Emmerson PLC Corporate Update (0590N)
January 15 2019 - 1:00AM
UK Regulatory
TIDMEML
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 NPV(10) , 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:
o Gas supply
o Electricity connection and supply
o Transport and logistics studies; and
o 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: Emmerson Plc Tel: +44 (0) 207 236
Hayden Locke 1177
Edward McDermott
James Biddle Beaumont Cornish Limited Tel: +44 (0) 207 628
Roland Cornish Financial Adviser 3396
Jeremy King Optiva Securities Limited Tel: +44 (0) 3137 1904
Broker
Lottie Wadham St Brides Partners Ltd Tel: +44 (0) 20 7236
Gaby Jenner Financial PR/IR 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% K(2) O 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 rns@lseg.com or visit www.rns.com.
END
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