Business
Low Capex Potential Confirmed by Scoping Study
Low Capex Potential Confirmed by Scoping Study.
About this update from Emmerson Plc
[{"type":"text","content":"\n \nRNS Number : 8194H Emmerson PLC 20 November 2018 \n\nEmmerson Plc / Ticker: EML / Index: LSE / Sector: Mining\n20 November 2018\nEmmerson Plc (\"Emmerson\" or the \"Company\") \nScoping Study Confirms Potential for Low Capex, High Margin Potash Mine \n \nEmmerson Plc, the Moroccan focused potash development company, is pleased to release a summary of the results of its recently completed Scoping Study for the Company's 100% owned Khemisset Potash Project located in northern Morocco (\"Khemisset\" or \"the Project\"). A report detailing the full findings of the Scoping Study is available to view on the Company website here: https://www.emmersonplc.com/investors/corporate-documents/. \n \nThe Scoping Study was managed by global independent mining and engineering consultant, Golder Associates (\"Golder\") and designs and estimates have been prepared in line with guidelines provided by the Australasian Institute of Mining and Metallurgy (\"AusIMM\"). Economic metrics of the Project have been calculated by the Company using the technical outputs of the Scoping Study: such metrics have been reviewed and approved by Golder.\n \nEmmerson will be hosting an Analyst and Shareholder conference call on Thursday 22 November at 11.00am GMT to discuss the Scoping Study results. Further information can be found below. \n \nTo view the detailed press release with the illustrative maps and diagrams please use the following link: http://www.rns-pdf.londonstockexchange.com/rns/8194H_1-2018-11-19.pdf.\n \nHighlights\n· Post Tax NPV10 of US$795 million[1] and IRR of 29.8% over 20 year mine life\no Assumes flat real price of US$360/tonne CFR Brazil price (today's price in Brazilian market)\n· Using forecast prices from Independent Market Consultant Argus Media, NPV10 increases to US$1.14 billion over 20 year mine life\n· Bottom quartile projected all-in-sustaining delivered cost to all Emmerson's target markets including Brazil, NW Europe, Morocco, South Africa\n· Top quartile projected cash margins according to analysis conducted by Argus FMB\no Average, steady state post-tax cash margins of 50% at current potash prices\no Average, steady state, EBITDA margins of nearly 64% at current potash prices\n· Robust cashflow generation at a broad ...