Gold Fields Limited Q2 FY2024 earnings call

Management Statement and Operational Highlights

• Safety: Two fatalities in H1; commissioned DSS+ review of safety culture, processes, etc.; implementing multi-year safety improvement roadmap; working with business partners to co-design safety plans; addressing mental health.
• Community Engagement: St Ives signed landmark native title agreement with Ngadju People; Gold Fields Ghana Foundation spent $16 million renovating TNA Stadium in Tarkwa.
• Decarbonization: Commenced construction of renewable energy plants at St Ives and Granny Smith.
• Acquisition of Osisko: Consolidates 100% ownership of Windfall project; strategic and accretive; project has exploration potential, environmental permitting underway, hydroelectric power line completed.
• Operational Improvements: Implemented new two-tier functional operating model; made appointments to executive committee and Board; progressing asset optimization and waste elimination.

Segment Performance

• Australian Assets:
  • Gruyere: Heavy rains in March-April damaged access roads, but achieved 100% annual material movement run rate in July; all-in cost up 62% to AUD2,676 per ounce.
  • Granny Smith: Steady operational performance with planned production decline; all-in cost up 11%, adjusted free cash flow doubled to AUD200 million in H1.
  • St Ives: Gold production down 25% in H1; all-in cost increased, but guidance of 350,000 kilo ounces and AUD2,900 all-in cost remains intact.
  • Agnew: Stable production of 110,000 ounces in H1; costs increased due to higher underground ore production and capital expenditure.
• Ghanaian Operations (Tarkwa): Gold production decreased 14% to 248,000 ounces in H1; all-in cost up 54% to $1,822; 2024 production guidance remains 540,000 ounces.
• South Deep: Gold production down 25% to 117,000 ounces in H1; all-in cost up 41%; 2024 production guidance revised down to 250,000-264,000 ounces; all-in sustaining cost guidance 1890-1980.
• Cerro Corona: Gold production down 48% to 37,000 ounces, copper production down 29%; all-in cost per gold ounce up 197% to $911.
• Salares Norte: Production impacted by winter weather; plant restart planned for 30th September 2024; 2024 production guidance 40,000-50,000 ounces.
• Windfall (post Osisko acquisition): World-class asset with exploration potential; environmental permitting underway, over 2 million meters of drilling, significant underground development.

Guidance

• 2024 group attributable gold equivalent production revised to 2.05-2.15 million ounces, down from previous guidance due to South Deep and delayed Salares Norte ramp-up.
• H2 2024 attributable gold production expected 1.13-1.23 million ounces.
• H2 2024 all-in sustaining cost forecast 1440-1560 per ounce; full-year all-in sustaining cost 1560-1650 per ounce, all-in cost 1790-1880 per ounce.
• Salares Norte 2024 production expected 40,000-50,000 ounces.

Risks

• Operational: Production decline due to weather, access issues, equipment challenges (e.g., Salares Norte winter weather, South Deep access problems).
• Safety: Fatalities in H1, need for continued implementation of safety improvement roadmap.
• Permitting: Delays in Tarkwa/Iduapriem JV approval, Salares Norte restart delays, environmental permitting challenges for Windfall.