René Hochreiter

René Hochreiter of Noah Capital asked about the reason for the negative geological model conversion at Geita and whether it is likely to pose a future problem for AngloGold Ashanti.

Answer

CEO Alberto Calderon acknowledged the question and stated that while there was a negative improvement in the model, Geita still achieved a net addition of 1.3 million ounces. He committed to providing more specific details on the conversion later.

Rene Hochreiter asked about the reason for a negative geological model conversion at Geita and whether it is likely to be a future problem.

Answer

CEO Alberto Calderon stated that despite any specific conversion issues, Geita still achieved a net addition of 1.3 million ounces. He indicated that he would need to follow up on the specific reason for the 'negative geological model conversion' as the COO was unavailable.

René Hochreiter from Noah Capital asked about the possibility of a more rigid special dividend policy, updates on underground drilling results at Gruyere, and an explanation for the discrepancies between mined grades and yields at St Ives and Gruyere.

Answer

CEO Mike Fraser and CFO Alex Dall explained that special dividends are a function of maintaining a strong balance sheet, ensuring future reinvestment, and targeting upper quartile total shareholder returns, making a rigid formula impractical. For Gruyere, Mike Fraser stated it's too early for detailed underground drilling results, with focus on sizing the ore body and trade-offs. Regarding grades and yields, he clarified that St Ives' lower mined grades were due to processing a mix of lower-grade open pit material and underground ore, while Gruyere's yield was impacted by higher stockpile processing as the mill ramped up.

René Hochreiter asked if Gold Fields would consider a more rigid special dividend policy, sought an update on underground drilling results at Gruyere, and requested an explanation for the discrepancies between mined grades and yields at St Ives and Gruyere.

Answer

CEO Mike Fraser and CFO Alex Dall explained that special dividends are a function of maintaining a strong balance sheet, reinvesting in the business, and targeting upper-quartile total shareholder returns, making a rigid formula impractical. For Gruyere, CEO Mike Fraser stated it's too early for detailed underground drilling updates, with more information expected in 12 months, as they are still sizing up the ore body and evaluating trade-offs. Regarding grades and yields, CEO Mike Fraser clarified that at St Ives, lower mined grades were due to processing open pit material (Swift Shore and Invincible Footwall South) alongside underground material, while higher yields resulted from more mined material replacing stockpiles. At Gruyere, lower mined grades and yields were attributed to higher stockpile processing, despite increased mill throughput.

René Hochreiter of NOAH Capital inquired about a production gap in the 2030-2035 profile, asked for an update on the Target mine's performance, and questioned how long the high-grade VCR at Mponeng would last before declining to the ore body's average.

Answer

CEO & Executive Director Beyers Nel clarified the production profile gap is due to the tapering of high-cost optimized assets, not a lack of value, and that Mac Copper is already included in the chart. He reported that the Target mine's recapitalization is complete and it is showing 'green shoots'. Regarding Mponeng's grade, Nel reiterated that it's difficult to predict how long the 11 g/t grade will last and that planning should be based on the stated reserve grade.