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JR - as you say, EML should have no issues obtaining the mining licence as the company has good relations with the government, and Morocco is a country that wants to promote foreign investment. There is also very little red tape for mining companies in Morocco, unlike building a complex and expensive mine under the North York Moors. Comparing SXX to EML is stupid. Not sure there is one thing in common - except the fact they are both mining companies. share dilution will probably happen at some point for EML - although remember the debt finance offer - this could make it minimal .EML currently promises an excellent return for investors. Hold tight and I am sure you will be rewarded here.
Hi Testpack, the dates for 2021-2022 are obviously dependant on the company hitting the milestones this year (which I have no doubt they will based on past performance). The CEO has mentioned in a number of previous interviews that they are looking towards a mid-2022 production phase, such as this one: www.miningglobal.com/company/how-emmerson-looks-disrupt-global-potash-market-khemisset-project-morocco#
It will be interesting to see where the share price goes from here now that we have broken the 4p barrier. There is a strong consensus that we are still significantly undervalued for what the company has achieved to date. In April 19 (before the mineral upgrade as well as the salt by-product news was released), the broker stated the following target prices: 12p based on the scoping study; 22p based on the feasibility study (May/June); 36p when construction starts (early next year?); 75p when construction ends (early 2022?); and 106p for first production (Mid 2022?). I think we will probably now see a gradual rise over the next few months, and hopefully break 10p once the bankable feasibility study comes in or around May. Then securing a good finance deal in the second half of the year could make things very interesting and push us above 20p. Good luck all.
A few idiots taking a quick profit. Long term holders here are in for a great 2020.
Hello Franalex, you are of course right about not investing more than you can afford in any stock. And there are of risks with any fledgling mining company. But I think SXX and EML are completely different projects. The only similarity is that they both operate in the fertiliser space (but they were not even producing the same end product). It is the very low CAPEX here which is attractive to investors and the underlying economics stack up. But for me the key is also the experience of the directors. They have delivered on potash projects before and their ability to hit milestones on time and keep shareholders updated is first class. I cannot see any red flags here at the moment, and the project is making fantastic progress.
Tony - if you carried out a proper analysis on EML, I very much doubt you would come to that conclusion. It is a much smaller project than this one, but far more achievable, with a very low CAPEX. The board of directors have also delivered before on potash projects and they are operating in a very favourable mining jurisdiction. But it is your decision if you fail to grasp the opportunity now, because 2020 is a big year for EML.
From the RNS: “The total budgeted capital cost required to connect the Kemisset site to existing highway infrastructure is approximately US$2.0 million including a 15% contingency. This is a slight increase on the US$1.3 million for comparable items in the Scoping Study ,with the additional cost owing to the decision to construct a full highway connection for local community use”.
The company clearly understands the importance of maintaining good relations with both the government bodies, and the local community. This is very encouraging, and the company should have no problems in getting the mining licence approved and securing other government support where required.
Well, it is gold to be positive about these things. The broker suggested a fair price of 22p after the feasibility study which is likely to come around May. A good finance deal and permitting approval could push things higher, but it is good to be realistic.
Realistically I would be very pleased if we hit 10p later this year after a positive bankable feasibility study, and anything around 40p when production starts in 2022. But who knows. This project should do extremely well, especially if the company secures the finance deal that the CEO hinted at last year.
I understand the company is still aiming for a mid-2022 production phase, with 2021 heavily focussed on construction.
I expect the share price to stay around 3.5 p until we get closer to the due date of the feasibility study in May/June. Until then, long term holders have to sit tight and not worry about day to day volatility.
Jones, you are taking a lot of interest in a company for somebody who claims it has not delivered any 'actuals' (whatever that means). Most chat boards on this site have a lot of in-fighting amongst its shareholders, suggesting discontent with how the companies are being run. One of the few exceptions is this board - virtually every shareholder on here agrees that the company has performed brilliantly and it has been a good place to discuss the company's progress. You have come along out of the blue and are just spouting complete drivel. I am therefore left questioning your underlying motive. While your ramblings won't affect anybody's investment decisions, a lot of people here have put in a good chunk of their savings into this project and don't want a doom merchant posting on here every few hours. I think, Jones, come the end of 2020, you will be eating your hat with this one. It is very rare that you come across a junior mining company which hits all of its milestones on time, sets out a clear road-map for the year ahead, operates in one of the most upcoming mining jurisdictions with great access to its end market, and most importantly has exceptional underlying economics. So, once again, if you have no intention of investing here, please go elsewhere.
Jones -
The company of course is not profitable yet- that is the whole point of a fledgling miner . You don't need to be Einstein to work that out.
I believe the company is fully funded until some point in 2021. But you are missing the point entirely. The bankable feasibility study is coming this half of 2020, which will be used, fingers crossed, to secure the financing required to construct the mine. There may need to be a further equity raise at some point, but by that point in time, the project will have advanced significantly and we are likely to be much higher than 3-4 p. If the majority of the mine can be financed by low cost debt, as indicated last year, I do not expect much dilution, if any.
The company doesn't have any earnings so who knows where you got the 35% figure from.
There are risks of course with any fledgling company, but I don't think there is a better junior miner listed on the LSE.
You are entitled of course to your opinion. If you have no interest in investing here, I suggest you return to commenting on your existing investments which have clearly served you well - Sound Energy? Down 98% since 2017.
I am sorry Jones but what on earth are you talking about? You are either seriously misinformed or you are just looking to provoke. Shareholders unanimously agree that the company has been hitting all of its milestones on time and there is no reason to suggest it won’t deliver again in 2020. It will be your loss in the end though if you can’t see the opportunity here.
2020 is clearly going to be the significant year for Emmerson. Added a few more this week after the latest rise over Christmas, because at 3.9p the company is still significantly undervalued for what it has achieved so far. If the company secures the finance deal that it has been hinting at, with the majority financed by low cost debt, the share price here will rocket. We are easily looking at north of 10p later this year in my view if the company delivers all of its milestones. Exciting times for all shareholders who have got in ahead of the masses.
Trade volume is low at the moment but this is understandable given the time of year. As we enter 2020, interest will pick up here very quickly. I think we are all expecting a significant re-rate once the DFS comes towards the end of H1 2020.
There should be more news this year. From the RNS on Monday: "we expect continuing news flow for the remainder of this year and early next year as we progress towards delivering the study in the first half of 2020".
Normally we don't have to wait more than 3 weeks for further news - the company is first class at providing its shareholders with regular updates.
Agreed - I expect the market is waiting for more definitive news on the finance side of things. The CEO said in a interview on 25 September that the company has been engaging with a variety of different parties. As soon as we get news of this, we will undoubtedly see a significant rise in the SP.
Agreed, once the company is producing that amount of potash, they will have the luxury of making those strategic decisions. Anything that reduces the upfront costs of getting the mine into production and generating the initial revenue streams is key at the moment - as the company will of course be able to secure better debt finance options. Maximising profits can come later on when the money is rolling in.
oNCo, your best bet is to have a look at some of the CEO's recent interviews with London South East / Proactive. Hayden always speaks very well and gives clear answers. Essentially the company is going full steam ahead towards the feasibility study which will be released to the market in the first half of 2020 - the CEO has hinted that they are making good progress with this and it could come as early as April. In terms of upcoming news flow, the company is breaking down the parts of the feasibility study and releasing these to the market as and when they become available. I believe Hayden said there were 4 or 5 key components which will form the basis of the feasibility study. The best thing about this company is that it does not keep its shareholders in the dark - very positive news has been coming recently on almost a weekly basis. It is a very well run company and the economics stack up. I think this could be one of the best performing mining companies in 2020 if everything goes to plan. Once funding is secured for construction of the mine (and the CEO has already said there is an offer for debt financing from a European bank), the share price here will fly.