Highfield Resources Limited · ASX:HFR
Highfield Resources — Shareholder Meeting (November 2016)
25 slides from Highfield Resources's shareholder meeting presentation, Nov 18, 2016
Slide 1: Managing Director's Presentation to the Annual General Meeting
For personal use only Highfield Resources Ltd Managing Director’s Presentation to the Annual General Meeting 18 November 2016 Corporate Presentation ASX Code: HFR
Slide 2: Competent Person Statement and Forward Looking Statements
COMPETENT PERSON STATEMENT – RESERVES, RESOURCES The information in this release that relates to Ore Reserves, Mineral Resources, Exploration Results and Exploration Targets is based on information prepared by Mr. José Antonio Zuazo Osinaga, Technical Director of CRN, S.A.; Mr. Jesús Fernández Carra
Slide 3: Contents
Highfield Resources Limited CONTENTS For personal use only 1. Corporate Summary 2. Board and Senior Management 3. The Muga Potash Mine 4. Timeline to Production and Key Milestones 5. Capital and Operating Costs 6. Stakeholder Engagement 7. Permitting 8. Upside Potential 9. Value Proposition 10. Summ
Slide 4: Corporate Summary
1. Corporate Summary For personal use only Fully Diluted Equity Ordinary Shares on Issue 320.0m Options 47.8m Fully Diluted 367.8m Undiluted Market Cap at A$1.23 (16 November 2016) A$394m Cash as at 30 September 2016 ~A$83m Enterprise Value A$311m / US$236m1 Average Daily Volume (6 months) ~385,000
Slide 5: Board and Senior Management
2. Board and Senior Management Board and Senior Management experienced in construction and operations For personal use only Board of Directors Derek Carter Non-Executive Chairman Pauline Carr Jim Dietz Owen Hegarty Richard Crookes Independent Independent Non-Executive Director Non-Executive Director
Slide 6: Board and Senior Management
2. Board and Senior Management Board and Senior Management experienced in construction and operations For personal use only Board of Directors and Senior Management Derek Carter – Non Executive Chairman Peter Albert – Managing Director & CEO A geologist with over 40 years experience in exploration a
Slide 7: The Muga Potash Mine
3. The Muga Potash Mine Muga - Highfield’s most advanced, low capex, high margin potash development project For personal use only Summary Domestic Markets in Spain and France • Located in Northern Spain, within 150km of key Atlantic Port near San consume over 1 million Sebastian (Port of Pasajes) to
Slide 8: Simple proven technology with first rate market access
3. The Muga Potash Mine Relatively simple, proven technology with first rate access to end markets For personal use only Decline access to shallow mineralisation Simple Mining Underground room and pillar mining Sylvinite ore Simple Processing Simple flotation process flowsheet Direct connection to n
Slide 9: Low value farm land allowing low impact development
3. The Muga Potash Mine Low value farm land with natural terrain features allowing low impact development For personal use only 9
Slide 10: Sustainable development minimising surficial impact
3. The Muga Potash Mine Sustainable development minimising surficial impact For personal use only 10
Slide 11: Restoration plan for end of mine life
3. The Muga Potash Mine Restoration plan designed to reinvigorate the project site at end of mine life For personal use only 11
Slide 12: Timeline to Production and Key Milestones
4. Timeline to Production and Key Milestones Construction ready program, two years from commencement of construction to production For personal use only 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 Le
Slide 13: Muga Capital and Operating Costs: Lowest capital cost potash project
5. Muga Capital and Operating Costs Lowest project capital cost potash project globally on a $ / tonne of production basis For personal use only • Negotiations continue with Acciona for a fixed Muga Phase 1 – Project Capital Cost price lump sum contract for project delivery Amount • No major aquifer
Slide 14: Low delivered cost to customer
5. Muga Capital and Operating Costs Low delivered cost to customer positions Muga to be a high margin potash mine For personal use only • Muga is expected to deliver bottom quartile Muga - Operating Cost all-in-sustaining cash (AISC) cost delivered to Amount Amount Europe, Brazil and the USA Compone
Slide 15: Stakeholder Engagement: sustainable development
6. Stakeholder Engagement Highfield is committed to sustainable development, supporting the local community For personal use only - Developing a strong safety first culture within our work force Safety - Focus on preventing harm to both workers and minimising impact on the surrounding environment -
Slide 16: Geoalcali Foundation community participation
6. Stakeholder Engagement Highfield is actively participating in the community through its Geoalcali Foundation For personal use only Geoalcali Foundation • Established in September 2014 • Over 70 community projects to date • Visible statement of Company´s intent to actively support the community Se
Slide 17: Strong social licence through community engagement
6. Stakeholder Engagement Strong social licence developed through engagement and projects with communities near Muga For personal use only 17
Slide 18: Permitting process moving towards conclusion
7. Permitting Permitting process moving towards conclusion For personal use only • Company’s ESIA submitted to central environmental permitting authority (MAGRAMA) – November 2015 • MAGRAMA requested various provincial authorities to provide analysis and commentary Environmental on Company’s ESIA –
Slide 19: Upside – Other Projects
8. Upside – Other Projects Control of basin of projects with shared characteristics of Muga Potash Mine For personal use only 19
Slide 20: Upside – Muga Expansion & K62 Project
8. Upside – Muga Expansion & K62 Project Highfield has a number of near term value creation opportunities For personal use only SOP Project K62 Crystallisation Project • Scoping Study complete for 500ktpa SOP Mannheim • Crystallisation plant to process slimes and tailings from facility Muga Potash M
Slide 21: Independent verification of highest margin producer
9. Value Proposition - Highfield Independent verification that Muga Mine would have made Highfield the highest margin producer For personal use only 21
Slide 22: Potash Market: prices at marginal cost of production
9. Value Proposition – Potash Market Many experts believe potash prices have reached the marginal cost of production For personal use only Have we seen the start of a recovery for potash prices? Solid Demand Fundamentals 65 million tonnes 60 million tonnes Producer Discipline 0.9 million 5.9 million
Slide 23: Value Proposition – Highfield
9. Value Proposition - Highfield Low capex, low risk, high margin potash development with majority of its funding in place For personal use only Low Capital Cost Lowest capital cost to production Outstanding High Margin Investment Metrics Bottom quartile delivered cost to customer Well funded Approx
Slide 24: Summary
10. Summary For personal use only • Outstanding portfolio of projects with Muga the flagship – Lowest capital cost to production – Lowest quartile delivered cash cost to customer – NPV10 – US$1.46 billion (NPV8 over US$2 billion) • Experienced team of mine builders and operators – MD Peter Albert ha
Slide 25: 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 www.highfieldresources.com.au info@highfieldresources.com.au FURTHER INFORMATION Peter Albert Managing Director
Highfield Resources — Shareholder Meeting (November 2016) on 6ix