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For personal use only

Highfield Resources Ltd
Corporate Presentation
May 2015

ASX Code: HFR

For personal use only

COMPETENT PERSON STATEMENT – RESOURCES
Information relating to resources was prepared by Mr Leo Gilbride, P.Eng and Ms Vanessa Santos, P.Geo, of Agapito Associates. The Competent Person for
Resources under JORC Code standards is Mr Leo Gilbride, P.Eng and Ms Vanessa Santos, P.Geo. of Agapito Associates of Colorado, USA. Mr Gilbride is a
licensed professional engineer in the State of Colorado, USA and is a registered member of the Society of Mining, Metallurgy and Exploration Inc. Ms Santos is a
licensed professional geologist in South Carolina and Georgia, USA, and is a registered member of the Society of Mining, Metallurgy and Exploration Inc.
The Society of Mining, Metallurgy and Exploration Inc is a JORC Code ‘Recognised Professional Organisation’ (RPO). An RPO is an accredited organisation of
which the Competent Person under JORC Code Reporting Standards must belong in order to report Exploration Results, Mineral Resources, or Ore Reserves
through the ASX. Mr Gilbride is the Vice President of Engineering and Field Services and Ms Santos is the Chief Geologist with Agapito Associates and both have
sufficient experience to qualify as a Competent Person for the relevant style and type of mineralisation and deposit under consideration of this release. Mr Gilbride
and Ms Santos consent to the inclusion in the report of the matters based on this information in the form and context in which it appears.
COMPETENT PERSON STATEMENT – RESERVES
Information relating to reserves was prepared by Mr. José Antonio Zuazo Osinaga, Technical Director of CRN, S.A.; Mr. Jesús Fernández Carrasco, Managing
Director of CRN, S.A. and Mr Manuel Jesus Gonzalez Roldan, Geologist of CRN, S.A. Mr. José Antonio Zuazo and Mr. Jesús Fernández, are licensed professional
geologists in Spain, and are registered members of the EUROPEAN FEDERATION OF GEOLOGISTS, an accredited organisation to which the Competent Person
(CP) under JORC Code Reporting Standards must belong in order to report Exploration Results, Mineral Resources, or Ore Reserves through the ASX.
Mr. José Antonio Zuazo is the Technical Director of CRN and he has sufficient experience which is relevant to the style of mineralisation and type of deposit under
consideration and to the activity which they are undertaking to qualify as a CP as defined in the 2012 Edition of the JORC Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves.
Mr. José Antonio Zuazo and Mr. Jesús Fernández consent to the inclusion in the release of the matters based on their information in the form and context in which it
appears.
FORWARD LOOKING STATEMENTS
This presentation includes certain ‘forward looking statements’. All statements, other than statements of historical fact, are forward looking statements that involve
various risks and uncertainties. There can be no assurances that such statements will prove accurate, and actual results and future events could differ materially
from those anticipated in such statements.
Such information contained herein represents management’s best judgment as of the date hereof based on information currently available. The company does not
assume any obligation to update any forward looking statement.

Production Timelines 4. Production Focus to Deliver Real Shareholder Value 5. Izaga Potash Project 3. Low Capital Cost 8. Pintano Potash Project 2. Strong Pipeline at Varying Stages 15. Summary 10. Sierra del Perdón Potash Project 18. Competitive Advantages – High Priced Markets 7. Introduction 11. Board and Senior Executives 13. Muga Potash Project 17. Competitive Advantages – Mining and Processing 6. The Projects 16. Corporate Summary 12. Vipasca Potash Project 3 . Muga By-Products K62 Project 19. Objective – Significant Global Potash Producer 14. Priorities – Commencement of Construction 20.For personal use only Highfield Resources Limited CONTENTS 1. High Margin 9.

• Project pipeline share the characteristics required for low capex. • The flagship Muga Project has the lowest capex of any development stage potash project. Highway from within 7 kms of mine gate to port Aerial photo of Port of Pasajes Virtual image of proposed aboveground operations 4 .1. Introduction For personal use only • Highfield Resources is developing the Muga Project. high margin mines and offer significant upside potential • Management team has proven mine building experience in Spain and operating experience in potash. Decline accessed underground mine with project economics boosted by first world infrastructure and domestic markets • Located in a producing potash basin where undergound mines have operated via decline with simple sylvinite flotation circuit processing. • In production Muga will have first quartile EBITDA margins due to a combination of high price end markets and low total cash costs to customer. one of its five 100% owned potash projects in northern Spain.

00 4.45 Other Shareholders 52% Foster Stockbroking BUY A$2.84 (1 May 15) A$464m 0.00 8.70 AVERAGE A$2.84 A$634m 0.000 Broker Recommendation 12-month Price Target Arrowhead BUY A$3. The class A Performance Shares were converted to Ordinary Shares in February 2015.00 21% Bell Potter BUY A$2.0 0.25 5.85 EMR Capital 19% Canaccord Genuity BUY A$2.75 3. Class B Performance Shares will be converted to ordinary shares if the Company receives approvals for the construction and production of 500.59 Shareholders (Fully Diluted) Spanish in-country management Australian based management Total * Class A and Class B Performance Shares were granted for acquisition of the Spanish assets in October 2012.0 Average Daily Volume (3months) ~665.0m Options 43.50 2.00 0.0 1.45 100% GMP Securities BUY A$2.0 Fully Diluted Market Cap at A$1. Corporate Summary .75 7.20 Pareto Securities BUY A$2.0 1.Ordinary Shares on Issue 252.25 1.0 1. 5 Volume (m) Fully Diluted Equity Price (A$) For personal use only 2.000 tonnes of potash per annum before November 2016.5m 2.15 Numis Securities BUY A$3.0 Cash as at 31 March 2015 ~A$21m 0.0m Undiluted Market Cap at A$1.70 Taylor Collison BUY A$2.50 6.5m Performance B Shares* 51.0 1.0 Fully Diluted 347.10 RBC Capital Markets BUY A$2.31 8% Blue Ocean BUY A$2.

Anthony Hall – Managing Director A qualified lawyer and company secretary with close to 20 years` commercial experience in venture capital. Board and Senior Executives Donald Stephens – Company Secretary A Chartered Accountant and Corporate Advisor with over 25 years’ experience in the mining industry and accounting profession. Navan-Almagrera and Newmont. He is a director of various listed and unlisted resources companies and is Executive Chairman of EMR Capital. including nearly 20 years in management of ASX listed exploration companies including acting as Chief Geologist in Spain for the Shell Group and the Managing Director of Minotaur Resources. strategy and business development. Owen Hegarty – Non Executive Director An executive with over 40 years experience in the global mining industry that included 25 years in Rio Tinto where he was the Managing Director for Asia. He is a director and company secretary of multiple ASX listed entities. 6 . He is currently an Investment Director of EMR Capital and was formerly a Director of Macquarie Bank’s Metals Energy Capital Division and was Chief Geologist with Ernest Henry Mining. Richard Crookes – Non Executive Director A geologist with over 28 years executive experience in the resources and investments industry. risk management. and founder and 15 years as CEO of Oxiana Ltd.Derek Carter – Non Executive Chairman A geologist with over 40 years experience in exploration and development. Spanish Senior Management Team For personal Board of Directorsuse only 3. including nearly four years as Managing Director of Highfield Resources. Pedro Rodríguez – Development Director A geologist with over 35 years’ experience in mining services in Spain. He has been involved with the Highfield Spanish projects for over four years and prior to this he worked for six international mining companies including Billiton International.

000.000.4.000 1.000 K60 MOP Production Per Annum For personal use only Highfield’s objective is to produce at least 2 million tonnes of high margin MOP per annum by 2020 2.000 500.000. Objective – Significant Global Potash Producer 3.500.000 0 7 .000 2.000 ? ? ? 1.500.

electricity.5. US and European potash markets 8 . Strong Pipeline at Varying Stages For personal use only Pipeline of projects with many shared characteristics that are required for low capex and high margin mines Shared characteristics: Development No problems with aquifers overlying mineralisation Muga Sierra del Perdón Resource Delineation Potential for decline access to conventional underground mines Simple technologically proven mining and processing Very good local infrastructure and utilities Vipasca . gas and water Pintanos World class transport infrastructure Less than 150km to closest port Exploration Izaga Confirmed port capacity for export of product Close to the Brazilian.

6. The Projects For personal use only Five 100% owned potash projects in northern Spain covering over 550km2 9 .

Muga Potash Project For personal use only Highfield’s most advanced. high margin potash development project Summary • DFS completed March 2015 • Decline access. IRR – 53. low capex. post tax. equity) • Environmental and mining approvals and construction commencement Source: ASX Announcement dated 30 March 2015 10 . post tax.1% Next Steps • Detailed engineering and design • Contracts out for tender • Financial close (debt term sheets. conventional underground mine • Technologically proven process plant • Expected to produce over 1.1Mtpa of granular K60 MOP • Minimum 24 year mine life with substantial upside expected with ongoing exploration • Pre-production capex – US$256 million (total capex of US$354m) • EBITDA first full year of production – US$296 million • Unlevered.7. NPV10 – US$1.42 billion • Unlevered.

IRR – 53. post tax. NPV10 – US$527 million • Unlevered. Sierra del Perdón Potash Project For personal use only Highfield’s second low capex. high margin potash development project Summary • Scoping Study completed April 2015 • Decline access. post tax.1% Next Steps • Detailed metallurgical test work • Pre-feasibility study capital and operating cost estimates • Environmental and Social Impact Assessment • Commence environmental approvals process Source: ASX Announcement dated 20 April 2015 11 . conventional underground mine • Technologically proven process plant • Expected to produce over 520ktpa of granular K60 MOP • Minimum 20 year mine life with substantial upside expected with ongoing exploration • Total capex – US$233 million • EBITDA first full year of production – US$120 million • Unlevered.8.

Muga By-Products K62 Project For personal use only An additional high margin. NPV10 – US$222 million • Unlevered. post tax. post tax.0% Next Steps • Further metallurgical test work • Pre-feasibility study capital and operating cost estimates Location of crystallisation plant within Muga installations • Environmental and general approvals • Potential offtake partnering agreements Source: ASX Announcement dated 1 May 2015 12 .9. IRR – 33. low capex potash project Summary • Scoping Study completed May 2015 • Conventional crystallisation plant to treat Muga Mine by-products • Revenues from K62 MOP and high-purity vacuum salt • Expected to produce approx 135ktpa K62 and 260ktpa vacuum salt • Operational life to match Muga Mine life • Total capex – US$124 million • EBITDA first full year of production – US$56 million • Unlevered.

Vipasca Potash Project For personal use only Outstanding exploration potential abutting Muga with substantially greater scale Summary • Permit area is contiguous with Muga Project • Permit area of over 120km2 • TDEM and gravimetry shows continuity of the evaporitic horizon from Muga • Significant high grade resource potential with ongoing exploration work • Potential for similar scale operation to Muga • Benefits from the majority of the value drivers of Muga and Sierra del Perdón Next Steps • Exploration drilling and resource delineation • Metallurgical test work program • Move directly into Definitive Feasibility Study Source: ASX Announcement dated 28 April 2015 13 .10.

2% K20 • Resource estimate covers less than 20% of total permit area • Significant resource potential with ongoing exploration • Potential for similar scale operation to Muga mine • Benefits from the majority of the value drivers of Muga and Sierra del Perdón Next Steps • Exploration drilling and resource delineation • Metallurgical test work program • Move directly into Definitive Feasibility Study Source: ASX Announcement dated 20 November 2013 14 .11. Pintano Potash Project For personal use only Significant shallow JORC Inferred Resource with similar scale to Muga Summary • Contiguous with Muga Project • Total project area of over 65km2 • Mineralisation starts at less than 500m below surface • Inferred Mineral Resource* of 187 million tonnes at 11.

12. Izaga Potash Project For personal use only Grass roots exploration with good indications from historical drilling Summary • New permits applied for April 2015 • Project area of over 100km2 • Clear continuation of sub-basin evaporitic units evidenced by outcropping • Historical drilling completed with potash mineralisation encountered Next Steps • Initial geophysics • First round exploration drilling • Resource delineation Source: ASX Announcement dated 28 April 2015 15 .

13. ASX Announcement 1 May 2015 16 . ASX Announcement 20 April 2015 3. ASX Announcement 30 March 2015 2. Production Timelines For personal use only Five 100% owned potash projects in northern Spain PROJECT TIMELINE 2015 2016 2017 2018 2019 2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1 MUGA Phase 1 Construction Production 2 MUGA Phase 2 Construction Production SIERRA DEL PERDON2 or VIPASCA Construction Production MUGA K62 & Vacuum Salt Project Construction Production 3 Additional Projects post 2020 SIERRA DEL PERDON or VIPASCA PINTANOS IZAGA Sources: 1.

ASX Announcement 1 May 2015 17 . ASX Announcement 20 April 2015 3.172m Other Projects: Vipasca Potash Project ? Pintanos Potash Project ? Izaga Potash Project ? Further K62 By-Products Projects ? Sources: 1.422m Sierra del Perdón Potash Mine2 528m Muga Mine K62 Project3 222m Total NPV 2.14. ASX Announcement 30 March 2015 2. Production Focus to Deliver Real Shareholder Value For personal use only Real opportunity to create a signficant global potash producer NPV10 Valuation (US$) Muga Potash Mine1 1.

CEO noted: 76% “[our expansion projects in the Ebro Basin] are so shockingly attractive … we`re putting an accelerator on” Underground Conventional Brines Solution Source: Scotiabank.15. Competitive Advantages – Mining and Processing For personal use only Highfield’s projects share many technical characteristics required to be high margin potash mines Mining Decline access into underground conventional room and pillar mine Highfield Iberpotash Processing Flotation circuit processing of sylvinite ore Estimated 2015 MOP Production by Mining Method 5% 19% Israeli Chemicals Ltd (ICL:IT) owns Iberpotash and on 7 August 2014. Stefan Borgas. HFR Research 18 .

8 Africa 0.8 2.4 CIF US Midwest $432 China Middle East CFR China $305 12.5 Asia2 CFR SE Asia $330 Sth America1 Global Totals (2014) Production Consumption 60. Scotiabank.0 FSU EU* 1.2 8.7 21. HFR Research 19 .8 6.5 6.5 9.0 59.16.8 FOB Vancouver $290 CIF NW Europe $363 Canada 3.7 13.5 5.3 0 0.2 CFR Brazil $350 CFR India $322 0. Competitive Advantages – High Priced Markets For personal use only And have a geographical advantage over producing peers… 18. Uralkali.0 Estimated 2014 MOP supply and demand by region 0.3 Brazil 1.0 MOP spot US$/mt 1Excluding Brazil 2Excluding China MOP spot Prices in USD as at 1 Jan 2015 – Prices for Standard Product Source: IFA.5 4.5 USA 1.

Low Capital Cost For personal use only Shared geological and geographical features drive industry low Capex to production Total capex (in absolute terms) Eurochem: VolgaKaliy W. Glb'l: Hollbrook Allana: Danakil Highfield: Muga Highfield: SdP Capital intensity per tonne of production W.000 Average: US$787/tonne 0 500 1.500 Capital Intensity US$/tonne of Production Source: GMP Europe Research HFR: Muga figures from DFS HFR: SdP figures from Scoping Study 20 . Potash: Milestone Potashcorp: Rocanville Eurochem: Usolskiy Encanto: Muskowekwan Uralkali: Polovodovsky Verde: Cerrado Verde Karnalyte: Wynyard Brazil Potash: Autazes Passport: Hollbrook Elemental: Sintoukola Uralkali: Ust South Boulder: Colluli MagIndustries: Mengo Pros.990 million - 2.000 Capital Expenditure US$ millions 6.000 1.000 4. Potash: Milestone Eurochem: VolgaKaliy MagIndustries: Mengo Encanto: Muskowekwan Brazil Potash: Autazes Uralkali: Polovodovsky Elemental: Sintoukola Karnalyte: Wynyard Eurochem: Usolskiy Passport: Hollbrook Verde: Cerrado Verde South Boulder: Colluli Allana: Danakil Uralkali: Ust Prospect Global Potashcorp: Rocanville Highfield: SdP Highfield: Muga Average: US$1.17.

Company reports and HFR estimates Prices received as per slide 16 21 . High Margin For personal use only Highfield expects its project pipeline to deliver margins similar to Muga Project Price at Customer Estimated EBITDA margin (US$ / tonne) Highfield – Muga* Belaruskali BHP Jansen* Intrepid Potash K+S Legacy* CFR Brazil / CIF NW Europe1 US$357 / tonne Asia / Brazil / Europe1 US$348 / tonne FOB Vancouver US$290 / tonne CIF US Midwest US$432 / tonne FOB Vancouver US$290 / tonne $250 $200 $150 $100 $232 $186 $136 $50 $115 $51 $$(50) $(80) $(63) $(67) $(100) $(26) $(8) $(11) $(43) $(45) $(37) $(10) $(21) US$124 $(19) US$162 $(11) US$154 Estimated $(150) delivered cost to customer $(200) (US$ / tonne) $(80) $(215) $(250) $(300) $(36) $(40) $(40) $(25) $(15) $(14) US$239 $(33) US$317 $(350) Operating Costs * Under development 1 Assumes sales evenly distributed $(58) Freight Costs Sustaining Capital Royalties Corporate SG&A EBITDA Margin Source: Street research.18.

Priorities – Commencement of Construction The transition from developer to producer • Discussions ongoing with eight leading European based commercial banks Debt • Initial indicative term sheets received suggest funding likely on a 65% debt to equity ratio • Targeting completion of legal documentation by September 2015 Muga Mine Funding • Consider on-market equity options Equity • Explore off-take related mezzanine finance • Pursue asset level partner options with both strategic and financial investors • Complete detailed design for mine and process plant construction Detailed Design Muga Mine Construction Ready • Ensure overall site design is consistent with finalisation of mine and process plant design • Complete infrastructure and logistics design with local authorities Appointment of Contractors • Prepare tender packs including contractual documentation and detailed design • Prequalify construction companies and publish tendering documents • Review tenders and appoint contractors • Completion of public consultation period Muga Mine Approvals • Continued work with local communities to ensure full transparency and sensitive design outcome • Prepare and lodge construction licence applications 22 .For personal use only 19.

• In production it will have first quartile EBITDA margins driven by combination of high price end markets and low total cash costs to customer.For personal use only 20. • A management team has been assembled with proven mine building experience in Spain and in potash operations. high margin potash mines. • The projects are in a producing potash basin where conventional underground mines have operated via decline and sylvinite flotation circuit processing. Summary • Highfield Resources is developing the Muga Potash Project. Logo of the Company’s Spanish Foundation that is currently delivering several projects with local communities 23 . • The flagship Muga Mine Project has the lowest capex of any development stage potash project. • 2015 is a defining year for the Company. • The projects share many characteristics required to be low capex. one of its five 100% owned potash projects in Northern Spain.

31002 Pamplona.highfieldresources.com. 13-15.au FURTHER INFORMATION Anthony Hall Managing Director T +34 617 872 100 John Claverley General Manager T +34 607 748 435 Hayden Locke Corporate Development T +34 609 811 257 . Spain T +34 948 050 577 | F +34 948 050 578 www.au info@highfieldresources. 1B.For personal use only REGISTERED OFFICE 169 Fullarton Road Dulwich SA 5065 Australia HEAD OFFICE Avenida Carlos III.com.