Emmerson says advancing to make Khemisset mine ‘shovel ready’

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Emmerson PLC‘s (LON:EML) new chief executive Graham Clarke has told investors he looks forward to regular progress updates as the potash mine group moves through a critical stage in its history.

Clarke joined the company shortly after June’s feasibility study for Khemisset which confirmed the mine as a world-class, low capital cost, high margin potash mine. It envisaged outstanding project economics including earnings margins in excess of 61% over a 19-year minimum mine life.

READ: Emmerson’s Khemisset mine to boost local GDP by 40%

Subsequently, the company focus has shifted to making Khemisset “shovel ready”.

“This key period for Emmerson has resulted in a number of significant developments that have moved us ever closer to production while enhancing shareholder value,” Clarke said in today’s interim results statement.

This phase involves building out operational capability, advancing additional technical work and further de-risking. Front End Engineering and Design (FEED) programmes and financing efforts will be key tasks for the company in this phase.

Permitting efforts are advancing and the company said it is on-track for the main permits to be put in place during the first half of 2021.

Clarke added: “We are progressing permitting activities, technical reviews and optimisation of the declines and mine planning, further process work in parallel with working with our advisors on multiple potential funding routes.

“I am delighted to be part of Emmerson’s journey at such a critical stage in its history and look forward to providing regular updates on its progress.”

In terms of financial results, the pre-revenue mine developer reported a GBP315,000 loss for the six months ended June 30, 2020.

It ended June with GBP793,000 of cash and equivalents, and, in July it raised GBP1.72mln via an oversubscribed share placing.

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