Business
Q2 Activities Update
Q2 Activities Update.
About this update from Emmerson Plc
Emmerson PLC / Ticker: EML / Index: AIM / Sector: Mining 11 July 2022 Emmerson PLC ("Emmerson" or the "Company") Q2 Activities Update Emmerson, which is developing the world class Khemisset Potash Project in Morocco ("Khemisset" or the "Project"), is pleased to provide an update on its corporate and operational activities for Q2 2022. Q2 2022 Key Events and Deliverables: · Global potash market remains strong with spot prices of US$1,100/t in Brazil · Discussions with debt, equity financiers and potential strategic partners continue to progress well, with the tailwind of high potash prices and the accepted strategic importance of new sources of potash such as Khemisset · Project development work has continued in the quarter: o Exploration work has unlocked cost effective construction options - portal and decline location has been updated and is expected to deliver technical benefits and capex savings o All key infrastructure locations established following successful completion of geotechnical drilling and additional Electrical Resistance Tomography surveys o Improved and environmentally friendly water solution that increases security of supply for process water o All engineering packages advancing, including basic engineering with Reminex and process engineering with Barr Engineering Global potash market The potash market has remained extremely strong in the quarter, with supply issues exacerbated by the war in Ukraine. As of mid-June, reported Muriate of Potash ("MOP") sales prices were showing that the Brazil market had steadied at approximately US$1,100/t, while other markets around the world were also showing marked increases in pricing. Global shortages have led to a supply response from producers, and analysts are predicting increased production from Canada, specifically from BHP's Jansen project, and from the world's largest producer, Nutrien, although these developments will take, in some cases, several years to come online. At the same time, production from Belarus or Russia may not become widely available for some considerable time. The price of all food crops has risen sharply, which has the potential to sustain the demand for potash even at current elevated prices. The world needs agricultural production to increase further to control food prices globally, and it r...