GFI - Earnings call transcript Q2 2021

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Chris Griffith

Good morning, good afternoon and good evening to Gold Fields Interim Results Presentation for 2021. I'm going to be taking you through just first in the - just the agenda for today.

So, firstly, I'll be running through the highlights, safety and sustainability, and operations. I'll then hand over to Paul Schmidt, our CFO. And then after that we will quickly wrap up with an update on Salares Norte and conclusion.

first this few year. gents, first for and of half ladies just highlights a the So,

over the As more on conversations - detail we these and course usual, will in-depth over go highlights. the more picking up presentation into much the detail of next

total performance. Mgcine, We Firstly, had our at with very, improvement Deep in April. safety our a We're which one XX% of in shadow overall was South recordable we lost a our had very year-on-year performance. fatality, that improving one rates. We safety colleagues, Vumile operation pleased

Fields We achieved with Very strong cash started for all company, of continued billion equivalent Salares the XX a South great We to the after Gold work ended stakeholders of already our approval X% million as of construction the CapEx number that megawatt ago $X.X the Gold internal dividend commenced. result Fields XXXX years and the value project cash first free generated half. with on in at We has positively $XXX gold the Deep of of created the in attributable solar a production again has generation and final the Norte. year-on-year. all of we're all spending flow of from by increased flows. fund to flow able cash We

from decreasing times. dividends had million. times saw as ZARX.XX normalized strong of improvements of X.XX in in an that X.XX a we normalized again an - XX% the or position of earnings, of we with earnings As $X.XX strong normalized generation, share, interim result with share. declared the or increase result sheet net $XXX cash XX% Interim dividend mentioned a per a debt-to-EBITDA earnings strong earnings, this in we I year-on-year balance of the December

a gold just Fields diversified is globally miner. Gold a So, as reminder,

generated Africa and of Australia - Americas nine We XX%, as top the production of of of snapshot left mines, Africa this side of XX% Group you region, Group's whole. Cerro Group's see globe the in Peru with earnings across five XX% the the the a countries one of West operate million the a X.XXX On production, project Corona in hand X%. ounces. slide, attributable South

So safety turning to and sustainability.

in across a all a likewise our all on has impacted had right result has impact of been everywhere globe think and across production of the had similar people lives our have the but by as fairly and Fields, been COVID a I impact devastating the lives of Gold We on the slight limited, world COVID. that's the a impact. of pandemic had

out since the since another graph. had, August point I'll even table had items table Unfortunately, had of I'll the our we up where started, Fields, bottom state you until Gold XX of to one the of that due of the the on on of Xth now pandemic totally this So the and COVID, Xth XX. lost line both the fatalities. we've see with August, start few can a colleagues

see we in the cases. - our over of cases and positive this year, Group can last of three the second since positive. year, had X,XXX The deaths tested go we pandemic about of half with cases right the the had recorded. colleagues of first of months you the half in started, we deaths at half period, about next to death the months graph If six nine two six across you in XXX first the bottom, XXXX the period and had positive But one X,XXX

seven that end deaths XX since the only first of we've another can those Now add you deaths. the half. had the X.X if you means see, in that's just together, That months

just tested very average, six employee the go see on Fields the how we've pandemic zero you our to, and well Australia. number had equates to in of colleagues the Australia. managed table, cases Gold We've employed pleasingly every of If positive that people back line, by they've the the think under top XXX,XXX can given shows tests had for in X,XXX across Group. cases We've positive and COVID it I in Australia then very you

next the of the programs our little slide, On the manage talk a consequence about I'll bit both and to COVID. support more effect

So fatality the right-hand we've fatality. unsuccessful last can of on number mentioned graph and the side, the on one see both safety been in that without of turning performance, the you to a I years mining the

have, injuries shaft to we see our who target fatality Mgcine, a that's in bottom of an the do. one means and the last green rate, the serious on his the if still of the XX% Deep, improvement of comparative blue having on serious but improved right-hand year at injury of you of you rate recordable timberman, Pleasingly, total half fatality again, injuries can of a in improvement look we solid bar, a side, for line, lot graph seen had our a we group, with from passed first see harm South that's four this had year. zero X.XX, that much of period the the can injuries and work away So one at still we got that a Vumile our pleasingly you have

but good work made areas, a do number still serious of one progress in very So injuries. the and fatality with being four to the

is and all other, and conversations. it's that interrelated no amongst health COVID each the surprise wellness COVID, dominating those On

mentioned, COVID-related we've XX our I had amongst our fatalities employees and As contractors to-date.

has supporting all in America, those Peru, programs, South Africa, very in South facilities, impact who've just has Ghana, included and our Chile, a a in We We've in less been Australia quarantine substantial employees, various have testing in so the given in less. been positive, and education running governments substantially have been COVID-XX had facilities have tested for communities who and advice, through much which number regions programs of our amongst pretty of of their been Norte of South the very the XX% very Salares more got now vaccination had XX% Deep have We've have staff first been jab. and vaccination pleasingly provided over vaccinations permanent have medical employees programs workforce we of a Salares contractors, vaccinated their their sick, with commenced at had Norte have XX% having program than vaccination received very - and recently contractors have support. successful and

targets in All programs our of our moment with the government before of move on, that's that countries. other all last are sites are slightly work I the running with results, in continuing we year companies how in sites, Nick we the line science of but perhaps renewable At priorities key are the just as accordingly. the achieve all energy and you the plan on we going leading be updating those the other in ESG and to introduction. place has those one the recognized provide presented those that we based to at slower, able release as end be Gold XXXX Fields will the and to well of mining as before are to targets, been

points look both XX diesel. show now XX% we those the of side, if bullet running megawatts energy, the renewables. running Granny you the of have all gas, the the Agnew wind, in site, which and needs of plant, look gas, moving power has Agnew, moved of right-hand lower at diesel megawatts to than Tarkwa through solar, Damang over have implemented. for off and to emissions megawatts the power XX initially fully megawatts natural in lower solar solar photographs X invested Agnew and of LPG in generators - than at X which that over gas on time you If is we've Granny renewable now invested gensets and XX megawatts from at Smith, of at LPG gas that see and you much gas. are use At Ghana can Smith of under plant solar carbon certainly

and further We we making haven't stopped are there progress.

megawatts quarter the solar quarter have at of then XX XXXX. have licenses at at in megawatt be solar XXXX end we that in Australia Deep. XXXX, year. the under that in pleasingly, this granted And have the generate and to is of has our very power second by a South you We Construction plant XX end construction should plan of We seen of moment. operational that operational the in of have the would Gruyere we first commenced - news to been

On and reuse environmental good very - in first recycle in amount XX% side, a news many no our usage very of Level as very, cases also operations. for XX% half a our recycling incidents. fresh is had of reductions We performance the reuse had XX% increase to X by again the to water The from have of strong recycle and have environment the report, got the target and and, course, an ICMM operations we and water. continue in to achieve aspirational target a

governments, is stakeholders of that generated being around the with half shared communities We the and $X.X communities operations. We stakeholders value of value generate business. continue the for host XX% created to of and value we that other that first in created stays the as have roughly our by billion part our

to-date that ESG but in the ESG is to track. and this on performance improve work in are We are area, our our achievements cognizant of on that right the work progress our we fact need certainly indication we continuously

the Just ranking. here awards recent of some ESG and are

managed Dow I this the side left-hand the is very think, which top Index, let's by of & is at Poor's. look Standard This perhaps, slide. Sustainability Jones

important now of that XX Out indexes companies Gold globally sorts rest Gold were of Index year are that fourth, very mining in that very various third Jones won't there to Dow through relating out of now Fields, can the slide, we I go note all but think are Fields we Sustainability pleased Gold globally, You Fields. to ESG. of the announce I it's this features to see last year ranking. this the almost in

lens company been the work number And recognized you're a great looking of that the years. we been the over so at doing for in have company, whatever has

solid just operations this days that's million that to compared were $XXX comparative in under generated flow to turning cash flow, first half. and for we a Production cash the free the So the of The in the X.XXX for the $XXX the into at to month. the of million year-on-year flow days cash the less at Group year of performance equalized Gold an where increased had the last translated cost in first million production half operations a five having good generated very X% all-in for last free Fields of period days and ounces, half. attributable We generated Group, $X,XXX from the that despite year, by Group to production with the margin ounce. end XX% financial

majority of from of had free Again, XX% the the we cash strengthening the percentage $X,XXX had to the quickly a production how ounce. would Paul although doing, was XX%, he up that that the you Aussie the was starting - the through cost at flow look driven which through exchange sense rates all-in Steady and our performance, dollar $XXX the We of the - XX% by was numbers That the cost in those all-in of operate operations the all-in cost you decreased indicate. that we free as but by less and cash generating operational increases there, face impacted cost countries tell X%. largely regions operational run than up strong the all performance from of free Australia. cash at margins, I'll was of of strengthening on unit US in sustaining regions from better flow If days. dollar. what by with was will X% numbers performance give flow by million to the impact from worth you a an go substantially that are production

value we than credit One things assets believe us the of inherent be Australian more believe is is the market we'd in significantly giving our that that for.

is, we'd And tables to the reserve a just resource side. be through of two the position snapshot thought you on I'm and we what Australia. doing in give what talking left-hand going the So current is,

bought mines as ounces, started Agnew. look ounces you just through St. left. assets that's one example. them years since if top have We million those of produced and from the X.X at operations those Ives We XXXX, St. X.X almost the in when an Agnew we so million X.X table then Ives ounces million the run at Agnew and X.X on ago. ounces So we bought at XX million and at I'll

at Agnew of position XX were years So St. XXXX notwithstanding years the of million of still it's XX production the for X.X reserve at production. and ounces, was years higher X.X XX the later, end actually ounces million Ives and

multiplier we've reserve the X.X, those in and that's a in basis So XXXX. reinvestment reserve had we've times, see X consistent and we come bought three at exploration. got had a assets. ongoing - a substantial we've X multiplier you Smith on later And Granny and an can from

million to replace reserves, So that notwithstanding per we in you continue that we of million to long very been spend exploration have to in between continuing and AUDXX can year and had. very AUDXXX that successful we've grown time have see production

by AUDXX and then that created significant costs $XXX we by great for have Australia. on position, certainly reserve position $XXX, per that's say and the production we in paying generally we have. generally the the people of that conversion to basis position ounce, move at it compare that reserves reserves has mine the down it's business. one of and of the the had been been of life to divide And we've been of things when doing the So that because look take $XXX, value reserve they the this market this they you sort per say ounce they so is left, If that

have similar is If basis. available. we XX resource we Now what show we've years just in improved got to know for on addition we mined here, that have a you -

St. Agnew, has reserve been Ives eight left; has mining, got Gruyere, and Granny XX; Smith, So years X. X.X;

we our years resource if reserve majority and have beyond of of we for XX significant that convert of at basis, in life that at the a to all believe only years would portion need the Australia. assets, but a life, on to you have you operations even resource So look the XX

X% part the an flow that's $X,XXX, slope we generated both on the per at in did to same $XXX higher and in pit of had of the West that year-on-year, Africa the had copper we was in instability, X% combination rainfall $X,XXX. group you grade the the moving We high stronger made that generated volume X% abnormally by if cash result, flow to cash the Again, regions cost of we $X,XXX beginning and margins cost increased operations at production that still So year-on-year. we by and by had generate increase less kind that the pit. year of of that we and XX% area by strong Africa. that quarter, exchange some other is caused Damang, the of generating so And of materially generation, out flow at that Peru mentioned very equivalent to one some year-on-year West best that the range that at to areas ounce. as but cash the On all-in free we've due the from up led generating in the that and a we the XX% operations COVID production good challenges and rates. lower to meant Cerro of by of about free on the had of the had strip of driven million the $XX of stop the in was and margin cash rehabilitate from pit, grade this production the of more slope million area And, decreased in of Americas, was all-in Corona region the Peru, mined at is first in impacted impact all-in end that remember cost an instability of free gold

at Africa. operational Turning - improvements continued we to We to South Deep. had South see

quarter, have we and saw we challenges quarter. a first the pleasingly had team done the significant XX% very Again, notwithstanding South great in improvement very a year-on-year, increase think, second job. on XX% Deep a the I at COVID

South the free that number so if few of see cash is, just we average all-in we've think years. X% X%, - the rand settled we you positive, all-in of wage in few So, up of all-round, we increase just an was Again, at What trends Also, XX% cost exchange on number, I see kilogram years last year-on-year, the with very at the had operations We pleasingly, XX% per strengthening of production look had show been continued million of you that's over that years can exclude and over some wages. to $X,XXX. annum. that that rate thought impact flow has the of the you seen Deep. margins the per can settlement cash cost, encouraging at at productivity I'll three wages we've seen free graphs increase South Deep. show generated last We've flow $XX if from you that a X.X%

very good concern for of loss lot about when years South I for has making. think substantially a been many been there reasons, Deep it's

very increase starting I a on positively, very basis. performances year-to-year in good see think we are to

just to a some me of we're that a you let take So seeing. couple the you in slides of through just give underlying sense productivity improvements of

the to productivity, on per tons per slide month. top that's the side, rig left-hand far Turning

using we with going that with because XXXX strike employees, employees of of were out productivity we I'm year very went to restructuring X,XXX in to But and X,XXX that the result as the taken continued it. a see was as good had associated XXXX, base, X,XXX improvements. be less or business employees the So XXXX and big

per of this rig we've So first from year. per improvement productivity, the had - XXXX XXX% to month, in tons from half

that that showing shows graph, for output we also increased. the to and have XX% we've bottom graph, of but now the On per see the well, turn the a side more benefit people that month, increase you people equipment side we If in less the meters top seen right-hand getting left-hand using. per using we're rig can both for

COVID will of X.X look has see tons just this actually that would - have impact the how at much We have been over green you been being a are line, X that shows the gold gold if But add gold employee. be impact tons of we we - delivered year. let's per forecasting to because the is

X,XXX I employee. gold per in had That XXXX. that of So taken we've XX% mentioned improved We employees X.XX. X.XX kilograms out by has to

was right-hand and another All from improvements. free I the flow it were the has at strike XXXX, can we underlying from We restructuring, onwards and That ZARX way generated look you of and year. is to year. been ZARXXX think, effect the can productivity In for see it's a increase. - XXXX cash then and Deep but the XXXX positive. we ZARXXX XXXX bottom cash year million the the in XXXX graph. of the you the So South continued billion If has last entire XXXX, just million cash, of indication over that to losing side, see

see can already this almost XX% that achieved You in that has half the been first of of year.

Deep. very cash generation the positively see increasing So we South from flow

with so, who hand to I'll will through over Over that, finances. the you you, And Paul, Thanks. Paul. take to us

Paul Schmidt

the Thanks, Chris. If we can go slide, first please. to

Net can $XXX manageable me the If that, of $X,XXX, we debt-to-EBITDA, how our asked The $XXX leases, free us, million. million comparative sustaining It use million, $XXX six move including $XX true in a the see XX%. got leaving a million financial dividends. pay cash debt, slide, that costs, a means? all-in setting to for that Deep schedule normalized exclude down we is that million, $XXX Pleasing flow, XX% to. we flow from Salares with we of to $X,XXX million XX% to last to I'm year, please. out times. increase. to $XXX what $XXX to If This and mentioned, Net On the our all-in on million. X.XX Free just ZARX.XX mines. $XXX number. to refer from start the please. pay the comparative Chris What up A can pleasing a on will the or debt cost, cash million If interim contributed compared move can at XXXX. If earnings in slide, year-on-year. other spent the months is the dividend we next cash debt very solid to free margin, XX% as flow performance, ZARX.XX the towards million increase South us with our down next we the we Chris leases, look

dollars, exchange last used the normalize convert the strengthened to and we this if we now South that African using $X.XX rand rates for it's to understand year year Australian just to ZARXX.XX. we $X.XX ZARXX.XX, we we and However, used are dollar US

we did all-in use X.X% $X,XXX, we increase. cost, the our year-on-year. we all-in look costs last would a if as XX% So increase same be If exchange year, at rates

same that's Salares and capital being use rates, exchange $XXX a due more we if $X,XXX, X% on mainly spent However, to the Norte. circa increase, million

of Just year at intact. to the is cost that the we still of $X,XXX all-in guidance confirm $X,XXX the that to beginning gave

on Our we despite next we capital plant at to meet billion, can still spend project at extra Damang. $XX of that If the the guided track slide solar and Ezulwini please. move on $X.XXX spending of to that the million on are Deep - million $XX South we

balance the billion of got at to $X.XX facilities. pleasing we've say unutilized committed looking about Just that sheet,

earlier, down about As - to I'll about hand times. said to say. to got debt at I've That's back I Chris all now. not net the X.XX

Chris Griffith

Thanks, Paul.

you Salares one one Norte just is going - on at Salares what is is brief to of going. I'm best everyone, that to we now how just developed And Norte doing is the gold the moment. So of a remind giving mines market being the the update be think that in

with from We'd you just mining gold equivalent sense Norte a Salares. over be will all-in the give Just Salares producing we ounces $X,XXX, at XXX,XXX cost over $XXX. to be under of

time. on very So good for make great project, to we us and this deliver reason sure be focused to a Salares on

you the may at but track. progress we've still recall end message very I June and We that quarter, as weather that above much slightly total plan at is though very up able on as the some Salares these still that XX% that, ahead report to it's challenges is well plan. to due that very to absolutely as If much notwithstanding have in difficulties, about of plan COVID were, had even can some the of see now against by the used on But the close, look that, had at we you So we've you be very of of on that track. so the is first Chile key for being great project, events. in our we've terms of XX%, serious

With to the has $XXX million very with back XXXX. of capital been spent already to million, we've year. in first you be in project half still I've this for mentioned date that quarter $XXX report of but pleasing to the first that that to had on we able the these of track difficulties, first production

construction through running the Just plan briefly now of side, are on the at XX% versus some a of we again XX%. very others

we versus plan of X% the On the again have plant, X%.

a and we're SAG show ball foundations photographs underway. and that plant. I'll for the tanks, The see you being have is some you at the progressed CIP leach So and plant steel moment mill, of can in the nicely, steel, starting mill of area thickeners the progress work that to and progressed see structural

the nicely of tons tons surrounding of and to we plan plan, million of side, being X.X mining the districts ahead nicely exploration again versus date X On million we moved Salares, a ahead is plan. in

the - like side few left-hand picture. to show looks perhaps, just pictures. a start very on So on the In well, of I'll that what the

and right and that's side, of little buildings left-hand areas. building only lot The office accommodation building both You still the as that's to the the a the complexes see whole some that's can well control as the that's room work. looks got like what

you CIP look that the can Behind foundations pre-stripping side And that the see work the sexy If ground, steel see now underway. move of landscape in the this of nicely plan. mills the is is and can on construction here, the there the - heavy can those the is see make to some you on you are the we leach slide other tanks. for of I the on the If plant, ground, other under then right-hand to blocks can very full we're see mentioned ahead that plants-related this the you you plant tank construction is and the little you the and and starting picture, and equipment. mine the -

I'll so talking conclusion just investment in about the Gold Okay, Fields two just Salares slides. mention that's Norte. is quickly One just case.

which meant high compelling that are we've of has gold new got the that years last that believe uncomplicated have strategy, cash of investment business. we we very are our looking shareholders now for investors solid, number to a and exposure generative case delivery a quality, So for the for current

a portfolio balanced with potential are you're a well next with play operations, company, pure simple years. growth gold-focused We coming few stable that the in seeing through

from to solid even you Salares in story our and ramp by looking that reinvestment believe profile with run to The recognized we that of has jurisdictions in growth cash production mining can inherent world-class of the development the believe not leaders been South The Our value geographic we what's near-term the Salares, the going have going is over and a over our through forward grow Sustainability a being decade. position, on will at gold think, just is, We've in Group value have Salares, that already been ESG increase, maintain the generate flow be mentioned ways to value preserving that get I've there diversification potential. and come. still the we number that production are attractive to then next more leader further years. because the XXXX last Deep we ounces real of success past program up as very of places over and And amongst grow significant there's - meaningful million slide, this this and point. where potential a a by over Indexes and four years Gold the Fields continues X.X the future it we're asset, industry we will in is of Australian to we beyond assets. - I level created

and $X,XXX Attributable rates year. on $X,XXX; which unchanged. cost, ounces remains back the $X,XXX, Salares, include first the $X,XXX a to $X,XXX ounces production guidance of between million between on exchange $X,XXX. for mentioned, track million of X.XX to solid remains be if and the gold all-in this Salares, strengthening Fields half, of exclude will and Paul So that cost, of All-in Group notwithstanding to X.X you Gold the

got areas focus half the year, second navigate of this for still to we COVID-XX. continue So to

We at Salares with schedule construction will continue Norte. the

only that given of we is are the site doing X% the have - of completion to construction. about We allowed end on the plant and project construction move market be decided to COVID X% about and previously thing project what restrictions actually XX% non-critical should done we the the the de-densify that at we to we've we've told year. at so of one the - folk But amount

like accommodation warehouses year, next work sort to path. focus critical the decided things we the We've move things. on and that with the so So on of into that can the the deliberately X% capacity for busy X% are those about of to contractors site

the we off the will Salares the detail we year prudent in about be, is, of deliver will ESG to be those we be before expectation track to but be first meet I then the XX% believe as of targets. based very our end providing and as end on mentioned, complete priorities, of able region And, to science targets critical path, we mentioned, to lastly, management of year. the the project of much quarter that just And on going projects and in so are our behind the still that's nothing the the So by the XXXX. I

of very during their It's this months. much to your four all like Fields just five the commitment So, company Gold I employee during to the and welcoming been last you've the ladies gents, presentation for every end at thanks before great thank to me time. fantastic would company single to I the been fantastic in and to period. for

very you. and your questions. your Thank be very And Gold much And so, now will to person thank very Thanks Fields much. take every you to myself happy and Paul contribution. for both at Avishkar

Avishkar Nagaser

Okay.

first, please. start So we conference questions from the call with

Operator

much, Thank sir. you very

Leroy from comes question first HSBC. of The Mnguni

Leroy Mnguni

questions. three got I've presentation. the for Thanks

could and you just the is, have just seeing the And of half, direction key in through quite with then could first with you Deep that? than please to also talk Chile be backfill, the well, - has if trending last is, And to South in and declined on your stability one measures is legislation You seeing right at your Group? second and sort America tax be done maybe inflationary then that pressures containing peers Peru, first of all elaborate labor royalties you're are on across exception in commodities developments question political as seem some competition my year-on-year and for on the talk better that you of the seem just us the just of The please? costs my what for with outlook your that other question in Australia? about given may South the

Chris Griffith

one. third inflationary can Okay. on comment Do Paul, you do the pick you I'll see? pressures then inflationary to we I talk, and up to the Paul, touch and other the want and pressures on want the two, you both to

Paul Schmidt

Sure, Chris. Yes.

I a are and inflation pickup The largely seen South Gold think commodity we're around be facing been different a which regions. around it's continues ore have due where the on Africa, in to at in the well terms bag we've in on, of we big of been are there mixed we the what as And seeing facing. up as what long wages. you inflation workforce? as is Fields the pressure pool Australia, we're pressure goods prices in Salares that our In when at ante these the a in on XX%, to Australia using to that's and employees of and referred earlier on as our there for boys nickel, iron I've moment kickers has come our as the bloom that's CFO well. X% Yes, to

of inflation seeing number seeing. that because offset and rate we normally question. the pressures that it's the part had kind the of are Ghana exchange been benign very the are of that's has In we the of inflationary the X% around in pressure there. answers we've is that for any So there. simple of Peru, reason I Peru, weakening hope

Chris Griffith

backfill. South in I'll Thanks, very Leroy. Deep briefly about talk I the can just -

stopes than places that's nothing that the and that fact are is backfill. more more So we the there the stoping moment actually at we actually complicated to don't have reason just

about that. strange nothing there's So

get place stopes mined those be will out, we able the to As backfill.

be very everyone we We've So a and else, coming very of of then now overly pretty we Peru, positive what's has in see of that most much we lot then are taxes. not agreement message we going And on getting sort will hope challenges, of Chile under we're the but done in a getting us place happens, focus the that a just we good happening but a protect Chile see. think been We're boat we and fairly I analysis more Chile, from radar, we're slide it's Peru. does of in all actually concerned to are in in there and from have I some space have instead from that stopes. what the to gold watching of stability I will think waiting. our production copper in new may production in And and as think same development, big Peru, and whilst

the we we existing think being big but a actually, of changes, passed we have, taxes applied that I time can of in on for us, some that because some potentially see notwithstanding that you agreement So increase project stability be can we have see place. of to that in - can new taxes new the still to no period

the some power. election days much of being rhetoric that early that there behind is now overall, of - happening seen that's both the think, from be you about already of the engagement will how in hearing would the we boat is and scenes in as wait and government's what else, are lot those perhaps have is countries a spoken actually see. things of and in the moderated So nearing, already not I in are the same But everyone let's you that around crazy the

but see, let's So Leroy. at the bad, Thanks. moment it too doesn't look

Operator

The Arnold next Nedbank. of from Van question comes Graan

Arnold Van Graan

ones Three good Two about questions from Chris, it's not yes, then my just strategy, side. M&A. quick and one afternoon.

to a how that issue your of guess production pit risk scheduling you serious will the failure, first here issues? one, is it practice to get or adverse issue I in extract impact question standard And pit go of it is then the Corona, that there strategy very about your into to from question failure see is to issue to value you've there? not and or at question financing but pit - not go one financing that the buy something M&A, to new is just on contractors The the are some next year. base. failure going is the existing extended is, this? briefly your away of I managing Second it's fleet, asset is, your question talked Is the part about strategy, OEMs barring any other you Ghana, maximum weather Cerro some

those that but much. on So stuff reserve or about other can on more metrics Thank that around us you you the there color type the lives just else around around difficulty] of give call any you and see, things, increasing today, [technical anything or you lives? talked from cost there just increasing very earlier apart intel exactly stuff management, what is is? And reserve aspects

Chris Griffith

oxidized the substantially of high Arnold. very we pit had pit eastern so heavily by failure the failure. groundwater to abnormally what I rainfall. the risen Thanks, actually to was had very some The that the side the due impacted it Paul, - is, why don't that on material start was mine of the

there did danger have people on side, to the some side. The very equipment. no sloughing we stopped So it on that carefully of any we watching one was the or radar, so was were mine

number the actually for they that work. with progress, and months Arnold, that rehabilitating been have are complete We of almost on that last site

be quarter then and fine. finished certainly this within will will be it we So

making issue So to a what sure cut we've making Peru it's that can't done team and it's is, further solid disruptions think the right production and back that whole great stability back not bedrock area any more and so that more a also much have sure in have job a done safe. long-term just a certainly lot we I

affect will serious, long year. not it's term, So a it this in us not

lose probably will probably will ounces We be equivalent basis higher of made gold, price. the XX,XXX about copper that by an up on

mine. the is We the side to continued we because lost of do the mine, we that year, now stripping, the from upped the of game have some stripping coming last that you'll recall in ability stripping most with western but of

of are year. normal to I you we in than contractors, be okay Cerro Paul, And talk We the at about want financing do Ghana? next other the to back that, Corona. think So should

Paul Schmidt

If at it the banks charge pure lend That cheaper would loan of would a what was made The a just cost through you cheaper lot practice, in however, yes, Ghana borrow and that was than funding the us. us. to year. simple to math Arnold, reason, our common push Sure. he for could Yes. last from is me not I contractor less. you it's rate,

So it. did that's first But in the year, happened the we XXXX. quarter last reason that

Chris Griffith

Arnold. strategy, the on just then And Okay.

to things assets. from is maximizing the strategy the of the as have the part increasing value One existing where going be that on we were said that potential focus we of is

of be are different, good maintenance actually recoveries less plant, getting Tier they production And Tier to and having potential, going mining all actually we components we're X having Now management, at business of better very, think, base of of a to out standard, coming asset done business that They drive got that Fields. for in the kind all can the is an that put have going operations thinking less this the deliver. place. should around for like optimization example, process - all That's in more back many thing addition asset optimization X a digital some out been in the to of place out more already are out good mines technology, extracted that's costs, at because mean in of I harder value plans practices, bit those other very operations on very - about. work of equipment, technology of from of and that strategies our although that's world-class years will that people, better costly team doesn't have value mean some that a - a the lower over less we asset that has, the but the more a the Gold as we're breakdowns, improvement improvement asset Tier view, all that in assets, could in pushing, focused our the and and with could and example. those breakdowns, for our our a having bespoke be having I in existing probably operate be Tarkwa getting existing zero overheads, asset have, plants got of we're in

to existing practice rocket not making get the is and, but we it's the out $X,XXX out sure of barrier being that other our science, we it applying around more really able make into of more perhaps more convert more bring best that reducing put become resources. marginal course, we can it our under in efficient good assets the resources, So that that of marginal costs, assets, we very the can to we

the big placed Group certainly going rocket this be nothing science, will in forward. So area focus a in but

Operator

Arnold's and The will dropped comes of question he BMO Thank line next Capital from Raj has Markets. Unfortunately, Ray be you. reconnecting.

Raj Ray

Good you, afternoon, Thank Chris team. I quick and got operator. three questions.

expecting First second XXXX guidance, stronger. to so one half half, you're but on first your be steady

cost the Just get The on question the on biggest sustaining your risk is all-in second your going which to half? operations see second into you guidance. views wanted

some Now for the have asset gone consolidated that guidance your up. has Gruyere, Tarkwa - Ives, the - asset look and individual you're Asanko, has guidance, cost Deep, level reiterating and at South I guidance level still of St. if example

mine of on were well? as lower, grade that AISC part So just going was something And on question for Thank same? area yield distressed that the South the design mentioned it third a or to is design, That's a expect have due tons change those that impact reasons higher wanted is me. a to you Deep. of for remain increases XX%, underground to you. was just volume on consolidated year-over-year forward what's in offsetting the focused we the that particular and mining is The see the that to do

Chris Griffith

- the guidance, the Thanks, to cost Do Okay. the I'll about, all-in talk Raj. talk Paul, talk want you production. about you about

So I pretty -- think

Paul Schmidt

am. I Yes.

You go, Chris.

Chris Griffith

Thanks, Paul. Okay.

take one. the I'll first So

So you pretty I Fields Paul second very case. half in but normally year, have see confirmed in industry, this would think much is guidance, in production the Gold even event, in Gold volume the particular, Fields the a normal production higher the standard that in any mining morning, that's

our of any You that all then pretty we're in regions, But event. much will see expecting performance. across better

from South Deep on had a impacts like first - the very COVID. quarter, slow big

brought the better later much month and Deep help think second resources extra saw higher you in into some team have to on South areas team half, impact the why I of in have was staff, brought and the this also in manage quarter. some particular that's on even the a first much skilled though COVID

belts plan the under to will In Corona We second increase. contribute with some West coming some the half. a challenges Africa have particular had Deep the conveyor grades of the half second in will in will just and some at got assets South just Cerro XXX,XXX the ounces. to Gruyere better So with we ounces, XXX,XXX plants. over be have in of that Australia, had that higher contribute.

that through unexpected As ore, the and and the particularly we with to a full we're harder the challenges not its team to hard pushing straps. starting working new in start now, plants find for getting plant some are that's

to had production the question, from see those And assets. challenges you'll half, the also should some first you the normally the so, but of better second there answer is see in half, second overcoming Raj, better your is in half, a we just I better production think overall,

cost, to talk want about You all-in Paul?

Paul Schmidt

Yes.

on in - the you of that bit terms assets to other the In Group a range give us but that, and side. we the if it, gives in a do call you're of right, fact build and of some of terms sustaining above all-in all-in when want costs, it we guidance, are remember

guide better cost terms up guided. second But in we the see of number also, to if example, second exact production, probably XXX, half XX the what we Chris the going as year. all-in an must in said, For end of we to of because of on are we've half sustaining XXX. lower That's

Chris Griffith

And then to on to no a South lower Deep, grade. is long-term there move

normal to happened South but to and going through had as to really moving we the be mine method the underground directional just we where change were new grades It is new the changes no apply. So just is areas. that lower there at grades, to Deep grades opposed mining

mining pillars is being we're and over angle, direction we have - pushing certain not the I some with the stress think seen so changed changing much bit angled quite of mining - in just the vertically, the line in coming time, to direction the that's what has is pillars at underground and applied stress we direction, at over is, that the have So stress and has and we was challenges pillars the a moment. positively because addressed the a find facing that what that putting the team of some are more seen have an stability but the we in that

a So, still grade. change no the just no, - different same direction, in it areas not the mining to we're does

Operator

The next Jakusconek of from Scotiabank. question comes Tanya

Tanya Jakusconek

my Thank you taking questions. for

ones. quick two Just

on energy, to want inflationary there on? you also inflation inflation labor. that inflation are in obviously We the jurisdictions confirm that am little question. finalize explosives, to seeing the talked steel, anything else on bit is seeing freight, seeing about in of I Just a pressures sort missing you're you're I just

Paul Schmidt

South is Obviously, and I basket so and up we that's Australia can mainly had negotiations comes making basket. as Africa but said, that have Africa, said, X%. settled which Tanya, control, the that how in South increase Africa we from to commodity annual seeing that's gets Chris X% Eskom, just XX% it's salaries South between our in the in wage of we're the XX% inflation No. Remember, ODI Australia, as out mix.

$XX. obviously, on through increases going are above inflater, So Australia XX% it's wages in big the the - the with and but fuel oil prices aren't for also the then power we Ghana coming XX% in coming through, and seeing

Tanya Jakusconek

just about you, are there Thank Chile royalties? place in on you about Chris, further Is taxation increases. Africa, in increases and or hearing Peru that you then clarify. potential just And the perfect. operating any to taxes for Okay, in wanted and world other the Australia talking where are

Chris Griffith

the so in the come - we're because think, we're think not changes are the that's additional Peru not no different that hearing - to suggested find or Chile but COVID is Chile think to to is are any help, for taxes there not most answer. the and pandemic, government Australia in I we We other Ghana. pressures example, Ghana I countries in Peru, and Ghana, and from South - have and changes I No, trying and than Africa,

Paul Schmidt

correct. Yup,

Tanya Jakusconek

what's types palladium, whether And type producing of of Can then rate as at Gold Okay. assets, a what you. assets? fit question to And open talk in good a you've something and to was made what or palladium for consider last Perfect. Thank about And comment your also Canada expensive? into for platinum, are wise, on to your you, non-producing your XXXX. jurisdiction, just growing over which that little mentioned my criteria X jurisdictions you. see platinum, Chris, that you just given production jurisdiction ounces good beyond sticking is CEO Thank of looking those just, about maybe you found assets you are background sort million bit keep keen to I'm also? previous or we that, we does

Chris Griffith

Tanya. Thanks,

let's cross last one. think, So, first I the

our not other moment, is commodities. the For on focus

Our to Gold our don't mean we will the wants. But, do and with but, and gold that's silver, we That moment, change fine. copper assets both market focus the come is, at the in gold are moment, byproducts think that focus at the that a the of moment, at from of some on and Fields that, what shareholders that, we never seeking we not get that's company. doesn't the

So that off. - crosses that's that

assets asset to Cerro good the Fields I the the so in to We in we type years. at go number to assets. us trying think the over as Corona bought go of buy build bought really to of assets we're at of that past - bought the been we buying the the right Ghana, we in that assets opposed has the that's good - really thing way in rather moment Peru, for that companies. been believe actually has at is the Gold Australia, looking Fields on Gold type for

doesn't having are assets and go talk wouldn't be that in-production companies, not at to the things to this about assets they mean longer do are assets got is we've Now looking to but in-production said, other that, to assets, that that perhaps, are that time would or we at we we underground. no talking starting either look wanted, - because

I assets an think sort improve folks very we've written example, on the productivity off. that others materially demonstrated of in ability good Australia, as and efficiency of a to have

the increases our range things. So it own assets. of could be following could be a It in

be new assets thirdly, opposed to - jurisdictions in for as both regions companies, of of be the operate. and combination are that we currently it could could assets be around which it also Secondly, but there projects a in-production new in development. And, could

of think and a expensive most very more look much. done we in is that, we shape. current see there think but good chase We've the we what's to done I to prices. And in is company can need opportunities, don't need The haven't good place So that of out production, I those that Gold is than lot that, at we analysis of don't chase the ounces. great Fields

dropdown, the over X.X the up if that assets think million long-life want easily very and assets in have right right still as comfortable assets of actually find XX years that that we be we've but at time couple can't we I've the can X.X to on to let have to operate and ounces, time, the been got And as hands over find volume over find the million to and right to bit because sustain the we ounces. million building next we even perhaps of I those value not we this can't are for careful we we've our We years X created. would we and ounces much X.X got to next assets price point a the created say If million ounces, overpay.

time got shareholders. as we've to assets, and sheet be be will balance to and and the increase about So very the generated we're from able not we capital, returns under to cash including the continue pressure we've got increasing we disciplined

I The balance this is having We believe maintain in that got a it our like that we made hands created value. good can comment got we certainly feels right are the sheet. all-around that So value, we've and in space. we've time because

Paul Schmidt

a us about at And but in the Yes. moment. cheap your That are good jurisdiction certainly as Canada, place be, be a be time, good not Thanks. to assets could would question in Canada or for Canada say you jurisdiction.

Tanya Jakusconek

maybe Z, years, have XX costs then where Yes. interested you of do targets assets those on Y, if and for ounces, lastly just other companies mine you would of of XXX,XXX any life grow I be yourself? just pass was to to South of, you in Africa have and it X, somewhere over we know, want targets

Chris Griffith

Gold all one and over assets Yes. in having the that company last focus seen ounce over so is that this with we thing not $XXX, all-in over The quality have we portfolio, the world cost over portfolio reduced $XXX jurisdictions and the years. per number have quality time on the Fields the of of

don't over miss that Fields chasing go by the - up of volume. value has just increased time has want that meant by focus and buying we Gold So that to

years more But when started a same we life. we generally, to we XX for and they have had So assets, mean, assets I like as still we have years would we the XX have now do Australian didn't when than XX find mined life those criteria. life have it. the bought and year we assets on with

position careful have So face just believe we But they're diminishing might just got greater assets to assets problem that on they've less, the that There create not life those now, an but going potential a we'd be them. years be the create tail very it, the can have improving of about of chasing of in life. out company - more from production a the a XX-year may like of longer we the to but have of with and cost ability be to now. number

to of want Fields. be careful portfolio So that we we are after the looking Gold long-term

pay once yes, cost lowest they everybody So, assets, very them they the and the in we little to want want chase be to for must best place.

You don't in assets any those of get without overpaying all for them.

Tanya Jakusconek

much. comment so there? Africa, would you Any you on grow Thank Great. South

Chris Griffith

would No, Other grow. not we continue in think to than don't looking new for South Africa. so. assets just I We're

mature the jurisdiction a I gold gold enough area, South Africa's I growth gold now. - is South a guess, think Africa don't is as commodity - of

So of world. - one third-biggest asset we the the in the sit we on would absolutely gold assets, best

constrained managed asset that have years. the been of have We many difficulties have, - I that most for think, that

We South a Gold - upward that going from that's trajectory are new and Deep to on but not Fields will we from trajectory, find continue assets. gold

have South For way doing what we think that. on I just of are I Deep continue to growing well and think, now, we the let's out

Operator

At you. hand over the to from to I'd webcast. this stage, like questions Thank

Avishkar Nagaser

Okay.

let's Deep. suppose, South with I So, start

the to from question which Chris. congratulations says, ask, He to question Then first we So he we company, so Oasis. a on answered. and inflation, goes to at the have related Ahmed welcome

mining, African as market portfolio one commendable; fits you in asset feel South history and uncertain extent you level performance whilst to South deep the of negative second improved with the and value look the is to The has perception for is, how Deep some shareholders? unlock do gold the

Chris Griffith

Okay. our Look, I make shareholders think the would bad is amount we margin best moment, than value shareholders. and South a Deep. would At way for be us we cash the growing unlock continue for the if can less get sell asset, that for the to outcome substantially we for and we try of value the to it to at that see that

analysts think, credit and are last to the been not company improving and that that's in way we and doing to South very, for ascribed the has this. I over years. so, Deep for done. but some years of well. On are absolutely value know And to needs half the just the keep getting Martin be the over increasing, we conscious know South that been few managing every the very and cash year, few us already we know what yet the We Certainly, South full efficiency to for best reflected the They team to improving is of and improving what Deep done. has productivity, improving by the the value last cost exactly Deep that is asset. see value gold They do at be generation

the doing. doing share give will that in that need not value is that eventually for We work just keep we we're and us know full credit So the to price. market our

way best sell that for is value us to to the not think asset I deliver So shareholders now. to

some four I Deep It all think, continue we've has can got It's facing long-life the mine a if asset. continue depth, to overcome another the efficient, It's it and at position we certainly mine what have very forecasted fact gold it's more the and it XX% negative XX%, not next be some challenges but what's operation South I mechanize to safer. doing hallmarks depth it's continue going has years. has group. five If that you be asset. growing asset. way it's in doing we the it value has narrow that, a But that challenges those was got at to the over got that a that's of South Deep. grades. and growth the Gold franchise hallmarks is, good can the a of of Fields think, over Yes, for all doing deliver depth, we reef to the And but being yes, mostly

Avishkar Nagaser

you Umthombo one. from the first grade the Sandile from ore one rest are have the expecting That's we for of demand years? Wealth. And Then Okay. steady

high impact project to what you that are project overrun risks on then Norte linked Secondly, see cost the forward? going of at steel prices do Salares is, And having costs?

Chris Griffith

Okay.

Paul Schmidt

one. another deal Salares made can to of up quickly, we've when And with million you over mean, the cost contingency said and me project, the got announced contingency. Chris. just want I we we then time of contingency You talk $XX to as

peso/US already at prices, Chilean paid towards but out moment. changed took dollar our $XX Yes, us the very about million all hasn't for impacted hedge we proving us. currency steel is it also being forecast. that by We've We the fruitful had

but guided We year. million we meet of to some in use that contingency, last our probably are track the starting February beat to are on and $XXX we most

Chris Griffith

does looking the that the additional the of grades of looking the I a Damang, whether year. been understand And mine the the is opportunities to will, - further to closer. see few life its look with over longer grades to there next seeing guidance this of and grades better team year. sort the next of The for is we forward, further a some next team of And will normal moment. which what my are the previously likely try moment, again, of to lower are to going and mine year, cutback, the than of does that see does At will of we're we have grades that some that early more had at the seem to to up But Huni like of of sense by able of It course, we seeing looking than cutbacks opportunities slightly is the to - are underground we're have of slightly But end And go Paul. think, grades. the of part the be lot impact by doing end years, and expectation looks the that at term in of at some grades we're we're team better the towards we this anticipated. work probably mining, team have the at and be bring going be going it grade in making normal kind what a the Sandstone, but be could which, the we is anticipated. Thanks, material are is back the the just that coming that at that grades we some because meantime, end a life. give lower at what like going is that lower

Avishkar Nagaser

industry? Thank at there Do Capital. If one so, think more you Okay. Excelsior from is of chance And Siphelele there what price can triggered? at this is you. be the in consolidation

Chris Griffith

question talk pretty price find moment I some at is a of of know. more - what to it's consolidation. question, deals, the This two think I lots whether consolidation, At there you've tough a difficult the a there's dance. but is question or I to just that price, don't good to seen guess it's consolidation partners we've want happens? we not very that see likely already of been price a answer is is yes. of got that

paying less the there appetite, I in for So, premiums. moment I is and hostile because market the - think, at large moves very think

that's longer trying to to be see want not My the think more and deals hostile likely you, answer deals partners less merger So if equals of to require you're to case, type those I together. that think, hard deals, work my there But is of I difficult. mean, place very consolidation at moment, full very to what that you taking see price saying. are other that is time. companies might so a expectation thinking over or know the I is it's periods

Avishkar Nagaser

hedging do questions XXXX? from to from Herbert be forward? Then Dmitry similar you you. at Thank Jefferies. there What and from question two is Okay. Investec you intend hedging. going And are One on at thinking unhedged about

Chris Griffith

Paul?

Paul Schmidt

It got hedging we the was with of last hedging, line remember, in year, - hedges investment, this that's is been always policy. capital duty have Our we in why years for why there's XXth year. for our heavy some that's hedged place

and are. got Salares we little we a that. But projects we complete hedge. when we on Norte the mainly in gold big our course the to be hedges outlay it for a As we've would wouldn't of the price hedges business, ensure cash that got to we as no just hedge cover in project. we depends normal It have the need bit we place oil except where year for for next stand, of have But at currency

Avishkar Nagaser

with from gross Paul. we've Hammond of Adrian you current comfortable Then a Okay. questions couple for think got you, debt levels? and Are I

Paul Schmidt

nice mean, stronger, comfortable. sheet my like number will million, make more it is are money, we net it as but number equity balance I leases, pure there. a I debt $XXX to would excluding we debt our with around more We comfortable continue be - than is with to - where The I to the together Yes. I in makes paying mean, pay are very dividends nil? down said, is that number. And manageable as we not shareholders.

Avishkar Nagaser

expectations? your comment on are how reinvestment? has can Then relative What your performed please it on you require asset? Okay. Asanko the opinions Does to

Chris Griffith

much least first probably a that is - had have in slightly asset. - have assets. an half. would don't we quite performed just as We work in have hasn't we're as confidence I asset so. think to It in It had a weaker have at had quarter, quarter that expected. think in we this the other less as not changes. a moment, weaker And It's that second few too progress. well a the confidence quarter, probably least Asanko, had as expecting quarter a do I a bad manage management and good - I They but that about I don't just know - I the

moment, work the is description. at progress best about think, I in the

can our can at but is think short In work I is done. the work we very we we is the the and be this required? We At engage moment with at to just are what requirements that's to? to invest done that moving the mine in that at we're cutbacks work is and how the moment at the in of big need is, looking answer work we're Do progress don't underway. are capital going that how much have it's need help term, how there moment capital cutbacks by as actually partners, the to the an and All been the Asanko. we in any to areas that's

Avishkar Nagaser

Salares free you. cash Thank dividend? with after Norte doing on of and question. flow Okay. What Last do intend consideration your you baseline

Paul Schmidt

It's simple.

Let's can pay down the discuss debt it. then we and

make as has your dividend to the We policy. said, more money, change well. served dividend has no. you you're going So say, policy Everybody when

substantially did And apply, increase sources our we said, years. our in the Once last you've As you may the projects in have be investing are more. Chris can down to the if three don't more, over see, free will be our the some we dividends as line. and dividend we earnings of seen

will that we when We needed. hurdle cross

Avishkar Nagaser

Okay. you. Chris, think, back I to

Chris Griffith

Paul, - disciplined want fact we to your around is, to I but build the remain on just mean think capital. is, point, I

options, with we the that shareholders, to - then like continue in invest the not It back continue other absolutely is company, the all will investigate Then queue. the paying So to cash more we pay will at the disciplined. We will do to debt, are of shareholders. nothing says pay down we the to to we of shareholders increases cash. And would share returns shareholders. to Paul

important years, So thrown maintain Gold been us cash that be approach, discipline disciplined new in that's out in place a of returning part discipline to The to is capital going you've of it's window, got for because a for plan not a capital that shareholders. number and is Fields the to very capital CEO.

Avishkar Nagaser

Okay.

that's back final think for I to comments. Chris, you it.

Chris Griffith

Okay.

a at been energized a of great plan solid we we've a the to seem opportunities got that. Gold think come on think on and The we very a looking Now, to We've all legacy place company of we are plan that just very the the great maintain are and Fields very we Gold years and It's by We've space. Nick far. and think half I had next back with and welcoming left Fields solid round few new that Thank performance Gold to top pleased in build very we've very much. for base a into and to team. to the I me first got good value and to a so build very you do value. of created, Fields create team on I the

Gold Fields Limited (GFI) 19 Aug 212021 Q2 Earnings call transcript