Slide 1: Corporate Presentation - Highfield Resources 2018
personaluse only . * orporate Presentation hfield Resources 2018
Slide 2: Competent Person Statement and Forward Looking Statements
For personal use only COMPETENT PERSON STATEMENT This presentation was prepared by Mr. Peter Albert, Managing Director of Highfield Resources. The information in this presentation that relates to Ore Reserves, Mineral Resources, Exploration Results and Exploration Targets is based on information pre
Slide 3: Contents
Highfield Resources Limited CONTENTS For personal use only 1. Corporate Summary 2. Board and Senior Management 3. Core Values 4. The Muga Mine Overview 5. Timeline to Production and Key Milestones 6. Location and Flexibility of Muga 7. Strategic Location Advantage 8. Muga’s Competitive Position 9. P
Slide 4: Corporate Summary
1. Corporate Summary For personal use only Equity Ordinary Shares on Issue 329.4m 2.25 3.0 Options 50.8m 2.00 Fully Diluted 380.2m 2.5 1.75 Undiluted Market Cap at A$0.87 (14/05/2018) A$286.6m 1.50 2.0 Cash as at 31March 2018 A$64.9m Volume (m) 1.25 Price (A$) Enterprise Value A$221.7m / EUR€139.7m1
Slide 5: Board and Senior Management
2. Board and Senior Management Board and Senior Management experienced in construction and operations For personal use only Board of Directors Brian Jamieson Richard Crookes Roger Davey Derek Carter Pauline Carr Jim Dietz Isaac Querub Non-Executive Director Non-Executive Director Independent Indepen
Slide 6: Vision and Core Values
3. Vision and Core Values “To build a successful, sustainable, For personal use only potash business with respect for stakeholders and the environment” Commitment Respect We are committed to best practices in To act and communicate collaboratively health and safety, the environment, with transparenc
Slide 7: The Muga Mine Overview
4. The Muga Mine Overview Key advantages of Highfield´s flagship potash project For personal use only Easy access to first-world infrastructure, 01 power, roads, ports, etc. 05 Shallow mineralisation with no aquifers 02 Qualified and available local labour market 06 Conventional underground mining a
Slide 8: Timeline to production and key milestones
5. Timeline to production and key milestones Construction and commissioning – 2 years from commencement of construction For personal use only Month of Project Item pre 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Preliminary Work High Voltage Site Preparation Underground Box Cut
Slide 9: Location and Flexibility of Muga
6. Location and Flexibility of Muga Low delivered cost and production flexibility make Muga a high margin potash mine For personal use only • Location flexibility: Proximity to ports Proximity to and world class motorways local premium – Proximity to local and domestic customers market – Proximity t
Slide 10: Strategic Location Advantage
7. Strategic Location Advantage Minimal impact For personal use only • Marginal farm land with natural terrain Offices features, allowing low impact development ROM & GMOP Dry process plant • Compact site development • Close to world class local infrastructure Access to portals – roads, ports and po
Slide 11: Muga's Competitive Position
8. Muga’s Competitive Position For personal use only Simple Mining Proximity to Local First Class Conventional Markets Infrastructure Processing Decline access to shallow mineralisation Located in a potash Direct connection to Sylvinite ore Underground Room and consuming region national electricity
Slide 12: Progress to Date
9. Progress to Date Recent Muga Milestones For personal use only 01 02 03 04 05 Drilling an incline Hydrogeological Construction Project optimisation Revised capital geotechnical drill hole drilling and detailed preparations with the activities ongoing numbers expected in directly in line with the w
Slide 13: Permitting Process Overview
10. Permitting Process Overview Permitting process is continuing to follow standard procedure For personal use only 2014 2015 2016 2017 2018 Encomienda de Gestión (May) Extended time submitted by MAPAMA (April) Submission updated EsIA to MAPAMA (April) Submission Outstanding reports issued by region
Slide 14: Permitting Process – Current Steps
10. Permitting Process – Current Steps For personal use only Environmental permitting process moving towards conclusion Submitted full Plan to submit document to MAPAMA document mid (April 2017) MAPAMA requested June clarification on only Reports from all three points: MAPAMA to • Full environmental
Slide 15: Permitting Process – Next Steps
10. Permitting Process – Next Steps Environmental permitting process moving towards conclusion For personal use only Mining Concession Construction Permits • Town Halls • Following a positive DIA the Department • Water Authority of Mines can consider the award of the • Power connection and lines Min
Slide 16: Implementing our Sustainable Strategy
11. Implementing our Sustainable Strategy A sharp focus on ESG factors to secure a long term investment For personal use only Setting an example • Forética, the most important sustainability institution in Spain has recognised the Community Communication Plan of Geoalcali as an example of best pract
Slide 17: Local stakeholder engagement is key to a successful project
11. Implementing our Sustainable Strategy Local stakeholder engagement is key to a successful project For personal use only Mayors of the region and Company Open Doors Event – October 2017 The Company welcomed over 200 persons representatives from local communities Working sessions, information talk
Slide 18: Supporting the local community
11. Implementing our sustainable strategy Supporting the local community For personal use only Open Day, Sangüesa, October 2017 Minimise Environmental Impact Social Development Safety Sustainable Economic Development Core focus on minimising risk and Creating an industry and direct Developing a stro
Slide 19: The Rehabilitation Plan
12. The Rehabilitation Plan Minimise environmental impact For personal use only • Restoration plan designed to progressively reinvigorate the project site during and after mine operations • Salt by-product sold and/or residue placed underground • Zero salt on surface at the end of planned mine opera
Slide 20: Upside Potential – Other Projects
13. Upside Potential – Other Projects Basin of projects with shared characteristics of Muga Potash Mine For personal use only Location of Highfield´s Muga, Vipasca, Pintanos, Izaga and Sierra del Perdón Projects in Northern Spain 20
Slide 21: Upside Potential – Short Term
13. Upside Potential – Short Term For personal use only 01 SOP Project 02 K62 03 Muga Extension Converting Muga MOP to Improving potash purity to Potential opportunity to SOP creating downstream generate a higher value expand Muga beyond 1Mtpa value product potash output Good access to US market, St
Slide 22: Upside Potential – Long Term
13. Upside Potential – Long Term Potential Development of Other Resources For personal use only 01 Sierra del Perdón 03 Pintanos Further exploration drilling Upside potential similar to programme commenced on current Muga Project 7th April 2018 Resource and Mine Reserve Decline access to underground
Slide 23: Summary – Muga
15. Summary – Muga Given all the positive aspects, Muga is considered a high margin mine For personal use only A number of improvements and project optimisation activities ongoing Bringing forward backfilling and salt treatment from Phase 2 Revised process plant, increase in contingency allowa
Slide 24: Summary – Highfield: Well funded with long term upside
15. Summary – Highfield Well funded with significant long term upside For personal use only Funding • Over €40.81 (A$64.9) million in the bank1 – as at 31/03/2018 • Supportive project finance syndicate for facility to support construction • Multiple equity participation avenues Upside potential with
Slide 25: Summary – Highfield
15. Summary – Highfield Well funded with significant long term upside For personal use only Low capital cost to production Very strong community and local government support High margin driven by technical factors and project location Experienced team of mine builders and operators, for example: Pet
Slide 26: Registered office and further information
For personal use only 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 Peter Albert Managing Director T +34 628 590 109 Olivier Vadillo Investor Relations T