GOLD FIELDS LTD

Foreign Filer Report • Feb 16, 2018

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Year ended 31 December 2017

:Gold Fields Limited (NYSE & JSE: GFI)

Year ended 31 December 2017 2.160

million ounces of attributable gold production Up 1% YoY US$955

per ounce All-in sustaining costs Down 3% YoY US$1,088

per ounce All-in costs Up 8% YOY

US$2 million

cash outflow from operating activities* US$329 million

cash inflow (excl. growth projects)

Damang and Gruyere projects on schedule and on budget

Impairment of US$278 million (R3.495 billion) at South Deep

A year of reinvestment for medium term growth and sustainability of free cash flow

Net debt/EBITDA Ratio 1.03x Up 8% YoY

Note: *Cash flow from operating activities less net capital expenditure and environmental payments

Gold Fields2017 Results

.Construction of the Far East Tailings

As previously announced, the sale of Darlot to Red 5 was completed on 2 October 2017. Gold Fields received the relevant cash sums as well as the issue of new shares as part of the consideration and as a consequence of the partial underwriting of a rights issue by the Group. The net result is that Gold Fields has a 19.9% shareholding in Red 5. The brownfields exploration programme in Australia continued to show positive results in 2017, with the increase in reserves more than replacing depletion in 2017. For the first time in four years, Agnew more than replaced depletion, with the future looking positive from the current exploration activities. The total exploration spend for the year was A$95m. Mining at Invincible underground commenced in Q4 2017. The Invincible complex continues to grow and is expected to remain a key contributor to production at St Ives for many years to come. A favourable advanced scoping study on the Paleochannel project at St Ives has moved the project into prefeasibility stage. The first part of the study will focus on evaluating a viable mining method and is expected to be completed by end 2018. The inventory being assessed on this project exceeds 2-3Moz. Following a positive feasibility study of Zone 110/120, the board has approved the development of this extension to the Wallaby underground mine at Granny Smith. This includes mineral reserves of 1.3Moz and will extend Granny Smith’s life to 2027 with tangible upside beyond that.

We are pleased to announce the successful extension of Cerro Corona’s life to 2030. The life extension is to be achieved by a

combination of a higher density factor along with an increase in the dam walls of the current tailings dam to 3,803m above sea level (which adds two years to the existing TSF) and in-pit tailings (which adds five years). The increased tailings storage comes at minimal additional capex and allows for an increase in reserves of 1.4Moz eq (40.1Mt at 0.5g/t Au and 0.4% Cu) (a 58% net increase), which converts 80% of resources. Cerro Corona remains a key asset for the Group and the life extension provides longevity for this highly cash generative region. Work on a scoping study for further life extension will be undertaken in 2018. As a result of the increased life, a

previous impairment of US$53m (gross) has been reversed. South Deep 2017 was a year of two halves for South Deep, with Q1 2017 negatively impacted by two fatal accidents and three falls of ground in the higher grade section of the mine which resulted in a deferral of mining higher grade areas. Production recovered through the rest of the year, with production in H2 2017 increasing by 36% to 5,038kg (162koz) from 3,710kg (119koz) in H1 2017. Production for the year was 11% below original guidance, as flagged in the Q3 2017 operating results in October 2017, at 8,748kg (281koz), compared to 9,032kg (290koz) in FY16. AIC increased 3% YoY to R600,109/kg (US$1,400/oz) from R583,059/kg (US$1,234/oz) in FY16, 3% higher than guidance of R585,000/kg. Performance of key activities included:

o The mine recorded net cash outflow of R804m (US$60m) in 2017 compared with the rebase plan which forecast an outflow of R830m.

o Development decreased by 1% to 6,897 metres in 2017 from 6,933 metres in 2016. New mine development increased by 20% YoY to 976 metres from 811 in 2016.

o Longhole stoping volumes increased by 3% to 767kt in FY17 (FY16: 745kt).
o Destress mining increased by 3% YoY to 33,419m2(FY16:
32,333m2).

3

– – –(GFI)
– –

		December	September	December
			2017	2016	2017	2016
Gold produced*	oz (000)	546	567	566	2,160	2,146
		546	552	552	2,121	2,080
		-	15	14	39	66
	000	8,450	8,712	8,606	34,492	34,222
		8,450	8,609	8,493	34,154	33,768
		-	103	113	338	454
	US$/oz	1,275	1,276	1,198	1,255	1,241
		1,275	1,276	1,197	1,255	1,240
		-	1,270	1,223	1,252	1,252
	US$/tonne	43	43	45	43	42
		43	42	44	42	41
		-	158	120	137	126
	US$/oz	959	906	911	955	980
		959	896	897	945	972
		-	1,284	1,443	1,432	1,238
	US$/oz	1,115	1,032	941	1,088	1,006
		1,115	1,025	928	1,081	998
		-	1,284	1,443	1,432	1,238
	US$m	1,303	1,302	1,166	1,303	1,166
	US$m				(35.0)1.03	162.80.95
					(48.1)	161.6
					13.1	1.2
	US c.p.s				(4)	20
					(6)	20
					2	-
	US$m				193.6	208.4
					196.0	202.9
					(2.4)	5.5
	US c.p.s.				24	26
					24	25
					-	1
	US$m				137.5	190.9
					141.0	189.9
					(3.5)	1.0
	US c.p.s.				17	24
					17	24
					-	-

All operations are wholly owned except for Tarkwa and Damang in Ghana (90.0 per cent) and Cerro Corona in Peru (99.5 per cent).
Gold produced (and sold) throughout this report includes copper gold equivalents of approximately 7 per cent of Group production.
Figures may not add as they are rounded independently.

Exchange Act of 1934, as amended, or the Exchange Act, with respect to Gold Fields’ financial condition, results of| 2017 | 2016 |
| --- | --- |
| (1,404.2)2,810.8 | (1,387.5)2,749.5 |
| (774.8) | (679.2) |
| (62.3) | (59.1) |
| (1.3) | (2.3) |
| (3.7) | (6.4) |
| 34.8 | 14.4 |
| (27.4) | (14.4) |
| (5.1) | (11.0) |
| (44.0) | (48.5) |
| (111.3) | (92.2) |
| (200.4)411.6 | (17.1)463.3 |
| 211.2 | 446.2 |
| (63.1) | (80.4) |
| 148.1 | 365.8 |
| (172.1) | (192.1) |
| (207.0) | (204.7) |
| (24.0)34.9 | 173.712.6 |
| (35.0) | 162.8 |
| 11.0 | 10.9 |
| (35.0) | 162.8 |
| 193.6 | 208.4 |
| 137.5 | 190.9 |

831.6	956.9
411.6	463.3
(200.4)	(17.1)
774.8	679.2
(1.5)	(1.3)
(11.9)	-
(64.2)	(2.7)
(309.4)232.6	(234.8)70.3
(69.2)	(39.4)
(62.8)	(39.2)
(6.4)	(0.2)

(908.6)	(867.9)
(840.4)	(649.9)
23.2	2.3
-	(197.1)
(80.1)	(12.7)
5.4	4.4-
(16.7)-	(14.9)

84.2	37.0
779.7	1,298.7
(695.5)	(1,413.2)
-	151.5
(62.0)	86.6
14.3	0.1
526.7	440.0
479.0	526.7
(2.3)	294.4

For purposes of calculating equivalent ounces

South AfricaSouth America

–

(2)

(3)

–

(2)

(3)

(2,274.2)
(2,109.4)

(2,452.9)
(2,243.5)

2,240.2 2,216.4
1,095 1,012

South AfricaAfricaWest
RegionRegion
TotalGhana
OperationsOperationsContinuingMineSouthDeepCorona
5,1081,421| 927.3 | 887.6268.9 | – | |
| --- | --- | --- | --- |
| 1,029.0 | 961.6291.4 | – | |
| 1,454.2 | 1,454.2 | 833.7 | 711.0 |
| 1,308.4 | 1,307.3 | –765.3 | 645.9 |
| 2,381.4 | 2,341.8268.9 | 833.7 | 711.0 |
| 2,337.4 | 2,268.9291.4 | 765.3 | 645.9 |

*Excludes surface material at South Deep.

Gold produced	000’oz
Gold sold	000’oz
Yield – underground reef	g/t
AISC	R/kg	532,573	509,011
	US$/oz
AIC		576,043	530,842

		2017Dec	2017Sept
Gold produced	000’oz	139.8	145.1
Yield	g/t	1.31	1.34
AISC and AIC	US$/oz	871	909

	2017Dec	2017Sept
tonnes000’oz	7,31741.3	8,45247.8
000’eq oz	80.0	89.6
000’eq oz	88.2	89.9
g/t	0.81	0.90
per cent	0.46	0.51
eq g/t	1.50	1.63
US$/oz	209	124
US$/eq oz	712	629
US$/oz	1,278	1,274
US$/t	6,760	6,301

000’oz
A$/oz US$/oz

		2017Dec	2017Sept
Gold produced	000’oz	74.8	70.8
Yield	g/t	5.55	5.14
AISC and AIC	A$/oz	1,370	1,087
	US$/oz	1,054	855

South Africa

Gold FieldsH1 2017 Results

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