Highfield Resources Limited · ASX:HFR
Highfield Resources — Investor Presentation (November 2022)
24 slides from Highfield Resources's investor presentation, Nov 3, 2022
Slide 1: Constructing the Next European Potash Mine
For personal use only Constructing the Next European Potash Mine Corporate Presentation November 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 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 3: Global Potash Prices on the Move at the Right Time
Global Potash Prices on the Move at the Right Time For personal use only Strong market fundamentals Upward price forecasts 2.0 10.0 800 8.0 700 Soybean prices are the Billions of tonnes 1.5 highest in 5 years Billion 6.0 USD/t 600 1.0 4.0 500 0.5 2.0 400 0.0 0.0 1980 1983 1986 1989 1992 1995 1998 20
Slide 4: 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 5: Corporate Snapshot
Corporate Snapshot For personal use only Capital Structure 1.40 60 Share Price (1 November 2022) $0.835 Shares on Issue 364.4 million 1.20 50 Options & Performance Rights - Volume (100,000 shares) 1.00 Share price (A$) Market Capitalisation $304 million 40 Cash (30 September 2022) $11.3 million 0.80
Slide 6: Strong Board with Global Mining Industry Experience and Robust Governance Processes
Strong Board with Global Mining Industry Experience and Robust Governance Processes For personal use only Paul Harris Ignacio Salazar Independent Non-Executive Director MD & Chief Executive Officer Chairman Paul has over 25 years’ experience in financial markets Ignacio has over 30 years’ experience
Slide 7: Management with strong mining experience and local background
Management with strong mining experience and local background For personal use only Javier Aguado Susana Bieberach Chief Financial Officer Public Affairs Javier has over 20 years’ accounting and financial 15 years of experience in communication and CSR Ignacio Salazar experience. He has worked for E
Slide 8: Muga Project Overview
For personal use only MUGA PROJECT OVERVIEW
Slide 9: 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 10: Logistical advantage, Shallow Mineralization, Conventional Mining, with Tier-One Infrastructure in Place
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 11: MOU signed for more than phase 1 production
MOU signed for more than phase 1 production For personal use only MOP sales (pa) Wider Europe: Potash MOUs signed Salt sales (pa) • ~250-300 kt MOP • ~200-250 kt salt MOP Ameropa 250,000 tpa US East Coast: Keytrade 300,000 tpa • ~50 kt MOP Local: • ~200-250 kt salt Salt MOUs signed • ~450-500 kt MOP
Slide 12: Project Economics
For personal use only PROJECT ECONOMICS
Slide 13: 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 2026 (real US$) other markets 200.0 1,150.0 1,050.0 950.0 150.0 850.0 750.0 100.0 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 14: Low Capex Intensity and Strong Project Economics
Low Capex Intensity and Strong Project Economics For personal use only Phase 1 capex of €436 million + Phase 2 capex of €226 million MUGA: HALF THE CAPEX INTENSITY OF OTHER GLOBAL DEVELOPMENT PROJECTS (US$ per tonne of potash) 1,800 1,600 1,400 Capex intensity $/t 1,200 1,000 800 600 400 200 - BHP (
Slide 15: 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 €1.82 Billion More advanced engineering higher degree of accuracy: 21% IRR reconfirming a 30-year mine life1 phase 1 €436 million phase 2 of €226 million Credit for €300 million Seni
Slide 16: Muga Mine – Key Physicals and Financials
Muga Mine – Key Physicals and Financials For personal use only November 2022 CAPEX phase 1 (500,000 tpa MOP) €436 million CAPEX phase 2 (Additional 500,000 tpa MOP) €226 million Total CAPEX €662 million ROM tonnes 173.7 million tonnes Average plant tonnage feed rate 800 tph K2O grade 10.5% KCl recov
Slide 17: Status and Next Steps
For personal use only STATUS AND NEXT STEPS
Slide 18: 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 Initial Town Hall construction licence received Remaining constructi
Slide 19: Construction starts at the Muga Mine
Construction starts at the Muga Mine For personal use only Stabilisation Stockpilling Excavation of the of slopes of topsoil • Initial construction work mine entrance at Muga has started after the Townhall of Undués de Lerda in Aragón Formation of embankments issued the licence for the construction
Slide 20: Construction work is progressing as planned
Construction work is progressing as planned For personal use only • Slope stabilisation with dry shotcrete is nearing completion • The final stage of the boxcut is also being finalised Work started as planned and is progressing well With the preliminary work on track to be finished in 2022 Highfield
Slide 21: Sustainability and Market
For personal use only SUSTAINABILITY AND MARKET
Slide 22: 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 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: For personal use only
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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