Highfield Resources Limited · ASX:HFR
Highfield Resources — Investor Presentation (May 2015)
24 slides from Highfield Resources's investor presentation, May 5, 2015
Slide 1: Highfield Resources Ltd Corporate Presentation May 2015
For personal use only Highfield Resources Ltd Corporate Presentation May 2015 ASX Code: HFR
Slide 2: Competent Person Statement – Resources and Reserves
COMPETENT PERSON STATEMENT – RESOURCES For personal use only Information relating to resources was prepared by Mr Leo Gilbride, P.Eng and Ms Vanessa Santos, P.Geo, of Agapito Associates. The Competent Person for Resources under JORC Code standards is Mr Leo Gilbride, P.Eng and Ms Vanessa Santos, P.G
Slide 3: Contents
Highfield Resources Limited CONTENTS For personal use only 1. Introduction 11. Pintano Potash Project 2. Corporate Summary 12. Izaga Potash Project 3. Board and Senior Executives 13. Production Timelines 4. Objective – Significant Global Potash Producer 14. Production Focus to Deliver Real Sharehold
Slide 4: Introduction
1. Introduction • Highfield Resources is developing the Muga Decline accessed underground mine with project economics For personal use only Project, one of its five 100% owned potash projects in northern Spain. boosted by first world infrastructure and domestic markets • Located in a producing potas
Slide 5: Corporate Summary
2. Corporate Summary 2.00 8.0 Fully Diluted Equity For personal use only 1.75 7.0 Ordinary Shares on Issue 252.0m 1.50 6.0 Options 43.5m Volume (m) 1.25 5.0 Price (A$) Performance B Shares* 51.5m 1.00 4.0 Fully Diluted 347.0m 0.75 3.0 Undiluted Market Cap at A$1.84 A$464m 0.50 2.0 (1 May 15) 0.25 1.
Slide 6: Board and Senior Executives
3. Board and Senior Executives Board of Directorsuse only Derek Carter – Non Executive Chairman A geologist with over 40 years experience in exploration and development, including nearly 20 years in management of ASX listed exploration companies including acting as Chief Geologist in Spain for the S
Slide 7: Objective – Significant Global Potash Producer
4. Objective – Significant Global Potash Producer Highfield’s objective is to produce at least 2 million tonnes of high margin MOP per annum by 2020 For personal use only 3,000,000 2,500,000 K60 MOP Production Per Annum ? ? ? 2,000,000 1,500,000 1,000,000 500,000 0 7
Slide 8: Strong Pipeline at Varying Stages
5. Strong Pipeline at Varying Stages Pipeline of projects with many shared characteristics that are required for low capex and high margin mines For personal use only Shared characteristics: No problems with aquifers overlying mineralisation Muga Development Potential for decline access to conventio
Slide 9: The Projects
6. The Projects Five 100% owned potash projects in northern Spain covering over 550km2 For personal use only 9
Slide 10: Muga Potash Project
7. Muga Potash Project Highfield’s most advanced, low capex, high margin potash development project For personal use only Summary • DFS completed March 2015 • Decline access, conventional underground mine • Technologically proven process plant • Expected to produce over 1.1Mtpa of granular K60 MOP •
Slide 11: Sierra del Perdón Potash Project
8. Sierra del Perdón Potash Project Highfield’s second low capex, high margin potash development project For personal use only Summary • Scoping Study completed April 2015 • Decline access, conventional underground mine • Technologically proven process plant • Expected to produce over 520ktpa of gra
Slide 12: Muga By-Products K62 Project
9. Muga By-Products K62 Project An additional high margin, low capex potash project For personal use only Summary • Scoping Study completed May 2015 • Conventional crystallisation plant to treat Muga Mine by-products • Revenues from K62 MOP and high-purity vacuum salt • Expected to produce approx 13
Slide 13: Vipasca Potash Project
10. Vipasca Potash Project Outstanding exploration potential abutting Muga with substantially greater scale For personal use only Summary • Permit area is contiguous with Muga Project • Permit area of over 120km2 • TDEM and gravimetry shows continuity of the evaporitic horizon from Muga • Significan
Slide 14: Pintano Potash Project
11. Pintano Potash Project Significant shallow JORC Inferred Resource with similar scale to Muga For personal use only Summary • Contiguous with Muga Project • Total project area of over 65km2 • Mineralisation starts at less than 500m below surface • Inferred Mineral Resource* of 187 million tonnes
Slide 15: Izaga Potash Project
12. Izaga Potash Project Grass roots exploration with good indications from historical drilling For personal use only Summary • New permits applied for April 2015 • Project area of over 100km2 • Clear continuation of sub-basin evaporitic units evidenced by outcropping • Historical drilling completed
Slide 16: Production Timelines
13. Production Timelines Five 100% owned potash projects in northern Spain For personal use only PROJECT TIMELINE 2015 2016 2017 2018 2019 2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1 MUGA Phase 1 Construction Production 2 MUGA Phase 2 Construction Production SIERRA
Slide 17: Production Focus to Deliver Real Shareholder Value
14. Production Focus to Deliver Real Shareholder Value Real opportunity to create a signficant global potash producer For personal use only NPV10 Valuation (US$) Muga Potash Mine1 1,422m Sierra del Perdón Potash Mine2 528m Muga Mine K62 Project3 222m Total NPV 2,172m Other Projects: Vipasca Potash P
Slide 18: Competitive Advantages – Mining and Processing
15. Competitive Advantages – Mining and Processing Highfield’s projects share many technical characteristics required to be high margin potash mines For personal use only Mining Highfield Decline access into underground conventional room and pillar mine Iberpotash Processing Flotation circuit proces
Slide 19: Competitive Advantages – High Priced Markets
16. Competitive Advantages – High Priced Markets And have a geographical advantage over producing peers… For personal use only 18.7 21.0 Estimated 2014 MOP supply and demand by region 0.8 3.8 CIF NW Europe 6.5 FOB Vancouver $363 4.2 Canada 13.0 $290 8.7 FSU EU* 1.5 5.5 6.5 USA 1.4 CIF US Midwest Chi
Slide 20: Low Capital Cost
17. Low Capital Cost Shared geological and geographical features drive industry low Capex to production For personal use only Total capex (in absolute terms) Capital intensity per tonne of production Eurochem: VolgaKaliy W. Potash: Milestone W. Potash: Milestone Eurochem: VolgaKaliy Potashcorp: Roca
Slide 21: High Margin
18. High Margin Highfield expects its project pipeline to deliver margins similar to Muga For personal use only Project Highfield – Muga* Belaruskali BHP Jansen* Intrepid Potash K+S Legacy* Price at Customer CFR Brazil / CIF NW Europe1 Asia / Brazil / Europe1 FOB Vancouver CIF US Midwest FOB Vancouv
Slide 22: Priorities – Commencement of Construction
19. Priorities – Commencement of Construction The transition from developer to producer For personal use only • Discussions ongoing with eight leading European based commercial banks Debt • Initial indicative term sheets received suggest funding likely on a 65% debt to equity ratio Muga Mine • Targe
Slide 23: Summary
20. Summary For personal use only • Highfield Resources is developing the Muga Potash Project, one of its five 100% owned potash projects in Northern Spain. • The projects are in a producing potash basin where conventional underground mines have operated via decline and sylvinite flotation circuit p
Slide 24: For personal use only
For personal use only REGISTERED OFFICE 169 Fullarton Road Dulwich SA 5065 Australia HEAD OFFICE Avenida Carlos III, 13-15, 1B, 31002 Pamplona, Spain T +34 948 050 577 | F +34 948 050 578 www.highfieldresources.com.au info@highfieldresources.com.au FURTHER INFORMATION Anthony Hall Managing Director
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