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  Overview

 

Ensuring our mines deliver

Overview

Achieving our Goal of 5 million quality ounces in development or production by 2015 requires all of our regions to deliver a sustainably rising production trend. The achievement of this Goal continues to be underpinned by:

  • Completion of our South Deep underground project, which is due to reach full production of more than 750,000 ounces a year by the end of C2014
  • Maintenance of broadly stable production at our mature Kloof- Driefontein Complex (KDC) and at our Beatrix mine. This includes the reduction of unplanned safety closures, an increase in ore reserve development and enhanced mining flexibility
  • Exploitation of near-mine organic growth opportunities in our Australasia, South America and West Africa Regions
  • Realisation of our resource development and feasibility projects at (Chucapaca, Yanfolila, Far South East and Arctic Platinum projects) (p117,120-123)

During C2010, our approach has helped us maintain our annual attributable production at 3.5 million ounces of gold (C2009: 3.6 million ounces). This – in combination with our major production growth projects – puts us in a strong position to meet our 2015 target.

We have also further diversified our production profile, with our non-South African production increasing by 10.2% to 1.63 million ounces. This means we have now achieved an attributable production ratio of 47:53 with respect to our non-South African and South African operations (C2009: 42:58), putting us closer to our longer term target of a 60:40 production ratio.

The number of ounces we add to our portfolio is not the only reference point of our production strategy. The Gold Fields Vision of being the global leader in sustainable gold mining, as well as our Values, require that our growth should:

  • Show ever-decreasing NCE costs
  • Increase the ounces produced per share
  • Enhance cash returns on a per-share basis

While our NCE margin showed a slight decline in C2010 compared to C2009, during the course of C2010 itself, the margin improved from 9% in the March quarter to 20% in the December quarter. This is a noteworthy achievement considering that this figure includes the costs entailed in the construction and development of our South Deep mine (p57-58, 67, 100).

Furthermore, our growth must be sustainable. This means not making short-term compromises – operational, environmental, social or otherwise – that will undermine our long-term growth and performance.