Highfield Resources Limited · ASX:HFR
Highfield Resources — Shareholder Meeting (May 2023)
22 slides from Highfield Resources's shareholder meeting presentation, May 30, 2023
Slide 1: Fully Permitted Potash Mine in Europe: Ready for Construction
For personal use only Fully Permitted Potash Mine in Europe: Ready for Construction AGM Presentation May 2023 ASX: HFR
Slide 2: Competent Persons Statement for Muga Ore Reserves and Mineral Resources
For personal use only COMPETENT PERSONS STATEMENT FOR MUGA ORE RESERVES, MUGA MINERAL RESOURCES and EXPLORATION TARGET This update was prepared by Mr. Ignacio Salazar Director of Highfield Resources. The information in this update that relates to Ore Reserves is based on information prepared under t
Slide 3: Strong market fundamentals in Potash (MOP)
Strong market fundamentals in Potash (MOP) For personal use only Strong market fundamentals Upward price forecasts 2.5 10.0 800 Billions of tonnes 2.0 8.0 700 Soybean prices are the 1.5 6.0 highest in 5 years Billions of tonnes 600 USD/t 1.0 4.0 500 0.5 2.0 400 0.0 0.0 300 1980 1983 1986 1989 1992 1
Slide 4: Muga is strategically important for Europe
Muga is strategically important for Europe For personal use only European markets accessible to Muga mine European Imports • 47% of European imports were from Russia and Belarus (4 year 6Mt average) 4Mt Muga Mine MOP trade • Russia and Belarus accounted for 38% of worldwide production 26% routes in
Slide 5: Introduction and Progress
For personal use only INTRODUCTION AND PROGRESS
Slide 6: Corporate Snapshot
Corporate Snapshot For personal use only 1.40 40 Capital Structure 1.20 35 Share Price (29 May 2023) $0.595 30 Shares on Issue 1.00 Volume (100,000 shares) 387 million Share price (A$) 25 0.80 Options & Performance Rights - 20 0.60 Market Capitalisation $230 million 15 0.40 Cash (31 March 2023) $9.0
Slide 7: Experienced Management Team
Experienced Management Team For personal use only Ignacio Salazar Javier Aguado Javier Olloqui Susana Bieberach Olivier Vadillo Managing Director and CEO CFO Head of Human Resources, Head of Public Affairs Head of Marketing & Investor Foundation & IT Relations Carles Aleman Leonardo Torres-Quevedo J
Slide 8: HFR and the Muga Project
HFR and the Muga Project For personal use only Conventional Underground A potash developer listed on Muga is a two-phase project Room and Pillar mining. Conventional Flotation and the ASX (HFR) with projects which will produce a total of Declines accessing shallow Crystallisation processing in North
Slide 9: Construction started at the Muga Mine in 2022
Construction started at the Muga Mine in 2022 For personal use only • June 2022: Townhall of Undués de Mine gates Lerda in Aragón issued the licence for Declines the construction of the mine gate and declines Electricity substation • July-Dec 2022: Initial construction Fresh water ponds work at Muga
Slide 10: Construction milestones achieved to date
Construction milestones achieved to date For personal use only • Preliminary works around the mine gate finalised in 2022 • All major supply contracts for the processing plant equipment signed • Compactors and granulators manufactured and received • The remaining equipment to be manufactured during
Slide 11: Main facilities construction
Main facilities construction For personal use only 3 Construction workstreams: • Process Plant. Includes RoM storage, flotation plant, crystallization, drying and compacting plant, product storage and truck loading. • Urbanization. Access road to the plant, internal roads, general urbanization, wate
Slide 12: Progress Report
Progress Report For personal use only 2022 2023 2024 2025 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Key permits obtained: • Environmental approval (DIA) • Mining Concession • Electricity line Authorisation • Mine gate and decline construction licence • Process plant construction licence Equity
Slide 13: Why Highfield Resources?
For personal use only WHY HIGHFIELD RESOURCES?
Slide 14: Location, Shallow Mineralization, and Tier-One Infrastructure in Place
Location, Shallow Mineralization, and Tier-One Infrastructure in Place For personal use only Higher netback with local market within trucking distance National Electricity Grid Substation in Sangüesa National Electricity Grid Substation is in close proximity to mine site First class infrastructure a
Slide 15: Top Quartile Margins in the Industry
Top Quartile Margins in the Industry For personal use only European prices continue to trade at a premium to Margin curve forecast for 2026 (real US$) other markets 200.0 1,150.0 1,050.0 150.0 950.0 850.0 750.0 100.0 USD/t 650.0 USD/ t 550.0 50.0 450.0 350.0 0.0 250.0 0 10 20 30 40 50 60 70 150.0 -5
Slide 16: Low Capex Intensity and Strong Project Economics
Low Capex Intensity and Strong Project Economics For personal use only Phase 1 capex of €436 million + Phase 2 capex of €226 million MUGA: HALF THE CAPEX INTENSITY OF OTHER GLOBAL DEVELOPMENT PROJECTS (US$ per tonne of potash) 1,800 1,600 1,400 Capex intensity $/t 1,200 1,000 800 600 400 200 - BHP (
Slide 17: Strong Economics and Financing Strategy
Strong Economics and Financing Strategy For personal use only NPV8 of €1.82 Billion, 21% IRR Updated capex numbers with More advanced engineering higher degree of accuracy: At full production, EBITDA of reconfirming a 30-year mine life1 phase 1 €436 million around €400 Million pa phase 2 of €226 mil
Slide 18: Strong Support from Existing Shareholders
Strong Support from Existing Shareholders For personal use only • Key strategic investment from funds managed by EMR and Tectonic • EMR and Tectonic demonstrate their continued long-term support in the Company • The investment will be in the form of convertible notes, resulting in a cash injection o
Slide 19: Industry Leading ESG Credentials
Industry Leading ESG Credentials For personal use only Environmental Factors • Progressively rehabilitate mine: Backfilling and salt sales • Muga will be the only mine not to leave residue on the surface after production Social Factors • Social Baseline Study prepared by Government of Navarra Govern
Slide 20: An Investment Opportunity in the Next Major European Potash Mine
An Investment Opportunity in the Next Major European Potash Mine For personal use only Muga Potash Mine Highfield Resources Strong market fundamentals Strong financial position and Global potash prices still strong financial markets support Location is a major strategic advantage Experienced Managem
Slide 21: Questions
For personal use only QUESTIONS
Slide 22: Registered Office and Further Information
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 T: