Emmerson Share Discussion Threads

[momentum1] 30/4/2019 15:10

Inching up daily. No huge spikes, just a steady re rate on solid fundamentals. 15p first stop.

[parob] 30/4/2019 13:54

Break out!!

[korvet] 30/4/2019 13:34

Thanks brother, more guesstimation.

[cpap man] 30/4/2019 13:11

Well RED Korvet

[korvet] 30/4/2019 13:06

Still shaking hard tornadoes a coming. Lol K

[korvet] 30/4/2019 13:05

Check out the chairman's statement front this morning brother.

[dilip40] 30/4/2019 13:03

HI NEW INVESTOR

ANYONE KNOW CURRENT CASH POSITION AND CASH BURN

AND ARE THEY LIKELY TO DO PLACING 2019

THANKS

[parob] 30/4/2019 12:56

Almost at all time highs. That's when the fun will really start.

[korvet] 30/4/2019 12:55

Yea shake it good baby, shake it like a Polaroid picture. Lol. K

[korvet] 30/4/2019 12:46

Be a tree shake coming to loosen a few up for the MM's then. They don't like to see you go without. Lol K

[cottoner] 30/4/2019 12:25

Currently none available to buy online. Been like this for some time.

Last trade @ 4.575 was a sell.

[cpap man] 30/4/2019 07:50

Emmerson Plc / Ticker: EML / Index: LSE / Sector: Mining

30 April 2019

Audited Results for the year ended 31 December 2018

Emmerson Plc ("Emmerson" or "the Company"), focused on developing the low cost, high margin Khemisset Potash Project, is pleased to announce its audited results for the 12 months ended 31 December 2018. The Group's Annual Report which includes an unqualified audit report and audited Financial Statements for the year ended 31 December 2018, will be made available on the Company's website at www.emmersonplc.com.

Highlights

· Strategy focused on the rapid advancement of the Khemisset Potash Project through the de-risking and development milestones towards production;

· Scoping Study confirmed the robust economics of the Khemisset Potash Project confirming its potential to be one of the world's lowest cost and highest margin potash projects:

o NPV10 of US$1.14 billion using independent industry analyst Price Forecasts over a minimum 20-year mine life

o Life of mine average EBITDA margins of c.64% and average life of mine post-tax cash flow of US$184 million

o Capital requirement of the Project is less than half of global peer average

· Seismic study conducted across the Khemisset basin demonstrated that there was no major faulting that could impact underground mining operations

· Preliminary design and cost estimates for mine access confirmed that conventional access to mineralisation is feasible

· Additional research permits covering land adjacent to existing resource granted and an independent verified exploration target of between 264-616 million tonnes was established

· Drill programme commenced with the objective of upgrading current JORC Inferred Resource to the higher confidence Indicated and Measured categories



Chairman Statement

The rapid advancement of the Khemisset Potash Project ("Khemisset" or "the Project") has been the key objective for the period and the Group has delivered on this by achieving several significant development milestones including the release of the Scoping Study in November 2018, some months ahead of schedule.

The results of the Scoping Study were, simply put, outstanding; an NPV10 of US$1.14 billion using independent industry analyst Price Forecasts over a minimum 20-year mine life, life of mine ("LOM") average EBITDA margins of nearly 64% and average LOM post-tax cashflow of US$184 million per annum. Importantly, the sector leading capital requirement of the Project, which was less than half of the global peer average, allows Emmerson to overcome potentially the most important barrier to entry for junior potash projects - development capital cost. The results of the Scoping Study give the team the confidence to continue to progress the development programme at Khemisset.

The Scoping Study which, based on my industry experience, reflected the level of detail evident in a Pre-Feasibility Study, was the culmination of a significant amount of work completed by the Emmerson management team. A basin wide seismic study was conducted demonstrating that the Khemisset Project was free of major seismic faulting that could impact underground mining operations, an important de-risking of the future development of the project. The completion of the preliminary design and cost estimates for the mine access confirmed that a conventional access to mineralisation was feasible, minimising the technical risk involved in development and reducing the capital development costs. The Project's fundamentals are very positive, with a long mine life, with the fundamentals to deliver significant value to all of our stakeholders.

The exploration growth potential of Khemisset is significant, which could add considerable scope to the project life. We applied for, and received, additional research permits for land adjacent to the existing resource and, based on the historical geological data, published an independently signed off, JORC compliant, Exploration Target in August 2018. We commenced a drilling programme in November 2018, which is ongoing, with the objectives of upgrading the current JORC Inferred Resource to Indicated and Measured categories, with the potential to expand the Mineral Resource Estimate. The Group is undertaking a comprehensive metallurgical testwork programme to confirm the processing flowsheet for the project.

Work completed to date has provided confirmation of the potential of the Khemisset Project. Our belief in Khemisset's potential has been supported by independent analyst's research published in support of the Group's technical and commercial work. Align Research, in its initiation note, identified that the conservative NPV10 figure included in the scoping study suggested a potential upside of 290% and an additional note published by Shard Capital Partners included a forecast price target of 106p, representing considerable upside to the Company's share price.

A key advantage of the Khemisset Project is its prime location in northern Morocco. Having extensive experience working in different African jurisdictions, the comparative ease of working in Morocco is evident to the Board. Morocco has established high-quality infrastructure, essential for reducing capital and logistics costs, a government that is fully supportive of direct foreign investment and a mining fiscal and regulatory code which provides financial incentives to companies like Emmerson and sets a clear development path for the Project. Being situated in Morocco also means that the project is located in one of the fastest growing potash consumption markets in the world and is also ideally located to supply four other large established markets. When Khemisset commences production, in addition to the Moroccan domestic market, Emmerson will be a key potash producer to the Brazilian, South African and other European markets.

With our ambitious objectives, targeting production in 2022/2023, we believe that Emmerson will be entering the market at an optimum time in the potash market cycle. Since the low point in the cycle, in July 2016, the market has seen a strong rebound in both demand and pricing. The 2017 and 2018 saw record years in terms of global demand for potash, with market participants now agreeing 2019 is likely to be another record year. This demand pressure, combined with limited supply, is likely to improve prices. The scale of the fertiliser opportunity has piqued the interest of global organisations that wish to participate in the underlying growth thematic. However, in order to become a competitive producer of value added NPK fertilisers it is essential to secure a supply of potash - a market traditionally controlled by a very small group of producers. Emmerson, and the Khemisset project, therefore has become an attractive proposition with high strategic value to fertiliser producers looking to secure the supply of potash. Preliminary conversations with strategic partners has to date indicated that this value is recognised.

In January 2019, we outlined the Group's milestones for the 2019 calendar year, including a drill programme to expand and upgrade the JORC mineral resource at Khemisset, a metallurgical test work programme, the commencement of a Pre-Feasibility Study and an Environmental and Social Impact Assessment. In addition, the Group is advanced with strategic discussions with offtake and sales partners and in-country service providers, and identifying opportunities for project development cost reductions. Management continues to advance the progression of Khemisset and significant news flow will continue on these milestones. Much has been achieved already and we are on track to complete our planned work programme as scheduled.

We believe that 2019 will be a transformational year for the Group, as we continue to advance Khemisset towards production.

I would like to take this opportunity to thank the management of Emmerson. Hayden Locke and his team have done an exceptional job of guiding the Group and completing a successful year of achievements, and the board of Directors express their gratitude to Hayden and his team.

To all stakeholders, on behalf of the board I would like to say thank you for your support, patience and confidence in the team at Emmerson.

We look forward to a successful and exciting 2019 and the continuing positive journey of Emmerson as the Group advances the development of the Khemisset Potash Project.

Mark Connelly

Chairman

29 April 2019

[cottoner] 30/4/2019 07:37

Excellent Chairman's Statement with numerous good points to highlight.

I will draw attention to one section in particular:

The scale of the fertiliser opportunity has piqued the interest of global organisations that wish to participate in the underlying growth thematic.

However, in order to become a competitive producer of value added NPK fertilisers it is essential to secure a supply of potash - a market traditionally controlled by a very small group of producers.

Emmerson, and the Khemisset project, therefore has become an attractive proposition with high strategic value to fertiliser producers looking to secure the supply of potash.

Preliminary conversations with strategic partners has to date indicated that this value is recognised.

[parob] 30/4/2019 07:17

In addition, the Group is advanced with strategic discussions with offtake and sales partners and in-country service providers, and identifying opportunities for project development cost reductions. Management continues to advance the progression of Khemisset and significant news flow will continue on these milestones. Much has been achieved already and we are on track to complete our planned work programme as scheduled.We believe that 2019 will be a transformational year for the Group, as we continue to advance Khemisset towards production.

[rajawali] 30/4/2019 03:35

cpap - a valid concern. This is a development play and I guess the plan is to substantially derisk the project, sure up the resource and let someone else dig the hole. No doubt it is a multi bagger (15p is probably conservative) but I doubt this will be taken through to production by EME. And I am fine with that. So far the strategy has been really well detailed, no surprises and a really competent board.

[cpap man] 29/4/2019 18:45

Take over could come at any time @ EML [my only concern is that it comes too early and EML share holders only get say the shorter term share price target of 15p+

And not the medium to longer term share price target of 100p+

[cottoner] 29/4/2019 18:07

Interesting tweet from Hayden Locke this afternoon.


Game is getting serious as groups start jockeying for position in the high growth African ferts market. Maaden, the Saudi phosphate producer, the latest, taking a controlling stake in a fertiliser blending and distribution business in southest Africa #EML







Saudi Maaden Acquires African Fertilizer Group Meridian

Saudi Arabia’s largest mining company, Maaden, announced its first international acquisition with the purchase of an African Fertilizer distribution company.

The purchasing agreement was signed Thursday in Ras Al Khair Mining City in the Eastern Province.

Under this agreement, the publicly-listed Saudi Arabian Mining Company will acquire an 85 percent stake in the Mauritius-based Meridian Group.

The Saudi global mining giant will secure the remaining 15 percent of Meridian’s equity over four years on agreed terms linked to the performance of the African company, which distributes approximately half-a-million tons of fertilizer through its network of granulation and blending plants, warehousing complexes, and port facilities. The deal is expected to be completed by September for an undisclosed fee, according to parties linked to the deal.

“This acquisition marks a very important step in Maaden’s strategy to build global distribution channels for our fertilizer products,” said Darren Davis, President and Chief Executive Officer of Maaden.

Meanwhile, “we continue to build one of the largest producers and exporters of phosphate fertilizers in the world, ensuring an efficient route to key growth markets is critical to our success,” he added.

“Maaden is acquiring unparalleled access to complementary distribution, blending and product development capabilities in this fast-growth region,” said Senior Vice President for Phosphate at Maaden Hassan al-Ali.

He affirmed that this step will boost Maaden's 2025 strategy, which includes the expansion of sales operations outside Saudi Arabia, and significantly contribute to achieving Vision 2030, which aims at increasing non-oil exports, raising domestic output through diversifying sources of income and supporting the mining sector as the third pillar of Saudi industry.

Notably, Meridian Group includes 3,000 staff and a network of operations across southern Africa, from Malawi to Mozambique, Zimbabwe, and Zambia.

The southeast African market, like most of the African continent of one billion people, is witnessing increased demand for phosphate fertilizers that industry analysts expect to continue growing by five percent annually over the next decade, fueled by population growth and increasing education in the use of fertilizers.

[cpap man] 29/4/2019 11:10

And why not?!?!?

[momentum1] 29/4/2019 11:07

Eveything falling into place. Tick tock! A break of 5p this week?

[cpap man] 29/4/2019 10:50

GAP closed now so back UP again for EML

[momentum1] 29/4/2019 09:21

Seller on his way out given the aggressive nature of the selling this am..once out it is only going one way.

[parob] 29/4/2019 09:03

With the sellers cleared this is now ready to move up.

[cpap man] 29/4/2019 08:11

Yes that is indeed the short term target share price for EML [15p+] but longer term it is 100p+

[momentum1] 29/4/2019 08:09

Company continues to deliver. This will bag from this low base over thr next 4 weeks, chance to get in at the bottom, won't be down here given the fundamantals. Target 15p