Emmerson Plc · LSE:EML
Emmerson — Investor Presentation (February 2024)
22 slides from Emmerson's investor presentation, February 2024
Slide 1: Khemisset Multi-mineral Process: Transformational Enhancement to Khemisset Project
Khemisset Multi-mineral Process Transformational Enhancement to Khemisset Project February 2024
Slide 2: Khemisset Project at a Glance
KHEMISSET PROJECT AT A GLANCE ▪ New potash project producing over 0.7mtpa MOP over 19 year mine life ▪ Well-situated with excellent infrastructure, 195km from deep-water port ▪ Africa’s first source of MOP in 25 years – set to meet the demands of the world’s fastest-growing population ▪ JORC Resourc
Slide 3: Khemisset Multi-mineral Process (KMP) – A Transformational Development
KHEMISSET MULTI-MINERAL PROCESS (KMP) – A TRANSFORMATIONAL DEVELOPMENT ▪ Scoping Study complete for a transformational enhancement to the Khemisset Project ▪ KMP involves the treatment of magnesium and iron-rich brines to create struvite and vivianite and by- products of salt and ammonium chloride,
Slide 4: KMP Process – Simple Changes to Process with Major Benefits
KMP PROCESS – SIMPLE CHANGES TO PROCESS WITH MAJOR BENEFITS ▪ Khemisset potash ore is a mix of three Brine recycled Struvite types – sylvite (pure KCl), carnallite (includes Mg), and rinneite (includes Fe) Solid/liquid NH4Cl separation ▪ KMP separates carnallite and rinneite Mg-rich brine Potash ore
Slide 5: Considerable Environmental Benefits
CONSIDERABLE ENVIRONMENTAL BENEFITS Water consumption ▪ KMP initially developed as an alternative to DWI 60% reduction in plant ▪ KMP eliminates DWI by recycling brine rather than disposing of it consumption, 50% overall as waste Plant ▪ It thus reduces water consumption by 50% and process water by
Slide 6: A Compelling Financials Proposition
A COMPELLING FINANCIALS PROPOSITION 2020 2023 Revised Updates Feasibility Original With ▪ KPIs from 2020 Feasibility Study updated for cost Study Design KMP inflation and design changes / optimisations Mine life 19 years 19 years 19 years ▪ Impact of KMP on economics was modelled based Ore extractio
Slide 7: KMP & UN SDGs
KMP & UN SDGs KMP improvements align the project more closely with the United Nations Sustainable Development Goals (SDGs) Eliminates the requirement to dispose of waste Creates employment in a developing province in brines through DWI and sourcing project water by Morocco recycling grey water Stren
Slide 8: Struvite & Vivianite – Premium Multi-Nutrient Fertilisers
STRUVITE & VIVIANITE – PREMIUM MULTI-NUTRIENT FERTILISERS STRUVITE VIVIANITE Granulated struvite Vivianite taken from early tests sample ▪ Slow-release fertiliser containing nitrogen and phosphorous (macro- nutrients) plus magnesium (a micro-nutrient) ▪ Also slow-release fertiliser, containing phosp
Slide 9: Capex – Inflation Increases but KMP Lower
CAPEX – INFLATION INCREASES BUT KMP LOWER US$'000 2020 2023 Updates ▪ Capex costs from 2020 revised in light of cost inflation of plant and equipment Feasibility Original KMP Study Design ▪ CEPCI process plant index has increased by Mine and mine access 100 133 133 >30% since 2020 Site development 4
Slide 10: Khemisset Attractive Position on Cost Curve
KHEMISSET ATTRACTIVE POSITION ON COST CURVE ▪ Potash unit costs US$169/t CFR Brazil for KMP (US$177/t for Original Design)1 ▪ Increases since 2020 FS due to power (electricity) and fuel price rises, & design changes (inc selection of safer, dry-stacking option for salt tails) ▪ Prices as at Nov 2023
Slide 11: Struvite & Vivianite Both Profitable Products
STRUVITE & VIVIANITE BOTH PROFITABLE PRODUCTS ▪ Struvite and vivianite marginal cost primarily driven by Unit Margin MOP Struvite Vivianite phosphate (DAP) and ammonia used as reagents Sales price 412 500 299 ▪ Struvite price of US$500/t estimated as a premium over nutrient value (c. 18%). Current s
Slide 12: KMP Increases Khemisset Value by 120% to US$2.2bn
KMP INCREASES KHEMISSET VALUE BY 120% to US$2.2bn ▪ NPV8 of US$2.2bn and IRR of 40% using MOP prices of US$412/t and struvite prices of US$500/t ▪ KMP adds US$1.2bn of NPV8 compared with the Original Design ▪ Struvite prices currently attract premium prices over nutrient content ▪ US$750/t -> IRR of
Slide 13: Khemisset Undervalued vs Other Potash Projects
KHEMISSET UNDERVALUED VS OTHER POTASH PROJECTS Market Cap Market Cap as % Company Flagship Project Country NPV8 US$ Cap-Ex US$ IRR (US$) of NPV Emmerson KMP 26.1m Khemisset Morocco 2,200m 525m 40.3% 1.9% Western Resources 43.8m Milestone Canada 163m 110m 20.4% 27% Gensource Potash 21.6m Tugaske Cana
Slide 14: Further Opportunities Available to Add Value
FURTHER OPPORTUNITIES AVAILABLE TO ADD VALUE ▪ Update mine plan to incorporate additional mineral recoveries from ore ▪ Further operational enhancements to KMP under consideration: ▪ Using lower-cost phosphate to reduce unit costs ▪ Recycle ammonium chloride into plant, reducing ammonia consumption
Slide 15: Innovative Process Enhances Product Offering, Environmental Impact, Financial Outcomes
INNOVATIVE PROCESS ENHANCES PRODUCT OFFERING, ENVIRONMENTAL IMPACT, FINANCIAL OUTCOMES Greater product offering Lower environmental impact Significantly enhanced financial outcomes ORIGINAL DESIGN DWI Process 20 Plant million MOP Water m3 733 mtpa 139 water m3/hr over Capex NPV8 mine life IRR 26% US
Slide 16: Next Steps
NEXT STEPS ▪ Negotiate offtake agreements for new products ▪ Engage with phosphate and nitrogen suppliers ▪ Finalise remaining testwork as required (including agronomic trials) ▪ Optimise and update life of mine plan to incorporate KMP products and efficiencies ▪ Incorporate results into revised Ban
Slide 17: Overview
OVERVIEW Sustainability & Water Large Value Upside Morocco Eliminates disposal of waste brines Increase in Capex offset by removal Adds potash and additional through DWI of DWI Capex of US$25m phosphate products to Morocco nutrient portfolio Reduces process water consumption Increases NPV8 from US$1
Slide 18: Contacts
CONTACTS Emmerson PLC Graham Clarke, CEO Jim Wynn, CFO Charles Vaughan, IR Tel: +44 (0) 20 7236 1177 Website: www.emmersonplc.com BlytheRay (Financial PR) Tim Blythe Megan Ray Said Izagaren Tel: +44 (0) 20 7138 3204 Email: info@blytheray.com @emmerson_plc Emmerson PLC
Slide 19: Appendices
APPENDICES 4 EMMERSON PLC
Slide 20: Emmerson Plc
EMMERSON PLC Share Price (p) EML share price v value traded 2023 Number of Ordinary Percentage of Issued 7 300 Shareholder Shares Ordinary Shares 6 250 Global Sustainable Minerals 137,770,562 13.4% 5 200 Hargreaves Lansdown Nominees Limited 114,894,995 11.2% 4 Clients 150 3 Jarvis Investment Managem
Slide 21: Board & CFO
BOARD & CFO Graham Clarke – CEO Dr. Robert Wrixon – Executive Director Highly experienced potash mining executive. Founder of Moroccan Salts, Rob has 18 years’ During a career spanning 35+ years, Graham commercial experience in mining. He is a Director has gained extensive experience managing and fo
Slide 22: Management Team Credentials
MANAGEMENT TEAM CREDENTIALS Charles Vaughan (Head of Investor Relations) • Charles spend over ten years working in the City with a focus on raising capital for companies developing natural resources projects, mainly from London based institutional investors. Lahcen Alloubane (General Manager) • A Mo