Emmerson raises cash for Moroccan potash project
LONDON – Shares in Emmerson jumped more than 60% on their return to trade on Monday after the London-listed miner raised 6-million pounds ($8.04-million) by issuing 200-million new shares.
The shares were halted last October when Emmerson became 100% owner of the Khemisset Potash Project in northern Morocco.
By 0930 GMT, shares were trading up 62%.
Potash prices collapsed two years ago but have started to recover as mine closures have limited supply.
Emmerson said it initially planned to raise 4-million pounds but the issue was oversubscribed.
It said the Khemisset project's advantages include shallow, cheap-to-exploit resources and a location in Morocco, where demand for potash is expected to climb, which offers access to Europe and other major markets.
"From a transport perspective, we have an unassailable competitive advantage," CEO Hayden Locke told Reuters.
He said the project is in the late stages of development and $20-million has already been spent on it, meaning it could be producing four years from now.
By then, Locke is expecting potash prices to have rallied and predicts escalating demand based on population trends.
"Global food security goals cannot be achieved without the significant use of fertilisers," he said.
The economics of potash can be challenging even for the biggest players.
The world's biggest listed miner BHP is considering selling a stake in its Canadian potash mine, which analysts say would help it share the development risk of a very deep deposit.
Comments
Research Reports
Projects
Latest Multimedia
Showroom
ENVASS is a customer and solutions-driven environmental consultancy with established divisions, serviced by highly qualified and experienced...
VISIT SHOWROOM
Multotec, recognised industry leaders in metallurgy and process engineering help mining houses across the world process minerals more efficiently,...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
