Analysts Site Visit Tarkwa Team May 2015
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.
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
2
Tarkwa Gold Mine Site Layout ● Site Layout
Akontansi Pit
HME Workshops
CIL Plant
This is where you are ….
Tarkwa Gold Mine 2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
3
Tarkwa Gold Mine Safety Statistics Rolling 12 Month Injury Rates_2008 - Current LDIFR
MTIFR
RWIFR
TRIFR
2.0 1.8 1.6 1.4
Rate
1.2 1.0 0.8 0.6 0.4 0.2 0.0 2008
A
J
O
2009
A
J
O
2010
A
Fatality Free Man-hours – 62,202,902
J
O
2011
A
J
O
2012
A
J
O
2013
Fatality Free Shifts – 5,055,585
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
A
J
O
2014
A
J
O
2015
LTI Free Shifts – 299,622 4
Tarkwa Gold Mine Why We Are Excited About Tarkwa… ● Magnificent ore body and infrastructure ̵ 9.6Moz resources @ 1.15g/t as at December 2014 ̵ 7.5Moz reserves @ 1.05g/t as at December 2014 (Ex pit reserves is 6.6Moz @ 1.30g/t) ̵ Open cast mining with easy accessible ore - strip ratio of 5.7 ̵ Free leaching conglomerate ore, low cyanide consumption yielding 97% recovery ̵ High volume driven mine with industry benchmark mining cost of US$2.45/t, mined by Gold Fields owner fleet and maintenance ̵ State-of-the-art 13.5Mtpa CIL plant operated at US$11/t ̵ 17 year life of mine at an AISC of US$988/oz
● Professional and Motivated people ̵ Employer of choice in Ghana, employing 2,400 highly motivated workforce ̵ High performance and zero tolerance safety culture
● Experienced miner in Ghana, West Africa ̵ We have been operating in Ghana since 1993 ̵ Total gold produced since 1994 is 9.6Moz
● Huge exploration potential within the Tarkwa lease area A World Class Mine By Any Measure! 2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
5
Tarkwa Gold Mine Tarkwa and Damang Mine Locations
GHANA
• Damang Pits TARKWA
ADR Plant
N
• North Pads • North Primary Crusher
Tarkwa Pits •
Tarkwa
• South Pads • South Primary Crusher
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
Tarkwaian Banket Tarkwa Outcrop 12 Km
6
Tarkwa Gold Mine A Brief History Date
Activity
1993
•
1998
•
1999
• •
2000
Gold Fields signed a management contract with the Government of Ghana to operate the mine Initial Tarkwa Phase I development completed for an open pit operation, mining 14.5Mtpa including 4.7Mtpa of heap leach feed ore Tarkwa phase II expansion completed to increase mining rate to 20.7Mtpa. All underground operations and associated processing plant ceased production GFG acquired the Northern area of Teberebie from Ghanaian Australian Goldfields Limited and re-commissioned the open pit and heap leach operations. Tarkwa Phase III increased mining rate to 36 Mtpa and heap leach ore production to 12.6 Mtpa
2004
•
2010
•
2013
•
North and South Heap Leach operations stopped
2014
•
CIL Plant upgrade to 13.5Mtpa
Tarkwa implemented owner mining in July 2004 and commissioned CIL plant with “name plate” capacity of 4.2Mtpa in October 2004
Conversion to owner maintenance was completed, with the inherent cost savings and productivity gains materialising within a short period of time
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
7
Tarkwa Gold Mine Leadership Team (1 of 2) ● Management Team (1 of –2)General Manager Michiel van Der Merwe B.Eng. (Extractive Metallurgy) 19 years experience
George Nutor – Metallurgy Manager MSc. Mineral Eng. (Extractive Metallurgy) 20 years experience
Steve Osei-Bempah – Manager Mining BSc. Mining Eng. 23 years experience
Elliot Twum – Engineering Manager BSc. Electrical/Electronic Engineering 14 years experience
Awie Landsberg – Engineering Manager (HME) National Higher Diploma – Mech. Eng. 22 years experience
Florence Ansere-Bioh – Comm. Affairs Manager MPhil Sociology 21 years experience
Godfred Avane – Mineral Resources Manager MSc. Geological Engineering 19 years experience
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
Abubakari Mohammed – HR Manager MPA, BA Hons Economics, ACCA Level 1 19 years experience
8
Tarkwa Gold Mine Leadership Team (2 of 2) Dave Pienaar – Safety Manager NASDAM (M+3) 25 years experience
Kwame Ako – Business Improvement Manager BSc. Civil Eng., Pg. Cert (Ops), MBA 9 years experience
Augustine Asubonteng – Finance Manager BSc. Natural Resources, ACCA 12 years experience
Jeff Addy – ICT Operations Manager BSc. Computer Science 15 years experience
Major Eric Amuzu (Rtd) – Protection Services Manager Dip. Military Studies/Dip. Industrial Security 35 years experience
Richard Attifu – Supply Chain Manager Dip. Logistics & Transport, MSc. Procurement, Logistics & Supply Chain Management 31 years experience
Dr Ishmael Sackey – Health Services Manager BSc. (Medical Science) MB ChB Advanced Diploma in Occupational Health 14 years experience
Ben Addo – Manager Environmental BSc. (Chemistry) MSc. Environmental Management 20 years experience
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
9
Tarkwa Gold Mine Replacement of Reserves 16
14
12
Moz
10
10
8
8
6
4
2
0.55
0.55
0.72
0.72
0.66
0.63
0.66
0.74
0.72
0.72
0.63
0.56
2003
2004 Reserves
2005
2006
2007
Gold produced
2008
2009
Cumulative Production
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
2010
2011
2012
2013
2014
Cumulative Contained Au
10
Tarkwa Gold Mine Geology The existing surface operation currently exploits narrow auriferous conglomerates
KOTTRAVERCHY
AKONTANS
ABOSSO
I
APINTO
0
8
PEPE
Internal Waste KILOMETERS
AVS
N
MANTRAIM
Capital Waste HUNI SANDSTONE TARKWA PHYLLITE
BANKET GROUP
BIRIMIAN BASEMENT
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
A CDE F2 Reef Zones
G
11
Tarkwa Gold Mine Stratigraphy: Well established reef identification & zoning system
Afc - Well sorted with rounded clasts of quartzite & visible gold. ~3m thick A1 - Poorly sorted conglomerate & thin quartzite. 2m-7m thick A3 - Visible gold is rare. Moderately sorted thin discontinuous conglomerate. Up to 7m thick B - Very coarse quartzites with thin lags of pebble conglomerate. Up to 3m thick CDE - Can be subdivided into the lower C reef and upper E reef both of which are conglomeratic. Up to 8m thick F2 - A variably developed polymictic gravel up to 2m. Essentially a marker horizon G - Poorly sorted conglomerate with clasts of quartzite and phyllite. Varies from 2m to 6m 2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
12
Tarkwa Gold Mine Exploration •
Extensional drilling: Will increase priority over the next 2-3 years to understand potential
•
Underground potential: Low potential for underground at lower gold prices •
•
Kottraverchy – inventory at 2.61 g/t cut-off (2013 costs at US$1500 gold price):
Tonnes
Grade (g/t)
Gold (oz)
8,847,360
3.45
982,116
Akontansi – inventory at 3.26 g/t cut-off (2013 costs at US$1500 gold price):
Tonnes
Grade (g/t)
Gold (oz)
16,136,368
3.51
1,819,097
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
13
Tarkwa Gold Mine Exploration: Gold Production Against Geological Confidence Inferred, 0% Measured (Grade Controlled Drilled ), 43%
Indicated, 49%
Measured (Resource Drilled), 8% 600
Ounces (koz)
500 400 300 200 100 0 2015
2016
2017
2018
2019 Measured
2020 Indicated
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
2021
2022
2023
2024
2025
2026
Inferred 14
Tarkwa Gold Mine Hydrothermal potential
4 drill targets &1 robust anomaly within 5-8km buffer zone from plant
Fanti
Plant North Hill Kobada Badukrom Blue Ridge 2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
15
Tarkwa Gold Mine: Kobada Target – Trenching & Drilling 2 zones outlined by trenching
1,371m of trenching completed.
11.7m @ 0.62g/t 1.8m @ 12.1g/t 34.5m @ 1.65g/t including 23.3m @ 2.40g/t 14.8m @ 4.53g/t including 84.4m @ 0.41g/t including 17.9m @ 0.55g/t 21m @ 0.77g/t 8.8m @ 2.63g/t 21.1m @ 0.73g/t including 8.6m @ 1.60g/t
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
16
Tarkwa Gold Mine: North Hill Target - Trenching Trenching completed with 1.35km dug and 100% of results received
681m collared in 6 holes on 1 line with on significant results 30m @ 0.42g/t 61m @ 1.36g/t Incl. 1m @ 1.61g/t 10m @ 0.78g/t
15m @ 1.88g/t & 18m @ 2.19g/t 10m @ 0.26g/t
10m @ 0.91g/t 6m @ 2.07g/t 1m @ 11.4 g/t
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
17
Tarkwa Gold Mine: Blue Ridge Targets • Gold in soil anomaly trenched 160m apart over 900 m cumulative strike.
Section in next slide
Target has a set gold bearing quartz-tourmaline veinlets intersected by scout drilling that returned encouraging results. 2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
18
Tarkwa Gold Mine: Blue Ridge Target – Drill Section
High probability of outlining isolated high grade veins of 1 to 2 m wide 2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
19
Tarkwa Gold Mine Existing Mine Fleet Equipment
On-site #
Excavators 984C 994B 9250 9350 996B Dump trucks Cat777F HD785 Cat785C Cat793D Drills Pantera DK45S PV235 Ancillary Cat992 FEL Dozers Graders Water Carts Compactors 984C 2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
4 1 4 4 1 2 13 67 8 12 3 4 6 27 11 7 5 1 20
Tarkwa Gold Mine Mining Equipment – Key Assumptions Fleet Excavators 984C 994B 9250 9350 Dump Trucks Cat777F HD785 Cat785C Cat793D Drills Pantera DK45S PV235
Availability 2014 2014 Actual (%) Plan (%)
2015 Plan (%)
Use of Availability 2014 2014 2015 Actual (%) Plan (%) Plan (%)
88 85 84 86
88 85 88 88
85 85 85 85
72 69 71 78
74 74 74 74
76 76 76 76
89 92 77 90
85 85 77 87
85 85 85 85
75 78 79 58
74 74 74 74
76 76 76 76
72 72 76
80 84 84
82 85 85
88 88 87
74 74 74
Unit Truck Load Dump Loader 984C 994B 9250 9350 996B
tonnes minutes
Cat777F 91 1.25
HD785 91 1.25
minutes minutes minutes minutes minutes
4.70 2.30 2.90 2.30 -
4.70 2.30 2.90 2.30 -
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
76 76 76
Production Rates 2014 2014 2015 Actual Plan Plan tph tph tph 925 980 950 1,734 1,800 1,800 1,370 1,650 1,550 1,730 1,950 1,900
m/hr 24.7 27.3 22.1
Truck Cat785C 136 1.25 Loading Time 6.80 3.30 3.95 3.30 -
m/hr 22 22 22
m/hr 22 26 24 Cat793D 210 1.25 5.00 5.80 5.00 3.00 21
Tarkwa Gold Mine Drill Rig Challenges in 2014 •
Majority of drill rig fleet reached end of its life in 2014, resulting in lower availabilities
•
End of supplier maintenance and repair contract (MARC) – transition to owner maintenance
•
Situation was compounded with the increased need for ore (CIL plant treated 13.3Mt versus a plan of 12.4Mt to produce >20koz over plan Total Drilled Meters
Remedial Actions
•
Five new drill rigs have been ordered Short-term contractor drilling used as a stop gap
Meters (Thousand)
•
350
300
300
250 200
222
150 142
100 50
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
Mar-15
Feb-15
Jan-15
Dec-14
Nov-14
Oct-14
Sep-14
Aug-14
Jul-14
Jun-14
May-14
Apr-14
Mar-14
0
Feb-14
Improved maintenance on the drill rigs
Jan-14
•
22
Tarkwa Gold Mine 4.00
160
3.50
140
3.00
120 2.43
US$/t
2.50
100 98.4
2.00 1.50
60
1.00
40
0.50
20
0.00
0 2006
2007
2008
2009
OPEX Tons - Mt
• •
80
Million Tonnes
Proven Owner Miner
2010
2011
CAPEX Tons - Mt
2012
2013
2014
2015 F'cast
Mining Unit Cost - US$/ton
High volume and grade driven producer in a select mining operation Average unit mining costs within lower quartile of industry benchmark
•
Well trained and competent workforce
•
Training simulator, GPS Fleet Monitoring System
•
Real time Mine Management Reporting System
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
23
Tarkwa Gold Mine Selective Mining
Ore
Waste
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
24
Tarkwa Gold Mine Resources as at 31st December 2014 Measured Tonnes Grade (Mt)
(g/t)
Indicated Gold (koz)
Tonnes Grade (Mt)
(g/t)
Inferred Gold (koz)
Tonnes Grade (Mt)
(g/t)
Total Mineral Resource Gold (koz)
Tonnes Grade (Mt)
(g/t)
Gold (koz)
Open pit Akontansi
24.3
1.31
1,023
79.2
1.27
3,241
2.1
0.97
67
105.6
1.28
4,331
9.1
1.68
493
0.0
0.96
0.0
0.0
0.0
0
9.1
1.68
493
Pepe
15.5
1.50
745
9.1
1.27
372
0.7
1.52
36
25.3
1.42
1,153
Teberebie
32.7
1.54
1,619
20.9
1.60
1,075
0.2
1.42
8
53.8
1.56
2,702
Total open pit
81.6
1.48
3,880
109.1
1.34
4,688
3.1
1.13
111
193.7
1.39
8,679
5.0
0.73
118
5.0
0.73
118
Kottraverchy
Surface Surface stockpiles Spent Ore (Heap Leach)
60.0
0.40
771
60.0
0.40
771
65.0
0.43
889
258.7
1.15
9,568
Total surface
5.09
0.73
118
60.0
0.40
771
Grand total
86.6
1.44
3,997
169.1
1.00
5,409
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
3.1
1.13
111
25
Tarkwa Gold Mine Reserves as at 31st December 2014 Proved
Total Reserve
Probable
Tonnes (Mt)
Grade (g/t)
Gold (Moz)
Tonnes (Mt)
Grade (g/t)
Gold (Moz)
Tonnes (Mt)
Grade (g/t)
Gold (Moz)
Akontansi
25.9
1.22
1.0
56.3
1.20
2.2
82.3
1.20
3.2
Kottraverchy
6.0
1.45
0.3
0.0
0.57
0.0
6.0
1.45
0.3
Pepe/Mantraim
13.8
1.40
0.6
2.4
1.10
0.1
16.2
1.36
0.7
Teberebie
32.0
1.41
1.5
20.9
1.45
1.0
52.9
1.43
2.4
Total Ex-Pit
77.7
1.35
3.4
79.7
1.26
3.2
157.4
1.30
6.6
60.0
0.40
0.8
60.0
0.40
0.8
5.0
0.73
0.1
Mining Area
Open Pit
Surface Stockpiles Spent Ore (SHL) Surface stockpiles
5.0
0.73
0.1
Total Surface Stockpiles
5.0
0.73
0.1
60.0
0.40
0.8
65.0
0.43
0.9
GRAND TOTAL
82.7
1.31
3.5
139.7
0.89
4.0
222.4
1.05
7.5
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
26
Tarkwa Gold Mine Tonnes Mined
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
27
Tarkwa Gold Mine Ore Tonnes
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
28
Tarkwa Gold Mine CIL Processing Plant Primary, Secondary and Tertiary crushing circuit
14 MW SAG Mill (2x 7MW)
14 MW Ball Mill (2x 7MW)
1x common Leaching Tank + 2 parallel
streams (1 leach + 7 CIL)
3 Thickeners, 3 Tailings Storage Facilities
13.3Mtpa throughput capacity at a rate of 1,650 tonnes per hour
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
29
Tarkwa Gold Mine CIL Process Flow Crusher Pocket
Crusher
CV01
CV114 CV02
Cyclones
CV03 Stockpile CV116
CV115
4 x Trash Screens
Mill Discharge Screen
Auxiliary Stockpile CV04
CV162
Scats Stockpile
SAG Mill CV161
Ball Mill 3 x Thickener Carbon Sizing Screens Eluted Carbon Screen
2 elution Column
Loaded Carbon Screen
Mill Return Tank Process Water Pond
Acid Column
CIL 1 Tanks
Tailings Screens
2 x Regeneration Kilns CIL Tanks Tailings Tank CIL 2 Tanks Tailings Screens
Pregnant Solution Tank
Tailings Tank
Tailings 1 Storage Facility
Electrowinning Cells
Tailings 2 Storage Facility Furnace Gold Bullion
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
30
Tarkwa Gold Mine Processing (Heap Leach + CIL) Unit Cost Vs. Throughput Trend
25.0 14.00
12.00
20.0 10.54
10.00 15.0
Tonnes
US$/ton
9.12 8.00
6.00
10.0
4.00
13.3 11.3
5.0
2.00 5.1
0.00
0.0 2006
2007
2008
CIL Ore Treated - kt
2009
2010
HL Ore Stacked - kt
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
2011
2012
2013
CIL Unit Cost - US$/ton
2014
2015 F'cast
HL - US$/ton
31
Tarkwa Gold Mine Major Projects and Capital Expenditure CIL expansion to 13.5Mtpa ● IRR: Est. 192% (Act.: 406%) ● Payback: Est. 1.2 years (Act.: 0.4 years) ● NPV @ 15%: Est. US$147M (Act.: US$166M)
Optimisation Areas Crushing Circuit
0.56
Milling Circuit
1.74
Leaching
4.37
Total Capital
6.67
Major Projects – 5 Year Outlook ● Capital Waste Stripping: Mining avg. 53.4Mtpa @ Avg. Unit cost of US$2.48/t ● TSFs: - TSF 1 stage 8 & 9 - TSF 2 stage 4,5 & 6 - TSF 3 Stage 2 & 3 - TSF 5 Stage 1 & 2 ● Mining fleet replacement: ● HME Component Change out
Amount US$’M
KPI
Comments • Utilised HL 2nd & Tetiary crushing circuit to feed CIL material sizes P80 22mm; Impact of 200 t/hr on milling rate • Upgraded cyclone feed pumps from 1.2kW to 1.8 kW to streamline fluid dynamics and milling constraints • Replaced CIL stream 1 lower flow-rate screens with high flow-rate screen to sustain incremental flow • Upgrade CIL tails pumps • Oxygen plant Installation to sustain recovery at 97% at the higher throughput.
2015
2016
2017
2018
2019
Waste Stripping
118.7
116.8
133.6
126.6
118.3
Mining Equipment
48.8
5.0
2.6
9.4
18.8
HME Components
15.1
14.0
14.0
14.0
14.0
Tailings Storage Facilities
11.8
13.4
5.4
4.5
34.7
Other
2.3
1.7
1.6
1.8
1.5
196.7
150.9
157.2
156.3
187.3
Total Capital
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
32
Tarkwa Gold Mine Key Metrics Q4 – 2014
2014
Q1 – 2015
2015
Actual
Actual
Actual
Forecast
LTI
1
3
1
1
Ore mined
kt
3,023
13,625
3,937
14,558
Ore mined grade
g/t
1.31
1.31
1.37
1.4
Waste mined (Operational)
kt
7,551
34,245
8,186
36,609
Waste mined (Capital)
kt
11,590
39,473
13,602
47,195
Total mined
kt
22,164
87,343
25,725
98,362
CIL ore processed
kt
3,381
13,361
3,385
13,361
CIL head grade
g/t
1.25
1.26
1.28
1.39
CIL recovery
%
97.1
97.3
96.9
97.1
CIL gold produced
oz
130,587
527,179
135,766
580,000
NHL gold produced
oz
2,511
31,043
0
0
Gold production
oz
133,098
558,222
135,766
580,000
Gold Price
US$/oz
1,203
1,266
1,218
1,193
Operating Cost
US$M
89.4
373.9
84.9
347.8
Capital Expenditure
US$M
51.5
174.1
84.5
196.7
AISC
US$/oz
1,148
1,068
1,297
1,040
Cash Flow generated (Ex. Div.)
US$M
7.1
101.7
(20.5)
KPI Safety
Unit
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
33
Tarkwa Gold Mine Cost Strategy & Opportunities VDTs Update VDTs
Opportunities Revise / refine targets
•
GENSER: Potential lower power price by 30%. Reduction of 15% in LOM processing cost
•
Fuel: Declining crude oil price on the world market.
•
Continuous improvement by optimizing efficiencies
•
Strategic and rapid sourcing opportunities on the back of lower commodity prices
Target Setting Management Meetings & Reviews Last Month: - Priorities - Action plans - Results attained Next Month - Revised priorities - Action plans - Expected results
Priority levers
Operating Strategy
Present Operating Strategy and action plans to Exco
Identify & agree priorities
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
34
Tarkwa Gold Mine A Reducing Trend In Operational Expenditure Operational expenditure by activity
2015 Operational forecast spend by element Sundry 4%
700 22%
Power 12%
586
600
2%
Contarctors & Consultants 11%
97
479
500
Labour 23%
470
US$ Million
40 400 153 300
10 104
200
100
75
75
31
30
138
121
9
10
89
89
184
Materials 50%
GET 10% Mech. Parts & Comp. 13%
136
145
2014 Actual
2015 Forecast
Top 5 material spend is approximately 62% of total material spend
Tyres & Tubes 7%
Fuel 54%
0 2013 Actual MIN
HME
MRM
Metallurgy
Engineering
Explosives 16%
G&A
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
35
Tarkwa Gold Mine Cost History: AISC vs Gold Price
1 800
800
1 600
700
1 400
580
600
1 194
1 200
500
US$/oz
400 800
koz
1 040
1 000
300 600
200
400
100
200 0
0 2006
2007
CIL Gold Production - koz
2008
2009
2010
2011
HL Gold Production - koz
2015 Analyst Site Visit - Tarkwa Gold Mine | Tarkwa Team | May 2015
2012
2013
AIC - US$/oz
2014
2015 F'cast
Gold Price - US$/oz
36
Tarkwa Gold Mine Strategic Focus: Tarkwa Is Positioned To Deliver On Its Long Term Plan
•
•
0 LTI Target - Advanced safety culture on the mine supported by behavioral safety management program to work towards zero harm
•
To be a 600koz per annum production - Grade & throughput
Production
Safety
3 Year Strategic Focus
Cost Target AISC of
