Highfield Resources Limited · ASX:HFR
Highfield Resources — RFC Ambrian Potash and Phosphate Day (December 2014)
13 slides from Highfield Resources's conference presentation, Dec 1, 2014
Slide 1: Utopia in Potash
For personal use only Highfield Resources Ltd Utopia in Potash RFC Ambrian Potash and Phosphate Day 1 December 2014
Slide 2: Competent Person Statement and Forward Looking Statements
For personal use only COMPETENT PERSON STATEMENT Information relating to resources was prepared by Mr Leo Gilbride, P.Eng and Ms Vanessa Santos, P.Geo, of Agapito Associates. The Competent Person under JORC Code standards is Mr Leo Gilbride, P.Eng and Ms Vanessa Santos, P.Geo. of Agapito Associates
Slide 3: Contents
Highfield Resources Ltd Utopia in Potash For personal use only CONTENTS Section 1 – Background Global fertiliser market Potash 101 Highfield Resources – Corporate snapshot Highfield Resources – Project map HFR – Muga-Vipasca Pre-Feasibility Study Section 2 – Utopia in Poash Geological setting and mi
Slide 4: Global fertiliser market – K is key to participation in a $200bn market
Global fertiliser market – K is key to participation in a $200bn market For personal use only Market Barriers to entry (capex concentration and mineable resources) World Fertiliser supply breakdown - 2014 High K K Specialty 90Mt N Medium P P 153Mt K 70Mt P 47Mt Low* N N Source: IFA Fertilizers Globa
Slide 5: Potash
Potash 101 For personal use only What is Potash? Also know as Muriate of Potash (MOP) or potassium chloride (KCl) Most common method of providing potassium to crops Over 95% of production is destined for use in fertilisers Supply/Demand Global consumption of MOP currently ≈ 60m tpa Expected to trend
Slide 6: Corporate Snapshot
Corporate Snapshot For personal use only Fully Diluted Equity 0.90 3,500,000 Ordinary Shares on Issue 200.50m 0.80 3,000,000 Options 39.25m 0.70 2,500,000 Performance A* Shares 51.50m Price (A$) Performance B* Shares 51.50m 0.60 2,000,000 Volume Fully Diluted 342.75m 0.50 1,500,000 Undiluted Market
Slide 7: Project map
Project map For personal use only 0 5 10 15 20 km 7
Slide 8: Highfield - Muga-Vipasca Pre-Feasibility Study
Highfield - Muga-Vipasca Pre-Feasibility Study For personal use only Underground mine accessed via a decline supported by first world infrastructure and domestic markets • Post tax NPV10 of US$1.06bn • Post tax, unlevered IRR of 48.4% • EBITDA in first year of full production estimated at $US235m •
Slide 9: Utopia in Potash – Geological setting and mineralogy
Utopia in Potash – Geological setting and mineralogy For personal use only Criteria Utopia is Utopia means Shallow depth from surface: less than 500m but deep Decline access or shallow, low cost Depth enough to enable conventional mining shaft No expensive shafts through Water Absence of aquifers an
Slide 10: Utopia in Potash – Infrastructure and location
Utopia in Potash – Infrastructure and location For personal use only Criteria Utopia is Utopia means Proximity to, quality and reliability of electricity, gas Utilities Lower capex and lower opex and water networks Energy cost Cost of energy at the lower end of global pricing scale Lower opex Access
Slide 11: Project comparison
Project comparison For personal use only Company Highfield Intrepid PotashCorp Mosaic Belaruskali Uralkali ICL Project Muga Carlsbad West Lanigan Belle Plaine Soligorsk III Bereznikl IV Suria Location Spain USA Canada Canada Belarus Russia Spain Mining method1 Conventional Conventional Conventional
Slide 12: What does it mean?
What does it mean? For personal use only Project Highfield – Muga* Belaruskali BHP Jansen* Intrepid Potash K+S Legacy* Price at CFR Brazil / CIF NW Europe SE Asia / Brazil / Europe FOB Vancouver CIF US Midwest FOB Vancouver Customer US$380 / tonne US$350 / tonne US$310 / tonne US$450 / tonne US$310
Slide 13: 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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