Emmerson PLC (LON:EML) lost £1.5mln in the year to 31 December 2020, as it continued to work up its Khemisset potash project in Morocco. Cash and cash equivalents at year end stood at £1.14mln.
During the period the company made significant operational, corporate and commercial progress towards establishing what it terms “Africa's first large-scale potash mine”.
A feasibility study was published which confirmed Khemisset' s ability to become a low capex, high margin potash mine with outstanding economic metrics.
A mining licence was subsequently granted, post period end, and allowing for construction to start by the end of this year.
The company also completed a socio-economic study that demonstrated measurable and verifiable benefits that the project will deliver at a local, regional and national level.
A total of £7.2mln was raised during and post period end in oversubscribed placings to fund the accelerated development of Khemisset.
"Never has there been a more important time to develop a world-class potash mine, and this is what we believe we have in Khemisset,” said Emmerson chief executive Graham Clarke.
“Many market commentators have pointed to the emergence of a 'structural bull market' for commodities, and this has already seen the prices for key agricultural commodities including grains, oilseeds, sugar and dairy increasing this year and corn prices above US$7.00 a bushel for the first time in eight years.”
New chairman James Kelly added that Khemisset looks to be “a compelling asset” with “robust fundamentals”.
“Now, with anticipated construction in the near future, I am extremely excited to be part of the Emmerson team as we move into this, our most defining stage of development,” he said.