New Risk • Jun 24
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: AU$13.3m (US$9.17m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-AU$15m free cash flow). Share price has been highly volatile over the past 3 months (29% average weekly change). Earnings have declined by 47% per year over the past 5 years. Revenue is less than US$1m. Market cap is less than US$10m (AU$13.3m market cap, or US$9.17m). Announcement • Mar 31
Highfield Resources Limited, Annual General Meeting, May 28, 2026 Highfield Resources Limited, Annual General Meeting, May 28, 2026. New Risk • Mar 28
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -AU$15m This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-AU$15m free cash flow). Earnings have declined by 47% per year over the past 5 years. Revenue is less than US$1m (AU$80k revenue, or US$55k). Market cap is less than US$10m (AU$10.9m market cap, or US$7.49m). Minor Risk Share price has been volatile over the past 3 months (14% average weekly change). New Risk • Mar 25
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Australian stocks, typically moving 14% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 20% per year over the past 5 years. Revenue is less than US$1m. Market cap is less than US$10m (AU$9.48m market cap, or US$6.60m). Minor Risk Share price has been volatile over the past 3 months (14% average weekly change). New Risk • Mar 09
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: AU$13.7m (US$9.65m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 20% per year over the past 5 years. Revenue is less than US$1m. Market cap is less than US$10m (AU$13.7m market cap, or US$9.65m). New Risk • Jan 15
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Australian stocks, typically moving 14% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 20% per year over the past 5 years. Revenue is less than US$1m. Minor Risks Share price has been volatile over the past 3 months (14% average weekly change). Market cap is less than US$100m (AU$31.3m market cap, or US$21.0m). Announcement • Oct 14
Highfield Resources Limited announced that it expects to receive AUD 10.1999 million in funding from EMR Capital Pty. Ltd., EMR Capital Advisors Pty Ltd., Tectonic Investment Management Pty Ltd and other investor. Highfield Resources Limited entered into a binding term sheet with each of EMR Capital Resource Fund 3, LP , Tectonic Investment Management Pty Ltd and an another existing investor for a private placement to issue Unlisted convertible notes for the proceeds of AUD 10.1999 million on October 14, 2025. EMR Capital to invest AUD 2 million, Tectonic AUD 5 million and another investor AUD 3 million. The Loan Amount will be drawn down in tranches during the period November 2025 to September 2026. Each New Note will bear interest at the rate of 18% p.a and conversion price for the New Convertible Notes is the lower of AUD 0.06. The New Convertible Notes are secured. The transaction is expected to close by December 19, 2025. The notes matures on December 19, 2026. The transaction has been approved by the board of directors and is subject to the approval of the shareholders. Announcement • May 14
Highfield Resources Limited announced that it has received €1.15 million in funding from EMR Capital Pty. Ltd., EMR Capital Advisors Pty Ltd. Highfield Resources Limited announced that it has received €1.15 million in a round of funding on May 13, 2025. The transaction included participation from the returning investor EMR Capital Resources Fund III, LP, a fund managed by EMR Capital Pty. Ltd., EMR Capital Advisors Pty Ltd. Announcement • Apr 30
Highfield Resources Limited, Annual General Meeting, May 30, 2025 Highfield Resources Limited, Annual General Meeting, May 30, 2025. New Risk • Apr 07
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Australian stocks, typically moving 13% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-AU$14m free cash flow). Revenue is less than US$1m. Minor Risks Share price has been volatile over the past 3 months (13% average weekly change). Shareholders have been diluted in the past year (21% increase in shares outstanding). Market cap is less than US$100m (AU$47.4m market cap, or US$28.6m). New Risk • Mar 30
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -AU$14m This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-AU$14m free cash flow). Revenue is less than US$1m (AU$169k revenue, or US$106k). Minor Risks Shareholders have been diluted in the past year (21% increase in shares outstanding). Market cap is less than US$100m (AU$85.3m market cap, or US$53.6m). New Risk • Mar 27
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2024. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risk Revenue is less than US$1m. Minor Risks Latest financial reports are more than 6 months old (reported June 2024 fiscal period end). Shareholders have been diluted in the past year (21% increase in shares outstanding). Market cap is less than US$100m (AU$80.6m market cap, or US$50.7m). Announcement • Mar 24
Roger Davey Resigns as Non-Executive Director of Highfield Resources Limited Highfield Resources Limited advises that UK based Non-Executive Director, Mr. Roger Davey, has resigned from the Board of the Company with effect from 21 March 2025. Following Mr. Davey's resignation, the Board is comprised of independent Non-Executive Chairman Mr. Paul Harris, Managing Director and Chief Executive Officer, Mr. Ignacio Salazar, independent Non-Executive Director, Ms. Pauline Carr, and Non-Executive Director Mr. Luke Anderson. Board Change • Mar 21
Less than half of directors are independent There are 7 new directors who have joined the board in the last 3 years. Of these new board members, none were independent directors. The company's board is composed of: 3 independent directors. 8 non-independent directors. Independent Non-Executive Chairman Paul Harris was the last independent director to join the board, commencing their role in 2022. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Announcement • Mar 20
Highfield Resources Limited Announces Election of New Directors Highfield Resources Limited held an Extraordinary General Meeting on March 20, 2025, where several resolutions were considered and approved by the shareholders. The meeting resulted in the election of new directors, all nominees of Yankuang Energy Group Co. Ltd. (YK) and Beijing Energy. The elected directors are Mr. Zhao Zhiguo, Mr. Zhang Zhaoyun, Dr. Zhang Lei, Mr. Hou Qingdong, Mr. Li Jie, and Mr. Huang Hui. Announcement • Oct 17
Highfield Resources Limited has completed a Follow-on Equity Offering in the amount of AUD 2.06 million. Highfield Resources Limited has completed a Follow-on Equity Offering in the amount of AUD 2.06 million.
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 6,891,936
Price\Range: AUD 0.2989 New Risk • Oct 03
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 7.6% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Revenue is less than US$1m. Minor Risks Shareholders have been diluted in the past year (7.6% increase in shares outstanding). Market cap is less than US$100m (AU$124.5m market cap, or US$85.4m). Announcement • Sep 25
Highfield Resources Limited has filed a Follow-on Equity Offering in the amount of AUD 4.477612 million. Highfield Resources Limited has filed a Follow-on Equity Offering in the amount of AUD 4.477612 million.
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 14,980,301
Price\Range: AUD 0.2989 Announcement • Jul 20
Highfield Resources Limited (ASX:HFR) signed a letter of intent to acquire Yancoal Canada Resources Co. Ltd. from Yankuang Energy Group Company Limited (SEHK:1171). Highfield Resources Limited (ASX:HFR) signed a letter of intent to acquire Yancoal Canada Resources Co. Ltd. from Yankuang Energy Group Company Limited (SEHK:1171) on July 19, 2024. Highfield will issue of new ordinary shares of Highfield as consideration. The Proposed Cooperation would entail the raising of US$220 million of equity capital by Highfield from strategic investors (Cornerstone Placement) and the inter-conditional acquisition from Yankuang Energy of the Southey potash project in Saskatchewan, Canada (Southey Vend-in) by way of a direct or indirect acquisition of 100% of the shares in Yancoal Canada .The transaction and the Cornerstone Placement are inter-conditional. The transaction is subject to approval of offer by acquirer board, consummation of due diligence investigation and definitive agreement. Announcement • Mar 20
Highfield Resources Limited, Annual General Meeting, May 30, 2024 Highfield Resources Limited, Annual General Meeting, May 30, 2024. Announcement • Sep 13
Highfield Resources Limited Appoints Luke Anderson to the Board, Effective 13 September 2023 The Board of Highfield Resources Limited appointed experienced resources and industrial minerals senior executive, Mr. Luke Anderson, to the Board effective 13 September 2023. A qualified chartered accountant, Mr. Anderson has over 25 years of experience in executive management, corporate development, corporate treasury, financial management and financial services roles in major international resource and transport companies across Australia and the United States. He also has extensive experience in business development in the resources sector. Most recently Mr. Anderson was the CEO of One Rail Australia (previously Genesee & Wyoming Australia). Mr. Anderson was also President and CEO of Unimin Corporation. Mr. Anderson also has a range of project development experiences which include being the CFO of Oz Minerals while it was developing its Carrapateena Project in South Australia. New Risk • Sep 12
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -AU$17m This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-AU$17m free cash flow). Earnings are forecast to decline by an average of 104% per year for the foreseeable future. Revenue is less than US$1m (AU$42k revenue, or US$27k). Minor Risks Currently unprofitable and not forecast to become profitable next year (AU$13m net loss next year). Shareholders have been diluted in the past year (7.6% increase in shares outstanding). Announcement • Aug 11
Highfield Resources Limited Announces the Demise of Brian Jamieson, Board Member The Board of Highfield Resources Limited informed shareholders of the recent passing of its Board member, Mr. Brian Jamieson. Mr. Jamieson joined the Highfield Board in May 2018 and made a significant contribution over the upcoming five years as both a non-executive Director and Committee member. He will be remembered for being generous with his knowledge and sharing his valuable insights and many experiences gained over a stellar five decade leadership and directorial career in the advisory, manufacturing, resources and technology industries both in Australia and offshore. The Board expects to announce a replacement Director in the coming weeks. Price Target Changed • May 25
Price target decreased by 9.6% to AU$1.50 Down from AU$1.66, the current price target is provided by 1 analyst. New target price is 144% above last closing price of AU$0.61. Stock is down 32% over the past year. The company is forecast to post a net loss per share of AU$1.40 next year compared to a net loss per share of AU$0.016 last year. Announcement • May 23
Highfield Resources Limited announced that it expects to receive AUD 25 million in funding from Tectonic Investment Management, EMR Capital Pty. Ltd. Highfield Resources Limited announced a private placement to issue convertible notes for the gross oproceeds of AUD 25 million on May 22, 2023. The transaction will include participation from returning investor EMR Capital Pty. Ltd. for AUD 18,000,000 and new investor Tectonic Investment Management for AUD 7,000,000. The bonds will mature in 24 months from the date of closing. The Lenders may choose to convert all or some of the total amount outstanding Convertible Notes into fully paid ordinary shares in the Company (“Shares”) at any time. However, if the Convertible Notes remain outstanding at the time of first drawdown under
the senior debt facility for the Project, the outstanding Convertible Notes amount shall mandatorily convert into Shares of the Company at the conversion price. The conversion price for the Convertible Notes is the lower of a 25% discount to the price implied by a change of control transaction relating to the Company, the volume weighted average price of the Shares as traded on ASX over the 20 trading days prior to the date of the CND (“VWAP“), being AUD 0.515 per share and a 10% discount to the price of any future equity capital raising by the Company. Interest on the investment will be paid in kind via addition to the Convertible Notes Amount and The Convertible Notes will be secured by a share pledge over all of the shares in and shareholder loans to, the Company's indirect wholly-owned subsidiary Geoalcali S.L.U. The issuance of the Convertible Notes to Tectonic does not require approval of the Company's shareholders as it is being made in reliance on the Company's available placement capacity and The issuance of the Convertible Notes to EMR Capital remains subject to and conditional upon receipt of approval for the issuance of the Notes from the Company's shareholders under ASX Listing Rule 10.1 at a general meeting of the Company to be held on or about June 21, 2023, pursuant to a notice of meeting despatched by the Company at the same time as this announcement. If Shareholder Approval is granted, the Notes will be issued to EMR Capital following that meeting. In addition, the convertibility of the Convertible Notes issued to EMR Capital is subject
to EMR Capital receiving approval from the Foreign Investment Review Board. Announcement • May 10
Highfield Appoints Carles Aleman as Head of Plant Construction & HSE for Muga, Effective from 15 May 2023 Highfield announced that Mr. Carles Aleman has been appointed as Head of Plant Construction & HSE for Muga effective 15 May 2023. In addition to degrees in Business Sciences and Pharmacy, Mr. Aleman has a Masters degree in Chemistry as well as an MBA from the ESADE Business School in Barcelona. He has over 30 years' experience in the mining and chemical sectors and has spent the last eight years working at ICL in Spain where most recently he was the President of ICL Iberia and Managing Director of Iberpotash. Prior to joining ICL Mr. Aleman worked in international focused roles in the chemical sector with several companies including BASF and CIBA-GEIGY and in Pymag-Curtin where he was Managing Director. Mr. Aleman's extensive experience, specifically in potash mining in Spain where he led the transformation and modernization of ICL in Spain, will be invaluable for Highfield. During his long career, Mr. Aleman's responsibilities have included oversight of several large construction and development projects. Price Target Changed • Nov 16
Price target increased to AU$1.68 Up from AU$1.56, the current price target is provided by 1 analyst. New target price is 90% above last closing price of AU$0.89. Stock is up 69% over the past year. The company is forecast to post a net loss per share of AU$0.009 next year compared to a net loss per share of AU$0.02 last year. Announcement • Nov 15
Highfield Resources Limited Receives Process Plant Licence Authorisation Highfield Resources Limited announced that the Muga Potash Mine has received from the Government of Navarra the authorisation to build on non-urbanised land" the process plant of the Muga Mine The Company has received authorisation from the Government of Navarra to build Muga's process plant on non-urbanised land within the municipality area of Sangüesa. This Authorisation follows the granting of the construction licence for the mine-gate and declines from the Town hall of Undués de Lerda (Aragón) and the licence for the construction of the electricity line from the main network to the Muga Mine by the Town hall of Sangüesa (Navarra). In line with Navarran Licensing and procedural laws, the Town hall of Sangüesa was required to seek authorisation from the Government of Navarra to officially allow construction of the process plant on non-urbanised land. This Authorisation consists of a thorough review of the Muga's process plant construction against Sangüesa's urbanistic plan and any other land management legislation as well as confirming there were no potential constraints related to its location. Although the Town hall of Sangüesa still needs to finalise the granting of the process plant construction licence, the authorisation granted by the Government of Navarra is a very important prerequisite and pivotal milestone. To obtain this Authorisation, the Government of Navarra, the Town hall of Sangüesa and the Company maintained significant levels of engagement and will continue to work together to expedite the grant of the process plant construction licence. Announcement • Nov 04
Highfield Resources Limited Provides an Update to the Muga-Vipasca Potash Project Highfield Resources provided an update to the Muga-Vipasca Potash Project (Muga or the Project) Feasibility Study (FS) that reconfirms the compelling economics of the Project. The Project Economics of the Feasibility Study have been updated while maintaining the same Mineral resources and Mine Plan as presented in the 2021 Muga Feasibility Study Update. The 2021 Mine Plan was prepared by Highfield with technical mine planning support from the Spanish mining engineering consultants, IGAN Consulting Group. The portion of the plan that supports the Ore Reserve was reviewed by SRK Consulting ("SRK") which incorporated various capital and operating cost sensitivities into their assessment to confirm its robustness in December 2021. The Mine Plan is based on the Proved and Probable Ore Reserves, but also integrates Inferred Mineral Resources1 as well as the abutting Exploration Target2 tonnes that remain unchanged as per the ASX announcement released on the 23 November 2021, and the additional Measured, Indicated and Inferred Mineral Resources audited by SRK as per the ASX release on 30 March 2021. All technical parameters in the 2021 Mine Plan continue to apply and have not changed in 2022. Regarding the Inferred Resources included in the Mine Plan, specific areas with thickness below the expected minimum of 2 metres but greater than 1.6 metres have also been considered, given it has the potential to be mined with low profile equipment. The Measured and Indicated Resources that have been included in the Mine Plan refer to the pillars in the exclusion zones under towns and the Bardenas Channel. Highfield considers that these could potentially be mined in the future if and once the backfilling provides enough support to demonstrate there will be no impact on the surface. The Mine Plan which has not changed from the December 2021 Muga Feasibility Study update with a planned production up to approximately 1,000,000 tpa of Muriate of Potash ("MOP") over a mine life of 30 years 3 comprising approximately 18 years of mine life from Ore Reserves and 12 years from additional Mineral Resources and the Exploration Target. Graph 1 below shows the sequencing of the mine plan. Developed by the engineering company Subterra Ingeniería S.L. ("Subterra"), the twin parallel declines have an approximate length of 2.6 km and are planned to be constructed at an average gradient of 15%, which will provide underground access from surface to an approximate depth of 350 metres. The two declines will be built 25 metres apart and will be linked by six cross-cuts. Both declines will have an arched profile and a cross-sectional area of approximately 31 m2 and will be widened at the cross-cut connections and at other various points to accommodate pumping stations and electrical substations. The West decline will accommodate the permanent backfill conveyor during mine operation and will work as the intake ventilation airway, while the East decline will contain the permanent ore conveyor and also act as the return ventilation airway to surface. A bypass will be constructed at the top of the East decline to accommodate the main fans. The planned decline gradients are suitable for both ore conveying and vehicle access, and the decline design provides for underground infrastructure requirements, i.e., staged pumping stations and underground electrical installations. Five different levels of ground support have been specified depending on the various rock type and ground conditions expected along the full length of the declines. A single portal boxcut is shared by both declines and will be adequately protected against rainfall and surface water incursion into the decline developments. The Company plans to implement mechanical excavation by roadheader and/or conventional excavator combined with conventional drilling and blasting. This has now been included in a revised construction project design, which does not include the use of a bolter miner in the West ramp as had been anticipated in the 2021 feasibility study. The bolter miner had a long lead time to construction that required significant advanced payments and did not provide as much flexibility as the Company initially anticipated. This change was the result of extensive engagement with ramp construction contractors who confirmed that the current methodology provides more flexibility in terms of construction and scheduling. Both declines will be excavated using trackless mobile equipment. Roadheaders and/or conventional excavators in combination with two-boom jumbos will be utilised for excavation, face drilling and rockbolting, while 30-tonne low profile mining haul trucks and 14-tonne load-haul-dump loaders ("LHD") will be used to transport material to surface. Development waste rock will initially be moved back from the faces to storage bays and then loaded onto trucks to be hauled to the surface during other development activities. The development excavation will be supported by sprayed concrete and rockbolts. The thickness of sprayed concrete and bolt spacing will be determined by the geological surveys developed by the horizontal drilling undertaken. Announcement • Sep 12
Highfield Resources Limited Provides Update on Muga Mine Construction Highfield Resources Limited provided an update on the progress of the Muga Mine construction. Following Highfield's announcement on 30 June 2022 that the Townhall of Undués de Lerda in Aragón had issued the licence for the construction of the mine gate and the declines, and that construction had commenced, the initial construction work has progressed rapidly through the months of July and August 2022. The construction team are currently ahead of schedule and work is progressing in accordance with the planned budget. Progress has been assisted by favourable dry weather conditions as well as good equipment availability. HIGHLIGHTS: Construction at the Muga Mine commenced in late June 2022 and the preliminary works around the mine gate have progressed ahead of schedule through July and August and are within the planned budget Key items include the completion of the staff facilities, site fencing and stream protection, as well as construction of the box cut, slope and mine gate. Once the excavation of the bottom level of the mine gate area is completed, the slopes will be stabilised with bolts and dry shotcrete through September and October 2022. All of the preliminary works around the mine gate are planned to be completed during the last quarter of calendar 2022. Announcement • Jun 25
Highfield Resources Limited Announces Construction Licence Granted Muga Mine Gate and Declines Highfield Resources Limited announced that the Townhall of Undués de Lerda in Aragón has issued the licence for the construction of the mine gate and the two underground declines. The local Townhalls (councils) of Undués de Lerda (Aragón) and Sangüesa (Navarra) are the responsible approving authorities for the mine gate and the process plant construction licences respectively. Following on from the grant of the mining concession last year, these two licences are essential for the construction of the Muga project (the "Project"). In anticipation of receiving the licence from Undués, the Company had already tendered and contracted the initial works and plans to start initial on-ground construction works in the next few days at the mine gate. The construction of the declines is on the critical path of the Muga project's development timetable and, therefore, starting construction of the declines before the plant improves the Company's internal construction plan. While starting the work in Undués, the Company continues to maintain its active engagement with the Townhall of Sangüesa and the Government of Navarra to complete the Licensing process for the plant. Price Target Changed • Apr 27
Price target increased to AU$1.56 Up from AU$1.06, the current price target is provided by 1 analyst. New target price is 41% above last closing price of AU$1.11. Stock is up 47% over the past year. The company is forecast to post a net loss per share of AU$0.013 next year compared to a net loss per share of AU$0.02 last year. Announcement • Apr 26
Highfield Resources Limited, Annual General Meeting, May 26, 2022 Highfield Resources Limited, Annual General Meeting, May 26, 2022, at 15:30 AUS Central Standard Time. Location: HLB Mann Judd Level 1, 169 Fullarton Rd Adeladie South Australia Australia Agenda: To consider the Financial Statements for the financial year ended 31 December 2021; to Adoption of Remuneration Report; to Re-election of Ms. Pauline Carr as Director; to Election of Mr. Ignacio Salazar as Director; to Issue of Options to Non-Executive Director; Issue of Options to Managing Director; and to consider other matter. Price Target Changed • Apr 07
Price target increased to AU$1.56 Up from AU$1.06, the current price target is provided by 1 analyst. New target price is 67% above last closing price of AU$0.94. Stock is up 38% over the past year. The company is forecast to post a net loss per share of AU$0.013 next year compared to a net loss per share of AU$0.02 last year. Announcement • Mar 29
Muga Project Receives Authorisation for the Electricity Line Construction from the Government of Navarra Highfield Resources Limited announced that the Muga Project has received from the Government of Navarra the authorisation to build on non-urbanised land the electricity line to the mine site. The townhalls of Sangüesa (Navarra) and Undués de Lerda (Aragón) are responsible for the construction licences for the process plant and the mine gate respectively. The part of the electricity line in Navarra is an element of the main construction licence of the processing plant, however the Company requested the authorisation for the electricity line to be approved separately so that it could get it ahead of the main licence. In line with local Licensing procedural laws, the town hall of Sangüesa required an official authorisation from the Government of Navarra to allow construction of the electricity line on non-urbanised land before it can complete the construction licence. The authorisation to build the line on a non-urbanised area is the key step in advancing the grant of the construction licence and has now been granted by the Government of Navarra. The construction of the electricity line is subject to the urbanistic authorisations of the installations which will supply electricity. The Company has been maintaining significant engagement with the town halls of Sangüesa and Undués de Lerda as well as the governments of Navarra and Aragón to continue to expedite the construction licences. Additionally, the Spanish electricity network, Red Eléctrica de España, ("REE") recently announced its Electricity Transmission Network Plan for Navarra up to 2026 to promote green energy and it has already incorporated the connection of the Muga Project to the electricity main network at its Sangüesa substation in its Plan. This connection provides access to a higher voltage network than the electricity line recently authorised by the government of Navarra and which is going to be used during construction. The connection to REE will therefore be a significant advantage for the mine at its operational phase. Price Target Changed • Dec 14
Price target increased to AU$1.06 Up from AU$0.97, the current price target is provided by 1 analyst. New target price is 64% above last closing price of AU$0.65. Stock is down 5.1% over the past year. The company is forecast to post a net loss per share of AU$0.012 next year compared to a net loss per share of AU$0.074 last year. Announcement • Dec 08
Highfield Resources Provides an Update to the Muga-Vipasca Potash Project Feasibility Study That Reconfirms the Compelling Economics of the Project Highfield Resources provided an update to the Muga-Vipasca Potash Project Feasibility Study that reconfirms the compelling economics of the Project. NPV8 of 1.89 billion and 25% IRR; Sensitivity analysis using current flat real spot prices for the whole life of mine results in a post- tax NPV8 of 2.8 billion and a 42% IRR; At full production, EBITDA of around 400 million per annum; Economics resulting in a 30-year mine life; The Feasibility Study is based on significantly more advanced engineering and procurement: in the current Study, 86% of the capex estimate is based on signed contracts, firm offers and updated prices. Compared with 59% in the previous feasibility study update from 2019; Higher degree of confidence in the updated capex numbers with: phase 1 capex of 398 million; phase 2 capex of 209 million. The Company continues to work with its Financial Advisor, Endeavour Financial, to secure an appropriate financing for Phase 1. Based upon its assessment of the Muga Project and following positive feedback on a draft term sheet by a potential syndicate of lenders, the Company is targeting debt sizing of around 300m to start construction of phase 1. The 2021 Mine Plan is based on the Proved and Probable Ore Reserves as well as the abutting Exploration Target as per the ASX announcement released on the 23 November 2021 and the additional Measured, Indicated and Inferred Mineral Resources audited by SRK Consulting ("SRK") as per the ASX release on 30 March 2021. Underground access will be by twin parallel declines from surface, over a length of 2.6 km to a depth below surface of approximately 350 metres. The declines, approximately 25 metres apart along their length, are connected by three crosscuts. The West decline will be developed with a bolter-miner using continuous haulage systems to transport mined material to surface and the East decline with road-headers. The same type of equipment will be used to develop underground infrastructure including workshops and service areas such as emergency evacuation chambers, pumping stations and electrical rooms. The potash seams are constrained by a minimum mining height of around 2 metres which is consistent with the planned mining equipment. The shallow dipping seams have been detailed designed, utilising a set of two parallel roadways as the main development access, one for fresh air intake and access and the other for exhaust ventilation and both with conveyor belt materials handling systems. The mining method approach is a typical Room and Pillar ("R&P") panel layout. The room width is specified at 8 metres and the height and pillar size is determined by the total combined seam thickness, geotechnical constraints due to depth below surface and/or any equipment limitations. The more steeply inclined potash seams in the north west of the deposit required an alternative mining approach to the R&P panel layout used for the shallow dipping seams, to minimise dilution and maximise extraction, taking into consideration the geotechnical constraints and equipment limitations. For that area, a panel has been designed and the extraction ratio has been applied considering geotechnical constraints due to the seam thickness, depth below surface and/or any equipment limitations. An adaptation of the existing R&P method was considered for developing a practically achievable inclination for the roadways and mining rooms while maintaining the same production targets and utilising the same excavation, material handling and backfill approach. The Project schedule assumes that construction will commence in the first half of 2022 following the preparation for construction. The preparation for construction assumes: Agreement is reached on the construction contract and maximum price with construction partner; Successful procurement of long-lead items; The award of local town hall construction licenses; Finalisation of the debt package, that the Company is running in conjunction with Endeavour Financials. Capex: phase 1 capital expenditure of 398 million; phase 2 capital expenditure of 209 million. Given changes in the potash market and prices since October 2019 and November 2019, with prices increasing considerably, the current European delivered spot price is around 575/t and the Brazil delivered spot price is currently around USD 800/t, compared to an average price of 440/t used in this feasibility study over the life of mine. The potash prices used in the financial modelling have therefore been updated and are now based on the recently released September 2021 forecasts from the independent research company CRU Group ("CRU"). The potash price forecasts in the model are only modestly higher than those used in 2019 (440/t vs 438/t) given the long-term fundamentals of the market have not significantly changed. The potash price forecasts also include the effect of updating foreign exchange rates to reflect current levels, as potash price forecasts are expressed in US dollars as seen in Table 4 above. The salt by-product credit is based on a forecast by Argus Media's most recent salt prices and continue to reflect the commercial production of vacuum salt as well as de-icing salt. The mine gate sales price is 36/tonne for de-icing salt and 55/tonne for vacuum salt. The destination sales strategy is based on 50% of the total phase 1 and 2 production is assumed to be sold into local and regional markets, with 25% sold into northern European markets and 25% to export markets. This has not changed from the strategy used in 2019 and in clarification document published in November 2019 is unchanged. The Company reported to the market that it had received the mining concession permit in an announcement on 5 July 2021. This permit followed the positive environmental permit announced in June 2019 concludes the Government permitting process. The Company has requested the construction licences from the town halls of Sangüesa and Undués, being the two towns closest to the mine site, one in the province of Navarra and the other in Aragón, as well as licences from the water authorities. Key Risks: Key risks identified in this document included: Future conversion of additional Resources (including Inferred) and the Exploration target into Ore Reserves; Adverse movement in the potash price; Adverse movement in key operating costs; Timely project approvals by authorities; Results of future detailed engineering can be uncertain; and Project funding. Announcement • Nov 24
Highfield Resources Limited Announces Ore Reserve Estimate and Exploration Target Prepared for Its Muga-Vipasca Potash Project Highfield Resources announced the results of an independent technical review undertaken by SRK Consulting (UK) Limited of the updated Ore Reserve estimate ("ORE") and Exploration Target prepared for its Muga-Vipasca Potash Project. Highfield together with IGAN, a Spanish mining consultant company, recently completed a detailed mine plan for the Project with revised production and backfilling schedules. The mine plan providesdetailed design of access development to the production zones where the shallow dipping seams, which cover most of the initial years of production, will be mined. The updated ORE takes into account the conditions and constraints resulting from the Environmental Permit ("DIA") and Mining Concession (awarded 1 July 2021), primarily related to exclusion zones. The updated ORE also considers the most recent MRE which now includes the Vipasca Licence areawhere seven additional drillholes have been completed since the previous estimate was produced. In addition to the updated ORE, the Company has also produced an updated Exploration Target which encompasses both the Vipasca Licence area and the Muga Sur Licence area and which has also been reviewed by SRK. Executive Departure • Oct 03
Independent Non-Executive Director Isaac Querub has left the company On the 27th of September, Isaac Querub's tenure as Independent Non-Executive Director ended after 4.5 years in the role. As of June 2021, Isaac still personally held only 8.04k shares (AU$6.0k worth at the time). A total of 3 executives have left over the last 12 months. The current median tenure of the management team is 3.79 years. Recent Insider Transactions • Oct 02
CEO, MD & Director recently bought AU$60k worth of stock On the 24th of September, Ignacio Salazar bought around 127k shares on-market at roughly AU$0.47 per share. This was the largest purchase by an insider in the last 3 months. This was Ignacio's only on-market trade for the last 12 months. Announcement • Aug 09
Highfield Resources Limited announced that it expects to receive AUD 15 million in funding Highfield Resources Limited announced that it will issue 28,800,000 shares at a price of AUD 0.52 for gross proceeds of AUD 15,000,000 on August 9, 2021. The transaction will include participation from existing and new institutional investors. The transaction is expected to close on August 16, 2021. Announcement • May 26
Highfield Resources Limited Provides Muga Project Permitting Update Highfield Resources announced that the company has been advised that the Mining Authorities of Madrid, Aragón and Navarra ("the Mining Authorities") are satisfied with the Mining Concession documentation submitted by Highfield for the Muga Potash Project ("Muga" or "the Project"). The company has also been advised that, accordingly, the final Mining Concession text has now been sent to the Government's lawyer for a final legal review. The Company understands that this is the final step before the granting of the Mining Concession. Announcement • May 11
Highfield Resources Limited Provides Muga Project Permitting Update Highfield Resources announced that on 10 May 2021, a positive report from the environmental department of Aragón has been delivered to the mining Authorities of Madrid, Aragón and Navarra, the last report required in respect of the last section of the Mining Concession documentation submitted for the Muga Potash Project. The company has been advised that if no further clarification is required by the Authorities, the next step is to send the text of the Mining Concession document to the Central Government's lawyer for its legal review prior to the Mining Concession award being issued. The Company continues with the temporary reduction of 50% of all Highfield's management and staff's working time and salaries until the Mining Concession is granted. A similar reduction has been applied to all consultants. In line with staff, the directors of the Board have also implemented a reduction in their total remuneration by 50%. Announcement • Mar 01
Highfield Resources Announces Muga Project Permitting Update Highfield Resources announced that on 27 February 2021 it submitted answers to the fifth and final section of the Mining Concession documentation for its Muga Project. With this submission, the Company has replied to all the questions from the relevant mining Authorities in Madrid, Aragón and Navarra on the documentation submitted by the Company. In parallel, the Company has been advised that the review of the text of the Mining Concession document is now complete, with the Authorities in Madrid having received all comments from Navarra and Aragon. The Company expects that any requirements that arise from the review of the five sections will be added to the text and the final document will be sent to the Government's lawyers for a final legal review. As part of the recent round of reviews and as far as the Company can currently assess, there have been no material red flag issues raised which could potentially adversely impact the granting of the Mining Concession for the Muga Project. With all of the required responses submitted, the Company is now waiting for the process being undertaken by the Authorities to conclude. As the Company waits for the granting of the Mining Concession, the furlough scheme currently in place will be increased to 50% on 1 March 2021 for all staff at Highfield until the Mining Concession is received. Is New 90 Day High Low • Feb 26
New 90-day low: AU$0.57 The company is down 18% from its price of AU$0.70 on 27 November 2020. The Australian market is up 5.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Chemicals industry, which is up 2.0% over the same period. Announcement • Feb 18
Highfield Resources Limited Announces the Retire and Step Down of James (Jim) Dietz from the Company Board Highfield Resources Limited advised that, non-executive Director, Mr. James (Jim) Dietz, has decided to retire and step down from the Highfield Board with effect from 18 February 2021. Executive Departure • Feb 18
Independent Non-Executive Director has left the company On the 18th of February, James Dietz's tenure as Independent Non-Executive Director ended after 5.2 years in the role. As of December 2020, James personally held only 59.25k shares (AU$41k worth at the time). A total of 2 executives have left over the last 12 months. Executive Departure • Feb 10
Company Secretary has left the company On the 8th of February, Donald Stephens' tenure as Company Secretary ended after 7.0 years in the role. As of September 2020, Donald personally held 2.70m shares (AU$1.5m worth at the time). Donald is the only executive to leave the company over the last 12 months. Announcement • Feb 08
Highfield Resources Limited Announces Change of Company Secretary Highfield Resources Limited announced that Ms. Katelyn Adams, CA, B.Com (acc/fin), has been appointed as Company Secretary with effect from 8 February 2021. Katelyn is a partner with HLB Mann Judd and has over ten years of accounting and company secretarial experience, servicing predominantly ASX listed companies. Katelyn has extensive experience in company secretarial duties, ASX Listing Rule requirements, IPO and capital raising processes, as well as a strong technical accounting knowledge and has been assisting Highfield with its company secretarial work over the last two years. Katelyn replaces Mr. Donald Stephens who has been Highfield's Company Secretary since 2014. Donald played a key role in taking the Company from pre-listing to one poised for development and the Board thanks him for his very special contribution. Announcement • Dec 23
Highfield Resources Limited Provide an Update on the Muga Project Highfield Resources announced that the company is now ready to issue all relevant engineering documentation to construction partner. The key areas covered by the engineering documentation are the design of: the mine, including the declines to the mineralization; the processing plant, and urbanization; and the tailings dewatering and the backfilling systems. The work on formalising the Company's debt financing strategy has already started with Endeavour Financial, a leading independent advisor dealing exclusively with the natural resources sector. The aim of this work is to maximise the debt package as part of the overall Muga Project financing strategy. The Company also continues to engage with key brokers and strategic partners as it prepares to secure the equity portion of the financing at some stage after the receipt of the Mining Concession. The Authorities in Aragon, Madrid and Navarra started their detailed review and analysis during the year. Following the public exposition in August 2020, the Authorities split the Mining Concession review into five sections covering all aspects of the Project. The Company has made significant progress in the last quarter of the year in engineering and ordering long lead items, notably the bolter miner, to ensure Project readiness by year end. At the same time, in the last few months, the Company has implemented cash preservation measures including a headcount reduction and a significant reduction in consultant spend. With all of that, the Company is committed to maintain a cash balance of approximately AUD 20 million by year end. The Project has been advanced to this point in line with expectations and it does not require any significant development until the final stage of the Mining Concession process is completed. On that basis, the Company is undertaking additional austerity measures to ensure that it continues to maintain a healthy cash balance and will not require any additional capital until after the Muga Mining Concession is granted. Is New 90 Day High Low • Nov 20
New 90-day high: AU$0.64 The company is up 32% from its price of AU$0.48 on 20 August 2020. The Australian market is up 8.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is flat over the same period. Is New 90 Day High Low • Oct 08
New 90-day high: AU$0.63 The company is up 25% from its price of AU$0.50 on 10 July 2020. The Australian market is up 3.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is flat over the same period. Is New 90 Day High Low • Sep 21
New 90-day high: AU$0.57 The company is up 24% from its price of AU$0.47 on 23 June 2020. The Australian market is up 1.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is down 2.0% over the same period.