Gold Fields Limited Q4 FY2021 earnings call

• Purpose: Creating enduring value beyond mining. Vision: To be the preferred gold mining company delivering sustainable, superior value. Strategy: Focus on maximizing existing assets through people and innovation, build on ESG commitment, grow asset portfolio.
• Financial highlights: 2021 production up 5% to 2.34 million ounces, earnings up 6%, balance sheet strong with debt reduced by $100 million, met guidance for production costs and CapEx.
• ESG progress: Made progress on safety, COVID vaccination rates, renewable energy adoption (e.g., Agnew's hybrid power grid, Granny Smith's solar plant), water reuse, and mental health programs.
• Operational performance: Australia maintained over 1 million ounces production; West Africa increased production driven by demand; Americas recovered from early-year challenges; South Deep exceeded production guidance with 29% increase.

Gold Fields operates 9 mines and 1 project in 5 countries. Australia generated $466 million in cash, accounting for just over half of the company's cash generated and ~43% of production, with a free cash flow margin of 26% and all-in cost of $1,146 per ounce. West Africa (Ghana) generated just under $300 million in cash, with a free cash flow margin of 28% and all-in cost of $1,112 per ounce, a 5% increase year-on-year. Americas generated $57 million in cash with a 17% margin and all-in cost of $1,040 per ounce, a decrease year-on-year. South Africa saw production increase 29%, generating ~$97 million in cash with an all-in cost of $1,379 per ounce, and a 10% strengthening of the rand.

• 2022 attributable production guidance: 2.25 million to 2.29 million ounces.
• All-in sustaining costs: $1,140 to $1,180; all-in costs: $1,370 to $1,410; all-in costs excluding Salares: $1,230 to $1,270.
• CapEx guidance: $1.05 billion to $1.15 billion.
• Expectations of increasing capital investment and high inflation impact on costs.

• Chinchilla impact on Salares Norte: Potential disruption to mine plan if not resolved with environmental authorities, but no material impact in the near term.
• Inflation: High inflation globally, particularly affecting South Deep and Australia, impacting cost projections.
• Geopolitical risks: Increasing left-wing governments in Latin America, potential impacts on capital investment decisions.

Q: How much of Damang's production reduction is due to lower grades and potential reinvestment?

A: Lower grades are contributing, but the Damang team believes there's potential for reinvestment and they haven't considered selling yet as they see value in continuing operations.

Q: Why can't Gold Fields give cost guidance for 2023 and 24?

A: High inflation in 2022 makes it difficult to project, and they need to see the end of 2022 before providing firmer guidance.

Q: Will Salares' ramp-up affect longer-term production profile?

A: No current changes to the original production profile guidance, as exploration is ongoing but hasn't undermined the existing plan.