Highfield Resources Limited · ASX:HFR
Highfield Resources — Shareholder Meeting (June 2023)
24 slides from Highfield Resources's shareholder meeting presentation, Jun 9, 2023
Slide 1: AGM Presentation – Revised (ASX announcement)
ASX ANNOUNCEMENT ASX: HFR 9 June 2023 AGM Presentation – Revised Highfield Resources Limited (ASX: HFR) (“Highfield” or the “Company”) withdraws the AGM Presentation dated 30 May 2023 and provides the amended Presentation that follows. Specifically, slide 16 entitled ‘Low Capex Intensity and Strong
Slide 2: About Highfield Resources
ASX ANNOUNCEMENT About Highfield Resources Highfield Resources is an ASX listed potash company which is focussing on the construction of its flagship low cost, low capex Muga Project in Spain having now received all permits and key licences needed. With the Mining Concession being granted in July 20
Slide 3: Fully Permitted Potash Mine in Europe: Ready for Construction
For personal use only Fully Permitted Potash Mine in Europe: Ready for Construction AGM Presentation May 2023 ASX: HFR
Slide 4: Competent Persons Statement
COMPETENT PERSONS STATEMENT FOR MUGA ORE RESERVES, MUGA MINERAL RESOURCES and EXPLORATION TARGET For personal use only This update was prepared by Mr. Ignacio Salazar Director of Highfield Resources. The information in this update that relates to Ore Reserves is based on information prepared under t
Slide 5: Strong market fundamentals in Potash (MOP)
Strong market fundamentals in Potash (MOP) For personal use only Strong market fundamentals Upward price forecasts 2.5 10.0 800 Billions of tonnes 2.0 8.0 Soybean prices are the 700 1.5 6.0 highest in 5 years Billions of tonnes 600 USD/t 1.0 4.0 500 0.5 2.0 400 0.0 0.0 300 1980 1983 1986 1989 1992 1
Slide 6: Muga is strategically important for Europe
Muga is strategically important for Europe European markets accessible to Muga mine European Imports For personal use only • 47% of European imports were from Russia and Belarus (4 year 6Mt average) 4Mt Muga Mine MOP trade • Russia and Belarus accounted for 38% of worldwide production 26% routes in
Slide 7: Introduction and Progress
For personal use only INTRODUCTION AND PROGRESS
Slide 8: Corporate Snapshot
Corporate Snapshot For personal use only 1.40 40 Capital Structure 1.20 35 Share Price (29 May 2023) $0.595 30 Shares on Issue 387 million 1.00 Volume (100,000 shares) Share price (A$) 25 0.80 Options & Performance Rights - 20 0.60 Market Capitalisation $230 million 15 0.40 Cash (31 March 2023) $9.0
Slide 9: Experienced Management Team
Experienced Management Team For personal use only Ignacio Salazar Javier Aguado Javier Olloqui Susana Bieberach Olivier Vadillo Managing Director and CEO CFO Head of Human Resources, Head of Public Affairs Head of Marketing & Investor Foundation & IT Relations Carles Aleman Leonardo Torres-Quevedo J
Slide 10: HFR and the Muga Project
HFR and the Muga Project Conventional Underground For personal use only A potash developer listed on Muga is a two-phase project Room and Pillar mining. Conventional Flotation and the ASX (HFR) with projects which will produce a total of Declines accessing shallow Crystallisation processing in North
Slide 11: Construction started at the Muga Mine in 2022
Construction started at the Muga Mine in 2022 For personal use only • June 2022: Townhall of Undués de Mine gates Lerda in Aragón issued the licence for Declines the construction of the mine gate and declines Electricity substation • July-Dec 2022: Initial construction Fresh water ponds work at Muga
Slide 12: Construction milestones achieved to date
Construction milestones achieved to date For personal use only • Preliminary works around the mine gate finalised in 2022 • All major supply contracts for the processing plant equipment signed • Compactors and granulators manufactured and received • The remaining equipment to be manufactured during
Slide 13: Main facilities construction
Main facilities construction 3 Construction workstreams: For personal use only • Process Plant. Includes RoM storage, flotation plant, crystallization, drying and compacting plant, product storage and truck loading. • Urbanization. Access road to the plant, internal roads, general urbanization, wate
Slide 14: Progress Report
Progress Report 2022 2023 2024 2025 For personal use only Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Key permits obtained: • Environmental approval (DIA) • Mining Concession • Electricity line Authorisation • Mine gate and decline construction licence • Process plant construction licence Equity
Slide 15: Why Highfield Resources?
For personal use only WHY HIGHFIELD RESOURCES?
Slide 16: Location, Shallow Mineralization, and Tier-One Infrastructure in Place
Location, Shallow Mineralization, and Tier-One Infrastructure in Place For personal use only Higher netback with local market within trucking distance National Electricity Grid Substation in Sangüesa National Electricity Grid Substation is in close proximity to mine site First class infrastructure
Slide 17: Top Quartile Margins in the Industry
Top Quartile Margins in the Industry European prices continue to trade at a premium to Margin curve forecast for 2026 (real US$) For personal use only other markets 200.0 1,150.0 1,050.0 150.0 950.0 850.0 750.0 100.0 USD/t 650.0 USD/ t 550.0 50.0 450.0 350.0 0.0 250.0 0 10 20 30 40 50 60 70 150.0 -
Slide 18: Low Capex Intensity and Strong Project Economics
Low Capex Intensity and Strong Project Economics Phase 1 capex of €436 million + Phase 2 capex of €226 million For personal use only MUGA: APPROXIMATELY HALF THE CAPEX INTENSITY OF OTHER GLOBAL DEVELOPMENT PROJECTS (US$/t of potash) US$/t Average capex (US$/t) 2,500 Capex intensity $/t 2,000 1,500 1
Slide 19: Strong Economics and Financing Strategy
Strong Economics and Financing Strategy For personal use only NPV8 of €1.82 Billion, 21% IRR Updated capex numbers with More advanced engineering higher degree of accuracy: At full production, EBITDA of reconfirming a 30-year mine life1 phase 1 €436 million around €400 Million pa phase 2 of €226 mil
Slide 20: Strong Support from Existing Shareholders
Strong Support from Existing Shareholders For personal use only • Key strategic investment from funds managed by EMR and Tectonic • EMR and Tectonic demonstrate their continued long-term support in the Company • The investment will be in the form of convertible notes, resulting in a cash injection o
Slide 21: Industry Leading ESG Credentials
Industry Leading ESG Credentials For personal use only Environmental Factors • Progressively rehabilitate mine: Backfilling and salt sales • Muga will be the only mine not to leave residue on the surface after production Social Factors • Social Baseline Study prepared by Government of Navarra Govern
Slide 22: An Investment Opportunity in the Next Major European Potash Mine
An Investment Opportunity in the Next Major European Potash Mine For personal use only Muga Potash Mine Highfield Resources Strong market fundamentals Strong financial position and Global potash prices still strong financial markets support Location is a major strategic advantage Experienced Managem
Slide 23: Questions
For personal use only QUESTIONS
Slide 24: Registered Office and Further Information
For personal use only ASX:HFR 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:
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