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Emmerson moving to build-out, engineering and financing, following publication of robust feasibility study

The NPV of the Khemisset project could rise significantly as growth options are examined

Emmerson PLC -

Emmerson PLC said it is shifting its focus to moving the Khemisset potash project towards what the company calls "shovel ready" status, following completion of the recent feasibility study.

This new stage of work will include building operational capability, undertaking front end engineering and design, detailed design and sourcing financing.

The group said the permitting process is well underway and includes stakeholder engagement, socio-economic impact assessments and the environmental and social Impact assessment.

The feasibility study for Khemisset showed a post-tax net present value of US$1.4bn and robust financials, including over US$300mln per year in underlying earnings (EBITDA), and provides the catalyst for engagement with various potential financing groups.

Meanwhile, the company said, it is also examining various complementary growth options.

These include developing a scope of work for a pre-feasibility study for Emmerson's sulphate of potash project, which could take the combined post-tax NPVs for the company's suite of projects to over US$1.8bn.

The company will also look at upscaled production of the salt by-product in the first five years of operations at Khemisset, as well as bringing the vast remaining resources at Khemisset into the mine plan.

Quick facts: Emmerson PLC

Price: 4.3 GBX

LSE:EML
Market: LSE
Market Cap: £31.24 m
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