Emmerson PLC Replacement: Potential Capex Savings at Port (7854R)
March 04 2019 - 9:21AM
UK Regulatory
TIDMEML
RNS Number : 7854R
Emmerson PLC
04 March 2019
The following amendment has been made to the "Potential Further
Capex Savings at Port" announcement released on 4 March 2019 at
07.00 am under RNS No 6755R.
In the previous announcement, a link to view the full
announcement with illustrative maps and images was not made
available.
All other details remain unchanged.
The full amended text is shown below.
Emmerson Plc / Ticker: EML / Index: LSE / Sector: Mining
4 March 2019
Emmerson Plc
("Emmerson" or the "Company")
Potential for Further Capex Savings at Port Enhances Outstanding
Khemisset Potash Project
Highlights
-- Potential capex saving of US$7.5m compared to the Scoping
Study by utilising existing storage and loading facilities in Port
of Casablanca as opposed to the Port of Mohammedia as envisaged in
the Scoping Study
-- Indicative mine-to-port logistics cost quotes from Moroccan
National Rail Company show no change in operating cost from the
Scoping Study, despite a slight increase in transport distances
given the potential use of rail rather than trucks for the majority
of the journey
-- Access to a significantly larger port with a greater draft
capacity, allowing a wider range of vessel sizes to be loaded,
potentially reducing overall bulk shipping costs to target markets,
including Brazil
-- Ongoing discussions with numerous Moroccan entities,
including the Port Authorities, present opportunities for further
improving Project economics ahead of upcoming Feasibility
Studies
Emmerson Plc ("Emmerson" or "the Company"), the Moroccan focused
potash development company, is pleased to announce that it is
investigating the use of the Port of Casablanca for export of
product produced at its world class Khemisset Potash Project
("Khemisset" or "the Project"). This could result in capex savings
and a reduction in total transport and logistics costs, which make
up a significant proportion of delivered costs to customer. To view
the announcement with illustrative maps and images, please use the
following link:
http://www.rns-pdf.londonstockexchange.com/rns/7854R_1-2019-3-4.pdf
As part of ongoing studies to assess alternative logistics
solutions to those presented in the Khemisset Scoping Study (refer
to RNS dated 20 November 2018), the Company has been in discussions
with the Moroccan Port Authorities regarding potential port options
for the export of product produced at Khemisset. These discussions
have demonstrated that a superior option for export of potash may
be available. Importantly, based on current, indicative,
mine-to-port transport and logistics costs from a Moroccan
provider, there would be no net increase in overall in-country
operating cost for the Project.
The Scoping Study for Khemisset confirmed that it has the
potential to be among the lowest capital cost, highest margin
potash projects in the world with outstanding economics, including
forecasted EBITDA margins in excess of 60% and a post-tax NPV(10)
of over US$1.1bn based on industry expert price forecasts. The use
of the Port of Casablanca has the potential to improve the
economics further.
Hayden Locke, CEO of Emmerson, commented:
"We are using the period prior to the commencement of the
Feasibility Study to assess various options for the Project. It is
pleasing that we are seeing opportunities to improve what is
already a potentially world class asset.
"The Port of Casablanca is one of the largest and most modern in
Africa and, consequently, it has outstanding infrastructure already
in place. Discussions with the Port Authority suggest that we may
be able to benefit from this; potentially reducing our capital
costs further and having a net positive impact on our overall
transport and logistics costs delivered to our target markets,
including Brazil.
"This is a positive development and it will form a key part of
our analysis for the Feasibility Study. We are rapidly progressing
Khemisset and look forward to keeping shareholders updated as we
identify further areas of improvement for the Project during
2019."
Figure 1 (clockwise from top left): Map of Logistics Route to
Casablanca; Aerial view of Port of Casablanca; Loading Facilities
Port of Casablanca
**ENDS**
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
Gaby Jenner St Brides Partners Ltd Tel: +44 (0) 20 7236
Melissa Hancock Financial PR/IR 1177
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
MSCBUGDXIGGBGCS
(END) Dow Jones Newswires
March 04, 2019 10:21 ET (15:21 GMT)
Emmerson (LSE:EML)
Historical Stock Chart
From Jun 2024 to Jul 2024
Emmerson (LSE:EML)
Historical Stock Chart
From Jul 2023 to Jul 2024