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Emmerson PLC (EML)

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Tuesday 15 January, 2019

Emmerson PLC

Corporate Update

RNS Number : 0590N
Emmerson PLC
15 January 2019
 

Emmerson Plc / Ticker: EML / Index: LSE / Sector: Mining

15 January 2019

Emmerson Plc ("Emmerson" or the "Company") 

Corporate Update

 

Emmerson Plc ("Emmerson" or "the Company"), the Moroccan focused potash development company, is pleased to provide an update on operational activities anticipated for 2019 at its flagship Khemisset Potash Project ("Khemisset" or "the Project") in Northern Morocco following the delivery of its Scoping Study ("the Study") at the end of Q4 2018 (see RNS on 20 November 2018) which confirmed Khemisset's technical and economic viability.

 

As previously announced, the Study showed the Project has the potential to be amongst the lowest capital cost potash projects in the world, while delivering EBITDA margins in excess of 60% over a minimum mine life of 20 years. The Study also highlighted the outstanding economics of the Project, including an NPV10, using industry expert Argus FMB's price forecasts, of more than US$1.1billion, and extremely robust cashflow generation, even at low potash prices.

 

The Scoping Study gives Emmerson the confidence to push ahead with its strategy to rapidly de-risk the Khemisset Project and move it towards production. Work streams for 2019 include:

 

Key Work Streams and Newsflow for 2019

·   Infill and exploration drilling to confirm and expand the mineral resources at Khemisset underway with initial drilling results expected in coming months

·   Upgrade current JORC compliant Inferred Mineral Resource Estimate of 311Mt at an average grade of 10.2% K2O, incorporating pending drill results

·   Metallurgical test work programme to confirm process flow sheet for Pre-Feasibility Study

·   Commencement of Pre-Feasibility Study

·   Commencement of Environmental and Social Impact Assessment and permitting processes

·   Strategic discussions with offtake and sales and marketing partners

·   Commencement of discussions with in-country service providers for cooperation on various aspects of Khemisset Project including:

Gas supply

Electricity connection and supply

Transport and logistics studies; and

Port site investigation.

 

Hayden Locke, CEO of Emmerson, commented: 

"The exceptional results of our Scoping Study, which show Khemisset has the potential to be among the lowest capital cost and highest margin potash projects in the world, gives us a high degree of confidence to push ahead with our technical and engineering work. Based on current planned work programme, we are fully funded through until Q1 2020.

 

"With numerous workstreams either underway or due to commence throughout the year, including drilling, metallurgical testing, the Pre-Feasibility Study and discussions with potential in-country partners and strategic offtake and sales partners, we expect 2019 to be a year of high impact news flow as we continue to de-risk what we believe to be an outstanding potash project."

 

For further information, please visit www.emmersonplc.com, follow us on Twitter (@emmerson_plc), or contact: 

Hayden Locke

Emmerson Plc

Tel: +44 (0) 207 236 1177

Edward McDermott

 



James Biddle

Roland Cornish

Beaumont Cornish Limited

Financial Adviser

 

Tel: +44 (0) 207 628 3396

 

Jeremy King

 

Optiva Securities Limited

Broker

Tel: +44 (0) 3137 1904




Lottie Wadham

Gaby Jenner

St Brides Partners Ltd

Financial PR/IR

Tel: +44 (0) 20 7236 1177



 

**ENDS**

 

Notes to Editors

Emmerson's primary focus is on developing the Khemisset Potash Project located in Northern Morocco.  The project has a large JORC Resource Estimate (2012) of 311.4Mt @ 10.2% K2O and significant exploration potential with an accelerated development pathway targeting a low capex, high margin mine.  Khemisset is perfectly located to capitalise on the expected growth of African fertiliser consumption whilst also being located on the doorstep of European markets. This unique positioning means the project will receive a premium netback price compared to existing potash producers. The need to feed the world's rapidly increasing population is driving demand for potash and Emmerson is well placed to benefit from the opportunities this presents.

 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014.

 


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 [email protected] or visit www.rns.com.
 
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