h1 2016 results - gold fieldskeeping the focus despite higher gold price, h1 2016 results, 18 august...
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H1 2016 ResultsKEEPING THE FOCUS DESPITE HIGHER GOLD PRICE
Nick Holland18 August 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.
Keeping the focus despite higher gold price, H1 2016 Results, 18 August 2016
3
H1 2016 results
H1 2016 H1 2015 Q2 2016 Q1 2016
Attributable gold equivalent production (koz) 1,044 1,036 529 515
All-in costs (US$/oz) 1,024 1,108 1,061 986
Net cash from operating activities (US$m) 60 1
Normalised earnings (US$m) 103 8
Normalised earnings (US$/share) 0.13 0.01
Dividend (SA cents/share) 50 4
Net debt (US$m) 1,155 1,477
Net debt to EBITDA (x) 1.05 1.44
Keeping the focus despite higher gold price, H1 2016 Results, 18 August 2016
Salient features
Updated FY16 guidance: Production of 2.10-2.15Moz at AIC of US$1,035-1,045/oz
Appointment of four new directors – ensures continuity of skills of Board
4
Regional overview
Keeping the focus despite higher gold price, H1 2016 Results, 18 August 2016
*Group net cash flow takes into account interest paid (US$38m), exploration (US$28m – mostly Salares Norte) and Group working capital adjustments (US$37m)
Americas RegionProduction: 128koz (12% of group)
All in costs: US$728/oz
Net cash flow: US$19m inflow
Ghana RegionProduction: 346koz (32% of group)
All in costs: US$1,052/oz
Net cash flow: US$26m inflow
South Africa RegionProduction: 140koz (13% of group)
All in costs: US$1,257/oz
Net cash flow: US$3m outflow
Australia RegionProduction: 466koz (43% of group)
All in costs: US$928/oz
Net cash flow: US$121m inflow
Strong cash generation during H1 2016
Group
Production 1,044koz
AIC US$1,024/oz
Net cash flow* US$60m
5
Production and costs ahead of plan
Margin starting to widen
Keeping the focus despite higher gold price, H1 2016 Results, 18 August 2016
477451
496
598
557 548559 556
501
535557 566
515535
0
200
400
600
800
1000
1200
1400
1600
1800
0
100
200
300
400
500
600
700
Q1
201
3
Q2
201
3
Q3
201
3
Q4
201
3
Q1
201
4
Q2
201
4
Q3
201
4
Q4
201
4
Q1
201
5
Q2
201
5
Q3
201
5
Q4
201
5
Q1
201
6
Q2
201
6
US
$/o
z
‘000 O
unces
Attr Gold Produced Gold Price AIC
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
H1 2016
Production: 1,044koz
AIC: US$1,024/oz
6
Open pit mining cost performance
Keeping the focus despite higher gold price, H1 2016 Results, 18 August 2016
Mining costs per tonne at open pits
Good cost control and productivity
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
Ma
r-1
2
Jun
-12
Se
p-1
2
Dec-1
2
Ma
r-1
3
Jun
-13
Se
p-1
3
Dec-1
3
Ma
r-1
4
Jun
-14
Se
p-1
4
Dec-1
4
Ma
r-1
5
Jun
-15
Se
p-1
5
Dec-1
5
Ma
r-1
6
Jun
-16
A$/t
St Ives
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
Ma
r-1
2
Jun
-12
Se
p-1
2
Dec-1
2
Ma
r-1
3
Jun
-13
Se
p-1
3
Dec-1
3
Ma
r-1
4
Jun
-14
Se
p-1
4
Dec-1
4
Ma
r-1
5
Jun
-15
Se
p-1
5
Dec-1
5
Ma
r-1
6
Jun
-16
US
$/t
Tarkwa
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
Ma
r-1
2
Jun
-12
Se
p-1
2
Dec-1
2
Ma
r-1
3
Jun
-13
Se
p-1
3
Dec-1
3
Ma
r-1
4
Jun
-14
Se
p-1
4
Dec-1
4
Ma
r-1
5
Jun
-15
Se
p-1
5
Dec-1
5
Ma
r-1
6
Jun
-16
US
$/t
Cerro Corona
7
Strong focus on cash generation
Net cash flow
US$60m net cash flow generated in 1H16
-274
42
119 117
1
122
60
1,499 1,290 1,2791,222 1,186
1,0981,220
-2,000
-1,500
-1,000
-500
0
500
1,000
1,500
2,000
-350
-250
-150
-50
50
150
250
H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015 H1 2016
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.
Keeping the focus despite higher gold price, H1 2016 Results, 18 August 2016
2014
Gold: US$1,249/oz
Net cash: US$236m
2013
Gold: US$1,386/oz
Net cash: (US$232m)
2015
Gold: US$1,140/oz
Net cash: US$123m
8
Comfortable balance sheet, with flexibility
● Net debt of US$1,155m at 30 June 2016
● Net debt to EBITDA of 1.05x from 1.38x at end-FY15
● US$148m of Notes bought back in February 2016 at
a 12% discount
● Equity raising of R2.3bn (US$150m) in March 2016
Proceeds applied to existing US$ facilities
● Refinanced US$1,440m credit facilities in June. New
facilities amount to US$1,290m at similar rates
● First material debt maturity in June 2019 (previously
November 2017)
● Unutilised facilities of US$886m and R3.0bn
c.US$600m reduction in net debt since end-FY13
0.8
1.0
1.2
1.4
1.6
1.8
0
500
1,000
1,500
2,000
FY 2013 H1 2014 FY 2014 H1 2015 FY 2015 H1 2016
US
$m
Net debt (US$m) and Net debt/EBITDA
Net debt Net debt/EBITDA
Keeping the focus despite higher gold price, H1 2016 Results, 18 August 2016
0
500
1,000
1,500
2,000
2,500
3,000
US$ facilities Rand facilities Total facilities
US
$m
Debt facilities
Utilised Unutilised0
100
200
300
400
500
600
700
800
900
Dec-16 Dec-17 Dec-18 Dec-19 Dec-20
US
$m
Maturity schedule
9
H1 2016: Group sustainable development performance
ESG is integrated into the business
● No fatalities recorded in H1 2016
● 35% YoY decrease in TRIFR
● Climate change:
Successful auction of carbon credits in
Australia
Gold Fields is leading the piloting of an
ICMM climate viewer data tool at
Tarkwa
Regions are currently conducting
climate change related vulnerability
assessments
Keeping the focus despite higher gold price, H1 2016 Results, 18 August 2016
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
0.00
0.01
0.02
0.03
0.04
0.05
0.06
0.07
0.08
0.09
Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016
FIFR & TRIFR
FIFR TRIFR
H1 2016 H1 2015 Q2 2016 Q1 2016
FIFR Rate 0.00 0.08 0.00 0.00
TRIFR Rate 2.24 3.47 2.41 2.05
Energy intensity GJ/oz 5.28 5.20 5.17 5.39
Water intensity Kℓ/oz 16.57 17.51 16.05 17.09
Level 3 & above
environmental incidentsNumber 3 1 0 3
17.1
14.4
8
13.8
6
17.0
9
16.0
5
5.1
3
4.9
7
4.7
9
5.3
9
5.1
7
Q 2 2 0 1 5 Q 3 2 0 1 5 Q 4 2 0 1 5 Q 1 2 0 1 6 Q 2 2 0 1 6
Energy and Water Intensity
KL/OZ GJ/OZ
10
Energy initiatives
● 20% of operating cost base (14% of AISC) is energy-
linked
● Cost and security of energy supply is a risk at some
of Gold Fields operations, particularly in SA and
Ghana
● Coal- and diesel-based energy raises CO2
emissions and could attract carbon-linked taxes
Commitment to renewable energy and diversification of
energy suppliers through the following new projects:
● 2x20MW solar PV plants at South Deep
● Commissioning of 24MW gas-powered plant at
Granny Smith in June (all Australian mines now on
gas generated electricity)
● Commissioning of new gas plants in Q4 2016 by
Genser Power at Tarkwa and Damang to supply 40
MW (of 55MW total) at below grid tariffs
● Commitment to 20% renewable energy at any new
projects
Energy costs and security of energy supply are critical business risks
Commitment to energy efficiencies, reducing carbon footprint & mitigating supply risks
Solar panels at our Sandton head office
• Commissioned in November 2015
• Reduction in grid electricity consumption by 60%
between H1 2015 and H1 2016
• Reduction in grid electricity costs by 36%
between H1 2015 and H1 2016
Keeping the focus despite higher gold price, H1 2016 Results, 18 August 2016
Operational review
12
H1 2016: South Africa
Increase in ZAR gold price accelerated cash breakeven
● Strong safety performance with a TRIFR of 2.89
(H1 2015: 3.03)
● FY16 guidance updated: Production of 9,000kg
(289koz) at AIC of ZAR595,000/kg (US$1,310/oz)
● Low profile destress mining completed in July
2016 – all future destress mining will employ the
high profile method, which is proving successful
● Most of the key skills are now in place
● Fleet renewal: 17 category 1 units commissioned
during H1 2016, with an additional 11 units to be
commissioned during the remainder of 2016
58 new units out of 114 planned for year-end
● Housing strategy for all employees being rolled
out
H1
2016
H1
2015
Q2
2016
Q1
2016
Production koz 140.0 75.0 76.5 63.6
AISC US$/oz 1,229 1,912 1,268 1,183
AIC US$/oz 1,257 2,020 1,293 1,21539
55
6864
77
0
500
1,000
1,500
2,000
2,500
0
10
20
30
40
50
60
70
80
90
Q2
201
5
Q3
201
5
Q4
201
5
Q1
201
6
Q2
201
6
Production (koz) and AIC (US$/oz)
Production AIC
-330
-266
-57
-113
63
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
-350
-300
-250
-200
-150
-100
-50
0
50
100
Q2
201
5
Q3
201
5
Q4
201
5
Q1
201
6
Q2
201
6
Net Cash Flow (R million) and Gold Price (R/kg)
Net cash flow Gold Price
Keeping the focus despite higher gold price, H1 2016 Results, 18 August 2016
13
South Deep: Encouraging trends
Key underground activities maintaining momentum
Keeping the focus despite higher gold price, H1 2016 Results, 18 August 2016
36%36% 36%37%
0
20
40
60
80
100
120
140
160
180
Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016
Tonnes (
‘000)/
Q
Long Hole Stoping Production & Contribution
23% 33%42%
0
10
20
30
40
50
60
70
80
90
100
Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016
To
nn
es (
‘000
)/Q
DestressDestress HP Destress LP
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016
m/Q
DevelopmentCurrent Mine
New Mine
0
20
40
60
80
100
120
Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016
Cubic
Metr
es (
‘000)/
Q
Backfill Production
14
100-4W
100-3W100-2bW 100-2aW
100-1bW
100-1aW
95-3W
95-2W95-1W
90-1W
High profile destress
Low profile destress
HP & LP destress completed as at July 2016
Transition to high profile destress
Keeping the focus despite higher gold price, H1 2016 Results, 18 August 2016
15
Solid global portfolio
Keeping the focus despite higher gold price, H1 2016 Results, 18 August 2016
Production and AIC (ex South Deep)
Healthy cash generation
● Attributable production H1 2016: 904koz (Q2 2016: 453koz)
● AIC H1 2016: US$917/oz (Q2 2016: US$949/oz)
● Net cash flow from international operations H1 2016: US$166m (Q2 2016: US$97m)
0
200
400
600
800
1000
1200
H1 2014 H2 2014 H1 2015 H2 2015 H1 2016
Equivalent production (koz)
0
200
400
600
800
1000
1200
H1 2014 H2 2014 H1 2015 H2 2015 H1 2016
AIC (US$/oz)
16
H1 2016: Australia
FY16 production guidance increased
H1
2016
H1
2015
Q2
2016
Q1
2016
Production koz 466.1 476.4 240.7 225.4
AIC US$/oz 928 990 950 904
235
249 263
225
241
0
200
400
600
800
1,000
1,200
0
50
100
150
200
250
300
Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016
Production (koz) and AIC (US$/oz)
Keeping the focus despite higher gold price, H1 2016 Results, 18 August 2016
● Improved safety performance: H1 2016 TRIFR of
7.53 vs. 16.27 in H1 2015
● FY16 production guidance increased to 925koz
from 905koz due to outperformance relative to H1
2016 plan
● St Ives: Generated US$64m of net cash.
Transition into more open pit operation
● Agnew/Lawlers: Focus was on developing the
Cinderella ore body and mining FBH in H1 2016
● Granny Smith: Production 2% lower YoY but
strong cash generation of US$85m
● Darlot: Recently discovered Oval orebody
extends Darlot’s life and is expected to provide
the primary feed in 2017 and 2018
40
66
86
47
74
0
200
400
600
800
1,000
1,200
1,400
0
10
20
30
40
50
60
70
80
90
100
Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016
Net Cash Flow (US$m) and Gold Price (US$/oz)
Net cash flow Gold Price
17
Commitment to exploration investment
H1 2016 deliverables
Full Year Budget A$93m (4
sites)
Expenditure A$52m (Year to Date)
Drill metres = 347,456 metres on ground
Extensive geophysics & modelling – all sites
Keeping the focus despite higher gold price, H1 2016 Results, 18 August 2016
Exploration programme starting to yield results
Delivering growth
Resource extensions Granny Smith Wallaby Z100, 110, 120
Darlot CDA Oval
Agnew FBH and Kim
St. Ives Invincible UG, Invincible South, Retribution
Growth Granny Smith Wallaby Z125, 130, 135, 140, 150, Northern
Fleet
Agnew Waroonga North
St. Ives Paleochannels
18
Granny Smith (Wallaby): Growth resource extension Zone 100
Keeping the focus despite higher gold price, H1 2016 Results, 18 August 2016
• Mineralisation extended East & Southeast
• Targeting further extensional drill programs for
H2 2016
• Resource modelling & upgrade pending end
2016
Significant intersections include:
• WB3539UD 1.45m @ 7.41g/t Au
• WB3539UD 4.08m @ 6.52g/t Au
• WB3595UD 1.55m @ 45.1g/t Au
Zone 110
Legend
Outline – 2015 Model
N
Successful
infill drilling
Successful
infill and
extension
drilling
Successful
extension
drilling
Q4 Target
Area
Q3 Target
Area
Wallaby Z100 25x25m drill spacing
Zone 90
Zone 100
19
Granny Smith (Wallaby): Growth resource extension Zones 110-120
Keeping the focus despite higher gold price, H1 2016 Results, 18 August 2016
Zone 110-120
Zone 100
Zone 90
• Mineralisation extensions west & Southwest
for Z100 & Z120
• New drill platform required for further drilling
• New resource modelling & reserve upgrades
end 2016
Zone 110
Zone 100
Legend
Red - 2015b Model
Blue - 2016 Model
Significant intersections include:
• WB3516UD 10.6m @ 10.96g/t Au
• WB3515UD 8.05m @ 3.81g/t Au
• WB3498BUD 3.48m @ 3.33g/t Au
• WB3563UD 12.73m @ 6.10g/t Au
• WB3598UD 8.72m @ 16.12g/t Au
• WB3562UD 16.55m @ 9.30g/t Au
20
Granny Smith (Wallaby): New growth Zones 125-150
Keeping the focus despite higher gold price, H1 2016 Results, 18 August 2016
Zone 110/120
North
View West
Zone 140
1.82m @
10.19g/t
1.5m @ 7.23g/t
3.60m @ 3.89g/t
Zone 150
8.96m @ 19.98g/t
Zone
135/135HW
9.95m @ 4.04g/t
8.40m @ 7.07g/t
Zone 130
Low grade within
intrusive
Zone 125
15.03m @
12.22g/t
N
• Zone 135 mineralised footprint of 1,100m x 600m
similar to Zone 100 and Zone 110-120
• Further lateral growth expected
• Initial resource in 2017
Zone 100
WBD047UD
2.5m @
6.78g/t
WB3401UD
8.95m @
7.42g/t
WBD046UD
9.95m @ 4.04g/t
8.4m @ 7.06g/t
WB3386UD
5.44m @
3.69g/t
WB3330UD
3.3m @ 3.6g/t
Zone 135
Domain
Boundary
Central
Intrusive
WBD046UDW2
6.79m @ 6.44g/t
Zone 135
21
Granny Smith: New growth Northern Fleet
Keeping the focus despite higher gold price, H1 2016 Results, 18 August 2016
View south across Wallaby open pit and
Lake Carey toward Northern Fleet
Wallaby mine
22
Agnew: Resource extension & new growth Waroonga North
Keeping the focus despite higher gold price, H1 2016 Results, 18 August 2016
Q4 2015
Emerging Target
Drill spacing: 100m along strike, 100m – 150m vertical
23
Agnew: New growth Waroonga North
Keeping the focus despite higher gold price, H1 2016 Results, 18 August 2016
Q2 2016
Advanced exploration
EMSD1374W3 780.66-785.36m
6.0m @ 30g/t including 4.7m @ 33.16 g/t Au
Drill spacing: 50m along strike, 100m – 150m vertical
24
Agnew: Barren Lands project area
Golden Swan
Strategy
• Identify favourable coarse sandstone host
• Along strike from New Holland trend to south
• Geophysics and diamond drilling to assist
targeting
• Initial RC drill program
Program
• 2 diamond holes for 300m
• 8 RC holes for 1,200m
Results
• Positive early results
• Interpretation & follow up drilling pending
Keeping the focus despite higher gold price, H1 2016 Results, 18 August 2016
25
Agnew: Himitsu and Cinderella South
Keeping the focus despite higher gold price, H1 2016 Results, 18 August 2016
• 6 diamond holes for 1,662m
• Cinderella lodes to the
south along coarse
sandstone
• Extension to Himitsu 180
lode
• South holes intersected
shallow structures
• Narrow intersections with
encouraging results with
some high grades
EMSD1443
0.4m @ 28g/t from 140m
0.4m @ 16.9g/t from 153m
0.4m @ 195g/t from 163m
EMSD1440
1m @ 2.2g/t from 20m
0.6m @ 3.7g/t from 63m
EMSD1438
0.4m @ 10g/t from 14m
0.5m @ 6.9g/t from 39m
0.5m @ 8.3g/t from 50m
NSR NSR
NSR
Himitsu Structures
26
Darlot: Resource extension & new growth
Keeping the focus despite higher gold price, H1 2016 Results, 18 August 2016
Metzke
Burswood
Moses
Dacent
CDA Oval Extensional &
Resource conversion project
CDRCD0023 0.3m @ 94.0 g/t
Au
27
St Ives: Invincible South resource extension and growth
Keeping the focus despite higher gold price, H1 2016 Results, 18 August 2016
Initial Discovery History:
• Discovery hole 1994 (1m @ 0.8g/t Au)
• Re-discovered Q1 2012
• 4 of 5 DDH hit ore (14m @3.9 g/t, 12m @ 5.5g/t, 6m @ 2.3g/t, 4m @
3.0g/t)
• Maiden resource 2.3Mt @ 3.3g/t for 246koz
Current Status
• Modelling in progress
• Current Inferred Resource
Inventory 1.35Mt @ 8.4g/t for
364koz (3.5g/t COG).
• Total Greater Invincible Mining
Project Resource
• 1.8Moz since discovery
Significant Intercepts include:
LD14522W1 4.35m @ 13.6g/t Au
LD14522W1 5.6m @ 10.84g/t Au
LD14593 9.6m @ 8.79g/t Au
LD 14596 16m @ 7.92g/t Au
LD14650 10.8m @ 8.85g/t Au
LD14654 19.2m @ 11.42g/t Au
LD14595 17.4m @ 10.40g/t Au
Invincible
UG
Invincible
South
Invincible Open Pit
Legend
Blue = geological structures
Green = current inferred
resource model
28
EM Survey – 400m spaced
lines
Neptune
EM Test
Drilling
80X20 drilling
All assays returned
Modelling in progress
Argo North Ext
APN
EM Survey – 400m spaced
lines
Neptune
Argo North
N
St Ives: Palaeo-channel project (additional)
Keeping the focus despite higher gold price, H1 2016 Results, 18 August 2016
APN
Argo
Hole IDFrom (m)
Length (m) Grade Au g/t Comment
CD18999 63 5 15.0 Supergene
WPD3897 61 10 5.5 Supergene
CD19089 65 1 32.0 Palaeochannel
TD13177 52 1 30.3 Palaeochannel
CD19106 62 1 29.8 Palaeochannel
TD13160 65 1 23.1 Palaeochannel
CD19119 63 1 23.0 Palaeochannel
WPD3893 61 1 22.4 Palaeochannel
TD13163 61 1 22.3 Palaeochannel
CD19149 62 2 9.9 Palaeochannel
TD13125 58 5 4.8 Palaeochannel
CD19092 61 3 6 Palaeochannel
CD19023 63 5 3.3 Palaeochannel
CD19089 64 4 8.5 Palaeochannel
CD19119 61 3 11.1 Palaeochannel
29
H1 2016: West Africa
Key region for the Group
H1
2016
H1
2015
Q2
2016
Q1
2016
Production koz 345.5 372.5 164.4 181.1
AIC US$/oz 1,052 1,156 1,072 1,028
197.7193.8 187.6
181.1
164.4
0
200
400
600
800
1,000
1,200
0
50
100
150
200
250
Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016
Production (koz) and AIC (US$/oz)
Keeping the focus despite higher gold price, H1 2016 Results, 18 August 2016
● Focus on safety continues: TRIFR of 0.66
● Development Agreement concluded in March. Highlights
include:
Reduction in corporate tax rate from 35.0% to 32.5%,
effective 17 March 2016
A change in the royalty rate from a flat 5% of revenue to a
sliding scale royalty based on the gold price, effective 1
January 2017 (3% up to US$1,300/oz gold price)
● We continue to evaluate a range of options for Damang
with additional work required following the conclusion of
the development agreement. We expect to make a
decision and update the market by year-end
● New gas plants to be commissioned in Q4 2016
Damang: 30% reduction in power unit cost to 16.0
USc/kWh
Tarkwa: 18% reduction in power unit cost to 13.5 USc/kWh
● Tarkwa FY16 AIC guidance increased to US$980/oz from
US$940/oz due to a US$38m increase in capital
expenditure on waste stripping to US$166m
38
32
0
10
16
0
200
400
600
800
1,000
1,200
1,400
-5
0
5
10
15
20
25
30
35
40
Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016
Net Cash Flow (US$m) and Gold Price (US$/oz)
Net cash flow Gold Price
30
H1 2016: South America
A steady, low cost producer
H1
2016
H1
2015
Q2
2016
Q1
2016
Au Eq Prod koz 127.5 150.2 64.6 62.9
Au Eq AIC US$/oz 728 666 750 709
AU only Prod koz 70.5 78.1 35.7 34.8
AU only AIC US$/oz 489 423 599 386
83.679.2
66.262.9 64.6
0
200
400
600
800
1,000
1,200
0
10
20
30
40
50
60
70
80
90
Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016
Production (koz) and AIC (US$/oz)
Keeping the focus despite higher gold price, H1 2016 Results, 18 August 2016
● Strong safety record continued during H1
2016: TRIFR of 0.00
● Financial performance was impacted by
lower copper prices during the period
● Lower gold head grade as per mining
sequence
● Strong community relations as evidenced
by the approval from 2 communities to
conduct brownfields exploration
● Work on the life extension project
continues
24
16
0
-4
24
0
200
400
600
800
1,000
1,200
1,400
-10
-5
0
5
10
15
20
25
30
Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016
Net Cash Flow (US$m) and Gold Price (US$/oz)
Net cash flow Gold Price
31
Conclusions
● Grow cash flow and margin with increase in gold price
● 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 – Already close to net debt/EBITDA target of 1x
Balance sheet has flexibility with regards to capacity and maturity
● We are firmly focused on delivering a sustainable South Deep – on track to meet 2016
targets
● Continue to evaluate value-accretive opportunities
Keeping the focus despite higher gold price, H1 2016 Results, 18 August 2016
Strategic priorities
Focus on cash
● Attributable equivalent gold production: 2.10-2.15Moz (previously 2.05-2.10Moz)
● AISC: US$1,000-1,010/oz
● AIC: US$1,035-1,045/oz (includes US$50m for Salares Norte)
Updated 2016 Group guidance
Investor Relations Contacts Media Contact
Avishkar Nagaser
Tel: +27 11 562 9775
Mobile: +27 82 312 8692
E-mail:
Sven Lunsche
Tel: +27 11 562 9763
Mobile: +27 83 260 9279
E-mail:
Thomas Mengel
Tel: +27 11 562 9849
Mobile: +27 82 315 2832
E-mail: