Interview with Hayden Locke, CEO of Emmerson PLC (LON:EML) Part 1

Hayden Locke, CEO of Emmerson, in this interview (part 1) provides an overview of the key upcoming milestones in the development of the Khemisset Potash project as it continues to advance towards becoming a low capex, high margin mining operation.

 

Corporate Update (15 January 2019)

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:

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.”

 

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