Highfield Resources Limited · ASX:HFR
Highfield Resources — Shareholder Meeting (May 2024)
25 slides from Highfield Resources's shareholder meeting presentation, May 30, 2024
Slide 1: Transitioning Muga To Construction
For personal use only Transitioning Muga To Construction AGM presentation 30 May 2024 | ASX:HFR
Slide 2: Disclaimer
Disclaimer 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 the Ore Reserve reported as of 31 October
Slide 3: 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 4: Potash Market Overview
Potash Market Overview For personal use only With global population increasing and arable land decreasing, 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 5: Introduction and Progress
For personal use only INTRODUCTION AND PROGRESS
Slide 6: Experienced Management Team
Experienced Management Team For personal use only Javier Aguado, CFO 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 7: 2023 Project Progress Report
2023 Project Progress Report For personal use only Highfield has made significant progress in the last twelve months announcing a number of key project milestones Fully permitted: Environmental, mining concessions and construction licences obtained. Successful expropriation process: Access to al
Slide 8: 2023 Construction Progress Report
2023 Construction Progress Report For personal use only 8
Slide 9: Project Progress Report to date
Project Progress Report to date For personal use only Highfield is transitioning Muga to construction in 2024 Contract Signed with EPOS-TUNELAN for Construction of Declines at Muga Contract Signed with Acciona For Construction of Civil Works at Muga Contracts account for approximately 40% of the
Slide 10: Financing Strategy
Financing Strategy For personal use only PHASE 1 MUGA PROJECT CAPITAL ESTIMATED FUNDING FUNDING OPTIONS IN PROGRESS SECURED AND IN PLACE Strategic Royalty €320M Senior Secured Project Financing BNP Paribas S.A.; Offtake Equity ING Bank N.V.; Remaining Natixis CIB; • Working with Macquarie Capital, C
Slide 11: Progress to Date and Next Steps
Progress to Date and Next Steps 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) Permitting • Mining Concession • Electricity line Authorisation • Mine gate and decline construction licence • Process plan
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 Potash has attractive facing commodity long-term leveraged to Mine is set to fundamentals food security deliver a new Thematic European secure source of Potash 1) Location. Forecast to be Targeting €340 Fully int
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$) 1,150.0 290.0 1,050.0 Rest of world Highfield Potash SMOP bulk fob Vancouver 240.0 950.0 Potash GMOP bulk cfr northwest Europe 850.0 190.0 750.0 USD/t 140.0 USD/ t 650.0 5
Slide 16: Low Initial Investment
Low Initial Investment For personal use only MUGA has half the capex intensity compared to other global development projects (US$ 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: Questions
For personal use only QUESTIONS
Slide 20: Appendix
For personal use only APPENDIX
Slide 21: Corporate Structure
Corporate Structure For personal use only HIGHFIELD RESOURCES LIMITED Asset Share Price High-grade Proved and Probable Ore Reserve of 237.3Mt 0.50 16 at 12.0% Potassium Oxide (K2O) 0.45 14 Strategically located in Europe 0.40 Volume (100,000 shares) 12 Permitted and Construction ready, subject to fi
Slide 22: The Lifecycle of a mineral discovery
The Lifecycle of a mineral discovery For personal use only Risks Funding risk Technical risk Exploration risk Discovery This is most likely the time when There is a tipping point in exploration people outside of the mining industry when drilling amounts to a real mineral hear of a new discovery whil
Slide 23: Potash Market Overview
Potash Market Overview For personal use only Supply / Demand 18Mt ● Potash supply is highly concentrated with Top 5 countries producing 85% of global supply 26Mt 27Mt 4Mt 6Mt ● Low logistics cost is a key part of a potash producer’s 4Mt 10Mt CIS competitive advantage 8Mt Europe 7Mt ● 3 of the top 5
Slide 24: Outstanding Project Economics
Outstanding Project Economics For personal use only Overview of Feasibility Outcomes November 2023 CAPEX PHASE 1: RECONCILIATION CAPEX phase 1 (500,000 tpa MOP) €449 million CAPEX phase 2 (Additional 500,000 tpa MOP) €286 million Total CAPEX €735 million ROM tonnes 173.7 million tonnes Average plant
Slide 25: 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