Highfield Resources Limited · ASX:HFR
Highfield Resources — Investor Presentation (February 2018)
26 slides from Highfield Resources's investor presentation, Feb 15, 2018
Slide 1: Corporate Presentation
For personal use only Corporate Presentation Highfield Resources 2018
Slide 2: Competent Person Statement and Forward Looking Statements
For personal use only COMPETENT PERSON STATEMENT 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 information prepared
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. Upsid
Slide 4: Corporate Summary
1. Corporate Summary For personal use only Fully Diluted Equity Ordinary Shares on Issue 329.2m Options 51.01m Fully Diluted 380.21m Undiluted Market Cap at A$1.02 (29 December 2017) A$335.8m Cash as at 31 December 2017 ~A$65.6m A$270,2m / Enterprise Value US$210.8m1 Average Daily Volume (6 months)
Slide 5: Board and Senior Management
2. Board and Senior Management Board and Senior Management experienced in For personal use only construction and operations Derek Carter Non-Executive Chairman Pauline Carr Jim Dietz Owen Hegarty Richard Crookes Independent Independent Non-Executive Director Non-Executive Director Board of Directors
Slide 6: Vision and Core Values
3. Vision and Core Values “To build a successful, sustainable, potash For personal use only business with respect for stakeholders and the environment” Commitment Excellence To seek to continuously improve through We are committed to best practices in a cycle of goal-setting, accountability, health
Slide 7: The Muga Potash Mine
4. The Muga Potash Mine Muga - Highfield’s high margin potash For personal use only development project Located in Northern Spain, within All-in-sustaining Cash Cost to Port 150km of key Atlantic Port near Full production 1.08 Mtpa: – US$ 150 / tonne of MOP San Sebastian (Port of Pasajes) • Phase 1
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 site layout
5. The Muga Potash Mine For personal use only Marginal farm Offices land with natural ROM & GMOP terrain features Dry process plant allowing low Access to portals impact Wet process plant development Brine ponds Tailings 9
Slide 10: 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 Item pre 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Preliminary Work High Voltage Site Preparation Underground Box Cut
Slide 12: Muga Capital and Operating Costs
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 to be a 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 Component Amount Amount all-in-sustaining cash (AISC) cost delivered to (€ / tonne MOP) (
Slide 14: Independent verification that Muga would make Highfield the 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: Permitting
9. Permitting Environmental permitting process moving For personal use only towards conclusion Environmental Declaration Mining Concession Construction Permits In the last 6 months: • Following a positive DIA the • Town Halls • Company considers it is in the final stage of the DIA Department of Mine
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, the Pipeline
10. Upside – Other Projects, the Pipeline 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 reached the marginal cost of production in late 2016 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 Ret
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 Bottom third delivered High Margin cost to customer Lower Technical Over US$51.5 (A$65.6) Strong funding inter
Slide 25: Summary
12. Summary • Outstanding portfolio of projects with Muga the flagship For personal use only – Low capital cost to production – Lowest tercile delivered cash cost to customer at full capacity – At full capacity, NPV10 – US$1.46 billion – Experienced team of mine builders and operators – Peter Albert
Slide 26: For personal use only
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 26
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