TIDMEML
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 Reverse Retained Translation Total equity
payment reserve acquisition earnings reserve
reserve
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
6 months ended ended 12 months ended
30 Jun 2022 30 Jun 2021 31 Dec 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:
Current year 22 15 25
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
6 months ended ended 12 months ended
30 Jun 2022 30 Jun 2021 31 Dec 2021
(Unaudited) (Unaudited) (Audited)
US$'000 US$'000 US$'000
Earnings
Loss from continuing operations for the period attributable to the
equity holders of the Company (1,378) (1,145) (2,777)
Number of shares
Weighted average number of ordinary shares for the purpose of basic
and diluted earnings per
share 915,425,829 794,971,631 822,875,086
-------------------------------------------------------------------- --------------- ------------- ----------------
Basic and diluted loss per share 0.15 cents 0.14 cents 0.34 cents
-------------------------------------------------------------------- --------------- ------------- ----------------
5. Intangible assets
The intangible assets consist of capitalised exploration and
evaluation expenditure, including the cost of acquiring the mining
license and research permits held by the Company's
subsidiaries.
30 Jun 2022 30 Jun 2021 31 Dec 2021
(Unaudited) (Unaudited) (Audited)
US$'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 Re-presented 6 months to 30 June
30 June 2021 2021
Note GBP'000 US$'000
Continuing Operations
Administrative expenses 3 (658) (897)
Share-based payment expense (158) (217)
Net foreign exchange loss (19) (26)
Operating loss (835) (1,140)
Finance cost (4) (5)
Loss before tax (839) (1,145)
Income tax - -
----------------------------------- ------------------------------------
Loss for the year attributable to
equity owners (839) (1,145)
----------------------------------- ------------------------------------
Other comprehensive income
Items that may be subsequently
reclassified to profit or loss:
Exchange gain on translating
foreign operations (176) (169)
Total comprehensive income
attributable to equity owners (1,015) (1,314)
----------------------------------- ------------------------------------
Loss per share - Basic and diluted 4 (0.11 pence) (0.14 cents)
Consolidated Statement of Financial Position at 30 June 2021
(represented)
As originally presented 30 June 2021 Re-presented 30 June 2021
Note GBP'000 US$'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 ,
follow us on Twitter (@emmerson_plc), or contact:
Emmerson PLC +44 (0) 20 7236
Graham Clarke / Jim Wynn / Charles Vaughan 1177
Shore Capital (Nominated Adviser and Joint
Broker) +44 (0)20 7408
Toby Gibbs / John More 4090
Liberum Capital Limited (Joint Broker) +44 (0)20 3100
Scott Mathieson 2000
Shard Capital (Joint Broker) +44 (0)20 7186
Damon Heath / Isabella Pierre 9927
St Brides Partners (Financial PR/IR) +44 (0)20 7236
Susie Geliher / Charlotte Page 1177
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.
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END
IR BKPBQCBKDACB
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