Emmerson PLC / Ticker: EML / Index: AIM / Sector: Mining
26 September 2023
Emmerson PLC ("Emmerson" or the "Company")
Interim Results for the six months ended 30 June 2023
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 2023 (the "Period").
Highlights
· Update on environmental permit and financing set out in Q3 update announcement on 21 September 2023
· Financial results for the six months to 30 June 2023 reflect expenditure on technical workstreams and administrative/corporate support costs
· Loss for the period of US$1.6 million
· Cash balance at 30 June 2023 was US$4.2 million, after total expenditure of US$2.5 million in the period. Cash reserves of US$3.5 million as at the time of this report.
Activities During the Period
The Company's priority during the Period was advancing discussions with government officials towards obtaining environmental approval for the Khemisset Project in Morocco. Currently, Emmerson is awaiting a session of the Ministerial Committee to consider the matter, and although management remains confident of a favourable outcome based on discussions to date, the timing of the meeting is not certain, particularly following the devastating earthquake in Morocco, which has, understandably, been the main focus of government attention.
Financial Review
As the Company continues in its phase of exploration and development, the results are relatively straightforward, and reflect a loss for the period of US$1.6 million (30 June 2022: US$1.5 million), primarily as a result of administration and corporate costs.
Net cash of US$2.5 million was spent in the period (30 June 2022: US$5.3 million), consisting of the net impact of the administration costs and working capital movements of US$2.2 million, capitalised development costs of US$0.5 million, and US$0.2 million net proceeds of employee share option exercises.
Financing and Cash Position
At the time of this report, the Company has cash reserves of US$3.5 million, sufficient to cover the remaining Basic Engineering costs and working capital commitments for at least the next 12 months.
Outlook for 2023
For the balance of the year, the Company's focus will remain on obtaining the environmental approval for the Project, putting in place a new funding agreement with its Strategic Investors, and finalising optimisation work ahead of a Bankable Feasibility Study.
For further information, please visit www.emmersonplc.com, follow us on Twitter (@emmerson_plc), or contact:
Emmerson PLC
Graham Clarke / Jim Wynn / Charles Vaughan
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+44 (0) 207 138 3204
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Liberum Capital Limited (Nominated Advisor and Joint Broker)
Scott Mathieson / Matthew Hogg / Kane Collings
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+44 (0)20 3100 2000
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Shard Capital (Joint Broker)
Damon Heath / Isabella Pierre
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+44 (0)20 7186 9927
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BlytheRay (Financial PR and IR)
Tim Blythe / Megan Ray / Said Izagaren
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+44 (0) 207 138 3204
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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% K2O, 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.
Condensed Consolidated Statement of Comprehensive Income
for the six months ended 30 June 2023