A recent independent report by Argus FMB predicted that Highfield Resources is likely to be the highest margin potash producer globally thanks to its Muga potash mine. The report on the potash market was commissioned by the four major European commercial banks, and included a specific focus on Highfield’s flagship Muga mine.
Highfield’s Managing Director Anthony Hall, said, “The Argus FMB report provides independent, third-party validation that Muga is likely to position Highfield as the highest margin potash producer globally. We continue to believe we have the most compelling potash project globally, and this is the first of our portfolio of five projects that all appear to exhibit similar characteristics.”
Based on based on average potash prices for 2015, Highfield would have achieved a total cash margin of 61% in 2015. This assumes a sales ration of 75% and 25% into Europe and the United States, respectively. The report also concluded that Highfield will likely be the lowest cost potash producer on a delivered customer basis into it’s target markets of Europe, Brazil and the United States.
Highfield Resources has five 100% owned projects located in Spain, including Muga, Vipasca, Pintano, Izaga and Sierra del Perdón, which are located in the Ebro potash-producing basin in northern Spain, covering a project area of more than 550 km. The Sierra del Perdón project includes two former operating potash mines.
The company completed a definitive feasibility study for Muga in March, which was optimized in November to enhance operational efficiencies, sales and marketing activities and the life of mine. Highfield expects to receive a positive environmental declaration in the first quarter of 2016 to commence construction of the mine.
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