Highfield Resources (HFR) H2 2024 earnings summary

Executive summary

• Announced a transformational transaction to create a globally diversified potash company, including a US$220 million equity raise and acquisition of the Southey potash project in Canada.

• Muga Project is construction-ready with major contracts signed and funding secured, pending completion of the transaction.

• Achieved significant permitting milestones, with over 40 permits granted and strong community and government support.

• Focused on ESG commitments, community engagement, and sustainability initiatives, earning multiple awards and recognitions.

Financial highlights

• Net loss after tax for 2024 was $19.2 million, compared to $12.1 million in 2023.

• Total consolidated cash at year-end was $12.0 million, down from $14.1 million in 2023.

• Net cash outflow from operating activities was $8.8 million, primarily for G&A and legal expenses related to the transaction.

• Net cash inflow from financing activities was $11.5 million, mainly from institutional placement and convertible notes.

• No dividends declared or paid for 2024.

Outlook and guidance

• Transaction with Yankuang Energy and strategic investors is expected to fully fund Muga Phase 1 and diversify the project portfolio.

• Construction of Muga to commence upon completion of funding, with a 30-year life of mine and planned capacity of 1 million tonnes per year.

• Directors have not provided further guidance on future results, citing potential speculation.