Our new website is coming soon, give it a try now and let us have your feedback. Take me to the Beta

Email Facebook Twitter

TSX Lithium explorer International Lithium Corp prepares to drill at Raleigh Lake
Exclusive: Hardman & Co Investor Forum - Severn Trent, Calculus Capital, Volta Finance, Residential

ShareCast News

Emmerson signs landmark heads of agreement for Khemisset offtake

Mon, 15th Apr 2019 10:24

(Sharecast News) - Morocco-focussed potash development company Emmerson has signed a heads of agreement with respect to offtake, sales and marketing for 100% of production from the Khemisset Potash Project, it announced on Monday.

The London-listed firm said the heads of agreement set out a commitment for both Emmerson and the unnamed counterparty to work towards a long-term sales agreement for 100% of Khemisset's production, focusing on the Brazilian, African and north west European markets.

It said that once in production, Khemisset would be the closest producing potash mine to each of those key markets and - as a result of the advantageous location - it was expected that Emmerson would be one of the highest margin potash producers in the world.

The recently-released scoping study confirmed Khemisset's potential for "sector leading" capital intensity and margins, the board said, which provided a post-tax net present value at a 10% discount (NPV10) of $1.14bn, using independent industry expert price forecasts.

Emmerson said the offtake counterparty was one of the world's leading fertiliser trading, distribution and marketing companies.

Importantly for the firm, it had a "significant" footprint in the lucrative Brazilian market, including fertiliser blending facilities, which made the counterparty an "ideal" long-term partner for the Khemisset Project in the board's view.

"Signing a heads of agreement is an important step for the company as we commence early engagement with sales and marketing partners for product from the world class Khemisset Potash Project," said Emmerson chief executive officer Hayden Locke.

"We believe potash produced in Morocco will be in significant demand for a number of important consuming markets, and this heads of agreement reinforces that belief.

"Our partner's footprint in the fast growing Brazilian and more mature north west European markets makes them an ideal partner for Emmerson , as we focus on those markets where we would have a strong transport and logistics advantage."

Locke said the benefit of location had been "clearly demonstrated" in the company's scoping study, with the board continuing to expect Khemisset to be among the highest-margin potash projects in the world, generating "outstanding" returns for shareholders.

"Strong sales and marketing partners will be fundamental to supporting our eventual discussions with financing partners and we believe our sales partner will provide significant confidence to all potential lending syndicates for the project."

Related Shares:

Back to ShareCast News

Share Price, Share Chat, Stock Market news at lse.co.uk
FREE Member Services
- Setup a personalised Watchlist and Virtual Portfolio.
- Gain access to LIVE real-time Regulatory News (RNS).
- View more Trades, Directors' Deals, and Broker Ratings.
Share Price, Share Chat, Stock Market news at lse.co.uk

Home  |  Contact Us  |  About Us  |  Advertise with Us  |  Sitemap  |  Terms & Conditions  |  Cookies  |  Privacy  |  Mobile Site  |  About this website design

Datafeed and UK data supplied by NBTrader and Digital Look. While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.