Emmerson PLC (AIM:EML, OTC:EMSNF) booked a loss before tax of US$2.77mln in the year to December 2021.
The company closed out the year with cash of just over US$10mln.
During the period considerable operational, corporate and commercial progress was made towards the development of the Khemisset potash project in Morocco.
In particular, a cornerstone investment from a strategic investor was secured in November 2021 of up to US$46.8mln.
The company is also advancing negotiations with a range of international and Moroccan institutions on both the debt and equity sides, following the granting of the mining licence in February 2021.
As a backdrop, there was a significant improvement in potash prices over the year, highlighting potential upside to feasibility study estimates. As it stands, the net present value of Khemisset rings in at a chunky US$1.4bn.
Chairman James Kelly noted that “the importance of food security has never been clearer,” and that “potash has a key role to play.”
“Emmerson's Khemisset potash project is well-positioned to help meet this need,” he said.
“It is a high-margin and low-capex project which has a construction period of approximately two years. The feasibility study completed in 2020 indicated a JORC resource of 537mln tonnes at 9.24% K2O, sufficient to supply 735,000 tonnes of muriate of potash annually for a life of at least 19 years.”