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Diggers and Dealers 2006 Terence Goodlace Head of International Operations 9 August 2006.

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Presentation on theme: "Diggers and Dealers 2006 Terence Goodlace Head of International Operations 9 August 2006."— Presentation transcript:

1 Diggers and Dealers 2006 Terence Goodlace Head of International Operations 9 August 2006

2 2 Diggers & 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 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.

3 3 Diggers & Dealers Forum 2006 – Terence Goodlace The Gold Fields Franchise Operating mines Developing mines Exploration offices Exploration focus St Ives Agnew

4 4 Diggers & Dealers Forum 2006 – Terence Goodlace The Gold Fields Franchise Operating mines Developing mines Exploration offices Exploration focus Kloof Driefontein Beatrix Tarkwa Damang Essakane

5 5 Diggers & Dealers Forum 2006 – Terence Goodlace The Gold Fields Franchise Operating mines Developing mines Exploration offices Exploration focus Choco 10 CerroCorona

6 6 Diggers & Dealers Forum 2006 – Terence Goodlace Resources and Reserves (moz) The Gold Fields Franchise Significant Reserves US$ ZAR A$ ? Long life, high quality assets US$400/ozA$560/ozR92,000/kg US$480/ozA$672/ozR110,000/kg

7 7 Diggers & Dealers Forum 2006 – Terence Goodlace The Gold Fields Franchise Highly Liquid NYSE symbolGFI Shares outstanding 495 million Free float100% ADR ratio1:1 Daily volume3 million Shareholder Distribution 100% Free Float – Fully Independent

8 8 Diggers & 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 Franchise Strategy

9 9 Diggers & Dealers Forum 2006 – Terence Goodlace Strategy Operational Excellence: Quality Mining Maintain Quality Profitable Ounces Maintaining mining at current ore reserve grades

10 10 Diggers & Dealers Forum 2006 – Terence Goodlace Strategy Operational Excellence: Tarkwa

11 11 Diggers & Dealers Forum 2006 – Terence Goodlace Strategy Operational Excellence: Tarkwa Open Pit Mining Physicals (kt)

12 12 Diggers & Dealers Forum 2006 – Terence Goodlace Input Costs Bottom-line Projects Margin growth Strategy Operational Excellence : Cost leadership

13 13 Diggers & Dealers Forum 2006 – Terence Goodlace Strategy Growing Gold Fields Value enhancing approach The right metal The right size The right locations The right price Balanced portfolio

14 14 Diggers & Dealers Forum 2006 – Terence Goodlace Organic growthAcquisitions Exploration Geological Operational Socio-political Strategy Growth Philosophy Trading certainty Risk & reward trade-off Risk

15 15 Diggers & Dealers Forum 2006 – Terence Goodlace Spectrum of country risk Positioning 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

16 16 Diggers & Dealers Forum 2006 – Terence Goodlace +1.5m International ounces by 2009 Strategy Growth : International Portfolio *6 months annualised koz Indicative

17 17 Diggers & Dealers Forum 2006 – Terence Goodlace Strategy Growth: Choco 10 El Callao Choco 10

18 18 Diggers & Dealers Forum 2006 – Terence Goodlace Strategy Growth: 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

19 19 Diggers & Dealers Forum 2006 – Terence Goodlace Project Parameters Resources g/t gold 3.5 moz gold Reserves 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 at US$375/0Z Strategy Growth: Choco 10

20 20 Diggers & Dealers Forum 2006 – Terence Goodlace Block B - Hecla 5km Block A – CVG Minerven Choco 10/4 Gold Fields Concessions Strategy Growth: Choco 10 El Callao – A highly prospective gold district

21 21 Diggers & Dealers Forum 2006 – Terence Goodlace Block B - Hecla 5km Block A – CVG Minerven Choco 10/4 1.85g/t (1.3Moz ) Choco g/t (34m) 4.5g/t (60m) 5.4g/t (42m) 4.6g/t (39m) Choco g/t (104m) 7.3g/t (145m) 5.9g/t (104m) 5.4g/t (59m) 17.6g/t (232m) 7.1g/t (249m) Results returned March 06 Choco g/t (25m) 11.6g/t (36m) 23.5g/t (35m) 8.4g/t (7m) 13.4g/t (69m) 2.9 (16.6m) 6.5g/t (52.7m) Choco 4 2.9g/t (34m) 8.4g/t (35m) 7.3g/t (188m) 3.2g/t (32m) 12.9g/t (84m) 15.8g/t (27m) 12.6g/t (86m) 9.9g/t (27m) Gold Fields Concessions Strategy Growth: Choco 10 El Callao – A highly prospective gold district

22 22 Diggers & Dealers Forum 2006 – Terence Goodlace Water Reservoir VBK Pisolita Rosika Coacia Tails line Waste dump Plant A B Section lines Strategy Growth: Choco 10

23 23 Diggers & Dealers Forum 2006 – Terence Goodlace Proposed Drill Intersections CH CH CH CH CH CH CH CH CH CH CH CH CH CH g/t 8.4g/t 12.5g/t 7.0g/t 6.2g/t 7.9g/t 18.7g/t CH g/t 10.8g/t 6.2g/t 5.6g/t Strategy Growth: Choco 10 – VBK – domain 41

24 24 Diggers & Dealers Forum 2006 – Terence Goodlace Proposed Drill Intersections CH CH CH CH CH CH CH CH CH CH CH CH CH CH g/t 7.0g/t 17.6g/t 7.1g/t CH g/t 5.5g/t 17.4g/t 3.4g/t Strategy Growth: Choco 10 – VBK – domain 41

25 25 Diggers & 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 Strategy Growth: Choco 10

26 26 Diggers & Dealers Forum 2006 – Terence Goodlace Strategy Growth: Cerro CoronaCerroCorona

27 27 Diggers & Dealers Forum 2006 – Terence Goodlace Strategy Growth: 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

28 28 Diggers & Dealers Forum 2006 – Terence Goodlace Resources 1 g/t gold & 0.47% Copper 7.7 moz Gold equivalent Reserves 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. Strategy Growth: Cerro Corona

29 29 Diggers & Dealers Forum 2006 – Terence Goodlace Strategy Growth: Cerro Corona

30 30 Diggers & Dealers Forum 2006 – Terence Goodlace Strategy Growth: EssakaneEssakane TarkwaDamang

31 31 Diggers & Dealers Forum 2006 – Terence Goodlace Strategy Growth: Essakane Exploration - EMZ* infill drilling completed Re-assay programme - Logistics challenging - Prioritised to in pit ore Move to feasibility study in October Feasibility study by June 2007 Advanced exploration project * EMZ – Essakane Main Zone

32 32 Diggers & Dealers Forum 2006 – Terence Goodlace N AmericaS AmericaAustralasiaAfricaEurope Feasibility Prefeasibility Resource Development Initial Drilling Greenfields Essakane El Callao Victoria Nabire Bakte GFI OperatedJoint VenturesEquity JVs Altiplano APP - Offsets APP – SJ Reef APP – SK Reef APP – Suhanko Cerro Corona Fujian JV NSW Gen CMQ CC District Telikan Heilongjiang Meliadine Tireo JV Isla Sankarani Development Kisenge Strategy Growth: Exploration

33 33 Diggers & Dealers Forum 2006 – Terence Goodlace Damang Pit Cut Back Kloof Extension Area Driefontein Drop Down Tarkwa Mill Expansion Beatrix Vlakpan Project St Ives Leviathan Project Ghana Underground Australia Exploration El Callao Regional Cerro Corona Regional Essakane Project Pipeline Current Short Term Medium Term Managing the portfolio Strategy Growth: Project Pipeline

34 34 Diggers & Dealers Forum 2006 – Terence Goodlace World Gold Council Mineral Rights Conversions AA1000 SES Stakeholder Engagement Standard ISO14001 Environmental Management Standard The Global Compact Sarbannes Oxley King 2 Framework for sustainable development Strategy Securing our future OSHAS Safety Management Standard

35 35 Diggers & Dealers Forum 2006 – Terence Goodlace Significant Gearing 91% 96% Earnings growth Cash flow generation Operating profit 208% F2005 F2006 RM RM RM

36 36 Diggers & 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

37 37 Diggers & 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

38 Diggers and Dealers 2006 Terence Goodlace Head of International Operations


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