Highfield Resources Limited · ASX:HFR
Highfield Resources — Shareholder Meeting (May 2019)
15 slides from Highfield Resources's shareholder meeting presentation, May 2019
Slide 1: AGM Presentation May 2019
Highfield Resources | ; AGM Presentation May 2019
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation includes certain ‘forward looking statements’. All statements, other than statements of historical fact, are forward looking statements that involve various risks and uncertainties. There can be no assurances that such statements will prove accurate, and
Slide 3: Highfield Resources overview
Highfield Resources overview • Muga Mine will be a high margin potash mine located favourably for premium local Southern European market and international export, in a commodity vital to sustaining food supply to a growing global population Muga is our flagship project All executive team based in Pa
Slide 4: The Muga Mine – Environmental Approval
The Muga Mine – Environmental Approval Recent achievement • All work, reports and submissions in relation to the Environmental Approval completed • Continuous dialogue with the Environmental Authority in recent weeks, multiple meetings and exchanges of information • Advice from the authority is that
Slide 5: Potash demand steadily increasing
Potash demand steadily increasing 22% increase in global demand since 2012 to 2017 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 2012 2013 2014 2015 2016 2017 2018 Africa & Middle East Europe Other Latin America & Caribbean Brazil North America Other Asia & Oceania China India FSU Other Source:
Slide 6: The future for potash demand looks positive
The future for potash demand looks positive Crop production and population growth 2.0 10.0 1.8 9.0 1.6 8.0 1.4 7.0 Billions of tonnes 1.2 6.0 Billion 1.0 5.0 0.8 0.6 The consensus view of potash market 4.0 3.0 0.4 analysts is around 2.5% growth p.a. 2.0 0.2 1.0 0.0 0.0 1980 1985 1990 1995 2000 2005
Slide 7: Muga's location is one of its major attributes
Muga’s location is one of its major attributes 7 Mt 4 Mt Total Europe Shipping costs to Brazil Based on 30,000t ships Loading Cost (US$/t) Canada $25/t Russia $15/t Spain $10/t 1 Mt 10 0 Mt Mt Total Africa Muga Mine MOP trade routes Production Demand 0.5 Mt Total Brazil Source: Argus Media, Highfiel
Slide 8: Potash price recovery
Potash price recovery European prices have maintained a premium to other prices Tight local supply due to mine closures and high cost local producers have maintained the European price premium 450 Prices are expected to remain strong as current market fundamentals are 400 forecast to continue 350 US
Slide 9: The Muga Mine – Recent achievements
The Muga Mine – Recent achievements Recent key milestones • Completed mine design optimisation including work by specialist consultant, SRK Consulting • Recently updated Mineral Resources estimate and Ore Reserves estimate • Muga project update, with updated capex, opex and financial outcomes • Upda
Slide 10: Muga Mine Competitive Position
Muga Mine Competitive Position Updated Ore Reserve Approximately 500,000 tpa Two phase mine Updated MRE of 234.75 Mt Estimate of 108.7 Mt of of MOP for phase 1 and development at 12.3% K2O* Proved and Probable 1,000,000 tpa post phase 2. Reserves at 10.2% K2O* Phase 1 capex of €342 Updated MOU with
Slide 11: Muga's competitive position against world peers
Muga’s competitive position against world peers FOB Cost curve forecast for 2024 (real US$) C1 Costs Components Mining Euros/tonne of MOP 38.15 350 Processing 47.74 Salt treatment 3.53 300 Waste and backfilling 4.85 250 Environmental & Other 3.23 Sub Total 97.51 MOP US$/t 200 G&A 7.79 150 Sustaining
Slide 12: Summary – Highfield Resources
Summary – Highfield Resources Significant long term upside Muga Project Update data confirms low capital cost to production Very strong community and local government support High margin driven by technical factors and project location Experienced team of mine builders and operators Experienced boar
Slide 13: Registered Office and Further Information
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 Peter Albert Managing Director T +34 628 590 109 Olivier Vadillo Investor Relations T +34 609 811 257
Slide 14: Competent Persons Statements
Competent Persons Statements COMPETENT PERSONS STATEMENT FOR MUGA POTASH PROJECT This presentation was prepared by Mr Peter Albert, Managing Director of Highfield Resources. The information in this presentation that relates to Ore Reserves is based on information prepared by Dr Mike Armitage, the Ch
Slide 15: www.highfieldresources.com.au
www.highfieldresources.com.au