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Emmerson’s Khemisset is “just the ticket” - Liberum

Published: 09:29 21 Apr 2022 EDT

Emmerson PLC - Emmerson’s Khemisset is “just the ticket” - Liberum
Image source: @emmerson_plc

Emmerson PLC (AIM:EML, OTC:EMSNF)’s Khemisset fertiliser project is “just the ticket” as the world seeks out independent potash supply, so says stockbroker Liberum.

Morocco is mining-friendly and Khemisset has myriad advantages that should result in highly competitive delivered costs to Atlantic Corridor markets and superior returns, Liberum analyst Yuen Low highlighted in a note.

“Emmerson is currently hoping to receive Khemisset’s environmental permit in mid-2022, which could potentially see completion of the project’s construction financing package during the autumn of 2022,” the analyst said.

“In the interim, we expect regular newsflow regarding project development and financing milestones.”

Low added: “Although the shares have risen since November 2021’s strategic investment, we view the current share price as presenting a relatively inexpensive entry opportunity ahead of a period of significant de-risking, during which we think a number of significant catalysts could emerge.

“We do not believe the market as yet fully appreciates the need for Khemisset in this era of increasing food security concerns and desire for ethical, sustainable sourcing, compared with many potash projects.”

According to Low, Khemisset will prove amongst the best-in-class for investment returns and ‘greenness’ due to its advantages – geology and infrastructure allowing for a faster build, proximity to port and key potash markets, and by-product salt which boost the project valuation.

Liberum rates Emmerson as a ‘buy’ with a 14.8p price target which suggests 100% upside to the current share price of 7.4p.

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on 09/27/2022