Highfield Resources Limited · ASX:HFR
Highfield Resources — Investor Presentation (October 2019)
20 slides from Highfield Resources's investor presentation, Oct 15, 2019
Slide 1: Developing the World Class Spanish Muga Potash Mine
ASX: HFR For personal use only Developing the World Class Spanish Muga Potash Mine in the heart of the key European consuming region Corporate presentation September 2019
Slide 2: Competent Persons Statement for Muga Potash Project
For personal use only 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 Chairman
Slide 3: Why Highfield Resources?
Why Highfield Resources? For personal use only FIVE-STAR LOCATION POTASH, A KEY COMMODITY COMPETITIVE COST POSITION Proximity to premium European Price recovery in a market with market, driving high margins predictable and strong long term Access to world class transport and Well positioned for key
Slide 4: Muga Mine's Outstanding Location
Muga Mine’s Outstanding Location For personal use only Talent attractor and Industry friendly Easy Access to Low freight cost to Excellent existing retainer in high location with premium Southern Brazil and other infrastructure unemployment strong local European market potential markets region suppo
Slide 5: Why Potash?
Why Potash? For personal use only The future for potash demand looks positive Crop production and population growth 2.0 10.0 Arable land per person has been decreasing 1.5 8.0 steadily over the years. With global potash 6.0 demand increasing 22% from 2012 to 2018. Billions of tonnes Billion 1.0 4.0
Slide 6: Permitting de-risked – Positive DIA Awarded
Permitting de-risked – Positive DIA Awarded For personal use only The awarding of the positive Environmental Approval (“DIA”) has been the most significant step in the Muga Project approval process The positive DIA allows Highfield Resources to advance with the Mining Concession and construction per
Slide 7: Highfield Resources continues to de-risk the Muga Project
Highfield Resources continues to de-risk the Muga Project For personal use only Highfield advances further towards Project Acquisition developing the World Class Muga Exploration Potash Mine Resource Discovery Resource Definition Risk profile Scoping Study Pre-feasibility Study Full feasibility Stud
Slide 8: Permitting process next steps
Permitting process next steps For personal use only All regulatory bodies which are engaged in the Mining Concession process have already given their support to the project Permitting process continuing to de-risk project Mining Positive Concession Environmental Construction Approval Awarded Constru
Slide 9: Material progress in technically de-risking the Muga Project
Material progress in technically de-risking the Muga Project Conventional mine For personal use only with first class Project validated infrastructure Decline access to shallow mineralisation Updated Ore Reserve Estimate for Muga comprising 108.7 million tonnes of Proved Underground Room and Pillar
Slide 10: Muga Project enhancements continue to improve the financials
Muga Project enhancements continue to improve the financials Project enhancements For personal use only improved compliance As well as delivering better technical and commercial outcomes, the Muga Project enhancements deliver a number of value adding and improved environmental results and aspects ov
Slide 11: Strong financial position and support
Strong financial position and support For personal use only EMR Capital, strong supporter and Highfield’s largest shareholder at 30% Australian Super, large shareholder at 5% Project updated with Phase 1 capex of €368 million and Phase 2 capex of €208 million; C1 cash costs of €82/t, including salt
Slide 12: ESG is a key area of focus for Highfield Resources
ESG is a key area of focus for Highfield Resources A sharp focus on Environmental, Social and Governance factors to secure a For personal use only long term investment Environmental Factors Social factors Governance factors • Award of positive • Hosted an information session with • Robust governance
Slide 13: Logistics is key to potash producer's competitiveness
1.Most Potash large potash producers are far away from key markets Whereisdoes What it used it come for? from? For personal use only Logistics is key to potash producer’s competitiveness ~1,750km from mines to port ~1,700km from mines to port ~6,800 nautical miles ~8,700 nautical miles ~220km from m
Slide 14: Muga's location provides a substantial competitive advantage
Muga’s location provides a substantial competitive advantage For personal use only 7 Mt • The Muga Mine will be close to key 4 Mt demand areas of Europe as well as competitive logistical access • With extremely competitive and Total Europe versatile export options • Quick delivery times to customers
Slide 15: Potash price recovery
Potash price recovery European prices have maintained a premium to other prices For personal use only • Tight local supply due to mine closures and high cost local producers have maintained the European price premium • Given the mine’s location, a large part of the regional premium will be captured
Slide 16: Muga's competitive position against world peers
Muga’s competitive position against world peers FOB Cost curve forecast for 2024 (real US$) For personal use only 350 • European prices are at a premium to other markets Project enhancements have significantly 300 improved the C1 FOB cost moving the mine • Freight rates to the European market will b
Slide 17: The Muga Project three key takeaways
The Muga Project three key takeaways For personal use only 1 Location, location, location 2 Potash market strength 3 Considerably de-risked The mine’s location will allow it to capture Potash is a key commodity in feeding Highfield has significantly de-risked a large part of the regional premium the
Slide 18: Investment opportunity
Investment opportunity Muga Potash Mine Highfield Resources For personal use only Potentially one of the highest margin Experienced and capable management potash mines globally team that have successfully secured permitting and built mines before Low capex intensity per tonne of Strong board with gl
Slide 19: Registered office and further information
For personal use only 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
Slide 20: For personal use only
For personal use only www.highfieldresources.com.au
Highfield Resources — Investor Presentation (October 2019) on 6ix