Emmerson PLC (LON:EML) said higher potash prices will increase its financing options as its moves to take the Khemisset potash project in Morocco into production.
The company plans to start building the potash mine, Africa's first, by the end of 2021 and to commence production in 2023.
"We are fortunate that we now have a tailwind in the potash market, with increasing demand tightening up the pricing that producers can set. Clearly this is a helpful situation as we look to negotiate the strategic financing options to construct our mine," said chief executive Graham Clarke in a shareholder newsletter. "In the last four weeks several of the producers have reported improving prices as strengthening fundamentals from 2020 start showing their effect. They mention a combination of diminished inventories, rising commodity prices, compelling farm economics, and a cyclical recovery being underway."
"The more encouraging market outlook for potash will clearly assist in the ongoing strategic and debt financing discussions for Khemisset," he said.