Emmerson PLC (AIM:EML)’s focus for the remainder of 2024 will be to obtain the environmental project for the Khemisset project in Morocco, putting in place a new agreement with its strategic investors and finalising optimisation work ahead of a bankable study, says house broker Liberum.
Hopes that the environmental permit would be in place by now were dashed by the devasting earthquake Morocco suffered in September, with the ensuing delays meaning the strategic financing arrangement currently in place will lapse, says the broker.
“Importantly, the Strategic Investors remain supportive and have confirmed their intention to re-engage on permit grant; and Emmerson currently has US$3.5m of cash, sufficient for 'at least’ the next 12 months", added the broker.
Emmerson today reported it ended the first half of its current year with US$4.2 million of cash.
Liberum’s target price rises slightly to 11.9p (from 11.8p) against a market price of 1.45p with ‘buy’ as its investment recommendation.