Emmerson Regulatory News (EML)

Emmerson Plc / Ticker: EML / Index: LSE / Sector: Mining

20 February 2019

Emmerson Plc moves towards feasibility stage following appointment of potash processing expert and completion of Scoping Study review

Emmerson Plc, focused on developing its low capital cost, high margin potash project in Morocco, is pleased to announce the appointment of Mr Don Larmour of Global Potash Solutions to advise on metallurgy and processing.

Mr Larmour will act as a consultant for the Khemisset Potash Project (''Khemisset" or "the Project") Feasibility Study, which is expected to commence in the first half of 2019. The appointment of an expert of Mr Larmour's calibre marks a significant step towards the construction of the Project.

The appointment of a consultant for the Feasibility Study follows the results of the Scoping Study, published late last year, which confirmed that Khemisset has the potential to be among the lowest capital cost, highest margin potash projects in the world. As such, its economics are outstanding, with forecasted EBITDA margins in excess of 60% and a post-tax NPV10 of over US$1.1bn based on industry expert price forecasts.

Mr Larmour is widely considered to be one of the leading experts in the crystallisation processing of potash ores owing to his 38 years' experience in potash processing. He spent 28 years with Potash Corporation of Saskatchewan as its key process engineer, where he was involved with process and plant design and operations management.

Mr Larmour's role will be to advise on all aspects of the upcoming metallurgical test work programme, providing the benefit of his wealth of knowledge in process flow design, which will be included in the Feasibility Study.

As part of the appointment process, Mr Larmour conducted a detailed review of the Scoping Study work completed by Processing Consultant, Ercosplan. The results of this review included:

· Reinforcement of the general processing philosophy and methodology selected by Ercosplan

· Identification of opportunities for simplification and optimisation of design which have the potential to reduce capital and operating costs resulting from:

o Less crystallisation stages

o Lower steam energy consumption

· Potential changes to the brine management strategy to ensure brine ponds are appropriately sized and to reduce site environmental waste production

· Identification of a number of areas for focus in the next, more detailed, design phase to further de-risk the Project

Hayden Locke, CEO of Emmerson, commented:

"Don is one of the most experienced potash processing experts globally, with extensive experience in crystallisation plant design and operation. We are delighted he is available to provide us with his expertise at this pivotal time for the Company, and his desire to work on the Khemisset Project reinforces our view that it is a potentially world class potash project.

"The Scoping Study and the previous work completed by Ercosplan provides a fantastic basis for us to begin the detailed analytical process of optimising the process flow sheet for Khemisset and then testing it in the laboratory.

"Through Don's review, we have successfully identified a number of areas which require attention to further de-risk the project and, notably, a number of areas where we believe there is potential to further reduce our capital and operating costs, especially on the energy consumption side."

**ENDS**

Notes to Editors

Emmerson's primary focus is on developing the Khemisset Potash Project located in Northern Morocco. The project has a large JORC Resource Estimate (2012) of 311.4Mt @ 10.2% K2O and significant exploration potential with an accelerated development pathway targeting a low capex, high margin mine. Khemisset is perfectly located to capitalise on the expected growth of African fertiliser consumption whilst also being located on the doorstep of European markets. This unique positioning means the project will receive a premium netback price compared to existing potash producers. The need to feed the world's rapidly increasing population is driving demand for potash and Emmerson is well placed to benefit from the opportunities this presents.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014.