Highfield Resources Limited · ASX:HFR
Highfield Resources — Investor Presentation (July 2021)
21 slides from Highfield Resources's investor presentation, July 2021
Slide 1: Constructing the Next European Potash Mine
Constructing the Next European Potash Mine Corporate Presentation | July 2021
Slide 2: Competent Persons Statement for Muga Potash Project
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 Consulting (UK) Limited. D
Slide 3: An Investment Opportunity in the Next Major European Potash Mine
An Investment Opportunity in the Next Major European Potash Mine Muga Potash Mine Highfield Resources Strong market fundamentals Strong financial position and Global potash prices on the move financial markets support Location is a major strategic advantage Experienced Management and Shallow mineral
Slide 4: Corporate Snapshot
Corporate Snapshot Capital Structure Price ($) Volume (m) Share Price (7 July 2021) $0.735 $1.00 1.2 Shares on Issue 329.6 million Options & Performance Rights - $0.90 1.0 Market Capitalisation $242.3 million $0.80 Cash (31 March 2021) $15.8 million $0.70 Drawn Debt* - 0.8 $0.60 Enterprise Value $22
Slide 5: Highfield Resources and the Muga Project
Highfield Resources and the Muga Project Local Spanish head office and project office with the entire executive team based in Pamplona, near the Muga Project site Muga Mine Conventional Muga is a two phase Muga has received A potash developer Underground Room Conventional project which will the Mini
Slide 6: Milestones Achieved
Milestones Achieved Permitting Mining concession received on 1 July 2021 Engineering Detailed design engineering prepared and ready Sales and Non-binding MOUs representing more than Phase-1 production capacity Marketing for potash and salt have already been signed Corporate Endeavour Financial appoi
Slide 7: Why Highfield Resources
Resources Highfield Resources
Slide 8: Shallow Mineralization, Conventional Mining, with Tier-One Infrastructure in Place
Shallow Mineralization, Conventional Mining, with Tier-One Infrastructure in Place 350m Decline access to shallow mineralization; underground Room and Pillar mining. No aquifers Close to the Port of Bilbao (~220km), Spain’s largest port First class infrastructure and access to new road systems Natio
Slide 9: Significant Logistical Competitive Advantage
Significant Logistical Competitive Advantage Extremely competitive and versatile export options ~1,750km from mines to port Muga will be one of ~1,700km from mines to port Excellent existing infrastructure only two potash mines located in Southern Europe ~6,800 nautical miles ~8,700 nautical miles L
Slide 10: Top Quartile Margins in the Industry
Top Quartile Margins in the Industry European prices continue to trade at a Margin curve forecast for 2024 (real US$) premium to other markets 450.00 200 400.00 150 350.00 300.00 US$/t 100 MOP US$/t 250.00 200.00 50 150.00 0 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 -50 Potash Standard MOP bulk
Slide 11: Low Capex Intensity and Strong Project Economics
Low Capex Intensity and Strong Project Economics Phase 1 capex of €368 million + Phase 2 capex of €208 million MUGA: HALF THE CAPEX INTENSITY OF OTHER GLOBAL DEVELOPMENT PROJECTS (US$ per tonne of potash) 1800 1600 1400 1200 Capex intensity $/t 1000 800 600 400 200 0 BHP (Jansen) Canadian mine BHP (
Slide 12: Muga Mine – Key Physicals and Financials
Muga Mine – Key Physicals and Financials 14 October 2019 CAPEX phase 1 (500,000 tpa MOP) €368 million CAPEX phase 2 (Additional 500,000 tpa MOP) €208 million Total CAPEX €576 million ROM tonnes 179.8 million tonnes Average plant tonnage feed rate 400 tph K2O grade 10.7% KCl recovery 94% LOM MOP prod
Slide 13: Sales Strategy
Sales Strategy MOP sales (pa) Salt sales (pa) Wider Europe: • ~250-300 kt MOP • ~200-250 kt salt US East Coast: • ~50 kt MOP Local: • ~200-250 kt salt • ~450-500 kt MOP • ~400-500 kt salt Africa: • ~50 kt MOP South America: Potash MOUs signed • ~200-250 kt MOP MOP Ameropa 250,000 tpa Sales & Marke
Slide 14: Key project milestone timeline
Key project milestone timeline 2021 2022 2023 2024 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Contract with construction partner Pre- Finalise procurement of lead items and start Construction construction of the bolter miner Local town hall construction licenses Reconfirm debt credit approval Financing Fin
Slide 15: Appendix
Appendix Resources
Slide 16: Global Potash Prices on the Move at the Right Time
Global Potash Prices on the Move at the Right Time Strong market fundamentals Upward price forecasts Soybean prices are the highest in 5 years 02 10 525 08 505 02 06 485 Billion Billions of tonnes 01 465 04 01 02 445 US$/t 00 00 425 405 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013 201
Slide 17: Strong Board with Global Mining Industry Experience and Robust Governance Processes
Strong Board with Global Mining Industry Experience and Robust Governance Processes Richard Crookes Richard has over 30 years of experience in the resources sector. He worked as Chief Geologist and Independent Mining Manager for Ernest Henry Mining in Australia (now Glencore). He has been Executive
Slide 18: Experienced and capable management team
Experienced and capable management team Ignacio has over 30 years’ experience, most of which have been in the resources sector. His Ignacio Salazar outstanding international career includes 18 years working with Royal Dutch Shell and 12 years with Chief Executive Officer Orosur Mining Inc. including
Slide 19: Industry Leading ESG Credentials
Industry Leading ESG Credentials Environmental compliance and commitment through DIA award Environmental Progressively rehabilitate mine: Backfilling and salt sales Factors Muga will be the only mine not to leave residue on the surface after production Strong local support in favour of the M
Slide 20: Recognition for Commitment to Health, Safety and Social Responsibility
Recognition for Commitment to Health, Safety and Social Responsibility Bonus 2018 InnovarSE certificate A health and safety recognition for having a low Member of Ecodes’ Climate Action initiative Receipt of the Cycle of Improvement award as a accident rate result of sustainable initiatives RSA 2021
Slide 21: www.highfieldresources.com.au
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 Ignacio Salazar CEO T: +34 948 050 577 Olivier Vadillo Investor Relations T: +34 609 811 257 www.highfield
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