Highfield Resources Limited · ASX:HFR
Highfield Resources — Schröder Equities Australian Resources Conference, Zurich (February 2015)
21 slides from Highfield Resources's conference presentation, Feb 17, 2015
Slide 1: Corporate Presentation – Schröder Australian Resources Conference
For personal use only Highfield Resources Ltd Schröder Equities Australian Resources Conference Zurich Corporate Presentation 17 February 2015 ASX Code: HFR
Slide 2: Competent Person Statement and Forward Looking Statements
COMPETENT PERSON STATEMENT Information relating to resources was prepared by Mr Leo Gilbride, P.Eng and Ms For personal use only Vanessa Santos, P.Geo, of Agapito Associates. The Competent Person under JORC Code standards is Mr Leo Gilbride, P.Eng and Ms Vanessa Santos, P.Geo. of Agapito Associates
Slide 3: Contents and Appendices
Highfield Resources Limited For personal use only CONTENTS APPENDICES 1. Introduction A. Corporate Overview 2. The Projects B. Muga, Vipasca and Pintano Projects 3. Project Advantages – Proven producing basin C. Sierra del Perdón Project 4. Project Advantages – Proven mining and processing technique
Slide 4: Introduction
1 Introduction • Highfield Resources is developing one of its four Decline accessed underground mine with project economics For personal use only 100% owned potash projects in northern Spain. boosted by first world infrastructure and domestic markets • Located in a producing potash basin where under
Slide 5: The Projects
2 The Projects Developing one of its four 100% owned potash projects in northern Spain For personal use only 5
Slide 6: Project Advantages – Proven producing basin
3 Project Advantages – Proven producing basin Mines in the Ebro Basin have produced for close to 100 years For personal use only Highfield Iberpotash Navarra Sub-basin Catalan Sub-basin Two producing mines operated Two producing mines operating between 1963 and 1997 since 1925 Underground convention
Slide 7: Project Advantages – Proven mining and processing techniques
3 Project Advantages – Proven mining and processing techniques The majority of producing mines are undergound mines with sylvinite flotation circuit processing For personal use only Mining Decline access into underground conventional room and pillar mine Processing Flotation circuit processing of sy
Slide 8: Project Advantages – Lowest capital cost
4 Project Advantages – Lowest capital cost Muga is a stand-out MOP project in terms of total capex and capital intensity For personal use only Total capex (in absolute terms) Capital intensity per tonne of production Eurochem: VolgaKaliy W. Potash: Milestone W. Potash: Milestone Eurochem: VolgaKaliy
Slide 9: Project Advantages – First quartile margin in production
5 Project Advantages – First quartile margin in production First quartile margin is driven by high priced end markets and low total costs to customer For personal use only Project Highfield – Muga* Belaruskali BHP Jansen* Intrepid Potash K+S Legacy* Price at Customer CFR Brazil / CIF NW Europe Asia2
Slide 10: Competitive access to high priced MOP markets
5 Project Advantages – First quartile margin in production Competitive access to high priced MOP markets For personal use only 18.7 21.0 Estimated 2014 MOP supply and demand by region 0.8 3.8 CIF NW Europe 6.5 FOB Vancouver $363 4.2 Canada 13.0 $290 8.7 FSU EU* 1.5 5.5 6.5 USA 1.4 CIF US Midwest Chi
Slide 11: Low total cash costs to customers
5 Project Advantages – First quartile margin in production Low total cash costs to customers with large royalty and logistics advantages For personal use only $350 $317 $300 $33 $280 $13 $14 $15 $239 $23 $250 $229 $40 $212 $25 $28 $25 $192 $9 $1 $200 Corporate SG&A $23 $40 $45 $30 $162 Royalties $15
Slide 12: Management have built and operated mines
6 Management have built and operated mines Proven in-country team with over thirty professionals including experienced mine builders For personal use only • Geologist with over 30 years experience in Spain, Pedro including for senior management roles for multi-nationals Rodriguez including Billiton,
Slide 13: 2015 – A Company defining year
7 2015 – A Company defining year The transition from developer to producer For personal use only • Muga-Vipasca JORC Resource estimate upgrade Q1 • Sierra del Perdón maiden JORC Resource estimate • Muga Mine Definitive Feasibility Study • Muga Mine project finance term sheets agreed Q2 • Sierra del
Slide 14: Summary
8 Summary For personal use only • Highfiled Resources is developing one of its four 100% owned potash projects in Northern Spain. • The projects are in a producing potash basin where conventional undergound mines have operated via decline and sylvinite flotation circuit processing. • The flagship Mu
Slide 15: Appendices
For personal use only Highfield Resources Ltd Appendices
Slide 16: Appendix – Corporate Summary
Appendix 1 – Corporate Summary Fully Diluted Equity 0.90 3.5 For personal use only Ordinary Shares on Issue 200.50m 0.80 3.0 Options 39.50m 0.70 2.5 Performance A* Shares 51.50m Volume (m) Price (A$) 0.60 2.0 Performance B* Shares 51.50m Fully Diluted 343.00m 0.50 1.5 Undiluted Market Cap at 86c (13
Slide 17: Appendix – Muga-Vipasca and Pintano Projects
Appendix 2 – Muga-Vipasca and Pintano Projects For personal use only Vipasca Over 450m tonnes of JORC Resource estimate* Project Area covering less than 15% of Project area Muga Project Area Pintano Project Area ≈ 15 km ≈ 52 km Map of Muga-Vipasca and Pintano Project Areas showing JORC Resource esti
Slide 18: Appendix – Sierra del Perdón Project
Appendix 3 – Sierra del Perdón Project For personal use only Photo showing mine operations at Potasas de Subiza in the mid 1990s Potash Production History 600 30 500 25 Annual production ('000 t) 400 20 % KCl 300 15 200 10 100 5 0 0 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 19
Slide 19: Appendix – Permitting
Appendix 4 – Permitting A defined permit process is underway • Minimal visual and environmental impact For personal use only • Backfilling of salt tailings • Legislated process with recent legislative changes designed Lodgement Mine Project Environmental to quicken environmental approval process Imp
Slide 20: Appendix – 2015 MOP market supply and demand
Appendix 5 – 2015 MOP market supply and demand 2015 MOP market is tight with most producers expected to be at full capacity For personal use only • The only spare capacity sits with PotashCorp and Mosaic Source: BMO – 30 January 2015 20
Slide 21: Registered office and contact details
For personal use only REGISTERED OFFICE 169 Fullarton Road Dulwich SA 5065 Australia HEAD OFFICE Avenida Carlos III, 13-15, 1B, 31002 Pamplona, Spain T +34 948 050 577 | F +34 948 050 578 www.highfieldresources.com.au info@highfieldresources.com.au FURTHER INFORMATION Anthony Hall Managing Director