Highfield Resources Limited · ASX:HFR
Highfield Resources — Investor Presentation (July 2018)
26 slides from Highfield Resources's investor presentation, Jul 23, 2018
Slide 1: For personal use only
For personal use only
Slide 2: Competent Person Statement and Forward Looking Statements
For personal use only COMPETENT PERSON STATEMENT This presentation was prepared by Mr. Peter Albert, Managing Director of Highfield Resources. The information in this presentation that relates to Ore Reserves, Mineral Resources, Exploration Results and Exploration Targets is based on information pre
Slide 3: Contents
Highfield Resources Limited CONTENTS For personal use only 1. Corporate Summary 2. Board and Senior Management 3. Core Values 4. Muga Mine Overview 5. Construction Timeline and Key Milestones 6. Location and Flexibility of Muga 7. Strategic Location Advantage 8. Muga’s Competitive Position 9. Progre
Slide 4: Corporate Summary
1. Corporate Summary For personal use only Equity Ordinary Shares on Issue 329.5m 2.25 3.0 Options 53.2m 2.00 Fully Diluted 382.7m 2.5 1.75 Undiluted Market Cap at A$0.75 (30/06/2018) A$247.1m 1.50 2.0 Volume (k) Cash as at 30 June 2018 A$60.3m Price (A$) 1.25 1.5 Enterprise Value A$186.8m / EUR€118
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 Independent Non- Executive, Chairman Roger Davey Pauline Carr Jim Dietz Isaac Querub Brian Jamieson Richard Crookes Owen Hegarty Independent Ind
Slide 6: Vision and Core Values
3. Vision and Core Values “To build a successful, sustainable, For personal use only potash business with respect for stakeholders and the environment” Commitment Respect We are committed to best practices in To act and communicate collaboratively health and safety, the environment, with transparenc
Slide 7: The Muga Mine Overview
4. The Muga Mine Overview Key advantages of Highfield´s flagship potash project For personal use only Easy access to first-world infrastructure, 01 power, roads, ports, etc. 05 Shallow mineralisation with no aquifers 02 Qualified and available local labour market 06 Conventional underground mining a
Slide 8: Construction timeline and key milestones
5. Construction timeline and key milestones For personal use only 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 Decline Infrastructure Aboveground Ponds and tailings Storage Buildings Wet
Slide 9: Location and Flexibility of Muga
6. Location and Flexibility of Muga Low delivered cost and production flexibility make Muga a high margin potash mine For personal use only • Location flexibility: Proximity to ports Proximity to and world class road infrastructure local premium – Proximity to local and domestic customers market – P
Slide 10: Strategic Location Advantage
7. Strategic Location Advantage Minimal local impact For personal use only • Marginal farm land with natural terrain Offices Access to portals features, allowing low impact development GOMP & SMOP Dry process plant • Compact site development Wet process plant ROM • Close to world class local infrast
Slide 11: Muga's Competitive Position
8. Muga’s Competitive Position For personal use only Simple Mining Proximity to Local First Class Conventional Markets Infrastructure Processing Decline access to shallow mineralisation Located in a potash Direct connection to Sylvinite ore consuming region national electricity grid Underground Room
Slide 12: Progress to Date
9. Progress to Date Recent Muga Milestones For personal use only 01 02 03 04 05 Drilling an incline Hydrogeological Continued mine Preliminary third party Revised capital cost geotechnical drill hole drilling completed and design optimisation project report by estimate expected to directly in line w
Slide 13: Permitting Process Overview
10. Permitting Process Overview Permitting process is continuing to follow standard procedure For personal use only 2014 2015 2016 2017 2018 Encomienda de Gestión (May) Extended time submitted by MAPAMA (April) Submission updated EsIA to MAPAMA (April) Outstanding reports issued by regional and Subm
Slide 14: Permitting Process – Current Steps
10. Permitting Process – Current Steps For personal use only Environmental permitting process moving towards conclusion Submitted full revised document to Final clarification MAPAMA MAPAMA requested document submitted (April 2017) clarification on only to the Ministry for The Ministry Reports from a
Slide 15: Permitting Process – Next Steps
10. Permitting Process – Next Steps Environmental permitting process moving towards conclusion For personal use only Mining Concession Construction Permits • Town Halls • Following a positive DIA the Department • Water Authority of Mines can consider the award of the • Power connection and lines Min
Slide 16: Implementing our Sustainable Strategy
11. Implementing our Sustainable Strategy A sharp focus on ESG factors to secure a long term investment For personal use only Setting an example • Forética, the most important sustainability institution in Spain has recognised the Community Communication Plan of Geoalcali as an example of best pract
Slide 17: Implementing our Sustainable Strategy: Local stakeholder engagement
11. Implementing our Sustainable Strategy Local stakeholder engagement is key to a successful project For personal use only Mayors of the region and Company Open Doors Event – October 2017 The Company welcomed over 200 persons representatives from local communities Working sessions, information talk
Slide 18: Supporting the local community
11. Implementing our sustainable strategy Supporting the local community For personal use only Open Day, Sangüesa, October 2017 Social Development Safety Sustainable Economic Minimise Environmental Impact Development Creating an industry and direct Core focus on minimising risk and Developing a stro
Slide 19: The Rehabilitation Plan
12. The Rehabilitation Plan Minimise environmental impact For personal use only • Restoration plan designed to progressively reinvigorate the project site during and after mine operations • Salt by-product sold and/or residue placed underground • Zero salt on surface at the end of planned mine opera
Slide 20: Upside Potential – Other Projects
13. Upside Potential – Other Projects Basin of projects with shared characteristics of Muga Potash Mine For personal use only 20 Location of Highfield´s Muga, Vipasca, Pintanos, Izaga and Sierra del Perdón Projects in Northern Spain
Slide 21: Upside Potential – Short Term
13. Upside Potential – Short Term For personal use only 01 SOP Project 02 K62 03 Future Projects Study completed in July 2016 Study completed in May 2015 Advance next development projects e.g. Sierra del Perdón, Converting Muga MOP to Improving potash purity to Vipasca etc. SOP creating downstream g
Slide 22: Upside Potential – Long Term
13. Upside Potential – Long Term Potential Development of Other Resources For personal use only 01 Sierra del Perdón 03 Pintanos Further exploration drilling Upside potential similar to programme commenced on current Muga Project 7th April 2018 Resource and Mine Reserve Decline access to underground
Slide 23: Summary – Muga
15. Summary – Muga Given all the positive aspects, it is considered that Muga will be a high margin mine For personal use only • A number of improvements and project optimisation activities ongoing • Bringing forward backfilling and salt treatment from Phase 2 • Revised process plant, increase in co
Slide 24: Summary – Highfield
15. Summary – Highfield Well funded with significant long term upside For personal use only Funding • €38.3 (A$60.3) million in the bank – as at 30/06/2018 • Supportive project finance syndicate for facility to support construction • Multiple equity participation avenues Upside potential with an out
Slide 25: Summary – Highfield
15. Summary – Highfield Well funded with significant long term upside For personal use only Low capital cost to production Very strong community and local government support High margin driven by technical factors and project location Experienced team of mine builders and operators, including: • Pet
Slide 26: For personal use only
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
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