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HIGHFIELD RESOURCES LIMITED AGM Information 2026
65048_rns_2026-05-26_c5347ac9-093c-4153-8dca-8b39e48cb88b.pdf
AGM Information
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ASX ANNOUNCEMENT
27 May 2026
Highfield Resources
ASX:HFR
AGM – Presentation
Highfield Resources Limited (ASX: HFR) (Highfield or the Company) encloses a copy of a presentation to be delivered by Olivier Vadillo, Head of Corporate Strategy and Business Development, and Carles Aleman, Executive Director, at the Company’s Annual General Meeting to be held on Wednesday, 27 May 2026.
-ENDS-
This announcement has been authorised for release by the Directors of Highfield Resources Limited
Olivier Vadillo
Head of Corporate Strategy and Business Development
+34 609 811 257
[email protected]
Highfield Resources
ACN 153 918 257
ASX: HFR
www.highfieldresources.com.au
Highfield Resources
ASX ANNOUNCEMENT
About Highfield Resources
Highfield Resources is an ASX listed potash company which is planning on commencing full scale construction of its flagship high margin, low capex Muga Project in Spain having finalised the initial site preparatory work and having received all permits and key licences. Muga's Mining Concession was granted in 2021, the ramp construction licence in Aragón in 2022 and the process plant construction licence in Navarra in 2023.
Muga is a unique project – with shallow mineralization and no aquifers above it there is no need to build a shaft. There is high quality and readily accessible infrastructure already in place in the region and importantly, the Muga Project is located in the heart of a European agricultural region which has a clear deficit in potash supply.
In mid-2024, the Company announced a transformative transaction to finance Muga and create a new globally diversified potash company with Yankuang Energy Group Co., Ltd and a number of strategic investors to raise US$220 million of equity capital and acquire the Southey potash project in Saskatchewan, Canada. The transaction is subject to shareholder approval and country regulatory approvals.
Highfield's potash tenements (Muga-Vipasca, Pintanos, and Sierra del Perdón) are located in the Ebro potash producing basin in Northern Spain, covering an area of around 250km2.
FIGURE 1: LOCATION OF MUGA-VIPASCA, PINTANOS, AND SIERRA DEL PERDÓN TENEMENT AREAS IN NORTHERN SPAIN.
Highfield Resources
ACN 153 918 257
ASX: HFR
Highfield Resources
www.highfieldresources.com.au
Highfield Resources
Highfield Resources Annual General Meeting
Disclaimer
Highfield
Resources
COMPETENT PERSONS STATEMENT FOR MUGA ORE RESERVES, MUGA MINERAL RESOURCES and EXPLORATION TARGET
This update was prepared by Mr. Carles Aleman Director of Highfield Resources. The information in this update that relates to the Ore Reserve reported as of 31 October 2021 is based on information prepared under the direction of Dr Mike Armitage who was a Corporate Consultant with SRK Consulting (UK) Limited at that time and who was the Competent Person who assumed overall professional responsibility for the Ore Reserve reported at that time. The information related with the review of the Life of Mine ("LOM") that underpins the October 2021 Ore Reserve was prepared by Mr Chris Bray, who was, and remains, a full-time employee of and Principal Consultant (Mining) at SRK. The information in this update that relates to the Mineral Resources with the effective date of 31 December 2020 is based on information prepared by Ms Anna Fardell, was a Senior Consultant at SRK Consulting (UK) Limited.
Dr Mike Armitage is a Member the Institute of Materials, Minerals and Mining ("IMMM") which is a 'Recognised Overseas Professional Organisation' ("ROPO") included in a list promulgated by the Australian Stock Exchange ("ASX") from time to time. Dr. Mike Armitage has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Dr. Mike Armitage consents to the inclusion in this update of the matters based on the information upon which the October 2021 Ore Reserve is based in the form and context in which it appears.
Mr Chris Bray BEng, MAusIMM (CP) takes responsibility for the review of the LOM plan that underpins the October 2021 Ore Reserve. Mr Bray is a full-time employee and Principal Consultant (Mining) at SRK. He is a Member of and Chartered Professional in the Australasian Institute of Mining and Metallurgy. He is a Mining Engineer with 25 years' experience in the mining and metals industry, including operational experience in underground mines as well as mine planning and review experience on underground potash, salt, lithium and borate projects, and as such qualifies as a CP as defined in the JORC Code. He has also been involved in the reporting of Ore Reserves on various properties internationally for over 10 years.
Ms Anna Fardell was a Senior Resource Geologist employed by SRK as of the effective date for the December 2020 Mineral Resource estimate, and at that time had over five years' experience in estimating and reporting Mineral Resources relevant to the style of mineralisation and type of deposit described herein. Ms Fardell is a registered member of the Australian Institute of Geoscientists (6555) and considered a Competent Person (CP) under the definitions and standards described in the JORC Code 2012. Ms Fardell takes responsibility for the Mineral Resource Statement and Exploration Target presented here and consents to the inclusion in this update 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.
Cautionary Statement
The production target set out in this update is derived from Proved and Probable Ore Reserves, additional Measured, Indicated and Inferred Mineral Resources from the Muga-Vipasca tenement as well as the Exploration Target at the Vipasca and Muga Sur tenements. There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the production target itself will be realised. The potential quantity and grade of an Exploration Target is conceptual in nature, there has been insufficient exploration to determine a mineral resource and there is no certainty that further exploration work will result in the determination of mineral resources or that the production target itself will be realised. The technical parameters underpinning the Mineral Resource in the market announcement dated 30 March 2021 and the Exploration Target in the market announcement dated 23 November 2021 and 2 November 2022 continue to apply and, in the Company's opinion, have not materially changed.
Highfield Resources
MiniMite
Highfield Resources
Current Status and Strategic Priorities
Advancing a globally strategic potash project while preserving financial flexibility
- Muga is a high-quality undeveloped potash project
- Strategic rationale for the project remains unchanged
- Core project permits and infrastructure remain in place
- Current focus is resolving the administrative Goyo permitting matter
- Company continues its active engagement with regional and national authorities
- Continued strong support from Government of Navarra and local stakeholders
- Maintaining construction readiness while preserving liquidity
The underlying fundamentals of the Muga Project remain unchanged.
Highfield
Resources
Potash Market Fundamentals Remain Supportive
European MOP prices remain resilient, supported by constrained supply and stable agricultural demand
- European MOP prices have remained stable around €380/t (US$440/t)
- Ongoing geopolitical disruptions continue to constrain global supply
- Belarusian exports into Europe remain restricted
- Limited new global potash supply expected in the medium term
- Long-term demand supported by food security and agricultural productivity trends
- Muga remains strategically positioned in the European market
Mine location provides exposure to significantly lower potash delivery rates to the European market, meaning higher netbacks at mine gate
Goyo Permitting Background
Highfield Resources
Background
- In 2024, the Superior Court of Justice of Navarra identified a procedural issue relating to the structure of the Goyo, Muga and Fronterizo concessions
- The ruling did not challenge the Project’s technical studies, environmental work, or mining design
- Governments of Navarra, Aragón and Spain appealed the ruling to the Spanish Supreme Court (Highest ranking-Court in Spain)
Ms Chivite, the President of Navarra said*: “The Government of Navarra reaffirms its institutional support for Muga and thanks Highfield Resources and other investors for driving forward this type of project.” (1)
Note 1 See ASX Release 28 August 2025 “Positive Support from Government of Navarra and Goyo Update”
Highfield Resources
Goyo Appeal Admitted by Supreme Court
Judicial Pathway Underway
- Spanish Supreme Court has formally admitted the appeals from Highfield (Geoalcali) and the local, regional, and national Governments
- The Court will rule on whether a single unified concession should have been issued instead of three separate ones
- Crucially, the Supreme Court noted the case raises significant questions on whether an environmental group has the right to challenge administrative matters entirely unrelated to environmental legislation
Why We Are Positive
- Local, regional, and national administrations all actively appealed alongside Highfield, showing total project support
- The dispute remains strictly bureaucratic; Muga’s technical viability, environmental studies, and legal mineral rights are uncontested
Convertible Notes
- Under the current financing arrangements, the remaining convertible note tranches were contingent upon the appeal not being admitted
- The Company will engage constructively with its convertible noteholders regarding appropriate funding arrangements during the appeal period
- Both parties will have 30 days from the point at which Highfield becomes aware of the timetable for the appeal proceedings to agree an appropriate pathway forward.
Cutting Costs to Maintain Financial Flexibility
Highfield
Resources
Cash preservation initiatives continue to extend cash runway and maintain project readiness
- Funding Support
- Secured A$10M strategic funding package from existing investors
- Continued support from EMR Capital and strategic stakeholders
- Funding structured to support permitting resolution and project readiness
- Third tranche received during Q1 2026
-
The remaining tranches will now have to be negotiate following news on the Goyo appeal
-
Cash Preservation Measures
- Non-essential expenditure deferred or eliminated
- Senior Secured Project Finance Facility fully terminated during Q3 2025 to avoid further commitment fee accruals
- ERTE furlough program extended through end-2026 with staff support
- Staff & Consultant headcount reduced by 55% generating a monthly payroll reduction of around 40% this year
- Monthly G&A expenditure also cut by ~27% since Dec 2025
Next steps
Highfield Resources
The Company remains focused on positioning Muga for rapid advancement once permitting clarity is achieved
- Capital Discipline
-
Maintain the active cash preservation strategy, including the extended staff furlough program and deferred non-essential expenditures, to maximize runway while financing is finalized
-
Strategic Process
-
Progress value realisation pathways for shareholders and noteholders
-
Maintain construction readiness and project optimisation plan
-
Continue advancing construction readiness for Muga to ensure immediate readiness to ramp up activities once financing is unlocked
-
Permitting and Legal Resolution
- Await the formal decision from the Supreme Court of Spain regarding the admission of the appeal relating to the Goyo permit
- Maintain active, transparent engagement with regional authorities in Aragón and Navarra, as well as national bodies, to ensure absolute administrative alignment
Highfield Resources
APPENDIX
Why Highfield Resources?
Highfield
The Muga Potash Mine is set to deliver a new global and secure source of Potash, a critical input in Fertilizers
Targeting €340 million per annum EBITDA¹ Potash operation in full production
Forecast to be one of the highest margin potash mines globally
Fully permitted and shovel ready project in Spain
Location is a major strategic advantage. Shallow mineralization. Infrastructure in place
Potash market has attractive long-term fundamentals with near-term opportunity
A critical future facing commodity leveraged to global food security Thematic
¹ See ASX Release "Muga Potash Mine Updated 2023 Feasibility Study" 8 November 2023
Highfield
Muga Project Overview
A potash developer listed on the ASX (HFR) with projects in Northern Spain
Muga is a two-phase project which will produce a total of 1 Mtpa of muriate of potash
Conventional Underground Room and Pillar mining. Declines accessing shallow mineralisation
Conventional Flotation and Crystallisation processing
Hightfield
Resources
Team
Board overview
Paul Harris, Independent Non-Executive Chairman
- Joined Board March 2022.
- Over 25 years' experience in financial markets and investment banking, including roles with Citibank, Bankers Trust and Merrill Lynch
- Currently on Boards of Aeon Metals, Aurelia Metals
- Masters of Engineering (Mining) and a Bachelor of Commerce (Finance)
Pauline Carr, Independent Non-Executive Director
- Over 30 years' experience in the mining and resources sectors.
- Held senior positions in Newmont and Normandy Mining.
- Currently Chancellor of the Adelaide University Transition Council, Chairman of National Pharmacies and Director of Australian Rare Earths
Carles Alemán, CEO and Director
- More than 30 years' experience working in international focused managerial roles in the chemical sector
- Previously worked at BASF, CIBA-GEIGY. Worked 8 years at ICL Spain, where he was the President since 2018
Management overview
Carles Alemán, CEO and Director
Javier Aguado, CFO
- Over 25 years' accounting and financial experience.
- Previously worked at EY, Acciona Energía, and Nordex Energy Spain, where he held various management and leadership positions over more than 17 years.
Olivier Vadillo, Head of Corporate Strategy and Business Development
- More than 12 years' professional experience in strategic consultancy.
- Previously worked at Wood Mackenzie, Deloitte MCS Ltd and as a strategic consultant for various mining and energy companies
Susana Bieberach, Head of Public Affairs
- Extensive experience working as a consultant for more than 300 companies, organisations and associations
- She is a member of the Communication ANEFA and of the Communication Committee of Women in Mining
Note: EMR-nominated Non-Executive Director Luke Anderson stepped down from the Board on 23 September 2025.
Potash Market Overview
Highfield
Resources
Global food security will be a key theme in the future with population increasing and arable land decreasing growing the need for more fertiliser use
Source: FAOSTAT, Index Mundi, Market Watch, Argus
Highfield
Resources
Location is a Key Competitive Advantage
Access to Customer Markets
- Strategically located in the middle of the European market
- Potash price premium in Europe
- Faster and cheaper access to South American and U.S markets
- Muga is <200km to port
- Less than half the transport time
| Country of departure | Time to port | Destination (Shipping Days) | Freight to Brazil | |
|---|---|---|---|---|
| West Europe | Brazil | |||
| Spain | ~2h | - | 18 | ≈$19/t |
| Germany | ~3h | - | 21 | ~$23/t |
| Russia / Belarus | ~2-3 days | 5 | 26 | ~$37/t |
| Canada West Coast | ~3 days | 35 | 43 | ~$51/t |
Other Key Competitive Advantages
Highfield
Resources
- Excellent infrastructure in place with immediate access to ports, transport and renewable grid power
- Straightforward access to the mine with two ramps, no shafts, no aquifers and shallow mineralization
- Low technical risk with conventional underground Room and Pillar mining method and flotation and crystallization processing
National Electricity Grid Substation in Sangüesa
A-21 between Sangüesa and Pamplona
Port of Bilbao (~220km), Spain's largest port
Top Quartile Margins
Highfield
Resources
Margin curve forecast for 2026 (real US$)
Low costs and higher netbacks at mine gate position the mine as potentially one of the highest margin potash mines globally
Source: Argus Media, CRU, Highfield Resources., ASX Release 8 November 2023.
The Company confirms that all material assumptions underpinning these figures, in-line with the initial public report released on 8 November 2023 (refer ASX release "Muga Project Updated 2023 Feasability Study") continue to apply and have not materially changed.
Low Initial Investment
Highfield
Resources
MUGA has half the capex intensity compared to other global development projects (US$ Per Tonne Of Potash)
| Owner | Western Resources | APMC | Yancoal | BHP | Anglo American | SRBG | Kore Potash | Gensource | Brazil Potash Corp. | Highfield Resources | Uralkali |
|---|---|---|---|---|---|---|---|---|---|---|---|
| State of development | Project (firm) | Project | Project | Project (firm) | Construction | Project | Project | Project | Project | Construction | Project |
| Source | Western Potash Website 2023 | 2022 CRU Potash Cost Service Overview | 2022 CRU Potash Cost Service Overview | BHP Project Report 2021 | Anglo American Financial Report 2022 | 2022 CRU Potash Cost Service Overview | 2022 CRU Potash Cost Service Overview | 2022 CRU Potash Cost Service Overview | 2022 CRU Potash Cost Service Overview | Based on HFR's 2023 Updated Feasibility Study | 2022 CRU Potash Cost Service Overview |
The Company confirms that all material assumptions underpinning these figures, in-line with the initial public report released on 8 November 2023 (refer ASX release "Muga Project Updated 2023 Feasibility Study") continue to apply and have not materially changed.
Outstanding Project Economics
Highfield
Resources
ECONOMICS
| €340 million pa EBITDA in full production | NPV_{8} of €1.82 billion 23% IRR (post-tax) | First quartile margin position |
|---|---|---|
| Pre-production capital cost of €449 million (phase one), including 10% contingency | Capital cost of €286 million (phase two), including 10% contingency | Economics underpinned using current real spot prices |
OPERATIONAL
| 2 phase planned production up to 1Mtpa of Muriate of Potash (MOP) | Excellent logistics with access to renewable grid power, transport, and port | Strategically located with low cost access to customer markets |
|---|---|---|
| 30 year Life of Mine | Conventional Underground Room and Pillar mining operation | Established social licence to operate |
Resource
- 100% owned Muga Potash Project
- ROM tonnes of 173,7Mt at 10.2% Potassium Oxide (K₂O)
Permits
- Fully permitted and construction ready, subject to financing and Goyo permitting resolution.
Global demand for MOP as a critical fertilizer input is expected to grow which is driven by current geopolitical supply risks, population growth, and pressure on farming yield.
See ASX Release "Muga Potash Mine Updated 2023 Feasibility Study", 8 November 2023
Highfield Resources
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
Carles Aleman CEO T: +34 948 050 577
Olivier Vadillo T: +34 609 811 257
