Highfield Resources Limited · ASX:HFR
Highfield Resources — Investor Presentation (December 2021)
25 slides from Highfield Resources's investor presentation, December 2021
Slide 1: Constructing the Next European Potash Mine
Constructing the Next European Potash Mine Corporate Presentation December 2021 ASX: HFR
Slide 2: Competent Persons Statement for Muga Ore Reserves and Mineral Resources
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 the direction of Dr Mik
Slide 3: Introduction
Highfield Resources INTRODUCTION
Slide 4: An Investment Opportunity in the Next Major European Potash Mine
An Investment Opportunity in the Next Major European Potash Mine 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 Management Shallow mineralizat
Slide 5: Global Potash Prices on the Move at the Right Time
Global Potash Prices on the Move at the Right Time Strong market fundamentals Upward price forecasts 525 Soybean prices are the 02 10 475 highest in 5 years Billions of tonnes 02 08 06 425 Billion US$/ t 01 04 01 375 02 00 00 325 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013 2016 2019
Slide 6: Updated Feasibility Study Reconfirms Muga's Strong Economics
Updated Feasibility Study Reconfirms Muga’s Strong Economics Updated capex numbers with More advanced engineering NPV8 of €1.89 Billion higher degree of accuracy: reconfirming a 30-year mine 25% IRR phase 1 €398 million life1 phase 2 of €209 nillion At current spot price Debt sizing is expected to b
Slide 7: Milestones Achieved
Milestones Achieved Detailed design engineering prepared Mining concession received on 1 and ready July 2021 Permitting Engineering 85% of the process plant equipment has Documentation submitted for been contracted construction licences Endeavour Financial appointed, finalising financing strategy Si
Slide 8: Muga Moving to Construction
Muga Moving to Construction 2021 2022 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Contract with construction partner Finalise procurement of long-lead items Mining Local town hall construction licenses Concession Reconfirm debt credit approval Equity Raise Finalise funding package Appoint Endeavour and DD wor
Slide 9: Corporate Snapshot
Corporate Snapshot Capital Structure 1.00 60 Share Price (30 November 2021) $0.60 0.90 Shares on Issue 364.4 million 50 0.80 Options & Performance Rights - Volume (100,000 shares) Share price (A$) 0.70 Market Capitalisation $219 million 40 Cash (30 Sept 2021) $26.5 million 0.60 Drawn Debt - 0.50 30
Slide 10: Strong Board with Global Mining Industry Experience and Robust Governance Processes
Strong Board with Global Mining Industry Experience and Robust Governance Processes Richard Crookes Pauline Carr Ignacio Salazar Independent Non-Executive Director Independent Non-Executive Director MD & Chief Executive Officer Chairman Richard has over 30 years of experience in the Pauline has over
Slide 11: Management with strong mining experience and local background
Management with strong mining experience and local background Javier Aguado Javier Olloqui Chief Financial Officer Human Resources Javier has over 20 years’ accounting and Javier has over 25 years of experience in Ignacio Salazar financial experience. He has worked for Ernst Human Resources manageme
Slide 12: Muga Project Overview
MUGA PROJECT OVERVIEW
Slide 13: Highfield Resources and the Muga Project
Highfield Resources and the Muga Project Conventional Underground A potash developer listed on the Muga is a two phase project Conventional Flotation and Room and Pillar mining. ASX (HFR) with projects in which will produce a total of 1 Crystallisation processing Declines accessing shallow Northern
Slide 14: Shallow Mineralization, Conventional Mining, with Tier-One Infrastructure in Place
Shallow Mineralization, Conventional Mining, with Tier-One Infrastructure in Place 350m Decline access to shallow mineralization; underground Close to the Port of Bilbao (~220km), Room and Pillar mining. No aquifers Spain’s largest port First class infrastructure and National Electricity Grid Substa
Slide 15: Sales and Marketing
SALES AND MARKETING
Slide 16: Significant Logistical Competitive Advantage
Significant Logistical Competitive Advantage Extremely competitive and versatile export options Muga will be one of only two ~1,750km from mines to port ~1,700km from mines to potash mines located in port Southern Europe ~130- 220km from ~6,800 nautical miles mine to ports ~8,700 nautical miles ~5,0
Slide 17: MOU signed for more than phase 1 production
MOU signed for more than phase 1 production MOP sales (pa) Wider Europe: Salt sales (pa) • ~250-300 kt MOP • ~200-250 kt salt US East Coast: • ~50 kt MOP Local: Potash MOUs signed • ~200-250 kt salt • ~450-500 kt MOP • ~400-500 kt salt MOP Ameropa 250,000 tpa Africa: Keytrade 300,000 tpa • ~50 kt MO
Slide 18: Project Economics
PROJECT ECONOMICS
Slide 19: Muga Mine – Key Physicals and Financials
Muga Mine – Key Physicals and Financials 2 December 2021 CAPEX phase 1 (500,000 tpa MOP) €398 million CAPEX phase 2 (Additional 500,000 tpa MOP) €209 million Total CAPEX €607 million ROM tonnes 173.7 million tonnes Average plant tonnage feed rate 400 tph K2O grade 10.5% KCl recovery 91% LOM MOP prod
Slide 20: Top Quartile Margins in the Industry
Top Quartile Margins in the Industry European prices continue to trade at a Margin curve forecast for 2024 (real US$) premium to other markets 750 200 650 150 550 450 100 US$/ t 350 US$/ t 50 250 00 150 0 10 20 30 40 50 60 70 -50 Potash Standard MOP bulk fob Vancouver US$/t -100 Millions of tonnes
Slide 21: Low Capex Intensity and Strong Project Economics
Low Capex Intensity and Strong Project Economics Phase 1 capex of €398 million + Phase 2 capex of €209 million MUGA: HALF THE CAPEX INTENSITY OF OTHER GLOBAL DEVELOPMENT PROJECTS (US$ per tonne of potash) 1,800 1,600 Capex intensity $/ t 1,400 1,200 1,000 800 600 400 200 - BHP (Jansen) Canadian mine
Slide 22: CSR and Sustainability
Highfield Resources CSR AND SUSTAINABILITY
Slide 23: Industry Leading ESG Credentials
Industry Leading ESG Credentials • 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 support in favour of the M
Slide 24: Recognition for Commitment to Health, Safety and Social Responsibility
Recognition for Commitment to Health, Safety and Social Responsibility Bonus 2018 Member of Ecodes’ Climate Action InnovarSE certificate A health and safety recognition for initiative Receipt of the Cycle of Improvement award having a low accident rate as a result of sustainable initiatives RSA 2021
Slide 25: ASX:HFR
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: +34 609 811 257
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