Highfield Resources Limited · ASX:HFR
Highfield Resources — Investor Presentation (May 2023)
26 slides from Highfield Resources's investor presentation, May 2023
Slide 1: Fully Permitted Potash Mine in Europe: Ready for Construction
Fully Permitted Potash Mine in Europe: Ready for Construction Corporate Presentation May 2023 ASX: HFR
Slide 2: Competent Persons Statement for Muga Ore Reserves and Mineral Resources
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 the direction of Dr Mik
Slide 3: Global Potash Prices on the Move at the Right Time
Global Potash Prices on the Move at the Right Time 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 1995 1998 2001
Slide 4: Muga is strategically important for Europe
Muga is strategically important for Europe European markets accessible to Muga mine European Imports • 47% of European imports are 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 2021, or about 27 Mt of
Slide 5: An Investment Opportunity in the Next Major European Potash Mine
An Investment Opportunity in the Next Major European Potash Mine Muga Potash Mine Highfield Resources Strong market fundamentals Strong financial position and Global potash prices on the move financial markets support Location is a major strategic advantage Experienced Management Shallow mineralizat
Slide 6: Corporate Snapshot
Corporate Snapshot 1.80 40 Capital Structure 1.60 35 Share Price (19 May 2023) $0.535 1.40 30 Shares on Issue 387 million Volume (100,000 shares) 1.20 Share price (A$) 25 Options & Performance Rights - 1.00 20 Market Capitalisation $207 million 0.80 15 Cash (31 March 2023) $9.0 million 0.60 0.40 10
Slide 7: Strong Board with Global Mining Industry Experience and Robust Governance Processes
Strong Board with Global Mining Industry Experience and Robust Governance Processes Paul Harris Ignacio Salazar Independent Non-Executive Director MD & Chief Executive Officer Chairman Paul has over 25 years’ experience in financial markets Ignacio has over 30 years’ experience, most of which and in
Slide 8: Management with strong mining experience and local background
Management with strong mining experience and local background Jorge Feito Carles Alemán Javier Aguado Head of Mining, Construction and Chief Financial Officer Head of Plant Construction and HSE Operation Javier has over 20 years’ accounting and Carles has over 30 years’ experience in Jorge is a Mini
Slide 9: Muga Project Overview
Highfield 7 Resources MUGA PROJECT OVERVIEW
Slide 10: Highfield Resources and the Muga Project
Highfield Resources and the Muga Project 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 Northern Sp
Slide 11: Logistical advantage, Shallow Mineralization, Conventional Mining, with Tier-One Infrastructure in Place
Logistical advantage, Shallow Mineralization, Conventional Mining, with Tier-One Infrastructure in Place 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 inf
Slide 12: Significant Logistical Competitive Advantage
Significant Logistical Competitive Advantage Extremely competitive and versatile export options ~1,750km from mines to port ~1,700km from mines to port Muga will be one of only two potash mines located in Southern Europe ~130- 220km from ~6,800 nautical miles mine to ports ~8,700 nautical miles ~5,0
Slide 13: MOU signed for more than phase 1 production
MOU signed for more than phase 1 production MOP sales (pa) Wider Europe: Salt sales (pa) • ~250-300 kt MOP • ~200-250 kt salt US East Coast: • ~50 kt MOP Local: Potash MOUs signed • ~200-250 kt salt • ~450-500 kt MOP • ~400-500 kt salt MOP Ameropa 250,000 tpa Africa: Keytrade 300,000 tpa • ~50 kt MO
Slide 14: Project Economics
Highfield 7 Resources PROJECT ECONOMICS
Slide 15: Top Quartile Margins in the Industry
Top Quartile Margins in the Industry European prices continue to trade at a premium to Margin curve forecast for 2026 (real US$) other markets 1,150.0 200.0 1,050.0 950.0 150.0 850.0 100.0 750.0 USD/t 650.0 USD/ t 50.0 550.0 450.0 0.0 350.0 0 10 20 30 40 50 60 70 250.0 -50.0 150.0 2016 2017 2018 20
Slide 16: Low Capex Intensity and Strong Project Economics
Low Capex Intensity and Strong Project Economics 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 (Jansen) Phase 2 Canadi
Slide 17: Updated Feasibility Study Reconfirms Muga's Strong Economics
Updated Feasibility Study Reconfirms Muga’s Strong Economics Updated capex numbers with NPV8 of €1.82 Billion More advanced engineering higher degree of accuracy: 21% IRR reconfirming a 30-year mine life1 phase 1 €436 million phase 2 of €226 million Credit for €300 million Senior At current spot pri
Slide 18: Muga Mine – Key Physicals and Financials
Muga Mine – Key Physicals and Financials November 2022 CAPEX phase 1 (500,000 tpa MOP) €436 million CAPEX phase 2 (Additional 500,000 tpa MOP) €226 million Total CAPEX €662 million ROM tonnes 173.7 million tonnes Average plant tonnage feed rate 800 tph K2O grade 10.5% KCl recovery 91% LOM MOP produc
Slide 19: Status and Next Steps
Highfield 7 Resources STATUS AND NEXT STEPS
Slide 20: Muga Moving to Construction
Muga Moving to Construction 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 Financing
Slide 21: Construction started at the Muga Mine
Construction started at the Muga Mine • June 2022: Townhall of Undués de Mine gates Lerda in Aragón issued the licence for Declines the construction of the mine gate and ramps Electricity substation • July-Dec 2022: Initial construction Fresh water ponds work at Muga started around the minegate Boxc
Slide 22: Construction milestones achieved to date
Construction milestones achieved to date • 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 construction Highfield
Slide 23: Main construction: work breakdown structure
Main construction: work breakdown structure 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, water, gas
Slide 24: Sustainability
Highfield 7 Resources SUSTAINABILITY
Slide 25: Industry Leading ESG Credentials
Industry Leading ESG Credentials 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 Governance Factors • First j
Slide 26: ASX:HFR
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: +34 609 811 257
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