RE: FS7 May 2019 09:16
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Bid PriceOffer Price5.90p6.00pHigh PriceLow PriceOpen Price5.95p5.95p5.95pShares TradedLast TradeMarket Cap (m)299,99908:00:2037.25
Emmerson PLC Commencement of Feasibility Study
Intraday Emmerson Chart
07/05/2019 7:01amUK Regulatory (RNS & others)
TIDMEML
RNS Number : 1184Y
Emmerson PLC
07 May 2019
Emmerson Plc / Ticker: EML / Index: LSE / Sector: Mining
7 May 2019
Commencement of Feasibility Study at Khemisset Potash Project Continues
Rapid Pace of Development
Emmerson Plc ("Emmerson" or "the Company"), which is focused on developing the low cost, high margin Khemisset Potash Project, is pleased to announce the commencement of a feasibility study (the 'Feasibility Study') on the Company's 100% owned Khemisset Potash Project in Northern Morocco ("Khemisset" or "the Project"). The Feasibility Study will be undertaken by globally-recognised engineering firm, Golder Associates, which completed the Scoping Study at Khemisset.
Overview
-- The Feasibility Study has commenced following successful completion of Scoping Study in November 2018 which highlighted sector leading capital costs and EBITDA margins and which delivered a post-tax NPV(10) of US$1.14 billion using independent industry analyst price forecasts
-- Appointment of Golder is the culmination of a rigorous tendering process encompassing a field of highly experienced international consultants
-- Tendering underway for processing design expert with decision expected to coincide with the conclusion of the comprehensive metallurgical test programme currently underway
-- Expected to require 9 to 12 months to complete, with the Company targeting release of results to the market in the first half of 2020
-- Feasibility Study will be divided into discrete work streams which will be released to the market as they are completed
-- GBP2.3 million of cash remaining as at the end of March 2019 provides sufficient funds to complete the workstream
Hayden Locke, CEO of Emmerson, commented: "We continue to make strong progress at Khemisset thanks to the exemplary work and dedication of our team. This process has been able to be accelerated thanks to the significant historical work completed on the Project. The Board is encouraged by the outstanding results of the Scoping Study delivered in November 2018, which highlighted Khemisset's extraordinary potential, most notably a post-tax NPV(10) of US$1.14 billion and confirmation of industry leading low capital cost requirements, which sets the Khemisset Project apart from its peers.
"In selecting Feasibility Study engineers, we conducted an extremely thorough and detailed