Highfield Resources Limited · ASX:HFR
Highfield Resources — Investor Presentation (June 2019)
19 slides from Highfield Resources's investor presentation, Jun 6, 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 Investment opportunity June 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 Industry friendly Easy access to Low freight cost to and retainer in high Excellent existing 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”) is the most significant step in the Muga Project approval process. The positive DIA allows Highfield Resources to complete all other permits necessary for construction. All r
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 DONE Permitting process continuing to de-risk project Mining Construction DIA Construction Concession Permits Award of positive Estimated 3-6 months after Estimated 6-12 months after Estimated 2 years Environmental Approval Environmental Approval M
Slide 9: Strong financial position and support
Strong financial position and support For personal use only EMR Capital, strong supporter and Highfield’s largest shareholder at c.30% Australian Super, large shareholder at +5% Project updated with Phase 1 capex of €342 million and Phase 2 capex of €199 million; C1 cash costs of €104/t, including s
Slide 10: Technically de-risked
Technically de-risked For personal use only Optimised, validated and achieved material progress in technically de-risking the Muga Project Conventional mine Mine design Project reviewed Construction Updated Reserves with first class complete and validated de-risked and Resources infrastructure Decli
Slide 11: ESG is a key area of focus for Highfield Resources
ESG is a key area of focus for Highfield Resources A sharp focus on ESG factors to secure a long term investment For personal use only A sharp focus on Environmental, Social and Governance factors to secure a long term investment Environmental Factors Social factors Governance factors • Award of pos
Slide 12: 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 Port of Bilbao Port of Pasajes 220k
Slide 13: Muga's location is its main competitive advantage
Muga’s location is its main competitive advantage For personal use only • The Muga Mine will be close to key demand areas of Europe as 7 Mt well as competitive logistical access 4 Mt • With extremely competitive and versatile export options • Quick delivery times to customers • No European import du
Slide 14: Potash price recovery
Potash price recovery For personal use only European prices have maintained a premium to other prices • 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 a
Slide 15: Muga's competitive position against world peers
Muga’s competitive position against world peers For personal use only FOB Cost curve forecast for 2024 (real US$) 350 • European prices are at a premium to other 300 markets 250 • Freight rates to the European market will be low and therefore the mine will see virtually all the MOP US$/t 200 150 pre
Slide 16: 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 17: Investment opportunity
Investment opportunity For personal use only Muga Potash Mine Highfield Resources Potentially one of the highest margin Experienced and capable management potash mines globally team that has successfully secured permitting and built mines before Low capex intensity per tonne of Strong board with glo
Slide 18: 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: peter.albert@highfieldresources.com.au Olivier Vadillo
Slide 19: For personal use only
For personal use only www.highfieldresources.com.au
Highfield Resources — Investor Presentation (June 2019) on 6ix