GMP Securities, Research Reports

Salt scoping study released, price target lifted (GMP Securities)

May 3, 2015

Crystallisation plant for chemical salt and tailings potash Highfield’s scoping study for a slimes crystallisation plant at Muga in Spain outlines a 24 year mine producing 135ktpa of potash (~60% of EBITDA) and 259ktpa of salt for the chemicals industry, lifting group peak production to 1.8Mtpa MOP. C3 costs of US$85/t would drive 65% operating margins and US$65m pa of EBITDA in 2019 for a company estimated NPV10% of US$222m and 33% IRR. Construction would start post potash mine completion in 2017.

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