Gold Fields Australia Site Visit: St Ives Gold Mine GRAEME OVENS General Manager 15th July 2014 Forward looking statements
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, 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.
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 2 St Ives Gold Mine
Location
• Located in the Eastern Goldfields Province of the
Archaean Aged Yilgarn Craton
• 620km from Perth
• 100km South of Kalgoorlie
100% Gold Fields Owned
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 3 St Ives Gold Mine
Location
• 100km South of Kalgoorlie
• Site extends from 5 to 25 km SSW of Kambalda
• Site covers 127,556 hectares of granted tenements
• Active mining areas total about 2,000 hectares
• Tenements located within the Kambalda Domain of
the Norseman-Wiluna Belt
• The Kambalda Domain is bounded by the Boulder
Lefroy Fault and Zuleika Shear
Australia’s Most Prolific Gold District
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 4 St Ives Gold Mine
A Brief History
• 1897: Gold first discovered at Red Hill 1897
• 1930’s: Mining ceased
• 1966: WMC discovered Nickel
• 1970’s: Explored for gold
• 1980: Victory Gold Mine discovered
• 1988: First dedicated gold plant built
• 2001: Gold Fields acquired St Ives from WMC
• 2004: New Lefroy Mill commissioned
• 2006/2007: Athena and Hamlet discovered
• 2005: Nep tune discovere d
• 2012: Invincible discovered
An Iconic Western Australia Mining Camp
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 5 St Ives Gold Mine
Historical Production
● 1980: Commercial Gold Production Commenced ● 2010: 10 Moz Milestone Achieved ● 2013: 120 Mt @ 3.0 g/t Au for 11.6 Moz
St Ives Mined Ounces Source History 700 14 WMC 5.1 Moz Gold Fields 6.9 Moz 600 12 Millions Koz NED (Moz) 500 10
400 8
INED OUNCES 300 6 AL OUNCES MI OUNCES AL TT MM
200 4
ANNUAL ANNUAL 100 2 MULATIVE TO MULATIVE UU
0 0 C 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 YEARS
Underground Oz Mined Open Pit Oz Mined Cumulative Oz Mined
Outstanding and Reliable Resource To Reserve Conversion History
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 6 St Ives Gold Mine
Continued Capital Investment since Gold Fields took Ownership
Major Capital Investments Discovery and Development of New Mines ● Lefroy Mill (US$125m) ● Underground ● Morgan Stanley Royalty (US$308m) ̵ Athena (Discovery cost of US$61/oz) ● OP Owner Mining Fleet (80m) ̵ Hamlet (Discovery cost US$64/oz) ● Support Infrastructure (US$21m) ̵ Cave Rocks ((y$Discovery cost US$66/oz) Exploration ● Open Pits ● Invincible ̵ Leviathan ● SdSpeedway TdTrend ̵ Numerous Small Pits ● 2014 spend US$25 million
Well Capitalised
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 7 St Ives Gold Mine
Morgan Stanley Royalty
● Royalty Structure Cummulative Royalty Saved ̵ 10% of ggpold price above A$600/oz 350 ̵ 4% NSR Royalty from 3.3 million ounces of 300 production ● Bought back for A$308 million in August 2009 250 ● Payback of 4.5 years
200
150
100
50
- Paid H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 2009 2010 2010 2011 2011 2012 2012 2013 2013 2014
Average Royalty Saved A$142/oz
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 8 St Ives Gold Mine
Replacement Of Reserves
M Ozs St Ives Reserves and Production 7
6
5
4
3
2
1
0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Reserves Production Cumm Production
Typical Regenerative Orogenic Geology
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 9 St Ives Gold Mine
Senior Management Team
(From left to right) John Goodall – Human Resources, Nigel Thomas - Business Improvement, Andrew Whibley - Technology &Capital Projects, Graeme Ovens – General Manager, Dan Worthy – Technical Services, Andrew Kozlowski – Sustainable Development, Monika Gendreau – PA to GM, Trevor McIlwaine – Manager UG Mining, Gary Cormack – Manager Processing, Matt O’Hara – Manager Operations, Malcolm Jolly – Manager MRM, David Cornes – Manager Finance
An Experienced and Mature Management Team
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 10 St Ives Gold Mine
Senior Management Team
Graeme Ovens – General Manager ● Strong processing background and experience in both open pit and underground mining. ● Grad Dip Mining Engineering – MAusIMM ● Experience - 35 yygears in the Eastern Goldfields region and NSW.
Matthew O’Hara – Manager: Operations ● Bachelor of Engineering (Mining) ● WA 1st Class Mine Managers Certificate of Competency ● Experience: 24 years in mining industry
Malcolm Jolly – Manager: Mineral Resources ● Broad based mine gggypeology and exploration technical back ground inclusive of mine planning, geotechnical, metallurgy, strategy and mine economics ● MSc. Geology, Wits EDP, MAusIMM ● Experience : 33 years in mining industry
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 11 St Ives Gold Mine
Key Management Team:
Daniel Worthy – Manager: Technical Services ● Bachelor of Engineering (Mining) ● Experience: 12 years of operational mining experience in Australia, Spain & Bulgaria
Gareth Cormack – Manager: Processing ● NHD in Extractive Metallurgy and Diploma in Engineering Management. MMMA ● Broad based metallurgggical technical background ● Experience: 25 years in various metallurgical positions ranging from operations to management
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 12 St Ives Gold Mine
Strategic Focus
● Strategic Plan Implementation- Sustainable Cash generation ̵ Evolving strategy in response to declining gold price & volatility ̵ FdliifhidtFocus on delivering a free cash margin and not tonnes
● Restructuring the cost base ̵ Simplification of a complex multi-mine operation ̵ Maximising margins, business Improvement initiatives with productivity & cost focus ̵ Prudent capital management
● Production Base ̵ Quality ore delivery, dilution control and head grade ̵ Few larggppe open pits for consistent base load ore production ̵ 2 to 3 UG mines focused on quality ore
● Exploration ̵ Highly prospective gold camp with excellent discovery track record ̵ Extensional exploration and growth of existing mines ̵ Brownfields exploration pipeline delivering future quality (high value) resources ̵ Project feasibility with stringent technical evaluation for new mines to deliver value
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 13 St Ives Gold Mine
What Makes St Ives Unique?
● What Makes St Ives Unique
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 14 St Ives Gold Mine
Site Layout
Kambalda Village
Lake Lefroy
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 15 St Ives Gold Mine
Site, Infrastructure, Technology
Mineral Resources ̵ 38.4 Mt @ 3.51 g/t for 4.34 Moz Mineral Reserves ̵ 20.7 Mt @ 3.03 g/t for 2.02 Moz
Central CIL Process Plant – 4.8 Mtpa
7 Operating Mines ̵ 3 UG Mines • Athena •Hamlet • Cave Rocks ̵ 4 Open Pits •Mars • Neptune • Idough • Redback
Road Train Haulage to ROM
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 16 St Ives Gold Mine
Key Metrics KPI’s US$ Unit Q4 2013 Q1 2014 Safety LTI’s 1 1 Ore mined - UG kt 712 625 Mined grade - UG g/t 3.44 3.97 Ore mined - OP kt 924 214 Mined grade - OP g/t 1.38 1.37 Ore processed kt 1, 207 1, 282 Head grade g/t 2.55 2.35 Recovery % 93.3 94.0 Gold sold Koz 99.1 96.6 Operating cost US$m 87.7 76.8 Capital expenditure US$m 26.5 33.3 AISC US$/oz. 1,091 1,291 Revenue US$m 125. 1 122. 9 Operating Profit US$m 48.3 36.4
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 17 St Ives Gold Mine
Recent Performance
• Focus on free cash flow and growing the margin Koz Production and AIC US$/oz 120 1 600 • No ounces for ounces sake, no marginal mining 1 400 • Optimised contractor vs owner mining 100 1 200 • Right-sizing of overhead structure 80 1 000 • Rationalisation, optimisation and prioritisation of
60 800 capital
600 • Site specific cost savings and business process re- 40
engineering 400 20 200
0 0 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
Production AIC
A Structural Shift In The Cost Base
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 18 St Ives Gold Mine
Geology: Deposit Size & Distribution ● More than just a single mine ̵ 49 Open Pits to date Revenge ̵ 15 UG mines to date 34Moz3.4 Moz ̵ Junction Area ~2.1 Moz ̵ Argo – Athena - Hamlet ~3.7 Moz ̵ Greater Revenge Area ~3.4 Moz Neptune ̵ Victory Area ~3M3.7 Moz ̵ Invincible Potential +1 Moz Invincible +1Moz?
Victory ● Multiple World Class Deposits 37Moz3.7Moz ̵ 40 km Strike Length ̵ 127,000 hectares ● Multiple Styles Argo-Athena- ̵ Vein/Lode Hosted Systems Hamlet • Laminated Veins 3.7Moz • Extensional Veins, Junction • Breccia's, 2.1Moz • Stacked Veins ̵ Supergene Enrichment ̵ Disseminated Gold ̵ Palaeochannel Gold ● Extensive highly prospective tenements
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 19 OHS & Sustainable Development
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 St Ives Gold Mine
Safety Performance
12 Month Moving Average Frequency Rates Per Million Manhours (TRIFR = Lost Time Injury + Restricted Work Injury + Medically Treated Injury per Million Manhours Worked)
35
29.1 30 28.4 26.9 25.2 24.4 25 24 23.5 23.5 23.9
20 Target
15 12
10
5 4 44 44 5 33
0 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 No. of injuries 12 Month Moving Average Frequency Rate Per Million Manhours Worked
If We Cannot Mine Safely, We Will Not Mine
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 21 St Ives Gold Mine
Health And Safety Strategy
● Health and Safety Strategy Initiative Goal
Behavioral Based Safety: Engage 95% of St Ives workforce and embed the Vital Behaviours Vital Behaviours concepts into the St Ives safety culture
Rollout new GFA Field Level Risk Assessment tool and associated Hazard Field Level Risk Assessments ID training
Incorporate GFA Visible Felt Leadership process into current Management Visible Felt Leadership Time In Field activities
Improved Critical Risk Management Review site critical risk register and periodically verify controls
Safety System Compliance and Periodically audit all SIGM Departments and Contractor Partners against Auditing the Site Safety Standard
If We Cannot Mine Safely, We Will Not Mine
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 22 St Ives Gold Mine Environmental Managgyggement and Community Engagement
• Environmentally responsible operations through ISO14001 certified Environmental Management System
• Effective local Indigenous group engagement through our Heritaggge Monitoring Program
• Active engagement of the local Kambalda community through Communit y Program
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 23 St Ives Gold Mine
Human Resources
• Primarily a Residential Site with 85% of employees living in
Kambalda or Kalgoorlie
• Remaining employees and contractors on FIFO
• Contract camps are utilized in Kambalda
Description 2013
Employees in service 713 Contractors 236 TE+C 949 Tonnes mined/ TE+C 5,058 Oz Sold / TE+C 432.2
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 24 St Ives Gold Mine
Top 5 Priorities
Priorities
1Deliv er y of pl ann ed gr ade
2 Improving performance through embedding the safety & health strategy
3 Invincible development
4 Quality reserve & resource replacement
5 Productivity and efficiency to reduce the cost base
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 25 Underground Mining
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 St Ives Gold Mine
VirtualVirtual Tour tour Of of An a Athena Athena Ore Ore Body Drive
● The following series of 13 photographs is: • A series of faces in an Athena ore drive • Showing the typical features of the mine-scale geology
face photo (looking north)
face position along drive indicative grade g/t
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 27 2.00 g/t 4.00 g/t 10.00 g/t 7.00 g/t 9.00 g/t 15.00 g/t 12.00 g/t 8.00 g/t 4.00 g/t 3.00 g/t 4.00 g/t waste basalt porphyry
waste St Ives Gold Mine
Underground Mining ● Multiple mining areas Underground Mining ̵ Athena Oz US$/Oz ̵ Hamlet 350 000 600 ̵ Cave Rocks
300 000 500 ● Significant contribution to site 250 000 ̵ 2.0 Mtpa of higher grade ore 400
̵ Over half of gold production 200 000 300
150 000 ● Mining Methodology 200 ̵ Individual approach to match ore bodies 100 000 ̵ Mechanised long hole stoping 100 50 000 ̵ Production Owner mining
̵ Specialist Contractors - 0 C2010 C2011 C2012 C2013 Gold Mined (Oz) Direct mining cost (US$/Oz)
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 41 St Ives Gold Mine
Underground Mining: Equipment
Mine Production (Gold Fields Australia Pty Ltd)
● 7 x Atlas Copco MT6020 Mine Trucks (50t nominal capacity)
● 6 x Caterpillar R2900G Loaders
● 1 x Atlas Copco MC7 and 4 x Sandvik Production Drills (89 mm diameter blast holes)
● 1 x Sandvik Cable Bolter
Mine Development (Byrnecut Australia Pty Ltd)
● 3 x Caterpillar AD55 Mine Trucks (55t nominal capacity)
● 3 x 621 Sandvik and 2 x Caterpillar R2900G Loaders
● 3 x Sandvik Axera 07Jumbo Drills
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 42 St Ives Gold Mine
Underground Mining: Athena - Hamlet Surface 9305m RL
550m
895m
Strike ~350m Athena Underground Mine • 42,000 tpm • Subl eve l Open Stope w ith pas te b ac kfill
Hamlet Underground Mine
• 51,000 tpm Strike ~500m • Sublevel Open Stope with paste backfill
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 43 St Ives Gold Mine
Underground Mining: Cave Rocks
Cave Rocks Underground Mine • 57, 000 tpm • Sublevel Open Stope
Surface 350m RL
Elevation -152.5m RL Strike ~1050m
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 44 Open Pit Mining
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 St Ives Gold Mine
Open Pit Mining: Mining Performance
Change of focus Open Pits Mining Oz US$/Oz ● Margin not tonnes 350 000 600
● Only mining to mill capacity 300 000 ● No Heap leach 500
● Owner mining 250 000 400
200 000 4 pits in operation 300
● Mars – Ore delivery 150 000
● West Idough – Ore delivery 200 100 000 ● Neptune – Pre-strip
100 ● Redback – Pre-strip 50 000
- 0 Invincible project is next large pit C2010 C2011 C2012 C2013 Gold Mined (Oz) Direct mining cost (US$/Oz)
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 46 St Ives Gold Mine
Open Pit Mining
Owner Mining Fleet ● 16M BCM capacity ● 5 Digging Units ● 12 trucks 90 – 150t Capacity ● Dr ills, Dozers & Aux iliary flee t ● Additional hire fleet as required
Geographic spread ● Multiple pits ● De-rikdisked p lan ● Centralised Workshops ● Pit Haul to local ore pad ● Road Train haul to Lefroy Mill
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 47 St Ives Gold Mine
Open Pit Mining: Neptune Ore Gold Grade Contained Stage Tonnes (g/t) Gold (oz) Neptune Stg 1 305,183 6.38 62,570 Neptune Stg 2 1,716,523 2.02 111,536 Neptune Stg 3 387,854 6.17 76,922 Neptune Stg 4 196,107 5.02 31,657 Neptune Stg 5 1,238,412 2.55 101,452 101koz TOTAL 3,844,079 3.11 384,137
● High grade Open Pit 31koz ● 80m Deep 63koz ● Palaeochannel Ore body ● Mining Commenced Q4 2013 ● First Ore Q3 2014 112koz 77koz
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 48 Processing
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 St Ives Gold Mine
Processing
● Gyratory Primary Crusher - Produces P100 of 210 mm at 800 tph ● SAG mill (10.97 m X 6.10 m) - Produces a P80 of 125µm at 590 tph ● Gravity Circuit - 2 Falcon concentrators, 2 Jigs, regrind mill and ILR reactor. ● Leach - 5 conventional leach tanks ● CIP Circuit - 6 Stage Carousel Pump Cell arrangement ● AARL Elution Circuit - Capacity of elution circuit 5 tons of carbon per day ● Electro winning - 5 electro- winning cells (1x dedicated to gravity) ● Tailings disposal - Adequate capacity, and LOM developing In-Pit Disposal
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 50 St Ives Gold Mine
Process Flowsheet
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 51 St Ives Gold Mine
Processing Tonnes US$/t Lefroy Production ● Nominal throughput of 4.8 mtpa 1 300 000 25.00
● Single SAG mill 1 250 000 ● CIP Circuit 20.00
̵ Recoveries in excess of 93% 1 200 000 ̵ Gravity recovery ~35% 15.00 ̵ Mill availability ~ 94% 1 150 000
● 55 stfftaff compl ement 1 100 000 10.00
1 050 000
5.00 1 000 000
950 000 - C2013 Q1 C2013 Q2 C2013 Q3 C2013 Q4 C2014 Q1
LfLefroy Tonnes P rocessed US$/t
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 52 St Ives Gold Mine
Processing
% Recovery g/t 95. 0 3003.00
94.5
2.50 94.0
93.5 2.00
93.0
92.5 1.50
92.0
1.00 91.5
91.0 0500.50
90.5
90.0 - C2013 Q1 C2013 Q2 C2013 Q3 C2013 Q4 C2014 Q1
Processing Recovery (%) Processing Grade (g/t)
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 53 Exploration
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 St Ives Gold Mine
Regional Geology
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 55 St Ives Gold Mine
Geology: Deposit Size & Distribution ● More than just a single mine ̵ 49 Open Pits to date ̵ 15 UG mines to date ̵ Junction Area ~2.1 Moz ̵ Argo- Athena- Hamlet ~3.7 Moz ̵ Greater Revenge Area ~3.4 Moz ̵ Victory Area ~3M3.7 Moz ̵ Invincible Potential +1 Moz Revenge 3.4 Moz 3.7Moz Invincible + 1 Moz ? Neptune 0.4 Moz ?
● Multiple World Class Deposits Victory 3. 7 Moz ̵ 40 km Strike Length ̵ 127,000 hectares Argo, Athena –Hamlet 3.7 Moz ● Multiple Styles
̵ Vein/Lode Hosted Systems Junction 2.1 Moz • Laminated Veins • Extensional Veins, • Breccia's, 2.1Moz • Stacked Veins ̵ Supergene Enrichment ̵ Disseminated Gold ̵ Palaeochannel Gold ● Extensive highly prospective tenements
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 56 St Ives Gold Mine
Exploration: Tenements & Prospectivity
1. Speedway Trend Tenement Type Exploration ̵ Explore Strike/Dip Trend Proximal to Invincible Mining Miscellaneous 2. Indefatigable 3 Prospecting
̵ Follow up Orpheus, Pandora
3. Kambalda West Tenements 1 6 ̵ High Milestone Targets to Advance 4 4. Pilbail ey Prospec t
̵ Invincible Analogue on Merougil & BLF Contact 5 2 5. Palaeochannel Project
̵ Site Wide opportunity
6. Project X
̵ Potential UG Mine North of Leviathan
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 57 St Ives Gold Mine
Exploration: Invincible
• Within operating radius of existing operations
• Limited to lake disturbance only
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 58 St Ives Gold Mine
Exploration: Invincible
• Entirelyyy on lake Lefroy
• Requires causeways for access
• Significant strike length
• 9km of causeway development completed in 2013
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 59 St Ives Gold Mine
Exploration: Invincible Ore body
● Large high grade open pit ● Robust margin project
● Wide mineable zones (up to 20m) ● 2014 drill focus
● Provides optionality for SIGM ̵ UG position ̵ Pit expansion
Invincible Invincible Far South
BlkMdlClBlock Model Colour CddbACoded by Au Gra de Hot Colours = High Grade Cold Colours = Low Grade
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 60 St Ives Gold Mine
Exploration: Invincible Exploration Potential 2,250m NW S E 11m @@g 11.2g/t 300m 21m @ 3.0g/t Model Limit 10m @ 11.0g/t 17m @ 11.4g/t 12m @ 3.0g/t 6.5m @ 4.4g/t 17m @ 7.6g/t
21m @12.8g/t
26m @ 6.5g/t The relevance of scale … (Deepest Hole)
Argo Athena Hamlet
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 61 St Ives Gold Mine
Exploration: Invincible Gold Vein in Core Drilled from Deep Hole @ Invincible 978m Hole Drilled Down the Orebody (Dip Parallel)
● Testing for;
1. Host rock continuity
2. Depth extensions of mineralisation
● Results:
1. 978m of host rock
2. MltilMultiple m inera liditlised intersec tions
• 25.6m @ 6.5g/t Au from 927.5m
● Implications:
̵ Doubles known vertical extent of mineralisation From 360m to 820m
̵ Demonstrates active system at depth
̵ Supports strategy to test depth extensions & infill
A Game Changer?
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 62 St Ives Gold Mine
Exploration: Project Generation – Speedway Trend 1m @ 21.8 g/t (49m)
● New under-explored trend 2m @ 8.3 g/t (56m) ● TSTenure Secure ● Proven Capacity to deliver major
deposits 2m @ 24.3 g/t (24m) Gold Nugget from ~85m ● Evidence of gold along 22 km strike Downhole in RC Drilling @ Heracles ● Rigorous staged exploration programmes 7m @ 7.4 g/t (254m) ● Ground magnetics used to define bdbedroc k s truc ture 4m @ 8.8 g/t (78m) ● Multi- elements to determine rock types & anomalism Rock chip 20.8 g/t ● Reconnaissance drilling to define anomalism and targets
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 63 St Ives Gold Mine
Exploration: Invincible Camp Potential Ground Magnetics Map
Santa Ana
Invincible OP Project
Splays
Invincible South trend
Invincible South target
Space For Several Million Ounce + Deposits
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 64 St Ives Gold Mine
Exploration: Palaeochannel Project
Site ● Opportunity to identify & develop palaeochannel resource Palaeochannel Network and ● Mk’fttdhlMany km’s of untested channels presen t an opport titunity Current and ● Multiple palaeochannel mines operated Historic Mines
● Deliver high grades
● Palaeochannel network identified Neptune ● Drill extents vary from close spaced around resources to wide Thunderer spaced (320m x 160m ) in o ther areas
● Opportunity to explore new low cost mining techniques Africa ● Scoping study underway & resources to test targets
Typical Channel Section – Buried Channels Containing Gold Overlain by Barren Sediments
Argo
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 65 St Ives Gold Mine
Exploration: Kambalda West Acquisition
● Highly prospective ground acquired Q4 2013
● ~27, 000 Hectares , Increased SIGM Landholding by ~27%
● Encompasses and Extends Land Package around
Cave Rocks Mine Jonah ● Soil sampling programme completed end 2013 Dam
● Ground magnetics in progress 2014
● Multiple targets for immediate follow up Multiple Cave ● Jonah dam – target initial resource Anomalies – Rocks 20ppb+ Gold in ̵ Strike extension from cave rocks Soils ● Drilling Scheduled for H2 2014
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 66 St Ives Gold Mine
Exploration: Cave Rocks
● Open pits - WMC 1,000m
● 050.5 moz ore bdbody
● Open at depth & on strike E40s ● NNarrowarrow highhigh ggraderade veinsveins
● Significant regional growth opportunity
E70s E80s E50s “GAP” E60s
Targeted Down Dip Extensions of Known Lodes
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 67 Further Opportunities
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 St Ives Gold Mine
Further Opportunities: Response To Lower Gold Price
● Planning changes ● Restructuring the cost base ̵ Value based assessment & ranking of ̵ Organisational restructure projects ̵ Reviewed & renewed contracts ̵ Strategic scenario analysis ̵ Prudent cost & capital management ̵ Consideration of reduced mill ● Production quality throughput options ̵ Dilution and recovery improvements ̵ Simplifi ca tion approac h ̵ Productivity driving cost improvement ● Exploration ̵ Disciplined adherence to plan ̵ Focus on delivery of high value discovery
Focus on Margin and Cash Flow, Not Ounces For Ounces Sake
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 69 St Ives Gold Mine
Further Opportunities
Productivity Quality
Leveraging existing processes to deliver value Doing the job well
● Open Pit ● Open Pit
̵ Consistent mining volumes ̵ Reducing damage
̵ Focus on single large pit ̵ Optimisation of Drill & Blast
̵ Targeting +5% improvement in unit rates ̵ Dilution & ore recovery
● UdUndergroun d ● UdUndergroun d
̵ Effective utilisation of fleet ̵ Stope performance
̵ Harness syygnergies with contractor ̵ Backfill optimisation
̵ Improved mining layout
● Processing ● Processing
̵ To be focused on efficient throughput ̵ Maintain high recoveries
̵ In pit tails reducing TSF requirement ̵ Consistent delivery
̵ Surface Haulage optimisation Doing Things Better
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 70 St Ives Gold Mine
Further Opportunities
Invincible open pit project Extend existing mines
A new flagship open pit provides opportunity for change Keep current mines producing beyond current life
● Large multi year project ● Athena
● Single open pit ore source ̵ Calisto & Europa extensions
● High margin / High Cashflow project ● Neptune
● Underground potential ̵ Optimise future stages
● Strike extension potential ̵ NthtNorth extensi on
● Provides time for further exploration success ● Cave Rocks ̵ In-mine extensions
̵ Kambalda West new discoveries
● Hamlet
̵ Optimise mine design for quality & productivity
Leverage Existing Assets
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 71 St Ives Gold Mine
Further Opportunities: Realising Value from Non -Core Assets
Beta Hunt
̵ An ex is ting n ic ke l/go ld m ine w ithin the St Ives lease tha t was recen tly acqu ire d by Sa lt La ke Min ing
● Sale of gold rights
̵ Project did not meet Gold Fields returns
̵ Lower ranking exploration target
̵ Salt Lake Mining able to progress gold & nickel mining project
● Maintaining returns
̵ Sale price (A$2m)
̵ Toll treating of ore opportunity
̵ Royalty on gold production of 6%
● Assessment of other similar opportunities
̵ Eg. Nickel rights
Realising Value From Non Core Assets
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 72 St Ives Gold Mine
Creating Our Own Future
● Maintain scale of cash flow ̵ AIC targggeting sub US$1,050 /oz ̵ Achievement of +15% FCF margin ̵ Gold production around 400,000 oz pa
● Operational philosophy pivotal on delivery and value margin ̵ Focus on value not just ounce production ̵ Simplification of site ̵ Reduced mill throughput
● Exploration ̵ Adequately funded & focussed to deliver high value discoveries ̵ Extend life of existing mines ̵ Discover new projects of suitable scale and margin
Maintaining Strengths And Mitigating Weaknesses
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 73 St Ives Gold Mine
Conclusions
• Relentless focus on margin and cash flow
• No ounces for ounces sake
• Situated in a highly prospective region for further gold discovery
• Excellent exploration successes over many years
• About to develop a major new ore body which will improve margins
• Towards a sub US$1,100/oz cost profile producing ~400 Koz p.a. mine
A Great Long-Term Asset
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014 74 Gold Fields Australia Site Visit: St Ives Gold Mine GRAEME OVENS General Manager 15th July 2014