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Q4 and FY 2015 Results CASH POSITIVE DESPITE THE LOWER GOLD PRICE
Nick Holland 18 February 2016
2
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.
Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 2016
3
Q4 and FY 2015 Results
Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 2016
Salient features
Cash positive despite the lower gold price
Net cash flow from operating activities of US$47m (FY15: US$123m)
Attributable gold equivalent production up 2% QoQ to 566koz (FY15: 2,159koz)
All-in costs down 2% QoQ to US$942/oz (FY15: US$1,026/oz)
Normalised earnings of US$15m (FY15: US$45m)
Final dividend of 21 SA cents declared (FY15: 25 SA cents)
Net debt decreased US$47m QoQ to US$1,380m, net debt to EBITDA at 1.38x
South Deep – production up 24% QoQ to 68koz (FY15: 198koz)
FY16 guidance – production of 2.05-2.10Moz at AIC of US$1,035-1,045/oz
Impairments of US$300m – none of the significant operating assets affected
4
477000 451 000
496 000
598 000
557 000 548 000 559 000 556 000
501 000
535 000 557 000 566 000
0
200
400
600
800
1000
1200
1400
1600
1800
0
100 000
200 000
300 000
400 000
500 000
600 000
700 000
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015
US
$/o
z
Ounces
Attr Gold Produced Gold Price AIC
Steady decrease in all-in costs
Q4 2015: production up 2%, all-in costs down 2%, gold price flat
Steady decrease in AIC through 2015
Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 2016
2015
Production: 2,159koz
AIC: US$1,026/oz
2014
Production: 2,219koz
AIC: US$1,087/oz
2013
Production: 2,022koz
AIC: US$1,312/oz
5
Strong focus on cash generation
Net cash flow
US$123m net cash flow from operating activities generated in FY15
-45
-229
4
38 54
65 63 54
-29
30
75
47
1 625 1 372 1 315
1 265 1 283 1 275 1 265 1 179 1 198 1 174
1 103 1 092
-2 000
-1 500
-1 000
-500
0
500
1 000
1 500
2 000
-350
-250
-150
-50
50
150
250
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015
US
$/o
z
US
$ m
illio
n
Net cash flow Gold price
Net cash flow from operating activities after taking account of net capital expenditure, environmental payments, debt service costs and non-recurring items.
2013 2014
Gold: US$1,249/oz
Net cash: US$236m Gold: US$1,386/oz
Net cash: (US$232m)
2015
Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 2016
Gold: US$1,140/oz
Net cash: US$123m
6
Comfortable balance sheet, with flexibility
● Net debt of US$1,380m at 31 December 2015
● Net debt to EBITDA of 1.38x at end-Q4 2015
● Unutilised facilities of US$844m and R2.5bn
● First debt maturity in November 2017
Balance sheet
Continue to lower net debt
0.8
1.0
1.2
1.4
1.6
1.8
0
500
1 000
1 500
2 000
Q4 2013
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Q1 2015
Q2 2015
Q3 2015
Q4 2015
US
$m
Net debt (US$m) and Net debt/EBITDA
Net debt Net debt/EBITDA
Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 2016
0
500
1 000
1 500
2 000
2 500
3 000
3 500
US$ facilities Rand facilities Total facilities
US
$m
Debt facilities
Utilised Unutilised
950
1 000
1 050
1 100
1 150
1 200
1 250
1 300
0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8
Q4 2013
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Q1 2015
Q2 2015
Q3 2015
Q4 2015
US
$/o
z
Net debt/EBITDA and gold price
Net debt/EBITDA Gold price
7
Q4 2015: South Deep
Target is to reach breakeven by end-2016
• Required leadership in place
• Bedding down a performance driven culture
• Skills development strategy developed
• Significant improvement in safety performance
• Positive production trends emerging
• Simplified destress mining being implemented
• Targeting cash breakeven by end-2016
2016 Guidance
• Production: 257koz
• AISC: R550,000/kg
• AIC: R575,000/kg
• Capex: R999m
• Exchange rate: R14.14 = US$1.00
Q4
2015
Q3
2015 2015 2014
Production koz 68.1 54.9 198.0 200.5
AISC US$/oz 1,095 1,404 1,490 1,548
AIC US$/oz 1,156 1,431 1,559 1,732
49
36 39
55
68
0
500
1 000
1 500
2 000
2 500
0
10
20
30
40
50
60
70
80
Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015
Production (koz) and AIC (US$/oz)
Production AIC
-361
-398
-330
-266
-57
0
100 000
200 000
300 000
400 000
500 000
600 000
-450
-400
-350
-300
-250
-200
-150
-100
-50
0
Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015
Net Cash Flow (R million) and Gold Price (R/kg)
Net cash flow Gold Price
Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 2016
Business performance
8
Q4 2015: South Deep
● 98% of critical skills appointed
● Business improvement implementation
capacity established
● Fleet renewal
● Infrastructure upgrade and maintenance
● Improvement in underground working
conditions
● Employee motivation through improved
working conditions, safety performance,
reward programs and engagement
Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 2016
Key factors underpinning performance improvements
Operating platform improving
Key Pillars
1. People
2. Safety and health
3. Mechanised Fleet
4. Infrastructure
5. Mining
6. Mine design and planning
7. Systems
BUSINESS IMPROVEMENT
● BI Team
Program Manager
Project managers
Execution teams
● 68 Projects
Project management
framework
Progress monitoring and
reporting in early stages
TRACKLESS FLEET
● Fleet Renewal
24 new units commissioned
3 old units decommissioned
Fleet size increased from 74 to 95
● Planned Maintenance
93L Workshop commissioned
OEM Maintenance contracts commenced in Q4
BUSINESS IMPROVEMENT TRACKLESS FLEET
9
73 82
88 87
0
10
20
30
40
50
60
70
80
90
100
Q1 2015 Q2 2015 Q3 2015 Q4 2015
Physical Condition Ratings (%) – Target 90%
Q4 2015: South Deep
Safety, physical conditions and secondary support
Driving zero harm
228
167
68
21 16 21 10
0
50
100
150
200
250
CY 2013 CY 2014 CY 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2015
Total Injuries (nr) • 59% reduction in total injuries (68 vs167)
• Injury free days increasing (38 in Q4 2015)
• UG physical conditions improving
• Increase in secondary support installation
• Increase in backfill placement
Motivated workforce
Fewer operational disruptions
Positive impact on production
4 860
6 392
6 589
1 517 1 385 1 584 2 103
0
1000
2000
3000
4000
5000
6000
7000
CY 2013 CY 2014 CY 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2015
Secondary Support (m)
Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 2016
10
Physical conditions
Q4 2015: South Deep
Focus on continuous improvement
Before After
Poor footwall water control Correct roadway conditions
Poor support quality Correct support installation
Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 2016
11
Q4 2015: South Deep
Positive trends
Underground operations gaining momentum
Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 2016
0
20
40
60
80
100
120
140
160
Q1 2015 Q2 2015 Q3 2015 Q4 2015 2014 2015
Tonnes (
‘000)/
Q
Long Hole Stoping Production & Contribution
24% 22%
0
10
20
30
40
50
60
70
80
90
Q1 2015 Q2 2015 Q3 2015 Q4 2015 2014 2015
Num
ber
of
Ends
Destress Face Availability
0
10
20
30
40
50
60
70
80
Q1 2015 Q2 2015 Q3 2015 Q4 2015 2014 2015
Tonnes (
‘000)/
Q
Backfill Production (kt)
34% 40% 37% 36%
0
200
400
600
800
1000
1200
1400
1600
Q1 2015 Q2 2015 Q3 2015 Q4 2015 2014 2015
m/Q
Development Current Mine
New Mine
12
Q4 2015: South Deep
Pillar layout - previous
Improving Design
Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 2016
3W
2W
1W
• 240m x Spans & 60m x pillars
• 4 x Corridors
• Regional & local crush pillar design
• High closure rates experienced (250mm/m)
• Excavation stability risk
• Conventional support installation risk
1W 2W
3W 4W
10m
2.5m
Crush Pillar Layout (10m length x 2.5 wide x 2.7 high)
10m
13
Q4 2015: South Deep
Regional pillar layout - optimised
Improving Design
Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 2016
2W
1W
1aW 1bW 2aW
2bW
3W
4W
4.5m
10m
• 180m x Spans & 60m x Pillars
• 6 x Corridors
• Regional pillar with larger local crush pillar design
• System stiffness improves
• Reduced closure rates (80mm/m)
• Excavation stability improved
• Mechanised support installation
Crush Pillar Layout (10m length x 4.5m wide x 5m high)
3W
14
Destress cut access
Access destress cut
• Access drive is mined into the base of
reef
Q4 2015: South Deep
Main Access Drive (MAD)
Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 2016
15
Destress cut sequencing
Destress cut establishment
• Break away Stope Access Drive (SAD)
• Stope Drives (SD) broken away from
SAD
Main Access Drive (MAD)
Q4 2015: South Deep
Stope Access Drives (SAD)
Stope Drives (SD)
Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 2016
16
Destress cut sequencing
Grow cut
• SDs broken away at 9m intervals
• Backfill SD to confine crush pillars
Stope Drives (SD) Backfilled
Q4 2015: South Deep
Active Mining Face
Main Access Drive (MAD)
Stope Access Drives (SAD)
Stope Drives (SD)
Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 2016
17
180m mining span
Advance destress cut to establish stoping
• Develop SAD’s to 180m span
• Continue destress cut development to 3
x SADs reach 180m span
• Setup for long hole stoping
1
2
3
Destress cut sequencing
Q4 2015: South Deep
Stope Access Drives (SAD)
Main Access Drive (MAD) Main Access Drive (MAD)
Stope Drives (SD)
3 x SADs @ 180m
Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 2016
18
Stoping phase
• Long hole stoping commence when 3 x
SADs to final length -19 months
• Longhole stopes of 15m (w) x 20m (h)
retreat mined
• Destress cut mined to footprint &
second cut established
Long hole stope
Destress cut sequencing
Q4 2015: South Deep
Stope Access Drives (SAD)
Main Access Drive (MAD)
Stope Drives (SD)
Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 2016
19
Primary stope
Final stope
extraction
Destress cut sequencing
Q4 2015: South Deep
Stoping phase; primary and secondary
• Longhole stopes sequentially mined
primaries and secondary's
• Primary stopes backfilled prior to
secondary stope mining
• Final extraction, the area above the
main access drive is mined
• Subsequent cuts advanced to follow
on from first cut
Secondary stope
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 2016
20
Low profile destress cut and stoping
Q4 2015: South Deep
YEAR-2 YEAR-3 YEAR-4 YEAR-5 YEAR-6 YEAR-7
Low profile support
Manual Installation
High profile support
Mechanical installation
YEAR-1
Low profile destress stoping
Hanging-wall ripping (19 months)
Stoping (30 month lead time)
• LP destress (2,5m height)
• Primary & secondary support
• Hanging wall ripping (5.0m height)
• Primary & secondary support
2.5m
5.0m
5m
17m
15m
1
2
1
2 3
• Long hole stoping
• Primary source of reef mining 3
77m
21
High profile destress cut and stoping
Q4 2015: South Deep
YEAR-2 YEAR-3 YEAR-4 YEAR-5 YEAR-6 YEAR-7 YEAR-1
High profile destressing
Long hole stoping (19 month lead time)
High profile support
Mechanical Installation
• HP destress (5,0m height)
• Primary & secondary support 1
1
2
15m
20m
5.0m
77m
• Long hole stoping
• Primary source of reef mining 2
22
High profile destress
Low profile destress
• Destress Stoping
• Stoping width up from 2.5 to 5.0m
• Backfill placement critical
• Early results positive
• Long term evaluation important
• 3,604m2 HP De-stress done from Jul 2015
Destress profile 2015
100-4W
100-3W 100-2bW 100-2aW
100-1bW
100-1aW
95-3W
95-2W 95-1W
90-1W
Q4 2015: South Deep
Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 2016
23
100-4W
100-3W 100-2bW 100-2aW
100-1bW
100-1aW
95-3W
95-2W 95-1W
90-1W
High profile destress
Low profile destress
Destress profile to completion of LP Q1 2018
Q4 2015: South Deep
Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 2016
24
Q4 2015: South Deep
Fleet
Key fleet performance enablers
Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 2016
Infrastructure
95L workshop
Stores optimisation
Underground working conditions
Skills
Artisan & Operator training
OEM Maintenance
Supervisor Mechanised mining
Enhancements
Rebuild & Replacement program
Fleet Conversion to HP
Planned Maintenance System
CAT 1 Fleet End of 2015Increase
OutputHP Destress Replacement De-commission Rebuild End of 2016
Longhole Stoping 10 2 - 3 3 - 12 Drill Rig 5 1 - 2 2 - 6 LHD 5 1 - 1 1 - 6
High Profile 52 4 11 4 4 2 67 Drill Rig 22 1 4 - - - 27 LHD 16 - 5 3 3 - 21 Dump Truck 13 2 2 1 1 2 17 Bolter 1 1 - - - - 2
Low Profile 33 - - - 25 - 8 Drill Rig Development 15 - - - 11 - 4 LHD 18 - - - 14 - 4
Total 95 6 11 7 32 2 87
• High profile equipment 2-3 times more capacity per unit compared to low profile
• Destress layout more efficient, thus less linear advance required for comparable area
• % Contribution from LHS drastically increase, efficient operation
25
Q4 2015: South Deep
93 Level workshop commissioned
Effective infrastructure will improve fleet maintenance and performance
Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 2016
26
Q4 2015: South Deep
People / Skills / Organisational culture
Empowering the team
Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 2016
30%
52%
6% 12%
Employee Satisfaction Barometer (Q4 2015)
Strongly Satisfied
Satisfied
Strongly Dissatisfied
Dissatisfied
Experienced leadership team in place
143 of 146 core positions filled
Business Improvement team established
47 x Artisans in training
OEM Maintenance contracts (Q4 2015)
(26% of mining contribution)
Disciplined culture
Performance oriented
Personal engagement
Quality
Skills
Culture
27
FURTHER SAFETY IMPROVEMENTS
SUSTAINABLE IMPROVEMENT
257 KOZ GOLD
CASH BREAKEVEN BY YEAR-END
Q4 2015: South Deep
Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 2016
Looking forward
Targeting cash breakeven by end-2016 – continuous improvement thereafter
• Strong focus on basic
operational requirements
remain
• Operating conditions
• Workforce confidence and self
belief
BASICS
• Engineering skills
development program
continues
• Planned maintenance:
develop systems & business
processes
• Shafts and winders
ASSET MANAGEMENT
• High profile destress stoping
• Seismic risk correlation to
increased production
• Mining value chain
management and operational
flexibility
MINING METHODS
2016
28
Solid global portfolio
Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 2016
Production and AIC (ex South Deep)
Operations cash positive at US$1,100/oz gold price
● Attributable production Q4 2015: 498koz (FY15: 1.96Moz)
● AIC Q4 2015: US$912/oz (FY15: US$944/oz)
● Net cash flow from international operations Q4 2015: US$86m (FY15: US$334m)
0
100
200
300
400
500
600
Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015
Equivalent production (koz)
0
200
400
600
800
1 000
1 200
Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015
AIC (US$/oz)
29
Australia: Exploring the Orogenic Mines
● Post depletion reserves expected to be
largely unchanged
● Resources expected to increase
between 10% and 15%
● Discovery of Invincible South
● Cinderella and FBH in development
● Strong reserve and resource addition
continues at Wallaby
● Comprehensive update of geophysics
program has provided definition of
structures and alteration under cover
generating new drill targets
Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 2016
Return on the 2015 investment
Orogenic exploration continues to deliver
● A$86m planned for 2016
● Exploration drill drive to commence to
Waroonga North (Agnew)
● Continue to grow the Resource and
Reserve on the discoveries at Cinderella,
FBH, and Invincible South
● Complete resource growth and scoping
study on the Paleochannel Resources (St
Ives)
2016-2017 Focus
30
Q4 2015: St Ives
Early positive signs from exploration
2016 Guidance
• Production: 350koz
• AISC & AIC: A$1,380/oz
• Capex: A$220m
• Exchange rate: US$0.73 = A$1.00
Q4
2015
Q3
2015 2015 2014
Production koz 100.4 83.6 371.9 361.7
AIC US$/oz 836 879 969 1,164
93.0 98.7
89.2 83.6
100.4
0
200
400
600
800
1 000
1 200
0
20
40
60
80
100
120
Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015
Production (koz) and AIC (US$/oz)
Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 2016
● Q4 2015: 20% increase in production due
to increase in tonnes and higher grade
● 2015 exploration: Prospective gold
anomalies on the Speedway Trend
identified in reconnaissance reverse
circulation drilling, and some positive
indications on the Eastern Causeway,
including intercepts up to 40.2m @ 1.6 g/t
(10.4m @ 3.7 g/t) at the Retribution project
● 2016 outlook: Lower production due to
closure of Athena and outperformance on
grade from Neptune ore in early 2015
31
Q4 2015: St Ives
● Additional Invincible style shoot located within the Speedway Trend
● Higher grade than previous shoots
● Initial Resource of 1.4 Mt @ 6.9 g/t (312koz) defined to a depth of 400m, open down plunge
● Pit and underground potential
● Q4 intercepts:
19.1m at 12.1 g/t Au
11.4m at 13.9 g/t Au
11.0m at 14.7 g/t Au
Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 2016
Invincible South
A new high grade resource
~20
0m
750m
NW SE
32
Q4 2015: St Ives
● Exploration focused on sparsely
tested flanks of camp
● 30km Speedway trend being
systematically explored targeting
Invincible analogues
● 21 new targets advanced in
exploration pipeline
● Reinterpretation of geology and
structure in an area of shallow
cover growing central corridor
● Lead to multiple ore grade
intersections in reconnaissance
diamond drilling at Retribution
Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 2016
New exploration fronts
Still discovering mineralised systems on large tenement package
33
Q4 2015: Agnew/Lawlers
Good recovery at Waroonga
2016 Guidance
• Production: 223koz
• AISC & AIC: A$1,350/oz
• Capex: A$87m
• Exchange rate: US$0.73 = A$1.00
Q4
2015
Q3
2015 2015 2014
Production koz 65.7 57.5 236.6 270.7
AIC US$/oz 828 1,025 959 990
73.2
59.6
53.8 57.5
65.7
0
200
400
600
800
1 000
1 200
0
10
20
30
40
50
60
70
80
Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015
Production (koz) and AIC (US$/oz)
Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 2016
● Q4 2015: Production up 14% QoQ due to
continued recovery from the challenging
ground conditions at Waroonga
● 2015 exploration: Good potential realised
at Cinderella and the adjacent Waroonga
North/Kath complex could be an analogue
to Kim lode
● 2016 outlook: Deeper mining at Agnew and
timing to access the new high grade
Cinderella ore body built into the mine plan
34
Q4 2015: Agnew/Lawlers
Drill drive design to test multiple
targets on the way to Waroonga
North and expedite production
Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 2016
Waroonga North
High grade Kim analogues
Target
Areas
Figure: Waroonga Complex looking east, orthogonal to Emu shear. 2015/2016 exploration drilling piercing points in red.
Au g/t
500m
Drill intersections
2015/16
Pre-2015
35
Q4 2015: Agnew/Lawlers
Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 2016
Cinderella
A growing resource and reserve base
● Accelerated development to open
up deposit (commenced Q4 2016)
● Incline provides access to drill below
Cinderella and Hidden Secret
targets
● Drilling plan to grow reserves
● First ore H2 2016
● Contained ounces
55koz reserve, 101koz LoM
Cinderella
Incline
N
New Holland
Open Pit
Face positions
as of end of
December
Hidden
Secret Open
Pit
Cinderella
Waroonga UG
Grey = As-mined
Blue = Planned stopes
Red = Vent drive
Other = Development
Cinderella
North
Target
Himitsu &
Hidden
Secret
Targets
Cinderella
East
Target
200m
36
Q4 2015: Darlot
More exploration work underway
2016 Guidance
• Production: 58koz
• AISC & AIC: A$1,660/oz
• Capex: A$10m
• Exchange rate: US$0.73 = A$1.00
Q4
2015
Q3
2015 2015 2014
Production koz 24.6 25.4 78.4 83.6
AIC US$/oz 817 906 1,057 1,222
15.5
11.2
17.4
25.4 24.6
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
2 000
0
5
10
15
20
25
30
Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015
Production (koz) and AIC (US$/oz)
Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 2016
● Q4 2015: Production lower QoQ, but much
improved H2
● 2015 exploration: Multiple targets identified
across the lease but more work needs to
be done
● 2016 outlook: Limited mining planned at
Darlot pending further exploration success
37
Q4 2015: Darlot
Exploration update – Assay highlights
Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 2016
38
Q4 2015: Granny Smith
Mainstay of Australian region
2016 Guidance
• Production: 270koz
• AISC & AIC: A$1,170/oz
• Capex: A$118m
• Exchange rate: US$0.73 = A$1.00
Q4
2015
Q3
2015 2015 2014
Production koz 72.4 82.1 301.1 315.2
AIC US$/oz 787 699 764 809
78.5 72 74.6
82.1
72.4
0
100
200
300
400
500
600
700
800
900
1 000
0
10
20
30
40
50
60
70
80
90
Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015
Production (koz) and AIC (US$/oz)
Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 2016
● Q4 2015: Planned lower grades mined
resulted in 12% QoQ decrease in
production
● 2015 exploration: Indications of further
mineralisation at depth at Wallaby
● 2016 outlook: Mining of lower grade areas
of the mine on Zones 90 and 100
39
Q4 2015: Granny Smith
Wallaby
Growing and growing and growing
Wallaby Underground
• Over 63km diamond core drilled in
2015 - 48km in plan for 2016
• Further extensions to Z100, Z110 and
Z120 expected in 2016
• Deep exploration drilling at Wallaby
continues to confirm the interpretation
of 5 lenses (Z125 to Z150) below
defined resources
• Excellent results from Z135 to date:
6.0m @ 9.70g/t 14.8m @ 13.66g/t
15.6m @ 17.87g/t 26.9m @ 9.13g/t
• The Wallaby system remains open at
depth
• Alternate Haulage Study to optimise
cash flow and production in progress
Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 2016
Zone 250
Zone 60 Zone 70
Zone 80
Zone 90
Zone 100
Zone 110
Zone 120
Thet’s Shear
Zone 150
Zone 140
Zone 135
Zone 125
Zone 130
1.9
km
dep
th
Current vertical extent
of reported R&R
Current vertical extent
of mine development
Advanced exploration
target area Z125-150
40
Q4 2015: Granny Smith
Regional exploration
• Major evaluation of regional lease holding
commenced in 2015
• Over 56km of aircore drilled in 2015 –
returning an abundance of anomalous
intersections and highlighting several new
areas of interest. 96km of follow-up and
new programs in plan for 2016
• Establishing geological framework, as was
successfully applied at St Ives, key to
improved geological understanding and
future target generation
• Diamond drill testing at Alabama has
intersected (low grade) anomalous intervals
with visible gold observed in the core
• Studies to optimise a potential open pit
(~75koz) and underground (~350koz) at
Granny Smith are underway
• Least explored of all the Australian assets
Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 2016
Aircore Drilling Completed 2015 – max Au
6m @ 6.88g/t
2m @ 2.56g/t
2m @ 4.88g/t
2m @ 1.57g/t
10m @ 0.41g/t
2m @ 1.57g/t
2m @ 1.14g/t
Northern Fleet Project
anomalous trend – +6km
Alabama Project Area
– visible Au in core
41
Q4 2015: Tarkwa
World-class operation
2016 Guidance
• Production: 560koz
• AISC & AIC: US$940/oz
• Capex: US$128m
Q4
2015
Q3
2015 2015 2014
Production koz 144.8 149.4 586.1 558.3
AIC US$/oz 799 872 970 1,068
133.1 135.8
156.2 149.4 144.8
0
200
400
600
800
1 000
1 200
1 400
0
20
40
60
80
100
120
140
160
180
Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015
Production (koz) and AIC (US$/oz)
Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 2016
● Q4 2015: Continued good cost
performance, with AIC down 8% QoQ
● Remains a solid, consistent performer for
the Group
● Long life asset with 7Moz (15-year life)
● Over-the-fence power supply off the grid to
be commissioned in 2016
● Good grades should continue with further
mining of Teberebie and introduction of
Kottraverchy
42
Q4 2015: Damang
Significant potential for long-life operation
2016 Guidance
• Production: 150koz
• AISC & AIC: US$1,160/oz
• Capex: US$30m
Q4
2015
Q3
2015 2015 2014
Production koz 42.9 44.4 167.8 177.8
AIC US$/oz 1,361 1,272 1,326 1,175
47.8
39.0 41.5
44.4
42.9
0
200
400
600
800
1 000
1 200
1 400
1 600
0
10
20
30
40
50
60
Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015
Production (koz) and AIC (US$/oz)
Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 2016
● Q4 2015: Challenging quarter with
production and costs weaker QoQ
● Struggling in lower gold price environment
● Continue to evaluate various options
Expansion of the mine by accessing
high-grade “central core” – Damang pit
and Saddle
Expect to complete this work before the
middle of the year
43
Q4 2015: Cerro Corona
Quality operation despite lower prices
2016 Guidance
• Production Au Eq: 260koz
‒ AISC & AIC: US$860/oz Au Eq
• Production Au only: 150koz
‒ AISC & AIC: US$790/oz
• Capex: US$54m
Q4
2015
Q3
2015 2015 2014
Au Eq Prod koz 66.2 79.2 295.6 326.6
Au Eq AIC US$/oz 1,073 731 777 702
AU only Prod koz 36.8 44.0 158.8 150.8
AU only AIC US$/oz 1,285 747 718 316
84.6
66.6
83.6 79.2
66.2
0
200
400
600
800
1 000
1 200
0
10
20
30
40
50
60
70
80
90
Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015
Production (koz) and AIC (US$/oz)
Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 2016
● Q4 2015: Lower production due to lower
copper and gold head grades
● Quality operation despite copper being at
5-year lows
● 2016 to be impacted by lower copper price
● Maintaining optionality on increasing
reserves
44
Conclusions
● Cash flow and margin – Make money at current prices
● Committed to delivering on our plans in terms of both production and costs
Near-mine exploration continues
Ongoing development of orebodies is critical
● Continue to reduce net debt – Targeting net debt/EBITDA of 1x
Balance sheet has flexibility with regards to capacity and maturity
● We are firmly focused on delivering a sustainable South Deep – encouraged by early signs
● Continue to evaluate value-accretive opportunities
Cash positive despite the lower gold price, Q4 and FY 2015 Results, 18 February 2016
Strategic priorities
Focus on cash
● Attributable equivalent gold production: 2.05-2.10Moz
● AISC: US$1,000-1,010/oz
● AIC: US$1,035-1,045/oz
2016 Group guidance
Investor Relations Contacts
Avishkar Nagaser
Tel: +27 11 562 9775
Mobile: +27 82 312 8692
E-mail:
Francie Whitley
Tel: +27 11 562 9712
Mobile: +27 82 321 7433
E-mail: