Emmerson PLC's (AIM:EML, OTC:EMSNF) Khemisset potash project is “best-in-class” and is key in ensuring global food security, that's according to stockbroker Liberum, which today repeated a 'buy' recommendation for the London-listed share.
War in Ukraine emphasised the need for reliable potash supply, the broker highlighted in a note spotlighting Emmerson’s project in Morocco.
With a target price of 14.2p the broker sees substantial upside to the current price of just over 7p.
Liberum's analysts, in a note, said that the company's latest market update has shown significant progress in terms of construction decisions and discussions with banks for financing.
The broker also pointed to advances in infrastructure plans, progress with geotechnical drilling and other work that has “unlocked cost-effective construction options” which together are expected to yield benefits and capital expenditure savings.
Emmerson also identified a better process water supply, which is obtained from the wastewater treatment plant at Khemisset city.
This is, according to Emmerson, scientifically robust, improves the security of supply and has a lower environmental impact.
Liberum meanwhile commented that 'dry' tailings - a sustainable method of storing filtered tailings - should yield multiple benefits to the company including environmental benefits and lower water consumption.