Last checked at 
(Sharecast News) - Morocco-focussed potash development company Emmerson has finalised the feasibility study components of port and transport and logistics, including capital and operating cost estimates, for its Khemisset Potash Project in the north of the country, it announced on Monday.
The London-listed firm said the project benefitted from "industry-leading" capital costs and bottom quartile all-in delivered cost to customer, which would yield "outstanding" economic metrics, including average annual EBITDA of $236m (£182.77m) and a post-tax net present value at a 10% discount of $1.14bn .
It said the go-forward feasibility study logistics strategy had selected the "outstanding" Port of Casablanca, which is one of the largest ports in Africa, equipped to handle larger vessels with higher loading rates.
The company explained its "significant" existing capacity, sufficient for Emmerson's potash and salt production, with the port Infrastructure pre-production capital cost reducing from $7.5m envisaged in the scoping study, to nil in the feasibility study.
Emmerson said the Port of Casablanca was "fully equipped" to handle potash and salt with no investment required from the company, adding that it currently exported more than one million tonnes of salt per annum.
It said its fully-quoted product transport and logistics costs to the port would be $11.39 per tonne, which was an increase of $1.39 per tonne from the scoping study, to account for the "slightly longer distance" to the Port of Casablanca.
The board said it had received quotes from one of Morocco's largest transport companies, with a "significant" fleet of heavy vehicles.
Emmerson explained that the developments supported its goal of developing a sustainable, low capital cost, mine, with fully-quoted product transport and logistics costs to Brazil standing at cost and freight $29.05 per tonne, inclusive of port fees, customs duties, shipping and royalties, with quotes received from the port operator, customs agents, and a large shipping company.
"The Emmerson team has visited the Port of Casablanca a number of times and have been extremely impressed with the facilities available," said chief executive officer Hayden Locke.
"It was positive to note that the port already exports a significant quantity of de-icing salt, which has very similar storage and handling characteristics to potash.
"In addition, the port handles large quantities of bulk commodities including Phosphate, Clinker, and Fluorine."
Locke said the management authorities for the port confirmed that there was "sufficient storage and loading capacity", with equipment suitable for both potash and salt, to handle all of Emmerson's export needs with no additional investment.
"On top of saving $7.5m, we are pleased that the port already has expertise in managing products like potash, which will reduce the overall execution risk for Emmerson as we move towards production.
"This is the first workstream item from the ongoing feasibility study, which is progressing well and is on schedule.
"We look forward to continuing to keep the market updated with various parts of the study as we progress towards its final release during the first half of 2020."
As at 1007 GMT, shares in Emmerson were up 2.55% at 3.82p.
8 Apr 2024 18:44
UPDATE: Emmerson raises GBP240,000 in oversubscribed retail offer
(Alliance News) - Emmerson PLC late Monday said it raised GBP240,000 from a "significantly oversubscribed" retail offer.
Read more