Emmerson Plc · LSE:EML
Emmerson — Investor Presentation (January 2022)
19 slides from Emmerson's investor presentation, January 2022
Slide 1: Developing a low capex, high margin potash project in Morocco
Developing a low capex, high margin potash project in Morocco Corporate Presentation – Q1 2022
Slide 2: Disclaimer
Disclaimer This presentation (“Presentation”) is being provided to you (the “Recipient”) by Emmerson PLC (the “Company”) for information The Company is not responsible to the Recipient for providing regulatory and legal protections afforded to customers (as defined purposes only and does not constit
Slide 3: Investment Highlights
INVESTMENT HIGHLIGHTS 1. 2. 3. 4. $1.4bn Potash: Lowest Quartile Key Development Multi-decade After Tax NAV1 Cost Base Expertise in Place Demand Growth 5. 6. 7. 8. Highest Supportive 19 Year + Expansion Standards Mining Jurisdiction – Mine Life To >30 Years ESG Compliance Low Tax & Royalties 02. Cor
Slide 4: Population + Intensity of Use = Demand Increases
POPULATION + Intensity of Use = DEMAND INCREASES up to 2Mtpa After Tax NAV1 To Reduce Rates of soil K depletion, IoU will Trend annual have to accelerate; growth of 1.5% p.a. growth of corresponds to incremental demand of 42Mt by 2035 ~2 Mt If IoU continues to rise at roughly the Trend annual histor
Slide 5: Morocco – Great Location for a Potash Deposit
MORROCO – GREAT LOCATION FOR A POTASH DEPOSIT Morocco is a major fertilizer player through OCP phosphate exports An important domestic market for fertilizer Gateway to Africa: the fastest growing fertilizer market Actively encouraging both industrial FDI and new mining projects 04. Corporate Present
Slide 6: Positive Impact
POSITIVE IMPACT 1. 2. 3. 4. US $146m US $63m 2,385 Direct & indirect jobs created US $2.5bn during construction. Per annum - Indirect fiscal Per annum – Direct fiscal contribution of the project contribution of the project 1,218 in indirect employment Total investment over the 760 in direct employme
Slide 7: Major Cost Advantage from Location
MAJOR COST ADVANTAGE FROM LOCATION Canadian giants are swing producers (supply restraints ongoing) Nearly 70% of global potash supply is very remote from end markets Saskatchewan Royalties ~US$25/tonne After Tax NAV1 1,700km by Rail Saskatoon ~US$45/tonne 135km Truck to Nominal Royalties Port US$0.1
Slide 8: The Geology and Location Are Unique Advantages
THE GEOLOGY AND LOCATION ARE UNIQUE ADVANTAGES 07. Corporate Presentation
Slide 9: Significant Equity Upside from Net Asset Value
SIGNIFICANT EQUITY UPSIDE FROM NET ASSET VALUE Junior resources companies can be expected to trade around 20-25% of NAV if: The project economics The capex is much The management team Strong shareholders are top quality lower than the NAV is credible join the register Market Cap USD Flagship Project
Slide 10: Low Upfront Capex
LOW UPFRONT CAPEX Consensus Case Spot Price (All other inputs equal) Mine life 19 years 19 years Extraction rate (Mt/annum) 6.0 6.0 MOP price per tonne (USD) 412 800 Average Annual MOP production (tonnes/annum) 735,000 735,000 Average Salt Production (tonnes/annum) 1,000,000 1,000,000 AISC FOB Casab
Slide 11: Strategic Investment of up to $46.75M
STRATEGIC INVESTMENT OF UP TO $46.75M Deal Structure: Ability to finance the Khemisset Potash Project was the Key Risk US$6.75m equity subscription @ 6p - cash now to advance critical path • GSM US$4m Strategic investor @ up to 29.9% underscores ongoing equity support • GQC US$1.8m • Other investors
Slide 12: Project Scope
PROJECT SCOPE Seven major packages Mine Site Infrastructure 1 Highway Intersection / Site Access 4 Internal Roads From Existing A2 Highway (Off Site Package) Visitor Parking Gatehouse/Access Control Workshops Substation / Electrical Reticulation Water Reticulation Mineral Processing Facility 2 ROM O
Slide 13: Project Execution Strategy
PROJECT EXECUTION STRATEGY MAJOR SCOPE CONTRACTING STRATEGY DETAILED DESIGN TO PACKAGE BASIC DESIGN TO IFT (30%) PROCUREMENT CONSTRUCTION COMMISSIONING IFC (100%) EML Process Facility (Design Contractor A) EML Portal (Design Contractor B) Decline, Initial Development & EML Fit Out (Design Contractor
Slide 14: Basic Engineering Strategy and Progress
BASIC ENGINEERING STRATEGY AND PROGRESS EOI & Pre-Qualification Issued – 10/04/2021 PACKAGE BASIC DESIGN TO IFT (30%) Request For Proposal Issued – 07/05/2021 Tender Response Received – 07/06/2021 Price Negotiations & Revised Tender Received – 17/06/2021 EML Process Facility (Design Contractor A) It
Slide 15: EPCM Strategy
EPCM STRATEGY DE TO IFR DE TO IFC COMMISSIONING PACKAGE PO CONSTRUCTION (60-80%) (100%) START-UP Portal Technical Package 1: Mining Dev. (Inc. Civil) Detail Engineering Package: Decline, Mining, Geotechnical Technical Package 1: Mining Dev. (Inc. Civil) Initial Development & & Hydrogeology Technical
Slide 16: Ongoing Site Works
ONGOING SITE WORKS Deep Drilling (Decline Alignment) Campaign Surface / Shallow Geological Investigations Core Logging, Testing & Storing This campaign includes four drillholes along This campaign includes 20 shallow Local to the site, there is a well-managed the proposed decline at 400m (DA-2), geo
Slide 17: On the Fast Track to Production
ON THE FAST TRACK TO PRODUCTION Progress to date has been cost effective and quick June RTO £6m raised at 3p Jun Mine Builder CEO Appointed– 5.40p 2018 2020 FS – 5.20p Nov Low Capex Potential Confirmed by Scoping Study – 3.35p Jul Equity Financing £1.72m @ 4.25p– 4.87p 2018 2020 Apr Heads of Agreeme
Slide 18: Always do the right thing and always do it in the right way
We will strive to “Always do the right thing and always do it in the right way” Emmerson Plc Graham Clarke - CEO R Respect We respect our environment, our stakeholders and each other. [email protected] Hayden Locke – Executive Director [email protected] I Integrity We act with
Slide 19: Emmerson Plc
4% EMMERSON PLC