(Alliance News) - Emmerson PLC on Monday said progress of the Khemisset potash project in Northern Morocco has not been hurt by the Covid-19 outbreak.
The Khemisset project is wholly-owned by Emmerson, which expects the project to have annual life of mine earnings before interest, taxes, depreciation, and amortisation of USD236 million.
The potash developer said the feasibility study of the project is being finalised and no delays to the delivery timetable are expected. It added it has a "robust" contingency plan to reduce costs in place should market instability continue into the latter half of the year.
Emmerson said currently all non-essential activity including travel has been halted or reduced to conserve capital.
"We are fortunate in terms of our ongoing work programmes, the majority of which are now focused on desktop reviews and report writing, which can continue regardless of working location. At this stage, the feasibility study is well progressed, and we continue to expect to be able to meet the timelines we have previously provided to the market, subject to the continuing availability of our independent engineers," said Chief Executive Hayden Locke.
"While the current market situation is unprecedented, we have already taken steps to ensure that the safety of our employees and assets is ensured and that our strong cash position is preserved should the volatility and uncertainty continue in the future. Despite the volatility in the market, we continue to engage with the various interested strategic financing partners, moving forward with initial technical reviews, to ensure that our financing strategy is progressing," he added.
Shares in Emmerson were trading 1.1% lower at 2.62 pence each on Monday afternoon in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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Emmerson (EML)