Emmerson’s best-in-class Khemisset MOP (Muriate of Potash) project in stable, mining-friendly Morocco has had its credentials franked even more by the recent shortages of fertiliser.
Khemisset’s myriad advantages should result in highly competitive delivered costs to Atlantic Corridor markets and superior returns.
Last month, Indonesian conglomerate Sinar Mas (GSM) and GQC agreed to invest a further US$6m at 6p/share (a 9% premium) and to extend their cornerstone financing commitment to September 2023.
These developments effectively underlined the strategic investors’ faith in, and support of, the Khemisset project, Emmerson and Morocco.
Although Khemisset’s ESIA (Environmental & Social Impact Assessment) permit is taking longer than Emmerson previously anticipated, the Moroccan authorities are said to have assured the company of their support.
Liberum expects the shares to spike on receipt of the permit, which it said could be anytime now.
Buy with a 13p price target is the broker's view.