Emmerson PLC (AIM:EML, OTC:EMSNF) is well positioned to take advantage of the fertiliser market, said analysts at Shore Capital and Liberum.
Shore Capital said the potash development company is “fully funded to complete the detailed engineering work and remaining permitting and project financing processes through to a construction decision.”
Before that, the group needs the Environmental and Social Impact Assessment as well as receiving reassurance from the Moroccan authorities.
Analysts at Liberum said Emmerson expects to be able to easily finance the construction, expected to take place shortly after financial close, which should last six months.
This is because of strong interest from a range of international banks in the project, said Liberum.
Once construction is completed, Emmerson should be able to capitalise on the higher prices for fertiliser and the demand for a reliable source on the back of a supply being constrained due to war in Ukraine.
Earlier this week, the company developing the Khemisset potash project in Morocco confirmed the extension of convertible loan notes worth US$40mln.
Additionally, it will receive further investment from Global Sustainable Minerals, a cornerstone investor worth US$6mln, and a retail offer for £1mln.