Highfield Resources Limited · ASX:HFR
Highfield Resources — Shareholder Meeting (May 2022)
37 slides from Highfield Resources's shareholder meeting presentation, May 26, 2022
Slide 1: Constructing the Next European Potash Mine
For personal use only Constructing the Next European Potash Mine AGM Presentation May 2022 ASX: HFR
Slide 2: Competent Persons Statement for Muga Ore Reserves, Mineral Resources and Exploration Target
For personal use only COMPETENT PERSONS STATEMENT FOR MUGA ORE RESERVES, MUGA MINERAL RESOURCES AND EXPLORATION TARGET This presentation was approved by Mr. Ignacio Salazar Director of Highfield Resources. The information in this presentation that relates to Ore Reserves is based on information prep
Slide 3: Welcome
Welcome For personal use only Welcome to the Annual General Meeting of Highfield Resources Limited Mr. Paul Harris – Independent Non-Executive Chairman, B Comm, M Eng. (Mining) GAICD Appointment Effective 25 March 2022 As recently announced to the ASX, Mr Harris will join the Board of Highfield Reso
Slide 4: Highfield Resources Board
Highfield Resources Board For personal use only Paul Harris Ignacio Salazar Pauline Carr Roger Davey Brian Jamieson Chairman Managing Director Non-Executive Non-Executive Non-Executive and CEO Director Director Director Highfield Resources AGM Presentation
Slide 5: Administration
Administration For personal use only Questions to the Board or the Company’s auditor- Mr Julian McCarthy, regarding the financial report or specific to the resolutions being presented today will be addressed throughout the formal section of the meeting. All other general questions will be addressed
Slide 6: Voting – online poll
Voting – online poll For personal use only The real-time online poll is now open. Voting on the poll will remain open until after the Corporate Presentation has concluded. Highfield Resources AGM Presentation 6
Slide 7: Ordinary business
Ordinary business For personal use only To consider the Financial Statements for the financial year ended 31 December 2021 and accompanying reports of the Directors and Auditor. Highfield Resources AGM Presentation 7
Slide 8: Resolution 1: Adoption of the Remuneration Report
Resolution 1: The adoption of the Remuneration Report For personal use only To consider and, if thought fit, pass, with or without amendment, the following resolution as a non-binding ordinary resolution: “That the Company adopt the Remuneration Report for the year ended 31 December 2021 as set out
Slide 9: Resolution 2: Re-election of Ms Pauline Carr as Director
Resolution 2: Re-election of Ms Pauline Carr as Director For personal use only To consider and, if thought fit, pass, with or without amendment, the following resolution as an ordinary resolution: “That Ms Pauline Carr, having voluntarily retired in accordance with clause 12.11.1 of the Constitution
Slide 10: Resolution 3: Election of Mr Ignacio Salazar as Director
Resolution 3: Election of Mr Ignacio Salazar as Director For personal use only To consider and, if thought fit, pass, with or without amendment, the following resolution as an ordinary resolution: “That Mr Ignacio Salazar, being a person who in accordance with clause 12 of the Constitution has at le
Slide 11: Resolution 4: Election of Mr Paul Harris as Director
Resolution 4: Election of Mr Paul Harris as Director For personal use only To consider and, if thought fit, pass, with or without amendment, the following resolution as an ordinary resolution: “That Mr Paul Harris, being a person who in accordance with clause 12 of the Constitution has at least 35 b
Slide 12: Resolution 5: Issue of Options to Non-Executive Director
Resolution 5: Issue of Options to Non-Executive Director – Mr Paul Harris For personal use only To consider and, if thought fit, pass, with or without amendment, the following resolution as an ordinary resolution: “Subject to the passing of Resolution 4, that for the purposes of section 195(4) of th
Slide 13: Resolution 6: Issue of Options to Managing Director
Resolution 6: Issue of Options to Managing Director – Mr Ignacio Salazar For personal use only To consider and, if thought fit, pass, with or without amendment, the following resolution as an ordinary resolution: “That for the purpose of Listing Rule, 10.14 and for all other purposes, approval is gi
Slide 14: Resolution 7: Approval of Previous Issue of Shares
Resolution 7: Approval of Previous Issue of Shares – ASX Listing Rule 7.1 For personal use only To consider and, if thought fit, pass, with or without amendment, the following resolution as an ordinary resolution: “That for the purpose of ASX Listing Rule 7.4 and for all other purposes, approval is
Slide 15: Resolution 8: Approval of 10% Placement Facility
Resolution 8: Approval of 10% Placement Facility For personal use only To consider and, if thought fit, pass, with or without amendment, the following resolution as a special resolution: “That pursuant to and in accordance with Listing Rule 7.1A and for all other purposes, shareholders approve the i
Slide 16: Resolution 9: Renewal of Proportional Takeover Provisions
Resolution 9: Renewal of Proportional Takeover Provisions For personal use only To consider and, if thought fit, pass, with or without amendment, the following resolution as a special resolution: “That, for the purposes of section 136(2) of the Corporations Act and for all other purposes, approval i
Slide 17: Ignacio Salazar and Olivier Vadillo
Corporate Presentation For personal use only Ignacio Salazar Olivier Vadillo Managing Director and CEO Head of Investor Relations and Sales and Marketing Highfield Resources AGM Presentation 17
Slide 18: Constructing the Next European Potash Mine
For personal use only Constructing the Next European Potash Mine AGM Presentation May 2022 ASX: HFR
Slide 19: Competent Persons Statement for Muga Ore Reserves, Mineral Resources and Exploration Target
For personal use only COMPETENT PERSONS STATEMENT FOR MUGA ORE RESERVES, MUGA MINERAL RESOURCES AND EXPLORATION TARGET This presentation was approved by Mr. Ignacio Salazar Director of Highfield Resources. The information in this presentation that relates to Ore Reserves is based on information prep
Slide 20: Potash Market
For personal use only POTASH MARKET
Slide 21: Significant Potash Prices Increase at the Right Time for Muga
Significant Potash Prices Increase at the Right Time for Muga For personal use only Strong market fundamentals Upward price forecasts 800 2.0 10.0 700 8.0 Soybean prices are the Billions of tonnes 1.5 Billion highest in 5 years USD/t 6.0 600 1.0 4.0 500 0.5 2.0 400 0.0 0.0 300 1980 1983 1986 1989 19
Slide 22: Current supply restrictions will have a long term impact on global MOP trade
Current supply restrictions will have a long term impact on global MOP trade For personal use only Most large potash producers are far away from key markets 27Mt 24Mt Production at risk. Russian- 7Mt Belarusian have a market 4Mt share of 47% in Europe 12Mt 4Mt Russian MOP Europe production expected
Slide 23: Muga is becoming even more strategically important for Europe
Muga is becoming even more strategically important for Europe For personal use only % of Global Production • Russia and Belarus accounted for 38% of worldwide 38% production in 2021, or about 27 Mt of potash: 62% ✓ Belarus exports falling sharply due to EU and US sanctions, and Lithuania’s MOP trans
Slide 24: Introduction and Recent Developments
For personal use only INTRODUCTION AND RECENT DEVELOPMENTS
Slide 25: Corporate Snapshot
Corporate Snapshot For personal use only Capital Structure 1.40 60 Share Price (25 May 2022) $0.905 1.20 Shares on Issue 364.4 million 50 Options & Performance Rights - Volume (100,000 shares) 1.00 40 Share price (A$) Market Capitalisation $329.78 million 0.80 Cash (31 March 2021) $18.64 million 30
Slide 26: Highfield Resources Management Team
Highfield Resources Management Team For personal use only Ignacio Salazar Javier Aguado Javier Olloqui Susana Bieberach Leonardo Torres-Quevedo Managing Director and CEO CFO Head of Human Resources, Head of Public Affairs Head of Project Construction & Foundation & IT Facultative Director Olivier Va
Slide 27: Highfield Resources and the Muga Project
Highfield Resources and the Muga Project For personal use only Conventional Underground A potash developer listed on Muga is a two phase project Room and Pillar mining. Conventional Flotation and the ASX (HFR) with projects which will produce a total of Declines accessing shallow Crystallisation pro
Slide 28: Muga Moving to Construction
Muga Moving to Construction For personal use only 2021 2022 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Contract with construction partner Finalise procurement of process plant long-lead items Electricity line Authorisation Mining Concession Local town hall construction licenses Equity Banks mandate raise let
Slide 29: Why Highfield Resources?
For personal use only WHY HIGHFIELD RESOURCES?
Slide 30: Logistical advantage, Shallow Mineralization, Conventional Mining, Tier-One Infrastructure
Logistical advantage, Shallow Mineralization, Conventional Mining, with Tier-One Infrastructure in Place For personal use only Higher netback with local Muga will be one of only two potash market within trucking distance mines located in Southern Europe Close to the Port of Bilbao (~220km), Spain’s
Slide 31: Top Quartile Margins in the Industry
Top Quartile Margins in the Industry For personal use only European prices continue to trade at a premium to Margin curve forecast for 2024 (real US$) other markets 1,150.0 1,050.0 200 950.0 150 850.0 750.0 100 USD/t 650.0 550.0 50 US$/t 450.0 350.0 00 250.0 0 10 20 30 40 50 60 70 150.0 -50 2016 20
Slide 32: Low Capex Intensity and Strong Project Economics
Low Capex Intensity and Strong Project Economics For personal use only Phase 1 capex of €398 million + Phase 2 capex of €209 million MUGA: HALF THE CAPEX INTENSITY OF OTHER GLOBAL DEVELOPMENT PROJECTS (US$ per tonne of potash) 2,000 Capex intensity $/t 1,500 1,000 500 - BHP (Jansen) Canadian mine BH
Slide 33: Updated Feasibility Study Reconfirms Muga's Strong Economics
Updated Feasibility Study Reconfirms Muga’s Strong Economics For personal use only Updated capex numbers with NPV8 of €1.89 Billion More advanced engineering higher degree of accuracy: 25% IRR reconfirming a 30-year mine life1 phase 1 €398 million phase 2 of €209 million Mandate letter for €300 mill
Slide 34: Industry Leading ESG Credentials
Industry Leading ESG Credentials For personal use only • Environmental compliance and commitment through DIA award Environmental • Progressively rehabilitate mine: Backfilling and salt sales • Muga will be the only mine not to leave residue on the surface after production Factors • Strong local supp
Slide 35: 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 on the move financial markets support Location is a major strategic advantage Experienced Manageme
Slide 36: Questions
For personal use only QUESTIONS
Slide 37: 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: