Business
Update on Feasibility Study at Khemisset
Update on Feasibility Study at Khemisset.
About this update from Emmerson Plc
[{"type":"text","content":"\n \nRNS Number : 6333Z Emmerson PLC 14 January 2020 \n\nEmmerson Plc / Ticker: EML / Index: LSE / Sector: Mining\n14 January 2020\nEmmerson Plc (\"Emmerson\" or the \"Company\") \nSelection of Site and Low Capex Road Connection at Khemisset\nEmmerson Plc, the Moroccan focused potash development company, is pleased to announce that it has finalised the Feasibility Study components for the connection to road networks, including design and cost components, for its world class Khemisset Potash Project in Northern Morocco (\"Khemisset\" or \"the Project\"). The Project is advantaged by industry leading capital costs and bottom quartile all-in delivered cost to customer, yielding outstanding economic metrics including average annual life of mine EBITDA of US$236 million and a post-tax NPV10 of US$1.14 billion[1].\nHighlights\n· Selection of preferred Project Site completed following comprehensive Options Study.\n· Road connection design and costing completed - total budgeted cost for construction of access roads via the A2 toll road is approximately US$2.0 million including a 15% contingency.\n· Following confirmation of zero capital cost required at Port (See RNS dated 04 November 2019), the road connection will be the only pre-production capex required for entire logistics solution for Khemisset.\n· Selected site location requires only approximately 3.2km of paved roads to be constructed to connect the Project to existing high-quality highway, with an additional approximately 9.6km of gravel internal roads included in the design estimate.\n· No requirement to construct expensive rail connections.\n· Design and budget completed by independent engineering group, Golder Associates (\"Golder\"), according to AusIMM guidelines for capital cost estimates.\n· Full Feasibility Study on track for delivery in H1 2020, in line with forecasts.\nHayden Locke, CEO of Emmerson, commented: \n\"We identified the location of the Khemisset project as one of its major strengths from the outset; the proximity to world class existing infrastructure is a key tangible benefit. To be able to select a site which connects to a highway so readily and with such low capital cost allows us to save significant amounts of pre-production spend compared to the majorit...