Highfield Resources Limited · ASX:HFR
Highfield Resources — Shareholder Meeting (November 2017)
26 slides from Highfield Resources's shareholder meeting presentation, Nov 30, 2017
Slide 1: AGM Presentation Highfield Resources 2017
For personal use only AGM Presentation Highfield Resources 2017
Slide 2: Competent Person Statement and Forward Looking Statements
For personal use only COMPETENT PERSON STATEMENT – RESOURCES This ASX release was prepared by Mr. Peter Albert, Managing Director of Highfield Resources. The information in this release that relates to Ore Reserves, Mineral Resources, Exploration Results and Exploration Targets is based on informati
Slide 3: Contents
Highfield Resources Limited. CONTENTS For personal use only 1. Corporate Summary 2. Board and Senior Management 3. Core Values 4. The Muga Potash Mine 5. Timeline to Production and Key Milestones 6. Capital and Operating Costs 7. Stakeholder Engagement 8. Sustainable strategy 9 Permitting 10. Upside
Slide 4: Corporate Summary
1. Corporate Summary For personal use only Fully Diluted Equity Ordinary Shares on Issue 329.2m Options & Performance shares 45.2m Fully Diluted 374.4m Undiluted Market Cap at A$1.05 (7 November 2017) A$346m Cash as at 30 September 2017 ~A$68m A$278.8m / Enterprise Value US$211.1m1 Average Daily Vol
Slide 5: Board and Senior Management
2. Board and Senior Management Board and Senior Management experienced in For personal use only construction and operations Derek Carter Non-Executive Chairman Pauline Carr Jim Dietz Owen Hegarty Richard Crookes Independent Independent Non-Executive Director Non-Executive Director Board of Directors
Slide 6: Vision and Core Values
3. Vision and Core Values “To build a successful, sustainable, potash For personal use only business with respect for stakeholders and the environment” Respect Excellence To act and communicate collaboratively To seek to continuously improve through with transparency, sincerity and an a cycle of goa
Slide 7: The Muga Potash Mine
4. The Muga Potash Mine Muga - Highfield’s high margin potash For personal use only development project Located in Northern Spain, within All-in-sustaining Cash Cost to Port 150km of key Atlantic Port near Full production1.08 Mtpa: – €130 / tonne of MOP San Sebastian (Port of Pasajes) • Phase 1 – de
Slide 8: Relatively simple, proven technology with first rate access to end markets
4. The Muga Potash Mine Relatively simple, proven technology with first For personal use only rate access to end markets Simple Mining Proximity to Local Markets Decline access to shallow mineralisation Located in a potash consuming region Underground room and pillar mining Good access to the large
Slide 9: The Muga Potash Mine: low impact development
5. The Muga Potash Mine For personal use only Marginal farm land with natural terrain features allowing low impact development 9
Slide 10: The Muga Potash Mine: restoration plan
5. The Muga Potash Mine For personal use only Restoration plan designed to progressively reinvigorate the project site at end of mine life 10
Slide 11: Timeline to Production and Key Milestones
5. Timeline to Production and Key Milestones Construction and commissioning – 2 years from For personal use only commencement of construction Month of Project 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Item Pre-Development Stages Detailed Engineering and Design Long Lead Items Or
Slide 12: Muga Capital and Operating Costs: best in class capital cost
6. Muga Capital and Operating Costs Muga’s low capital cost on $/t of production For personal use only basis ranks best in class Key Attributes: No major aquifer unit allows simple decline access Decline access to mineralisation significantly lowers capital cost relative to most potash peers Sylvini
Slide 13: Low delivered cost to customer positions Muga as high margin mine
6. Muga Capital and Operating Costs Low delivered cost to customer positions Muga For personal use only to be a high margin potash mine Muga – Estimated Operating Cost • Muga is expected to deliver bottom third Amount Amount all-in-sustaining cash (AISC) cost delivered to Component (€ / tonne MOP) (
Slide 14: Independent verification of highest margin producer
6. Muga Capital and Operating Costs Independent verification that Muga would make For personal use only Highfield the highest margin producer 14
Slide 15: Stakeholder Engagement
7. Stakeholder Engagement Committed to sustainable development, For personal use only supporting the local community Safety Minimise Environmental Impact • Developing a strong safety first culture within our work • Core focus on minimising risk and impact on environment force surrounding the project
Slide 16: Open and transparent communication with the local community
7. Stakeholder Engagement Open and transparent communication with the For personal use only local community Mayors of the region and Company representatives Open Doors Event – October 2017 The Company welcomed over 200 persons from local community Working sessions, information talks, and site visits
Slide 17: Implementing our sustainable strategy
8. Implementing our sustainable strategy A sharp focus on ESG factors to secure a For personal use only long term investment Setting an example • Forética, the most important sustainability institution in Spain has recognised the Community Communication Plan of Geoalcali as an example of best practi
Slide 18: Environmental permitting process moving towards conclusion
9. Permitting Environmental permitting process moving For personal use only towards conclusion Environmental Declaration Mining Concession Construction Permits • Town Halls In the last 6 months: • Water Authority • Following a positive DIA the • Power connection and lines • Company considers it is i
Slide 19: Upside – SOP Project & K62 Project
10. Upside – SOP Project & K62 Project Highfield has a number of near term value For personal use only creation opportunities SOP Project K62 Crystallisation Project • Scoping Study complete for 500ktpa SOP Mannheim • Crystallisation plant to process slimes and tailings from facility Muga Potash Min
Slide 20: Upside – Other Projects
10. Upside – Other Projects For personal use only Control of basin of projects with shared characteristics of Muga Potash Mine 20
Slide 21: Upside – Muga Extension and Sierra del Perdón
10. Upside – Other Projects Control of basin of projects with shared For personal use only characteristics of Muga Potash Mine Muga Extension Sierra del Perdón • Exploration target of 127 to 255 million tonnes at 12% to • Scoping Study completed April 2015 16% K2O • Decline access to underground con
Slide 22: Upside – Pintanos, Vipasca and Izaga
10. Upside – Other Projects Control of basin of projects with shared For personal use only characteristics of Muga Potash Mine Pintanos Vipasca Izaga • Current Exploration Target of 343m to • Exploration Target of between 320 • Grass roots exploration tenement 1,565m tonnes at 10 to 15,4% K2O millio
Slide 23: Value Proposition – Potash Market
11. Value Proposition – Potash Market Many experts believe potash prices have reached the marginal cost of production For personal use only We have seen the start of a recovery for potash prices Solid Demand Fundamentals 65 million tonnes K+S 63 million Bethune tonnes Producer Discipline Returning 1
Slide 24: Value Proposition – Highfield
11. Value Proposition - Highfield Low capex, low risk, high margin potash For personal use only development Lowest capital cost to Low Capital Cost Outstanding production Investment Metrics High Margin Bottom quartile delivered cost to customer Lower Technical Strong funding interest Risk Compelling
Slide 25: Summary
12. Summary For personal use only • Outstanding portfolio of projects with Muga the flagship – Low capital cost to production – Lowest quartile delivered cash cost to customer at full capacity – At full capacity, NPV10 – US$1.46 billion – Experienced team of mine builders and operators – Peter Alber
Slide 26: Registered office and further information
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 FURTHER INFORMATION Peter Albert Managing Director T +34 628 590 109 Hayden Locke Corporate Development T +34 60
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