10th Sep 2019 12:57
(Alliance News) - Potash firm Emmerson PLC on Tuesday reported a swing to profit for the first half of 2019, due to lower costs, as the company continues to advance the Khemisset project in Morocco towards development.
For the six months to the end of June, pretax profit was GBP9,000, compared to a loss of GBP157,000 the year before, due to a drop in administrative expenses by % to GBP523,000 from GBP723,000.
There was also the one-off GBP698,000 cost of the reverse acquisition of Moroccan Salts Ltd, the owner of the Khemisset potash project, posted for the prior year.
Looking ahead, Emmerson has directed its attention on delivering a feasibility study for the project, which the company expects to be completed in the first half of 2020.
Following the completion of the study, Emmerson will move on to the mine permitting process and then construction at Khemisset.
"Following the validation of the project's outstanding potential in the scoping study, delivered ahead of schedule in 2018, we have continued to progress apace, delivering key milestones and strategic agreements that serve to advance and de-risk the development of Khemisset," said Chief Executive Officer Hayden Locke.
"In particular, the completion of metallurgical testing, which confirmed the technical viability of the processing methods proposed for Khemisset, is a significant de-risking milestone for the company," Locke added.
Shares in Emmerson were up 1.0% at 3.54 pence on Tuesday in London.
Related Shares:
Emmerson