REG - Emmerson PLC - Interim Results for the six months to 30 June 2022
26/09/2022 07:00
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RNS Number : 5392A Emmerson PLC 26 September 2022
Emmerson PLC / Ticker: EML / Index: AIM / Sector: Mining
26 September 2022
Emmerson PLC ("Emmerson" or the "Company")
Interim Results for the six months ended 30 June 2022
Emmerson, which is developing the world class Khemisset Potash Project in
Morocco ("Khemisset" or the "Project"), is pleased to announce its interim
results for the six-month period ended 30 June 2022.
Highlights
· Strong progress at Khemisset in basic engineering and drilling
campaigns, positioning the Company to proceed rapidly towards the construction
of the mine in 2023 after financial close
· Enhancements made to the Project to reduce further its environmental
impact, including sourcing of waste water for processing, and the selection of
dry tailings storage
· Potash prices remain high due to tight supply and growing demand -
food security becoming a major global issue
· Further support for the Project from strategic investors, with US$40
million financing commitment extended for a further 12 months, and a new
subscription of US$6.0 million at 6.0 pence per share (see separate
announcement)
· Emmerson now funded for remaining technical and other workstreams to
deliver Khemisset through to construction decision and financial close,
currently expected to be during H2 2023
· Positive discussions around environmental approvals as Emmerson
continues to work with the relevant authorities to receive full approval.
Chief Executive Graham Clarke said: "I am pleased to report that we have made
strong progress in 2022 to date towards completing the basic engineering and
technical workstreams as part of finalising the design of the Khemisset
project. We are now well placed to move rapidly towards concluding the
financing for the construction of the mine, once the final environmental
approvals are received. Although these approvals have been taking longer than
we had originally anticipated, the Moroccan authorities have assured us of
their support for the Project, which all parties recognise has a significant
role to play in the context of the global crisis around food security, of
which potash supply is a key element.
"Today we announce the extension of our US$40 million financing commitment
with Global Sustainable Minerals Pte Ltd and Gold Quay Capital Pte Ltd,
together with a US$6 million placing for new equity. These agreements
demonstrate the ongoing support of our strategic investors and leave us funded
for our remaining technical workstreams up to financial close. Once we receive
the final environmental approvals, we expect financial close to take around
six months if all goes well, and construction to commence soon thereafter.
Subject to progress in the coming months on the environmental permit, we would
hope to be able to commence construction in the second half of 2023."
Financing
The Company announces today that it has received further support from its
strategic investors Global Sustainable Minerals Pte Ltd ("GSM") and Gold Quay
Capital Pte Ltd ("GQC") (together the "Strategic Investors") in the form of an
extension to its existing Convertible Loan Notes agreement, and a new US$6.0
million subscription for new shares at a price of 6.0 pence per share by GSM.
Further details of this important and positive development, and the
opportunity for existing shareholders to participate alongside the GSM
subscription are covered in separate announcements published immediately
following this announcement.
Discussions have continued regarding the financing package for the
construction project at Khemisset. A range of international and Moroccan banks
have expressed interest in participating in the debt funding, while there has
also been considerable interest in the equity portion, which is corner-stoned
by the Strategic Investors' renewed commitment for up to US$64 million,
comprising US$12 million of equity subscriptions to date (including US$6
million announced today), up to US$40 million of convertible notes, and
potential additional funding of US$12 million from warrant exercises.
The combination of strong economics, solid jurisdiction, an experienced
management team and a compelling investment case for potash have attracted
significant attention from a variety of investors, in spite of some
challenging market conditions.
Khemisset
Emmerson is committed to making Khemisset the first potash producer in Africa.
Achieving this will enhance Morocco's status as a fertiliser hub supporting
food security for Africa and the rest of the world and will confirm the
country's growing reputation as an attractive destination for foreign
investment. Emmerson's management is committed to working proactively with
Morocco to ensure that the development of the Project aligns with the
Kingdom's economic strategy through a mutually beneficial relationship that
maximises local and national benefits. It will continue to engage closely with
a wide range of Moroccan stakeholders to ensure the optimum route to
production is achieved.
Technical Workstreams
The Emmerson team in Morocco continues to progress towards achieving
construction readiness at Khemisset. The work undertaken during the period, in
partnership with Moroccan partners Reminex Engineering on the general
infrastructure, and Barr Engineering on the process plant, has ensured that
the Company is well positioned to move quickly to the next stage once the
final permits and financing are in place.
Recent geotechnical work has driven the adjustment of the mine site location,
with decline alignment drilling conducted during the period demonstrating
better than anticipated ore conditions at the end of the decline.
Information gathered from boreholes and Electrical Resistance Tomography
("ERT") surveys has led to the selection of a more suitable area for
construction of the site and the decline, as well as reducing the use of
private land.
Additional deep drill holes, supplemented by directional drilling and four
further ERT surveys, were completed in order to provide further insights into
the lithography around the declines, and will assist in finalising the precise
siting of key infrastructure to take advantage of the most competent ground
conditions. One of the holes was extended to provide detailed data to feed
into the design of the Deep Well Injection ("DWI") which will help minimise
surface tailings. The 8km of ERT surveys have covered the tailings storage
facility area and the Mining Infrastructure Area, for best understanding of
rock competence for foundations.
As previously reported, the Company has determined that a dry tailings system
will now be employed at Khemisset. The key advantages of the dry tailings
system are the environmental benefits of reduced footprint, reduced water
consumption and also reduced risk in the event of any extreme weather events,
a key environmental benefit.
Workstreams relating to the process plant have also progressed well, with
process flow diagrams, piping and instrumentation diagrams, and function
specifications now completed. Infrastructure and service investigations are
now well advanced, and an improved solution for process plant water supply has
been identified whereby water will be taken either partially or fully from the
Khemisset Waste Water Treatment Plant, with the ultimate goal of requiring no
fresh water for the process. This is a scientifically robust and
environmentally friendly approach that both reduces risks of water supply to
the Project, and further reduces environmental impacts with a shorter pipeline
required.
Potash market
During the first half of 2022 the significant rise in the price of potash,
especially in the large growth market of Brazil, became more broad-based, with
prices reaching US$1,000/t in many markets around the world. These prices
reflect the tightening of supply following many years of underinvestment in
mining, a situation brought sharply into focus by the war in Ukraine, with
sanctions imposed on both Russia and Belarus (which together account for
nearly 40% of global potash production).
Although prices have settled back slightly in recent weeks at lower levels, at
approximately US$800/t they remain considerably higher than the assumptions
included at the time of the Khemisset Feasibility Study in 2020, which
estimated a project net present value of US$1.4 billion. While supply issues
related to the Ukraine crisis are likely to remain for the foreseeable future,
the longer-term drivers of potash demand, in particular population growth and
pressure on land usage in the context of climate change, are expected to
sustain high prices for some time.
Permitting Update
As shareholders will be aware, the Company's Environmental and Social Impact
Assessment ("ESIA") is awaiting final approval. Emmerson is committed to
meeting the highest environmental standards in Morocco and this will remain a
core principle at the heart of its work throughout the construction phase and
during the subsequent life of the mine. The Company has addressed all the ESIA
issues raised by the relevant Moroccan authorities. It has enhanced and
upgraded various aspects of its proposed development plan, far surpassing the
minimum requirements of the ESIA and working to International Finance
Corporation Performance Standards, including, as stated above, in its water
sourcing and tailings management strategies.
Corporate
Emmerson has continued to make significant strides towards securing the
funding need to bring Khemisset into construction and has strengthened its
internal and advisory teams with a view to finalising these steps. In
February 2022, Emmerson announced the appointed of Jim Wynn as CFO, and
Liberum Capital as a joint broker, and Matt Wilmott was recruited as Technical
Services Manager.
Condensed Consolidated Statement of Comprehensive Income for the six months ended 30 June 2022
6 months ended 6 months 12 months ended
30 Jun 2022 ended 31 Dec 2021
30 Jun 2021
(Unaudited) (Unaudited) (Audited)
Notes US$'000 US$'000 US$'000
Administrative expenses 3 (1,244) (897) (2,349)
Share-based payment expense (53) (217) (33)
Net foreign exchange loss (81) (26) (388)
Operating loss (1,378) (1,140) (2,770)
Finance cost - (5) (7)
Loss before tax (1,378) (1,145) (2,777)
Income tax - - -
Loss for the period attributable to equity owners (1,378) (1,145) (2,777)
Other comprehensive income
Exchange loss on translating foreign operations (84) (169) (693)
Total comprehensive income attributable to equity owners (1,462) (1,314) (3,470)
Loss per share (cents) 4 (0.15) (0.14) (0.34)
Condensed Consolidated Statement of Financial Position as at 30 June 2022
30 June 2022 30 June 2021 31 Dec 2021
(Unaudited) (Unaudited) (Audited)
Notes US$'000 US$'000 US$'000
Non-current assets
Intangible assets 5 16,489 12,032 13,555
Property, plant and equipment 39 12 41
Total non-current assets 16,528 12,044 13,596
Current assets
Trade and other receivables 1,126 490 771
Cash and cash equivalents 4,535 6,362 10,032
Total current assets 5,661 6,852 10,803
Total assets 22,189 18,896 24,399
Current liabilities
Trade and other payables (1,005) (207) (1,835)
Total current liabilities (1,005) (207) (1,835)
Net assets 21,184 18,689 22,564
Shareholders equity attributable to equity owners
Share capital 29,025 23,223 28,774
Share-based payment reserve 2,163 1,572 2,048
Reverse acquisition reserve 2,234 2,198 2,198
Retained earnings (11,867) (8,650) (10,278)
Translation reserve (371) 346 (178)
Total equity 21,184 18,689 22,564
Condensed Consolidated Statement of Changes in Equity for the six months ended 30 June 2022
US$'000 Share Capital Share-based payment reserve Reverse acquisition reserve Retained earnings Translation reserve Total equity
Balance as at 1 January 2021 15,755 1,499 2,198 (7,508) 515 12,459
Loss for the period - - - (1,145) - (1,145)
Other comprehensive loss:
Exchange loss on translating foreign operations - - - - (169) (169)
Total comprehensive loss - - - (1,145) (169) (1,314)
Share option and warrant issue - 166 - - - 166
Transfer - (3) - 3 - -
Share issue - 3rd parties 8,223 (90) - - - 8,133
Share issue costs (755) - - - - (755)
Balance as at 30 June 2021 23,223 1,572 2,198 (8,650) 346 18,689
Balance as at 1 January 2021 15,755 1,499 2,198 (7,508) 515 12,459
Loss for the year - - - (2,777) - (2,777)
Other comprehensive loss:
Exchange loss on translating foreign operations - - - - (693) (693)
Total comprehensive income - - - (2,777) (693) (3,470)
Issue of share options and warrants 90 (104) - - - (14)
Transfer - (7) - 7 - -
Issue of shares for cash 14,345 660 - - - 15,005
Share issue costs (1,416) - - - - (1,416)
Balance as at 31 December 2021 28,774 2,048 2,198 (10,278) (178) 22,564
Adjustment for change in functional currency 1/1/22 219 65 36 (211) (109) -
Balance as at 1 January 2022 28,993 2,113 2,234 (10,489) (287) 22,564
Loss for the period - - - (1,378) - (1,378)
Other comprehensive loss:
Exchange loss on translating foreign operations - - - - (84) (84)
Total comprehensive loss - - - (1,378) (84) (1,462)
Issue of share options - 53 - - - 53
Share option and warrant exercised 3 (3) - - - -
Issue of shares for cash 29 - - - - 29
Balance as at 30 June 2022 29,025 2,163 2,234 (11,867) (371) 21,184
Condensed Consolidated Statement of Cash Flows for the six month period ended 30 June 2022
6 months ended 6 months 12 months ended
30 June 2022 ended 31 Dec 2021
30 June 2021
(Unaudited) (Unaudited) (Audited)
US$'000 US$'000 US$'000
Cash flows from operating activities
Loss before tax (1,378) (1,145) (2,777)
Add back: Foreign exchange 81 (324) (448)
Add back: Share-based payment 53 167 33
Add back: Depreciation 2 4 5
Changes in working capital
Increase in trade and other receivables (355) (60) (351)
(Decrease)/increase in trade and other payables (821) (473) 1,182
Net cash flows used in operating activities (2,418) (1,831) (2,356)
Cash flows from investing activities
Exploration expenditure (2,934) (766) (2,671)
Property, plant and equipment purchase - - (30)
Net cash flows used in investing activities (2,934) (766) (2,701)
Cash flows from financing activities
Proceeds from issuing shares and warrants 29 8,133 14,958
Cost of issuing shares - (755) (1,416)
Net cash flows generated from financing activities 29 7,378 13,542
(Decrease)/increase in cash and cash equivalents (5,323) 4,781 8,485
Cash and cash equivalents at beginning of period 10,032 1,563 1,563
Foreign exchange on cash and cash equivalents (174) 18 (16)
Cash and cash equivalents at end of period 4,535 6,362 10,032
Notes to the Condensed Consolidated Financial Statements for the six months ended 30 June 2022
1. General information
Emmerson PLC (the "Company") is a company incorporated and domiciled in the
Isle of Man, whose shares were admitted to the Standard Listing segment of the
Main market of the London Stock Exchange on 15 February 2017. On 27 April
2021, the Ordinary Shares of the Company were admitted to trading on AIM and
the listing of the Company's ordinary shares on the Official List and their
trading on the Main Market were cancelled.
The principal activity of the Group is the exploration, development and
exploitation of a potash development project in Morocco.
2. Basis of preparation
2.1 General
The Condensed Consolidated Financial Statements have been prepared in
accordance with UK-adopted International Accounting Standards. The Condensed
Consolidated Financial Statements for the six months ended 30 June 2022 are
unaudited and have not been reviewed by the Group's auditor, and do not
include all of the information required for full annual financial statements.
They should be read in conjunction with the Company's annual financial
statements for the year ended 31 December 2021. The principal accounting
policies applied in the preparation of the Condensed Consolidated Financial
Statements are unchanged from those disclosed in those statements. These
policies have been consistently applied to each of the periods presented.
The financial information of the Group is presented in US Dollars, which is
also the functional currency of the Company and has been prepared under the
historical cost convention. The individual financial statements of each of the
Company's wholly owned subsidiaries are prepared in the currency of the
primary economic environment in which it operates (its functional currency).
2.2 Basis of consolidation
The Consolidated Financial Statements comprise the financial statements of the
Company, Moroccan Salts Limited and Moroccan Salts Limited's subsidiaries (the
"MSL Group") following the business combination which took place on 4 June
2018.
Subsidiaries are fully consolidated from the date of acquisition, being the
date on which the Group obtains control. Control is achieved when the Group is
exposed, or has rights, to variable returns from its involvement with the
investee and has the ability to affect those returns through its power over
the investee.
Generally, there is a presumption that a majority of voting rights result in
control. To support this presumption and when the Group has less than a
majority of the voting or similar rights of an investee, the Group considers
all relevant facts and circumstances in assessing whether it has power over an
investee, including:
· The contractual arrangement with the other vote holders of the
investee;
· Rights arising from other contractual arrangements; and
· The Group's voting rights and potential voting rights
The Group re-assesses whether or not it controls an investee if facts and
circumstances indicate that there are changes to one or more of the three
elements of control. Subsidiaries are fully consolidated from the date on
which control is transferred to the Group. They are deconsolidated from the
date that control ceases. Assets, liabilities, income and expenses of a
subsidiary acquired or disposed of during the period are included in the Group
Financial Statements from the date the Group gains control until the date the
Group ceases to control the subsidiary.
All intra-group balances, transactions, income and expenses and profits and
losses resulting from intra-group transactions that are recognised in assets,
are eliminated in full.
All the Group's companies have 31 December as their year-end. Consolidated
financial statements are prepared using uniform accounting policies for like
transactions.
2.3 Functional and presentational currency
The financial information of the Group is presented in US dollars. The
functional currency of the Company Emmerson PLC changed on 1 January 2022 from
GBP to US$ reflecting the stage in development of activities whereby the cost
base of the Group changed from GBP to US$. The effect of a change in
functional currency is accounted for prospectively. All items were translated
into the new functional currency using the exchange rate at the date of the
change.
The individual financial statements of each of the Company's wholly-owned
subsidiaries are prepared in the currency of the primary economic environment
in which they operate (functional currency).
2.4 Change in Functional and Presentation Currency
The Group presented its results in US dollars for the first time for the year
to 31 December 2021 having previously reported in GBP. This change should help
to provide a clearer understanding of the Group's financial position as the
future corporate development activity is likely to be US focused.
In order to satisfy the requirements of IAS 21 with respect to a change in
presentation currency, the statutory financial information as previously
reported in the Group's Annual Reports have been restated from UK Sterling
into US Dollars using the procedures outlined below:
· Assets and liabilities were translated to US Dollars at the
closing rates of exchange at each respective balance sheet date.
· Share capital, share premium and other reserves were translated
at the historic rates prevailing at the dates of transactions.
· Income and expenses were translated to US Dollars at an average
rate at each of the respective reporting years. This has been deemed to be a
reasonable approximation.
· Differences resulting from the retranslation were taken to
reserves.
· All exchange rates used were extracted from the Group's
underlying financial records.
2.5 Going concern
The Directors have reviewed the Group's ongoing activities and have a
reasonable expectation that the Group has adequate resources to continue
operating for the foreseeable future. For this reason, they have adopted the
going concern basis in preparing the Interim Financial Statements.
2.6 Future changes in accounting policies
The Directors have reviewed the IFRS standards in issue which are effective
for annual accounting periods ending on or after the stated effective date. In
their view, none of these standards would have a material impact on the
financial reporting of the Group.
2.7 Segment reporting and cyclicality
A business segment is a group of assets and operations engaged in providing
products or services that are subject to risks and returns that are different
from those of other business segments. A geographical segment is engaged in
providing products or services within a particular economic environment that
are subject to risks and returns that are different from those of segments
operating in other economic environments.
The Directors consider the Group is engaged in a single segment of business
being the exploration activity of potash in one geographical area, being the
Khemisset Project in Morocco.
The interim results for the six months ended 30 June 2022 are not necessarily
indicative of the results to be expected for the full year ending 31 December
2022. Due to the nature of the entity, the operations are not affected by
seasonal variations at this stage.
3. Administrative fee and other expenses
6 months ended 6 months 12 months ended
30 Jun 2022 ended 31 Dec 2021
30 Jun 2021
(Unaudited) (Unaudited) (Audited)
US$'000 US$'000 US$'000
Project costs - 7 7
Directors' fees 292 263 635
Travel and accommodation 61 9 59
Auditors' remuneration including associates: 15 25
Current year 22 - -
Adjustment for prior year 12
Employment costs 298 105 455
Professional and consultancy fees 559 498 1,168
Total 1,244 897 2,349
4. Earnings per share
The calculation of the basic and diluted earnings per share is based on the
following data:
6 months ended 6 months 12 months ended
30 Jun 2022 ended 31 Dec 2021
30 Jun 2021
(Unaudited) (Unaudited) (Audited)
US$'000 US$'000 US$'000
Earnings
Loss from continuing operations for the period attributable to the equity (1,378) (1,145) (2,777)
holders of the Company
Number of shares
Weighted average number of ordinary shares for the purpose of basic and
diluted earnings per share
915,425,829 794,971,631 822,875,086
Basic and diluted loss per share 0.15 cents 0.14 cents 0.34 cents
5. Intangible assets
The intangible assets consist of capitalised exploration and evaluation
expenditure, including the cost of acquiring the mining license and research
permits held by the Company's subsidiaries.
30 Jun 2022 30 Jun 2021 31 Dec 2021
(Unaudited) (Unaudited) (Audited)
US$'000 US$'000 US$'000
Cost:
At the beginning of the period 13,555 11,132 11,132
Additions 2,934 766 2,671
Effects of changes in foreign exchange rates - 134 (248)
As at end of period 16,489 12,032 13,555
6. Related party transactions
Directors' consultancy fees
Hayden Locke is a Director of the Company and is a director of Benson Capital
Limited, which provided consulting services to the Company. During the period,
Benson Capital Limited received total fees of US$65k (year to 31 December
2021: US$244k). The amount outstanding as at period end was US$nil (31
December 2021: US$nil).
Robert Wrixon is a Director of the Company and also provided consulting
services to the Company. During the period, Robert Wrixon received fees of US$
55k (year to 31 December 2021: US$116k). The amount outstanding as at
period-end was US$ nil (31 December 2021: US$ nil).
Graham Clarke is a Director of the Company and is a director of GCUK
Consulting Limited, which provided consulting services to the Company during
2021 for US$99k. No services were provided during the period and no amounts
were outstanding at 30 June 2022 or 31 December 2021.
The total Directors' fees during the period is shown in note 3.
7. Post-balance sheet events
On 26 September 2022, the Company announced it had entered into an agreement with Global Sustainable Minerals Pte Ltd ("GSM") and Gold Quay Capital Pte Ltd ("GQC") to extend the commitment period for the previously announced US$40.0 million convertible loan note subscription to 30 September 2023, providing continued cornerstone financing support for the development of the Khemisset Potash Project, as well as extending the expiry date for the 82.4 million warrants at 8.2 pence due to expire on 6 December 2022 for a further 12 months. GSM received a renewal fee of 50 million warrants at 8.2 pence with an expiry date of 6 December 2023.
GSM also agreed to subscribe for 89.3 million shares at a price of 6.0 pence per Ordinary share representing aggregate proceeds of US$6.0 million before expenses.
8. Change in Functional and Presentation Currency
The Directors believe that US dollars are a more appropriate currency in which
to present the Group's consolidated results, on the basis that, along with
most international mining groups, the majority of financing and pricing
discussions and presentations are undertaken in that currency.
Consequently, the Group opted for the financial results to be presented in US
dollars for the year ended 31 December 2021. The change in presentation
currency was applied retrospectively.
In re-presenting the Group Financial Statements for the year ended 31 December
2021, the reported information was converted to US dollars from GBP using the
following procedures:
· Assets and liabilities were translated to US dollars at the
closing rates of exchange at each respective balance sheet date (31 December
2021: GBP1: US$1:3532; 31 December 2020: GBP1:US$1.367).
· Share capital, share premium and other reserves were translated
at the historic rates prevailing at the dates of transactions.
· Income and expenses were translated to US dollars at an average
rate at each of the respective reporting periods. This has been deemed to be a
reasonable approximation (31 December 2021: GBP1: US$1.377; 31 December 2020:
GBP1: US$1.276).
· Differences resulting from the retranslation were taken to
reserves.
With effect from 1 January 2022 the Company changed the functional currency to
US dollars from GBP. This was deemed appropriate as the Company moves from a
prospecting stage to the development of the mining asset. As a consequence,
the expense base for the Group has changed from GBP to US$.
In accordance with IAS 21, the change in functional currency is applied
prospectively with all balances being converted to US$ at the rate of exchange
on the appropriate date.
To assist shareholders during this change, the impact on the prior period
results, closing balance sheet and the numerator for earnings per share as
originally reported is set out below:
Condensed Consolidated Statement of Comprehensive Income for the six months ended 30 June 2021 (represented)
As originally reported 6 months to 30 June 2021 Re-presented 6 months to 30 June 2021
Note £'000 US$'000
Continuing Operations
Administrative expenses 3 (658) (897)
Share-based payment expense (158) (217)
Net foreign exchange loss (19) (26)
Operating loss (835) (1,140)
Finance cost (4) (5)
Loss before tax (839) (1,145)
Income tax - -
Loss for the year attributable to equity owners (839) (1,145)
Other comprehensive income
Items that may be subsequently reclassified to profit or loss:
Exchange gain on translating foreign operations (176) (169)
Total comprehensive income attributable to equity owners (1,015) (1,314)
Loss per share - Basic and diluted 4 (0.11 pence) (0.14 cents)
Consolidated Statement of Financial Position at 30 June 2021 (represented)
As originally presented 30 June 2021 Re-presented 30 June
2021
Note £'000 US$'000
Non-current assets
Intangible assets 5 8,699 12,032
Property, plant and equipment 9 12
Total non-current assets 8,708 12,044
Current assets
Trade and other receivables 354 490
Cash and cash equivalents 4,600 6,362
Total current assets 4,954 6,852
Total assets 13,662 18,896
Current liabilities
Trade and other payables (150) (207)
Total current liabilities (150) (207)
Net assets 13,512 18,689
Shareholders equity attributable to equity owners
Share capital 17,388 23,223
Share-based payment reserve 1,216 1,572
Reverse acquisition reserve 1,651 2,198
Translation reserve (167) 346
Retained earnings (6,576) (8,650)
Total equity 13,512 18,689
**ENDS**
For further information, please visit www.emmersonplc.com
(http://www.emmersonplc.com/) , follow us on Twitter (@emmerson_plc), or
contact:
Emmerson PLC +44 (0) 20 7236 1177
Graham Clarke / Jim Wynn / Charles Vaughan
Shore Capital (Nominated Adviser and Joint Broker) +44 (0)20 7408 4090
Toby Gibbs / John More
Liberum Capital Limited (Joint Broker) +44 (0)20 3100 2000
Scott Mathieson
Shard Capital (Joint Broker) +44 (0)20 7186 9927
Damon Heath / Isabella Pierre
St Brides Partners (Financial PR/IR) +44 (0)20 7236 1177
Susie Geliher / Charlotte Page
Notes to Editors
Emmerson is focused on advancing the Khemisset project ("Khemisset" or the
"Project") in Morocco into a low cost, high margin supplier of potash, and the
first primary producer on the African continent. With an initial 19-year
life of mine, the development of Khemisset is expected to deliver long-term
investment and financial contributions to Morocco including the creation of
permanent employment, taxation and a plethora of ancillary benefits. As a
UK-Moroccan partnership, the Company is committed to bringing in significant
international investment over the life of the mine.
Morocco is widely recognised as one of the leading phosphate producers
globally, ranking third in the world in terms of tonnes produced annually, and
the development of this mine is set to consolidate its position as the most
important fertiliser producer in Africa. The Project has a large JORC Resource
Estimate (2012) of 537Mt @ 9.24% K(2)O, with significant exploration
potential, and is perfectly located to support the expected growth of African
fertiliser consumption whilst also being located on the doorstep of European
markets. The need to feed the world's rapidly increasing population is driving
demand for potash and Khemisset is well placed to benefit from the
opportunities this presents. The Feasibility Study released in June 2020
indicated the Project has the potential to be among the lowest capital cost
development stage potash projects in the world and also, as a result of its
location, one of the highest margin projects. This delivered outstanding
economics, including a post-tax NPV8 of approximately US$1.4 billion using
industry expert Argus' price forecasts, and the spot price for granular MOP
fertiliser has since risen, further enhancing the valuations.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
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. END IR BKPBQCBKDACBRecent news on Emmerson
See all newsREG - Emmerson PLC - Request for Arbitration
AnnouncementREG - Emmerson PLC - Litigation Funding Update
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Announcement