hedged using swaps with an average price of U$1,382/oz; 175koz hedged using zero cost collars with an average floor price of U$1,364/oz and an average cap price of U$1,449/oz. Both hedges are for the period January 2020 to December 2020
• 100koz hedged for the period January 2020 to December 2020 using zero cost collars with an average floor price of U$1,400/oz and an average cap price of U$1,557/oz

South Africa:

• 100koz hedged using swaps with an average price of R681,400/kg; 100koz hedged using zero cost collars with an average floor price of R660,000/kg and an average cap price of R727,000/kg. Both hedges are for the period January 2020 to December 2020

FY 2019 results | 13 February 2020

27

2020 outlook and guidance

2020 Group guidance

• Attributable equivalent gold production: 2.275Moz - 2.315Moz
• AISC: US$920/oz - US$940/oz
• AIC: US$1,035/oz - US$1,055/oz
• AIC excluding Salares Norte expenditure: US$975/oz - US$995/oz

Focus areas for 2020

• Gruyere: first full year of operation
• Damang: year of two halves - expect to be in the heart of the main orebody bymid-year
• Salares Norte: early works in H1, commence construction in Q4
• Further embed productivity improvements at South Deep - restart new mine development
• Continue to reduce net debt
• Commitment to maintain dividend policy

FY 2019 results | 13 February 2020

28

Thank you

QUESTIONS AND ANSWERS