Highfield Resources Limited · ASX:HFR
Highfield Resources — Investor Presentation (September 2020)
24 slides from Highfield Resources's investor presentation, Sep 25, 2020
Slide 1: Developing the Next Potash Mine in the Heart of a European Intensive Agricultural Region
For personal use only Developing the Next Potash Mine in the Heart of a European Intensive Agricultural Region Corporate Presentation September 2020 1 ASX: HFR
Slide 2: Competent Persons Statement for Muga Potash Project
For personal use only COMPETENT PERSONS STATEMENT FOR MUGA POTASH PROJECT This presentation was approved by Mr Ignacio Salazar, CEO of Highfield Resources. The information in this presentation that relates to Ore Reserves is based on information prepared by Dr Mike Armitage, the Chairman of SRK Cons
Slide 3: Highfield Resources and the Muga project
Highfield Resources and the Muga project The flagship Muga Conventional For personal use only A potash Muga is a two Project covers Underground Industry friendly developer listed phase project about 60km2 in the Room and Pillar location with on the ASX:HFR which will produce Provinces of mining of a
Slide 4: Why Highfield Resources?
For personal use only Why Highfield Resources?
Slide 5: A Compelling Investment Opportunity
A Compelling Investment Opportunity Muga Potash Mine Highfield Resources For personal use only Potentially one of the highest margin Experienced and capable potash mines globally management team Low capex intensity per tonne of Strong board with global mining potash compared to other potash industry
Slide 6: A Conventional Mine with Tier-One Infrastructure
A Conventional Mine with Tier-One Infrastructure For personal use only 350m Decline access to shallow mineralization; Underground Room and Pillar mining No aquifers Close to the Port of Bilbao (~220km), Spain’s largest port First class infrastructure and access to new road systems National Electrici
Slide 7: Significant Logistical Competitive Advantage
1.Significant Potash Logistical Competitive Advantage What Whereisdoes it used for? from? it come Extremely competitive and versatile export options For personal use only ~1,750km from mines to port Excellent existing Muga will be one of infrastructure only two potash mines located in Southern Europ
Slide 8: Top Quartile Margins in the Industry
Top Quartile Margins in the Industry FOB Cost curve forecast for 2024 (real US$) For personal use only 350 Project enhancements have significantly 300 improved the C1 FOB cost, moving the mine • European prices continue to trade at a premium to down the cost curve other markets 250 • Mine location p
Slide 9: Strong Project Economics, Lower Capex Intensity
Strong Project Economics, Lower Capex Intensity For personal use only Project updated with Phase 1 capex of €368 million and Phase 2 capex of €208 million Muga will be about half the capex intensity per tonne of potash compared to other potash producers 1800 1600 1400 Capex intensity $/t 1200 1000 8
Slide 10: Strong Financial Position and Equity Markets Support
Strong Financial Position and Equity Markets Support For personal use only EMR Capital, strong supporter and Highfield’s largest shareholder at 30% Australian Super, supportive shareholder with 5% holding Several financing options available through debt and equity Cash of A$28.7 million as at 30 Jun
Slide 11: Final Stage De-Risking of Permitting Process
Final Stage De-Risking of Permitting Process For personal use only The Company is at the final stage of the permitting process which is well advanced Water permit Mining Concession and Power permit documentation submitted Q4 submitted Q1 2020 Environmental 2019 Public exposition Construction Approva
Slide 12: Key Technical Work Completed Continues to De-risk Muga
Key Technical Work Completed Continues to De-risk Muga For personal use only Key project characteristics De-risking project validated technical work Updated Ore Reserve Estimate for Engineering and process specialists Muga comprising Hatch, GEA Messo GmbH and K-Utec • 108.7 Mt of Proved and Probable
Slide 13: Strong Board with global mining industry experience and robust governance processes
Strong Board with global mining industry experience and robust governance processes For personal use only Richard Crookes Pauline Carr Isaac Querub Independent Independent Independent Non-Executive Director Non-Executive Director Non-Executive Director Chairman Richard has over 30 years of experienc
Slide 14: Experienced and capable management team
Experienced and capable management team For personal use only Ignacio Salazar Mike Norris Ricardo Pérez Chief Executive Officer Chief Financial Officer External Relations & Permitting Ricardo has over 20 years of experience in Ignacio has over 30 years’ experience, most Mike was Finance Director of
Slide 15: ESG is a Key and Important Area of Focus
ESG is a Key and Important Area of Focus For personal use only Environmental Factors Social Factors Governance Factors Environmental compliance and Positive feedback indicates Robust governance processes commitment through DIA award and strong focus on corporate local support increase (+90%) respons
Slide 16: Recognition for Commitment to Health, Safety and Social Responsibility
Recognition for Commitment to Health, Safety and Social Responsibility Bonus 2018 For personal use only Member of Ecodes’ Climate Action InnovarSE certificate A health and safety recognition for having initiative Receipt of the Cycle of Improvement a low accident rate award as a result of sustainabl
Slide 17: Strong Market Fundamentals
For personal use only Strong Market Fundamentals
Slide 18: Strong Future Demand for Potash
Strong Future Demand for Potash For personal use only Crop production and population growth 02 10 Arable land per person has been steadily 02 02 09 08 decreasing, leading to approximately 25% 01 07 increase in global potash demand (2012 to Billions of tonnes 01 06 Billion 01 01 05 04 2019). 01 03 00
Slide 19: Positive Future Growth and Demand for Salt
Positive Future Growth and Demand for Salt Historical and forecast consumption For personal use only of salt by region (tonnes) 500 400 Global demand for salt is forecast to increase 300 to 424 Mt in 2028, from 352 Mt in 2018, 200 equivalent to a growth rate of 1.9% per year. 100 0 Asia NAFTA Europe
Slide 20: Proposed Sales Strategy
Proposed Sales Strategy For personal use only MOP sales (pa) Wider Europe: Salt sales (pa) • ~250-300 kt MOP • ~200-250 kt salt US East Coast: Local: • ~50 kt MOP • ~450-500 kt MOP • ~200-250 kt salt • ~400-500 kt salt Africa: • ~50 kt MOP South America: • ~200-250 kt MOP Potash MOUs signed GMOP SMO
Slide 21: European Location Delivered Prices maintain a Premium Price
European Location Delivered Prices maintain a Premium Price For personal use only • Tight local supply due to mine closures and high-cost local producers, have maintained Europe’s price premium, even during the COVID-19 pandemic • Given the location, a large part of the regional premium will be capt
Slide 22: An Investment Opportunity in the Next Major European Potash Mine
For personal use only An Investment Opportunity in the Next Major European Potash Mine
Slide 23: Key Takeaways
1.KeyPotash Takeaways Whereisdoes What it used it come for? from? For personal use only Potash: Commodity with strong market fundamentals and forecasted growth • shallow mineralization, no aquifer; conventional mining method, High quality high • World class existing infrastructure profitable project
Slide 24: Registered Office and Further Information
REGISTERED OFFICE 169 Fullarton Road For personal use only 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
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