Emmerson PLC (“Emmerson” or the “Company”)

Q4 Update

Emmerson, the Moroccan-focused potash development company, is pleased to provide an update on its corporate and operational activities for Q4 2022.

Highlights:

• Environmental permit – discussions with relevant authorities have progressed closer towards approval, with the focus on management of water
• Other technical workstreams (basic engineering) have progressed and are now near to completion
• Offtake Memoranda of Understanding (“MOUs”) signed in November
• Strong expressions of interest from debt, equity financiers and potential strategic partners
• Potash prices fell back in the quarter from historic peaks but remain well above long term averages
• Liberum Capital appointed as Nominated Adviser

Graham Clarke, CEO, commented:

“At the end of Q3 we announced that we had renewed our strategic investment for a further 12 months and had strengthened our balance sheet with the raising of a further US$6.1 million, which will fund our planned activities in 2023 ahead of construction.

“During Q4, a considerable amount of work went into progressing discussions with regard to the environmental approval of the Khemisset Project, for which I am grateful to my team and the Moroccan authorities. A number of important issues that had held up progress have been resolved, and discussions have moved onto the specifics of the Project’s water management, which is a key area of concern in Morocco following low rainfall in recent years. Our proposals (including specific revisions) are robust and I am cautiously optimistic they will be accepted, but the timing of approvals is in the hands of the Moroccan authorities. We appreciate the patience of our shareholders and are committed to doing everything that is needed to get this over the line.

“Work in other areas has continued. Our technical workstreams (which of course include key elements relevant to water management such as sourcing water and tailings facilities) are now nearing completion, and we were also able to sign MOUs for around 2/3rds of our potash production on a take or pay basis, demonstrating the strength of demand for potash. Discussions with financiers continue, and we will provide updates at the appropriate times, although understandably the environmental approvals will unlock progress, particularly on the equity side.

“I am confident we will be able to provide some substantive updates over the course of Q1, and that 2023 will be a transformative year for Emmerson.”

News in full