Yesterday we caught up with Hayden Lock of Emmerson Plc, the company claims to have been busy delivering on there IPO promises and whilst the share price offers some short term frustration Emmerson is well capitalised with a healthy level of news flow. The Company recently released a Scoping Study which demonstrated that Khemisset has a rare combination of low capital cost to production and among the highest EBITDA margins in the industry. This resulted in outstanding economic metrics, including a post-tax NPV10 of approximately US$1.1bn using industry expert Argus FMB price forecasts.
Locke highlights the value not only in the Khemisset project but also the sector as a whole, as potash prices have risen considerably off the lows. Potash may not be as romantic as other commodities however the opportunity for financial returns are nonetheless compelling, as such the CEO has been buying shares in the market at approx 3p. The company recently released a corporate update outlining the work program and future news catalysts, you can read the RNS clicking here
Hayden Locke, CEO of Emmerson, commented:
“The exceptional results of our Scoping Study, which show Khemisset has the potential to be among the lowest capital cost and highest margin potash projects in the world, gives us a high degree of confidence to push ahead with our technical and engineering work. Based on current planned work programme, we are fully funded through until Q1 2020.
“With numerous workstreams either underway or due to commence throughout the year, including drilling, metallurgical testing, the Pre-Feasibility Study and discussions with potential in-country partners and strategic offtake and sales partners, we expect 2019 to be a year of high impact news flow as we continue to de-risk what we believe to be an outstanding potash project.”
You can find the companies corporate presentations and coverage here
You can hear the audio interview with Hayden Locke by clicking the play bar below
Hayden Locke Spoke to Zak Mir in January 2019 below