Muga Salt Plant Scoping Study (By Pareto Secuirites)

Highfield Resources has completed a Scoping Study for processing of the Muga slimes to produce granular K62 potash and vacuum salt by-products. Based on testwork, the slimes will contain 21% NaCl and 11.5% KCl which based on a 1.3Mtpa throughput rate will produce 135ktpa of K62 Potash and 260ktpa of high-purity Vacuum Salt. On a value basis, the potash and salt produced will be roughly equal. Highfield has a growing list of projects now with the recently completed Sierra del Perdon Scoping Study and now the Salt Plant Scoping Study which provide optionality and a growth path towards production of 2Mtpa of potash. We retain out BUY recommendation and increase our Price Target to AUD 2.60/share from AUD 2.10/share.

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