Diggers and Dealers 2006
Terence Goodlace
Head of International Operations
9 August 2006
2Diggers & Dealers Forum 2006 – Terence Goodlace
Forward Looking Statements
Certain statements in this presentation 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. 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; decreases in the market price of gold; hazards associated with underground and surface gold mining; labour disruptions; changes in laws and government regulations, particularly environmental regulations and mineral rights legislation; changes in exchange rates; currency devaluations; inflation and other macro-economic factors; and the impact of the AIDS crisis in South Africa. 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.
3Diggers & Dealers Forum 2006 – Terence Goodlace
The Gold Fields Franchise
Operating minesOperating mines
Developing minesDeveloping mines
Exploration Exploration officesoffices
Exploration focusExploration focus
St IvesSt Ives
AgnewAgnew
4Diggers & Dealers Forum 2006 – Terence Goodlace
The Gold Fields Franchise
Operating minesOperating mines
Developing minesDeveloping mines
Exploration Exploration officesoffices
Exploration focusExploration focus
KloofKloof
DriefonteinDriefontein
BeatrixBeatrix
TarkwaTarkwa
DamangDamang
EssakaneEssakane
5Diggers & Dealers Forum 2006 – Terence Goodlace
The Gold Fields Franchise
Operating minesOperating mines
Developing minesDeveloping mines
Exploration Exploration officesoffices
Exploration focusExploration focus
Choco 10Choco 10
CerroCerroCoronaCorona
6Diggers & Dealers Forum 2006 – Terence Goodlace
Resources and Reserves (moz)
0
20
40
60
80
100
120
140
160
180
200
220
Reserves Resources Upside
Driefontein Kloof BeatrixTarkwa Damang St IvesAgnew Choco 10 Cerro Corona
The Gold Fields FranchiseSignificant Reserves
US
$
ZA
R
A$ ?
Long life, high quality assets
US$400/ozUS$400/ozA$560/ozA$560/oz
R92,000/kgR92,000/kg
US$480/ozUS$480/ozA$672/ozA$672/oz
R110,000/kgR110,000/kg
7Diggers & Dealers Forum 2006 – Terence Goodlace
The Gold Fields FranchiseHighly Liquid
NYSE symbol GFI
Shares outstanding
495 million
Free float 100%
ADR ratio 1:1
Daily volume 3 million
Shareholder Distribution
41%
30%
27%
2%
South Africa North America
Europe Asia/Middle East
100% Free Float – Fully Independent
8Diggers & Dealers Forum 2006 – Terence Goodlace
• Quality mining
• Productivity
• Cost leadership
• Margin growth• Enhancing returns
to shareholders
• +1.5 m int oz by 2009
• Organic growth
• Exploration
• Acquisitions
• Balanced portfolio• Quality franchise• Value driven
• World Gold Council
• Unhedged
• Responsible Mining Framework
• License to operate• Supporting our
product• Corporate citizenship
Growing Gold Fields
Securing the Future
Operational Excellence
Simple, yet effective
The Gold Fields FranchiseStrategy
9Diggers & Dealers Forum 2006 – Terence Goodlace
StrategyOperational Excellence: Quality Mining
20000
40000
60000
80000
100000
120000
140000
160000
180000
1/7
/2000
3/2
4/2
000
6/9
/2000
8/2
5/2
000
11/1
0/2
000
1/2
6/2
001
4/1
3/2
001
6/2
9/2
001
9/1
4/2
001
11/3
0/2
001
2/1
5/2
002
5/3
/2002
7/1
9/2
002
10/4
/2002
12/2
0/2
002
3/7
/2003
5/2
3/2
003
8/8
/2003
10/2
4/2
003
1/9
/2004
3/2
6/2
004
6/1
1/2
004
8/2
7/2
004
11/1
2/2
004
1/2
8/2
005
4/1
5/2
005
7/1
/2005
9/1
6/2
005
12/2
/2005
2/1
7/2
006
5/5
/2006
7/2
1/2
006
Maintain QualityProfitable Ounces
Maintaining mining at current ore reserve grades
10Diggers & Dealers Forum 2006 – Terence Goodlace
StrategyOperational Excellence: Tarkwa
11Diggers & Dealers Forum 2006 – Terence Goodlace
StrategyOperational Excellence: Tarkwa
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
F2006 F2007 F2008
Current fleet Rented fleet
Additional fleet Future fleet requirments
Open Pit Mining Physicals (kt)
12Diggers & Dealers Forum 2006 – Terence Goodlace
0
100
200
300
400
500
600
700
800
US$
/oz
Gold (US$/oz) group total cash costs (US$/oz)
Input Costs
Bottom-line Projects
Margin growth
StrategyOperational Excellence : Cost leadership
13Diggers & Dealers Forum 2006 – Terence Goodlace
StrategyGrowing Gold Fields
Value enhancing approach
The right metal
The right sizeThe right locations
The right price
Balanced portfolio
14Diggers & Dealers Forum 2006 – Terence Goodlace
Organic growth Acquisitions Exploration
Geological
Operational Socio-political
StrategyGrowth Philosophy
Trading certainty
Risk & reward trade-off
Risk
15Diggers & Dealers Forum 2006 – Terence Goodlace
Spectrum of country riskPositioning for tomorrow
Australia South Africa Ghana Peru Venezuela
Current
China Dominican Republic Stans Russia
DRC
Medium Term
Colombia Bolivia
Zimbabwe Not now
We take a long term view
16Diggers & Dealers Forum 2006 – Terence Goodlace
+1.5m International ounces by 2009
StrategyGrowth : International Portfolio
*6 months annualised
0
500
1,000
1,500
2,000
2,5001
99
8*
19
99
20
00
F2
00
1
F2
00
2
F2
00
3
F2
00
4
F2
00
5
F2
00
6
F2
00
7
F2
00
8
F2
00
9
Tarkwa St Ives Agnew
Damang Choco 10 Cerro Corona
koz
koz
IndicativeIndicative
17Diggers & Dealers Forum 2006 – Terence Goodlace
StrategyGrowth: Choco 10
El CallaoEl CallaoChoco 10Choco 10
18Diggers & Dealers Forum 2006 – Terence Goodlace
StrategyGrowth: Choco 10
Project in build up
Socio-political situation
• Increasing the community relations effort
• Exploitation certificates in place
Project development
• In production build up
• Mining of oxides and transitional ores
• Cost advantages in Venezuela
Outlook
• New plans underway
19Diggers & Dealers Forum 2006 – Terence Goodlace
Project ParametersResources
• 64 mt @ 1.7 g/t gold
• 3.5 moz gold
Reserves• 21mt @ 1.8 g/t gold
• 1.2 moz gold
Surface mine
• 1.8 mtpa
• 2.2 strip ratio
• Conventional load & haul
Plant
• Conventional CIP
• Re-capitalising for US$6m
• Expansion or new plant to double plant
Exploration for F2007 – US$11m
Capital for F2007 – US$16 m
137 koz to 300 koz of gold per annum targeted
Note: Reserves as per March 2005 – NI 43-101 at US$375/0Z
StrategyGrowth: Choco 10
20Diggers & Dealers Forum 2006 – Terence Goodlace
Block B - Hecla
5km
Block A – CVG Minerven
Choco 10/4
Gold FieldsConcessions
StrategyGrowth: Choco 10
El Callao – A highly prospective gold district
21Diggers & Dealers Forum 2006 – Terence Goodlace
Block B - Hecla
5km
Block A – CVG Minerven
Choco 10/421Mt @ 1.85g/t
(1.3Moz)
Choco 12•13m @ 2.9g/t (34m)•7m @ 4.5g/t (60m)• 4m @ 5.4g/t (42m)• 4m @ 4.6g/t (39m)
Choco 10 •10.6m @ 4.9g/t (104m)•10.9m @ 7.3g/t (145m)•12.3m @ 5.9g/t (104m)•7.2m @ 5.4g/t (59m)•9.8m @ 17.6g/t (232m)•8.9m @ 7.1g/t (249m)
Results returned March 06
Choco 6•5m @ 16.2g/t (25m)•6m @ 11.6g/t (36m)•2m @ 23.5g/t (35m)•4m @ 8.4g/t (7m)•4m @ 13.4g/t (69m)•20m @ 2.9 (16.6m)•10.1m @ 6.5g/t (52.7m)
Choco 4•13m @ 2.9g/t (34m)•7.7m @ 8.4g/t (35m)•9.1m @ 7.3g/t (188m)•9.1m @ 3.2g/t (32m)•4m @ 12.9g/t (84m)•3m @ 15.8g/t (27m)•3m @ 12.6g/t (86m)•4m @ 9.9g/t (27m)
Gold FieldsConcessions
StrategyGrowth: Choco 10
El Callao – A highly prospective gold district
22Diggers & Dealers Forum 2006 – Terence Goodlace
Water Reservoir
VBK
Pisolita
Rosika
Coacia
Tails line
Waste dump
Plant
A
B
Section lines
StrategyGrowth: Choco 10
23Diggers & Dealers Forum 2006 – Terence Goodlace
Proposed Drill Intersections
CH06-509
CH06-510
CH06-511
CH06-512
CH06-513
CH06-514
CH06-515
CH06-517
CH06-518CH06-519
CH06-520
CH06-521
CH06-522 CH06-523
22.1m @ 11.3g/t
17.3m @ 8.4g/t
24.5m @ 12.5g/t
10.3m @ 7.0g/t
12.7m @ 6.2g/t
28.2m @ 7.9g/t
8.7m @ 18.7g/t
CH06-516
4.3m @ 6.6g/t
7m @ 10.8g/t
12.7m @ 6.2g/t
15.8m @ 5.6g/t
StrategyGrowth: Choco 10 – VBK – domain 41
24Diggers & Dealers Forum 2006 – Terence Goodlace
Proposed Drill Intersections
CH06-509
CH06-510
CH06-511
CH06-512
CH06-513
CH06-514
CH06-515
CH06-517
CH06-518CH06-519
CH06-520
CH06-521
CH06-522 CH06-523
19.7m @ 24.9g/t
8.1m @ 7.0g/t
9.8m @ 17.6g/t
8.9m @ 7.1g/t
CH06-516
9.6m @ 2.8g/t15.6m @
5.5g/t
4.1m @ 17.4g/t
5.1m @ 3.4g/t
StrategyGrowth: Choco 10 – VBK – domain 41
25Diggers & Dealers Forum 2006 – Terence Goodlace
• Now
– Right people
– Right practices
– Right throughput
• Next
– Expand resource base
– Increase reserve base
– Complete expansion studies
• Then
– Right size
– Right return
StrategyGrowth: Choco 10
26Diggers & Dealers Forum 2006 – Terence Goodlace
StrategyGrowth: Cerro Corona
CerroCerroCoronaCorona
27Diggers & Dealers Forum 2006 – Terence Goodlace
StrategyGrowth: Cerro Corona
Project underway
Socio-political situation
• Community relations remain stable
Project development
• Engineering 90% complete
• Bulk earthworks ramping up
• Mining operations commenced - Waste stripping underway - oxide and sulphide ores
• Commodity and service cost pressures remain
Outlook
• Production by end C2007 still planned
28Diggers & Dealers Forum 2006 – Terence Goodlace
Resources• 151mt @ 1 g/t gold & 0.47% Copper
• 7.7 moz Gold equivalent
Reserves• 98mt @ 1g/t gold & 0.53% Copper
• 5.9 moz Gold equivalent
Surface mine
• 6.2mtpa
• low strip ratio
• Conventional load & haul
6.2mtpa concentrator
• Conventional sulphide flotation
• Producing 25% Cu concentrate with ~40g/t Gold
• Smelter terms locked in
Producing 2.1 moz gold and 424 kt copper
over 17 years
+/-350 koz per annum of gold equivalent
Note: Reserves and gold equivalent calculated at US$400/oz gold and US$1.00/lb copper. Gold Fields holds an 80.7% economic interest over the
deposit.
StrategyGrowth: Cerro Corona
29Diggers & Dealers Forum 2006 – Terence Goodlace
StrategyGrowth: Cerro Corona
30Diggers & Dealers Forum 2006 – Terence Goodlace
StrategyGrowth: Essakane
EssakaneEssakane
TarkwaTarkwaDamangDamang
31Diggers & Dealers Forum 2006 – Terence Goodlace
StrategyGrowth: Essakane
Exploration
- EMZ* infill drilling completed
Re-assay programme
- Logistics challenging
- Prioritised to in pit ore
Move to feasibility study in October 2006
- Feasibility study by June 2007
Advanced exploration project* EMZ – Essakane Main Zone* EMZ – Essakane Main Zone
32Diggers & Dealers Forum 2006 – Terence Goodlace
N America
S America
Australasia
Africa Europe
Feasibility
Prefeasibility
Resource
Development
Initial
Drilling
Greenfields
Essakane
El Callao
Victoria
Nabire Bakte
GFI Operated Joint Ventures Equity JV’s
Altiplano
APP - Offsets
APP – SJ Reef
APP – SK Reef
APP – Suhanko
Cerro Corona
Fujian JV
NSW Gen
CMQCC District
TelikanHeilongjiang
Meliadine
Tireo JV
Isla
Sankarani
Development
Kisenge
StrategyGrowth: Exploration
33Diggers & Dealers Forum 2006 – Terence Goodlace
Damang Pit Cut Back
Kloof Extension AreaDriefontein Drop Down Tarkwa Mill ExpansionBeatrix Vlakpan ProjectSt Ives Leviathan Project
Ghana UndergroundAustralia ExplorationEl Callao RegionalCerro Corona RegionalEssakane Project
Pip
elin
eP
ipel
ine
Current
ShortTerm
MediumTerm
Managing the portfolio
StrategyGrowth: Project Pipeline
34Diggers & Dealers Forum 2006 – Terence Goodlace
WorldGold
Council
Mineral RightsConversions
AA1000 SESStakeholder Engagement
Standard
ISO14001Environmental Management
Standard
TheGlobal
Compact
Sarbannes OxleyKing 2
Framework for sustainable development
StrategySecuring our future
OSHAS 18001Safety Management
Standard
35Diggers & Dealers Forum 2006 – Terence Goodlace
Significant Gearing
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
F2005 F2006
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006
0
200
400
600
800
1000
1200
1400
2005 2006
91%
96%
Earnings growth
Cash flow generation
Operating profit
208%
F2005 F2006
RM
RM
RM
RM
RM
RM
36Diggers & Dealers Forum 2006 – Terence Goodlace
Strategic Response
Mining quality ounces and cost leadership
Margin growth and improved profitability
Re-investment in ore bodies• Increase development
Opportunities for growth• Deepening projects in South Africa
• Expansion opportunities internationally
Improved returns to shareholders
33% compound annual growth rate over the last 5 years
37Diggers & Dealers Forum 2006 – Terence Goodlace
Conclusion
Well positioned for the future
• Simple, well executed strategy- Unhedged and geared to gold
- Improving geographic and asset diversity
- Maintenance of a quality franchise
- Delivering on our promises
Diggers and Dealers 2006
Terence Goodlace
Head of International Operations