LONDON (Alliance News) - Potash firm Emmerson PLC reported on Friday a loss, having posted a profit a year prior, in a period in which it took full ownership of its core project.
For the six months to June, Emmerson's pretax loss was GBP1.4 million, from a profit of GBP17,000 a year prior. The swing was due to a rise in administrative costs and other expenses, and a GBP151,000 share based payment from none a year prior.
Emmerson produces no revenue, as its Khemisset project in Morocco is still in the development stage.
Emmerson was a cash shell until June this year, when it took control of Khemisset and re-started trading in London.
Chief Executive Hayden Locke commented: "Since re-admitting to trading in June, we have been focused on the rapid development of the Khemisset potash project.
"Work completed to date has supported the board's confidence in the potential of Khemisset to be a low-cost, high-margin mining operation. The completed seismic survey has demonstrated the project's favourable geology and the recently completed mine design and cost estimate has confirmed that access to mineralisation can be achieved at an extremely low-cost relative to our peers."
Shares were broadly flat Friday at a price of 3.75 pence each.
Emmerson (EML)