Share-Based Payments (Tables)

12 Months Ended

Dec. 31, 2019

Summary of Share-based Payment Arrangements Information

The following information is available for each plan:


	UNITED STATES DOLLAR
	2019		2018		2017
	Continuing operations		Continuing operations		Continuing operations		Discontinued operations
(a) Gold Fields Limited 2005 Share Plan		—		—		—		—
(b)(i) Gold Fields Limited 2012 Share Plan
- Performance Shares		—		—		—		—
- Bonus Shares		—		—		—		—
(b)(ii) Gold Fields Limited 2012 Share Plan amended
- Performance Shares		18.8		34.7		24.5		0.6
- Retention Shares		1.4		2.5		2.1		—
- Restricted/Matching Shares		0.3		0.3		0.2		—

Total included in profit or loss for the year		20.5		37.5		26.8		0.6

Summary of Movement of Share Options

The following table summarises the movement of share options under the Gold Fields Limited 2005 Share Plan during the years ended 31 December 2018 and 2017:


	2018					2017
	Share Appreciation Rights (SARS)			Average instrument price (US$)		Share Appreciation Rights (SARS)			Average instrument price (US$)
Outstanding at beginning of the year		11,521			9.42		530,611			7.39
Movement during the year:
Forfeited		(11,521	)		9.42		(519,090	)		7.75

Outstanding at end of the year (vested)		—			—		11,521			9.42


	2017
	Performance Shares (PS)
Outstanding at beginning of the year		393,178
Movement during the year:
Forfeited		(393,178	)

Outstanding at end of the year		—

Summary of Share Based Payment Performance Condition


Performance condition	Weighting			Threshold	Target	Stretch and cap
Absolute Total Shareholder Return (“TSR”)		33	%	N/A - No vesting below target	Compounded cost of equity in real terms over three-year performance period	Compounded cost of equity in real terms over three-year performance period +6% per annum

Relative TSR		33	%	Median of the peer group	Linear vesting to apply between median and upper quartile performance and capped at upper quartile performance

Free cash flow margin (“FCFM”)		34	%	Average FCFM over performance period of 5% at a gold price of $1,200/oz for the 2019 allocation (2017 and 2018 allocations: $1,300/oz) - margin to be adjusted relative to the actual gold price for the three-year period	Average FCFM over performance period of 15% at a gold price of $1,200/oz for the 2019 allocation (2017 and 2018 allocations: $1,300/oz) - margin to be adjusted relative to the actual gold price for the three-year period	Average FCFM over performance period of 20% at a gold price of $1,200/oz for the 2019 allocation (2017 and 2018 allocations: $1,300/oz) - margin to be adjusted relative to the actual gold price for the three-year period

Summary of Vesting Profile

The vesting profile will be as follows:


Performance condition	Threshold			Target			Stretch and cap
Absolute TSR 1,4		0	%		100	%		200	%
Relative TSR 1,3,4		0	%		100	%		200	%
FCFM 2		0	%		100	%		200	%

Absolute TSR and relative TSR: Linear vesting will occur between target and stretch (no vesting occurs for performance below target).

FCFM: Linear vesting will occur between threshold, target and stretch.

The peer group consists of 10 companies: Anglogold Ashanti, Goldcorp, Barrick, Eldorado Gold, Randgold, Yamana, Agnico Eagle, Kinross, Newmont and Newcrest. During 2019, Randgold merged with Barrick and Goldcorp merged with Newmont. The peer group will remain at 10 companies by maintaining phantom share tracking for Randgold and Goldcorp based on their respective merger ratios at the date of the merger.

TSR will be calculated as the compounded annual growth rate (“CAGR”) of the TSR index between the average of the 60 trading days up to the first day of the performance period and the average of the 60 trading days up to the last day of the performance period. TSR will be defined as the return on investing in ordinary shares in the Company at the start of the performance period, holding the shares and reinvesting the dividends received on the portfolio in Gold Fields shares over the performance period. The USD TSR index, provided by external service providers will be based on the USD share price.

Summary of Movement of Share Options Under Gold Fields Limited 2012 Share Plan

The following table summarises the movement of share options under the Gold Fields Limited 2012 Share Plan as amended in 2016 during the years ended 31 December 2019, 2018 and 2017:


	2019			2018			2017
	Performance Shares (PS)			Performance Shares (PS)			Performance Shares (PS)
Outstanding at beginning of the year		18,361,977			18,279,130			8,138,472
Movement during the year:
Granted		4,558,177			811,829			11,744,152
Exercised and released		(6,611,023	)		—			(34,827	)
Forfeited		(1,475,741	)		(728,982	)		(1,568,667	)

Outstanding at end of the year		14,833,390			18,361,977			18,279,130

Summary of Fair Value of Equity Instruments Granted


	2019			2018			2017
The fair value of equity instruments granted during the year ended 31 December 2019, 2018 and 2017 were valued using the Monte Carlo simulation model:

Monte-Carlo simulation
Performance shares
The inputs to the model for options granted during the year were as follows:
- weighted average historical volatility (based on a statistical analysis of the share price on a weighted moving average basis for the expected term of the option)		44.7	%		58.6	%		64.3	%
- expected term (years)		3 years			3 years			3 years
- dividend yield 1		n/a			n/a			n/a
- weighted average three-year risk free interest rate (based on US interest rates)		1.4	%		2.0	%		1.6	%
- weighted average fair value (United States dollars)		5.7			5.0			4.2

There is no dividend yield applied to the Monte Carlo simulation model as the performance conditions follow a total shareholder return method.