Emmerson PLC Business Update (1174H)
23 March 2020 - 6:00PM
UK Regulatory
TIDMEML
RNS Number : 1174H
Emmerson PLC
23 March 2020
Emmerson Plc / Ticker: EML / Index: LSE / Sector: Mining
23 March 2020
Emmerson Plc ("Emmerson" or the "Company")
Business Update
Emmerson Plc, the Moroccan focused potash development company,
is pleased to provide an update on its ongoing operations, which
are focused on the development of its world class Khemisset Potash
Project in Northern Morocco ("Khemisset" or "the Project"). The
Project benefits from an industry-leading cost profile in terms of
both capital costs and bottom quartile all-in delivered cost to
customer, which together yield outstanding economic metrics
including average annual life of mine EBITDA of US$236 million and
a post-tax NPV (10) of US$1.14 billion(1) .
Highlights
-- Due to the current stage of project development, the COVID-19
outbreak and related global mitigation actions are so far having a
limited impact on the Khemisset Potash Project
-- Progress on finalising the Feasibility Study with the
independent consultants continues, with only minor, if any, delays
to the delivery timetable expected
-- The Company has a robust contingency plan to reduce costs and
focus on maintaining shareholder value should the current market
instability continue into the latter half of the year. As a
precautionary measure, staff in Morocco are predominantly working
from home, with a skeleton workforce in place in the office or at
site when necessary
-- All non-essential activity, including travel, has been ceased
or reduced to protect the Company's employees and assets, and
conserve capital
________________
(1) Based on industry expert Argus FMB price forecasts
Hayden Locke, CEO of Emmerson, commented:
"While the current market situation is unprecedented, we have
already taken steps to ensure that the safety of our employees and
assets is ensured, and that our strong cash position is preserved
should the volatility and uncertainty continue in the future.
"We are fortunate in terms of our ongoing work programmes, the
majority of which are now focused on desktop reviews and report
writing, which can continue regardless of working location. At this
stage, the Feasibility Study is well progressed, and we continue to
expect to be able to meet the timelines we have previously provided
to the market, subject to the continuing availability of our
independent engineers.
"The environmental and social impact assessment ("ESIA") is
underway, and we will continue to move this key item forward to
ensure our aggressive permitting lines will still be achieved,
assuming some stability and normality return in the latter part of
the year. If the disruptions continue past that point, a mitigation
strategy is already in place.
"Despite the volatility in the market, we continue to engage
with the various interested strategic financing partners, moving
forward with initial technical reviews, to ensure that our
financing strategy is progressing. We remain confident of the value
of the Khemisset Project, and look forward to updating the market
on further developments."
For further information,
please visit
www.emmersonplc.com
, follow us on
Twitter (@emmerson_plc),
or contact: Emmerson Plc Tel: +44 (0) 20 7236
Hayden Locke 1177
Edward McDermott
Damon Heath Shard Capital Partners Tel: +44 ( 0) 20 7186
Isabella Pierre 9950
Isabel de Salis St Brides Partners Ltd Tel: +44 (0) 20 7236
Megan Dennison 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 537Mt @ 9.24% 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
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contact rns@lseg.com or visit www.rns.com.
END
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