Highfield Resources Limited · ASX:HFR
Highfield Resources — Investor Presentation (November 2023)
26 slides from Highfield Resources's investor presentation, Nov 20, 2023
Slide 1: Investor Presentation November 2023
For personal use only Investor Presentation November 2023 | ASX:HFR
Slide 2: Disclaimer
Disclaimer 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 the Ore Reserve reported as of 31 October
Slide 3: Highfield Resources
Highfield 7 Resources
Slide 4: Why Highfield Resources?
Why Highfield Resources? For personal use only Targeting €340 Forecast to be Fully permitted Location is a major million per one of the and shovel strategic The Muga Potash annum EBITDA1 highest margin ready project in advantage. Shallow Potash operation potash mines Spain mineralization. Mine is se
Slide 5: Corporate Structure
Corporate Structure For personal use only Ticker HFR HIGHFIELD RESOURCES LIMITED Share Price (as at 15 November 2023) A$0.40 Asset Common Shares 392.2M High-grade Proved and Probable Ore Reserve of 237.3Mt at 12.0% Potassium Oxide (K2O) Dilutive Securities 35.1M Permitted and Construction ready, Mar
Slide 6: The Lifecycle of a mineral discovery
The Lifecycle of a mineral discovery For personal use only Risks Funding risk Technical risk Exploration risk Discovery This is most likely the time when There is a tipping point in exploration people outside of the mining industry when drilling amounts to a real mineral hear of a new discovery whil
Slide 7: Team
Team Board overview Management overview For personal use only Paul Harris, Independent Non-Executive Director Javier Aguado, CFO ▪ Joined Board March 2022. ▪ Over 20 years’ accounting and financial experience. ▪ Over 25 years’ experience in financial markets and investment banking, ▪ Previous worked
Slide 8: Potash Market Overview
Potash Market Overview Global food security will be a key theme in the future with population increasing and For personal use only arable land decreasing growing the need for more fertiliser use Potash prices are very strongly corelated to crop prices 2.5 10.0 Crop prices are expected to recover wit
Slide 9: Muga Project Overview
Muga Project Overview For personal use only A potash developer listed on Local Spanish head office and project office with the ASX (HFR) with projects the entire executive team based in Pamplona, near the Muga Project site in Northern Spain Muga Mine Muga is a two-phase project which will produce a
Slide 10: ESG Credentials
ESG Credentials For personal use only Progressively rehabilitate mine: Backfilling and salt sales Muga will be the only potash mine not to leave residue on the surface after production ENVIRONMENTAL Conventional mining drives low emission operation Social Baseline Study prepared by Government of Nav
Slide 11: Location is a Key Competitive Advantage
Location is a Key Competitive Advantage Access to Customer Markets For personal use only • Strategically located in the middle of the European market • Potash price premium in Europe ~1,750km from mine to port ~1,700km from mine to port ~6,800 nautical miles Primary Market – U.S. Muga ~8,700 nautica
Slide 12: Other Key Competitive Advantages
Other Key Competitive Advantages For personal use only • Excellent infrastructure in place with immediate access to ports, transport and renewable grid power • Straightforward access to the mine with National Electricity Grid Substation in Sangüesa two ramps, no shafts, no aquifers and shallow miner
Slide 13: Top Quartile Margins
Top Quartile Margins For personal use only Europe trades at a premium to other markets Margin curve forecast for 2026 (real US$) 1,150.0 290.0 1,050.0 Rest of world Highfield Potash Standard MOP bulk fob Vancouver, USD/t 950.0 240.0 Potash Granular MOP bulk cfr northwest Europe, USD/t 850.0 190.0 7
Slide 14: Low Initial Investment
Low Initial Investment For personal use only MUGA has half the capex intensity compared to other global development projects (US$ Per Tonne Of Potash) 2,500 Capex intensity US$/t 2,000 1,500 Average capex (US$/t) 1,000 500 - Milestone Phase Bamnet Narong Southey Jansen Phase 1 Woodsmith Colluli Kola
Slide 15: Outstanding Project Economics
Outstanding Project Economics For personal use only ECONOMICS OPERATIONAL 2 phase planned Excellent logistics with €340 million pa Strategically located NPV8 of €1.82 billion First quartile margin production up to access to renewable EBITDA in full with low cost access 23% IRR (post-tax) position 1M
Slide 16: 2023 Project Progress Report
2023 Project Progress Report Highfield has made significant progress in the last twelve months announcing a number of key For personal use only project milestones ✓ Fully permitted: Environmental, mining concessions and construction licences obtained. ✓ Successful expropriation process: Access to al
Slide 17: 2023 Construction Progress Report
2023 Construction Progress Report For personal use only ● Preliminary works around the mine gate finalised early 2023 ● Access to all land, expropriation completed by June 2023 ● H2 2023 preliminary works on newly acquired areas and electricity line in progress ● Three construction workstreams plann
Slide 18: Financing Strategy
Financing Strategy For personal use only PHASE 1 MUGA PROJECT CAPITAL ESTIMATED FUNDING FUNDING OPTIONS IN PROGRESS SECURED AND IN PLACE Strategic Royalty €320M Senior Secured Project Financing BNP Paribas S.A.; Offtake Equity ING Bank N.V.; Remaining Natixis CIB; SECURED • Working with Macquarie Ca
Slide 19: Progress to Date and Next Steps
Progress to Date and Next Steps 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) Permitting • Mining Concession • Electricity line Authorisation • Mine gate and decline construction licence • Process plan
Slide 20: Why Highfield Resources?
Why Highfield Resources? For personal use only Targeting €340 Forecast to be Fully permitted Location is a major million per one of the and shovel strategic The Muga Potash annum EBITDA1 highest margin ready project in advantage. Shallow Potash operation potash mines Spain mineralization. Mine is se
Slide 21: Appendix
For personal use only APPENDIX
Slide 22: Potash Market Overview: What is Potash?
Potash Market Overview For personal use only What is Potash ? Potash (potassium chloride, KCl, Muriate of Potash, or MOP), is an essential crop nutrient Potash is the most widely used potassium fertilizer along with Nitrogen and Phosphorous. It’s primary role in plants is to support and improve: ● g
Slide 23: Potash Market Overview: Overview of fertilizers
Potash Market Overview For personal use only Overview of fertilizers Fertilisers contain essential nutrients which act as the foundation for plant growth Primary nutrients in fertiliser are nitrogen, phosphorus and potassium which perform different functions and not substitutable Potassium is requir
Slide 24: Potash Market Overview: Supply / Demand
Potash Market Overview Supply / Demand For personal use only 18Mt ● Potash supply is highly concentrated with Top 5 countries producing 85% of global supply 26Mt 27Mt 4Mt 6Mt ● Low logistics cost is a key part of a potash producer’s 4Mt 10Mt CIS competitive advantage 8Mt Europe 7Mt ● 3 of the top 5
Slide 25: Outstanding Project Economics: Feasibility Outcomes
Outstanding Project Economics For personal use only Overview of Feasibility Outcomes November 2023 CAPEX PHASE 1: RECONCILIATION CAPEX phase 1 (500,000 tpa MOP) €449 million CAPEX phase 2 (Additional 500,000 tpa MOP) €286 million Total CAPEX €735 million ROM tonnes 173.7 million tonnes Average plant
Slide 26: Contact details
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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