Slide 1: Corporate Presentation October 2018
For personal use only Corporate Presentation October 2018
Slide 2: Competent Persons Statement
For personal use only COMPETENT PERSONS STATEMENT FOR MUGA POTASH PROJECT This update was prepared by Mr. Peter Albert, Managing Director of Highfield Resources. The information in this update that relates to Ore Reserves, Mineral Resources, Exploration Results and Exploration Targets is based on in
Slide 3: Contents
Highfield Resources Limited For personal use only CONTENTS 1. Vision and Core Values 2. Corporate Summary 3. Muga Mine Competitive Advantages 4. Board and Senior Management 5. Muga Project and Permitting Progress to Date 6. Muga’s Strategic Location 7. Timeline to Production and Key Milestones 8. Mu
Slide 4: Highfield Resources' Vision and Core Values
Highfield Resources’ Vision and Core Values For personal use only “To build a successful, sustainable, potash business with respect for stakeholders and the environment” Commitment Respect We are committed to best practices in To act and communicate health and safety, the environment, collaborativel
Slide 5: Corporate Summary
Corporate Summary For personal use only Equity Ordinary Shares on Issue 329.5m Options 53.2m Fully Diluted 382.7m Undiluted Market Cap at A$0.55 (24/10/2018) A$181.2m Cash as at 30 September 2018 A$58.5m Enterprise Value A$122.7m / EUR€76.2m Average Daily Volume (6 months) ~1,700,000 Shareholders (F
Slide 6: Muga Mine Competitive Advantages
Muga Mine Competitive Advantages For personal use only Revised Capex Confirms Commercial Potential Favourable Environment C1 cash costs of €104/t, including salt by-product credit Well advanced permitting approvals and strong community support NPV8 of €1.15 billion, IRR 23% Qualified and available l
Slide 7: Highly Experienced Board
Highly Experienced Board For personal use only He has over 40 years of experience. He was a manager for Shell He has over 35 years of experience in the mining industry. He Derek Carter Peter Albert was CEO for Jinchuan Group International Resources Group and Burmine Ltd before founding Minotaur Gold
Slide 8: Firmly committed and skilled management
Firmly committed and skilled management Firmly Committed and Skilled Management For personal use only Peter Albert1 Managing Director & CEO Sixto Jiménez Geoalcali Board Independent Non-Executive Director Ricardo Pérez Mike Norris John Claverley Javier Olloqui Olivier Vadillo External Relations & Si
Slide 9: Muga Project Progress to Date
Muga Project Progress to Date For personal use only 01 02 03 04 05 Completed mine A third-party project Updated Minerals Updated capital cost Progressing with the design optimisation review by Micon Resource Statement (capex), operating updated Ore Reserve including work by International Company for
Slide 10: Comprehensive Permitting Process is Continuing to Follow Standard Procedure
Comprehensive 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 regional and national au
Slide 11: Environmental Permitting Moving to Conclusion
Environmental Permitting Moving to Conclusion For personal use only MITECO MITECO has Submitted full distributed the document to MAPAMA MAPAMA documentation to received reports (April 2017) requested Submission of interested from some Reports from all clarification on requested regulatory bodies reg
Slide 12: Permitting Process – Next Steps
Permitting Process – Next Steps For personal use only The Company continues to remain confident of receiving its DIA , Mining Concession and construction permits Mining Concession Construction Permits • Town Halls • Following a positive DIA the Department • Water Authority of Mines can consider the
Slide 13: Muga Mine Project update in figures
Muga Mine Project update in figures For personal use only The updated Project continues to show strong financial metrics and positions Muga as potentially one of the highest margin potash mines globally 01 Two phase mine development 05 EBITDA of approximately €300 million per annum at full productio
Slide 14: Muga's location is one of its major assets
Muga’s location is one of its major assets For personal use only Proximity to local premium market On the doorstep of domestic market Competitive access to the large markets in the Americas Muga Mine Major MOP trade routes Muga Mine MOP trade routes Distance Destination (Days) Country of departure M
Slide 15: Muga's location is one of its major assets
Muga’s location is one of its major assets For personal use only 7 Mt Muga Mine MOP trade routes • The Muga mine will be close to key demand areas of 4 Mt Europe 1,000 kt • With extremely competitive and versatile export options Total Europe – Truck or Ship 650 kt 400 kt Production • Quick delivery
Slide 16: Timeline to production and key milestone
Timeline to production and key milestone For personal use only Construction and commissioning of phase 1* Estimated timeline: 2 years from commencement of construction 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 Prepar
Slide 17: Muga's competitive position on the cost curve against World peers
Muga’s competitive position on the cost curve against World peers For personal use only FOB Cost curve forecast for 2024 (real US$) 350 C1 Costs Components Euros/tonne of MOP Mining 38.15 300 Processing 47.74 Salt treatment 3.53 250 Waste and backfilling 4.85 Environmental & Other 3.23 200 Sub Total
Slide 18: Muga Mine Competitive margin position
Muga Mine Competitive margin position For personal use only Margin curve forecast for 2024 (real US$) 250 200 150 US$/t 100 50 0 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 Highfield Rest of World Source: Argus Media 2024 cost forecasts (Q3 2018 dataset), Highfield Resources., ASX Release 15 Oct.
Slide 19: Favourable Local Environment
Favourable Local Environment For personal use only • Marginal farm land with natural terrain features, Offices allowing low impact development Dry process plant ROM • Compact site development • Close to world class local infrastructure – roads, ports and power Access to portals GMOP & SMOP Brine pon
Slide 20: Rehabilitation Plan
Rehabilitation Plan For personal use only Minimal environmental impact assists social acceptance • 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 p
Slide 21: A sharp focus on ESG factors to secure a long term investment
11.A Implementing sharp focus onour ESG factors to Strategy Sustainable secure a long term A sharp focusinvestment 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
Slide 22: Local stakeholder engagement is key to a successful project
Local stakeholder engagement is key to a successful project For personal use only Mayors of the region and Company representatives in Open Doors Event – October 2017 The Company welcomed over 200 persons Informative session on August 2018 from local communities Working sessions, information talks, a
Slide 23: Potash Market Overview: demand steadily increasing
Potash Market Overview: demand steadily increasing For personal use only 20% increase in global demand since 2012 to 2017 70.000 60.000 50.000 40.000 Kt 30.000 20.000 10.000 - 2012 2013 2014 2015 2016 2017 China North America Brazil Southeast Asia West Europe Other South Asia India FSU Other Latin A
Slide 24: Potash Market Overview: price recovery
Potash Market Overview: price recovery For personal use only Mine closures in Europe and slower ramp up of new mines has tightened the market and prices have started recover to 2017 320 300 280 Prices are expected to 260 remain strong as current market 240 fundamentals are 220 forecast to continue 2
Slide 25: The future for potash demand looks positive
The future for potash demand looks positive For personal use only Arable land per person has been decreasing steadily over the years With global population continuing to grow this trend is expected to continue Increasing the need for higher crop yields and therefore increasing the requirement for fe
Slide 26: Upside Potential – Other Projects
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 Corporate Presentation October 2018 26
Slide 27: Summary – Highfield
Summary – Highfield Significant long term upside For personal use only Updated data confirms 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 Advancing enviro
Slide 28: For personal use only
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