Highfield Resources Limited · ASX:HFR
Highfield Resources — Investor Presentation (April 2018)
27 slides from Highfield Resources's investor presentation, Apr 13, 2018
Slide 1: Corporate Presentation
For personal use only Corporate Presentation Highfield Resources April 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 5. Timeline to Production and Key Milestones 6. Capital and Operating Costs 7. Stakeholder Engagement 8. Sustainable Strategy 9. Permitting 10. Upside Poten
Slide 4: Corporate Summary
1. Corporate Summary For personal use only Equity Ordinary Shares on Issue 329.2m Options 51.0m Fully Diluted 380.2m Undiluted Market Cap at A$0.73 (31 March 2018) A$240.3m Cash as at 31March 2018 A$64.9m Enterprise Value A$175.4m / EUR€110.5m1 Average Daily Volume (6 months) ~150,000 Broker Recomme
Slide 5: Board and Senior Management
2. Board and Senior Management Board and Senior Management experienced in For personal use only construction and operations Board of Directors Derek Carter Pauline Carr Jim Dietz Isaac Querub Owen Hegarty Richard Crookes Independent Non- Independent Independent Independent Non-Executive Director Non
Slide 6: Vision and Core Values
3. Vision and Core Values “To build a successful, sustainable, potash For personal use only business with respect for stakeholders and the environment” Commitment Excellence To seek to continuously improve through We are committed to best practices in a cycle of goal-setting, accountability, health
Slide 7: The Muga Mine: high margin potash development project
4. The Muga Mine Muga - Highfield’s high margin potash For personal use only development project Estimated All-in-sustaining Cash Located in Northern Spain, within Full production 1.08 Mtpa: Cost to Port – US$ 150 / tonne of 150km of key Atlantic Port near MOP1 San Sebastian • Phase 1 – delivering 5
Slide 8: Simple proven technology with first rate access to end markets
4. The Muga Mine Relatively simple, proven technology with first For personal use only rate access to end markets Simple Mining Proximity to Local Markets Decline access to shallow mineralisation Located in a potash consuming region Underground room and pillar mining Good access to the large Brazili
Slide 9: The Muga Mine site layout
4. The Muga Mine For personal use only • Marginal farm land with Offices natural terrain features allowing low impact development ROM & GMOP Dry process plant • Compact site development Access to portals • Close to local infrastructure – roads and Wet process plant power Brine ponds Tailings 9
Slide 10: The Muga Mine restoration plan
4. The Muga Mine For personal use only • Restoration plan designed to progressively reinvigorate the project site by end of mine life • Salt by-product sold and/or residue placed underground • Zero salt on surface at the end of planned mine life 10
Slide 11: Timeline to Production and Key Milestones
5. Timeline to Production and Key Milestones Construction and commissioning – 2 years from For personal use only 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 Preparation Underground Box Cut
Slide 12: Muga low capital cost best in class
6. Muga Capital and Operating Costs Muga’s low capital cost on $/t of production For personal use only basis ranks best in class Key Attributes: No major aquifer unit allows simple decline access Decline access to mineralisation significantly lowers capital cost relative to typically deeper potash m
Slide 13: Low delivered cost to customer positions Muga as high margin mine
6. Muga Capital and Operating Costs Low delivered cost to customer positions Muga For personal use only to be a high margin potash mine Muga – Estimated Operating Cost • Muga is expected to deliver bottom third Component Amount Amount all-in-sustaining cash (AISC) cost delivered to (€ / tonne MOP) (
Slide 14: Independent verification Muga highest margin producer
6. Muga Capital and Operating Costs Independent verification that Muga would make For personal use only Highfield the highest margin producer 14
Slide 15: Stakeholder Engagement: supporting the local community
7. Stakeholder Engagement Committed to sustainable development, For personal use only supporting the local community Safety Minimise Environmental Impact • Developing a strong safety first culture within our work • Core focus on minimising risk and impact on environment force surrounding the project
Slide 16: Open and transparent communication with the local community
7. Stakeholder Engagement Open and transparent communication with the For personal use only local community Mayors of the region and Company representatives Open Doors Event – October 2017 The Company welcomed over 200 persons from local communities Working sessions, information talks, and site visi
Slide 17: Implementing our sustainable strategy
8. Implementing our sustainable strategy A sharp focus on ESG factors to secure a For personal use only long term investment 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 18: Permitting Overview
9. Permitting Overview Comprehensive environmental permitting For personal use only process 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 authorit
Slide 19: Environmental permitting process moving towards conclusion
9. Permitting Environmental permitting process moving For personal use only towards conclusion Environmental Declaration Mining Concession Construction Permits • Revised EsIA plus Mine Plan and Mine Restoration Plan • Following a positive DIA the • Town Halls have been subject to two processes: Depa
Slide 20: Upside – SOP Project & K62 Project
10. Upside – SOP Project & K62 Project Highfield has a number of near term value For personal use only creation opportunities SOP Project K62 Crystallisation Project • Scoping Study complete for 500ktpa SOP Mannheim • Crystallisation plant to process slimes and tailings from facility Muga Potash Min
Slide 21: Upside – Other Projects, the Pipeline
10. Upside – Other Projects, the Pipeline For personal use only Basin of projects with shared characteristics of Muga Potash Mine 21
Slide 22: Muga Extension and Sierra del Perdón
10. Upside – Other Projects Control of basin of projects with shared For personal use only characteristics of Muga Potash Mine Muga Extension Sierra del Perdón • Exploration target of 127 to 255 million tonnes at 12% to • Scoping Study completed April 2015 16% K2O • Decline access to underground con
Slide 23: Pintanos, Vipasca and Izaga
10. Upside – Other Projects Control of basin of projects with shared For personal use only characteristics of Muga Potash Mine Pintanos Vipasca Izaga • Current Exploration Target of 343m to • Exploration Target of between 320 • Grass roots exploration tenement 1,565m tonnes at 10 to 15,4% K2O millio
Slide 24: Value Proposition – Potash Market
11. Value Proposition – Potash Market Many experts believe potash prices reached the marginal cost of production in late 2016 For personal use only Solid Demand We have seen the start of a recovery Fundamentals for potash prices 65 million tonnes K+S 63 million Producer Discipline Bethune tonnes Ret
Slide 25: Value Proposition – Highfield
11. Value Proposition - Highfield Low capex, low risk, high margin potash For personal use only development Low capital cost to Low Capital Cost production Outstanding Investment Bottom third delivered High Margin Metrics cost to port Strong funding interest Compelling Over EUR€40.8 (A$64.9) and opt
Slide 26: Summary
12. Summary Outstanding portfolio of projects with Muga the flagship For personal use only • Low capital cost to production • Technical and infrastructure attributes very positive • Very strong community and local government support • High margin driven by technical factors and project location • Ex
Slide 27: 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
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