Slide 1: Investor Call
CORPORATE PRESENTATION 30 July 2024 ASX:HFR INVESTOR CALL Following the release of the Highfield Resources’ (“Highfield” or the “Company”) corporate presentation and quarterly activities report, the Company will hold an investor call to provide additional context which will be held on 30 July 2024 a
Slide 2: Transitioning Muga To Construction
For personal use only Transitioning Muga To Construction Corporate presentation 30 July 2024 | ASX:HFR
Slide 3: Disclaimer
Disclaimer COMPETENT PERSONS STATEMENT FOR MUGA ORE RESERVES, MUGA MINERAL RESOURCES and EXPLORATION TARGET For personal use only This update was prepared by Mr. Ignacio Salazar Director of Highfield Resources. The information in this update that relates to the Ore Reserve reported as of 31 October
Slide 4: Muga Project Overview
Muga Project Overview For personal use only A potash developer listed on the ASX (HFR) Local Spanish head office and project office with the entire executive team based in with projects in Northern Spain Pamplona, near the Muga Project site Muga is a two-phase project which will produce a total of 1
Slide 5: Potash Market Overview
Potash Market Overview With global population increasing and arable land decreasing, For personal use only food security will only be achieved with more fertiliser use Potash prices are very strongly corelated to crop prices 2.5 10.0 Crop prices are expected to increase with potash prices expected t
Slide 6: Introduction and Progress
For personal use only INTRODUCTION AND PROGRESS
Slide 7: HFR Progress Report: permitting, construction and funding
HFR Progress Report: permitting, construction and funding Highfield has continued to make significant progress For personal use only Fully permitted: Environmental, mining concessions and construction licences obtained. Successful expropriation process: Access to all land for the project Constru
Slide 8: Construction Progress Report
Construction Progress Report • Construction contract for the declines For personal use only and underground mining infrastructure signed with the Portuguese/Spanish joint venture, EPOS-TUNELAN. • Civil works contract signed with Acciona Construcción, S.A., a well- known Spanish international constru
Slide 9: Significantly Progressed Financing Strategy post the LOI
Significantly Progressed Financing Strategy post the LOI For personal use only PHASE 1 MUGA PROJECT CAPITAL ESTIMATED FUNDING FUNDING IN PROGRESS2 SECURED AND IN PLACE • Signed non-binding LOI for Cooperation with €320M Yankuang Energy Group Co., Ltd and a Senior Secured Project Financing number of
Slide 10: Overview of Proposed Cooperation
Overview of Proposed Cooperation For personal use only • Highfield proposes to issue to Yankuang Energy and a number of strategic investors new Highfield ordinary shares. • The Cornerstone Placement is expected to raise an aggregate of US$220 million, with proceeds to be used for funding of the Muga
Slide 11: Experienced Management Team
Experienced Management Team Javier Aguado, CFO For personal use only Over 20 years’ accounting and financial experience. Previous worked at Ernst and Young and Acciona as Financial Controller for over 12 years Carles Alemán, Head of Plant Construction and HSE More than 30 years’ experience wor
Slide 12: Why Highfield Resources?
For personal use only WHY HIGHFIELD RESOURCES?
Slide 13: Why Highfield Resources?
Why Highfield Resources? For personal use only Potash market A critical future The Muga has attractive facing commodity Potash Mine is long-term leveraged to fundamentals food security set to deliver a Thematic new European secure source of Potash into a 1) Location. Forecast to be Targeting €340 Fu
Slide 14: Location, Shallow Mineralization, and Tier-One Infrastructure in Place
Location, Shallow Mineralization, and Tier-One Infrastructure in Place For personal use only • Location is a Key Competitive Advantage, strategically located in the middle of the premium European market • Excellent infrastructure in place with immediate access to ports, transport and National Electr
Slide 15: Top Quartile Margins
Top Quartile Margins For personal use only Europe trades at a premium to other markets Margin curve forecast for 2026 (real US$) 1,150.0 290.0 1,050.0 Rest of world Highfield Potash SMOP bulk fob Vancouver 240.0 950.0 Potash GMOP bulk cfr northwest Europe 850.0 190.0 750.0 140.0 USD/t 650.0 USD/ t
Slide 16: Low Initial Investment
Low Initial Investment For personal use only MUGA has half the capex intensity compared to other global development projects (US$ Per Tonne Of Potash) 2,500 Capex intensity US$/t 2,000 1,500 Average capex (US$/t) 1,000 500 - Milestone Phase Bamnet Narong Southey Jansen Phase 1 Woodsmith Colluli Kola
Slide 17: Outstanding Project Economics
Outstanding Project Economics For personal use only ECONOMICS OPERATIONAL 2 phase planned Excellent logistics with €340 million pa Strategically located NPV8 of €1.82 billion First quartile margin production up to access to renewable EBITDA in full with low cost access 23% IRR (post-tax) position 1M
Slide 18: ESG Credentials
ESG Credentials For personal use only Progressively rehabilitate mine: Backfilling and salt sales Muga will be the only potash mine not to leave residue on the surface after production ENVIRONMENTAL Conventional mining drives low emission operation Social Baseline Study prepared by Government of Nav
Slide 19: LOI & Southey Project
For personal use only LOI & SOUTHEY PROJECT
Slide 20: Strategic Rationale of LOI
Strategic Rationale of LOI 1 Establishing a leading pure play potash company with a diversified portfolio of For personal use only projects in tier-1 jurisdictions underpinned by strong ESG credentials 2 Tangible near-term production with Muga construction ready and fully funded post completion of t
Slide 21: Southey is a Solution Mining Potash Project
Southey is a Solution Mining Potash Project For personal use only Key Mining Steps Southey is a greenfield potash mine project located approximately 60 km north of Regina, Saskatchewan Canada Southey is a solution mining potash project Southey is wholly owned by Yancoal Canada Resources Co. , Lt
Slide 22: For personal use only
For personal use only ASX:HFR REGISTERED OFFICE 169 Fullarton Road Dulwich SA 5065 Australia SPAIN HEAD OFFICE Avenida Carlos III, 13-15, 1B, 31002 Pamplona, Spain T: +34 948 050 577 | F: +34 948 050 578 FURTHER INFORMATION Ignacio Salazar, CEO T: +34 948 050 577 Olivier Vadillo, Investor Relations