Emmerson
LSE-listed resources company developing the low-cost potash Khemisset Project in Northern Morocco
(LON:EML)
Attractive project Economics
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Post-tax NPV8 of US$1.4bn and IRR of 38.5% over initial 19-year mine life
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Peak production of 810ktpa K60 MOP and 1mtpa de-icing salt, average annual production of 735ktpa and 1mpta respectively
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Pre-production capex of US$387m including contingency
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Additional US$24m capital cost for salt plant designed to produce de-icing specification salt for sale into the east coast US
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Bottom quartile projected all-in-sustaining delivered cost to target markets in Brazil, NW Europe, Morocco and South Africa
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Khemisset capital intensity forecast to stand at US$478/tonne compared to global peer average of US$1,142/tonne
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Project lithology makes Khemisset suitable to an access decline to 500m rather than a deep shaft through aquifer units which is frequently the reason for high potash development costs.

Share Price
Geographic Transport Advantages
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Location advantage of Khemisset is worth over US$80/tonne in delivered cost to Brazil
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Significant unrealized potential in Africa which has over 60% of the world’s uncultivated arable land and among the world’s lowest fertilizer application rates
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MOP imports to Morocco grew 120% between 2012 and 2018
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Average global potash demand growth at 2-3% p.a.
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Supportive Government in Stable Jurisdiction
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Project is located roughly 90km from Morocco’s capital, Rabat, and planned bulk port of Kenitra Atlantique, and 150km from port of Mohammedia
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Key infrastructure including four lane A2 toll road and 2x 225KV powerlines already in place – produces a US$1.2bn pre-production capital cost relative to average Canadian potash mine development
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Environmental and social impact assessment currently underway with no key issues currently identified
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Highly supportive mining jurisdiction with nominal royalties (<0.1%), 5-year tax holiday for new mining projects and 50% reduction in income tax for exported projects.
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The Moroccan Government is supportive of the mining industry and was ranked as the 2nd most attractive jurisdiction in MENA in 2018 by BMI Research Group (Fitch).
Reserves & Resources
