London-listed potash developer Emmerson CFO Jim Wynn has resigned to pursue another opportunity elsewhere, the company revealed on September 27.

Wynn, who joined the company in February 2022, will leave his role on September 30. Emmerson stated that the process of finding a successor would begin once the approvals for the updated environmental- and social-impact assessment (ESIA) for the Khemisset potash project, in Morocco, were received.

The updated ESIA, submitted in the second quarter of the year, incorporated optimisations from the Khemisset multimineral process (KMP). The company is currently awaiting the final examination by the Commission Régionale Unifiée de l'Investissement (CRUI).

"Although the past couple of years have been frustrating for shareholders and management, I believe Khemisset, particularly with the optimisations brought about through the KMP, is a unique project that combines compelling economics with technical innovation and strong sustainability credentials," Wynn said.

The announcement of Wynn’s departure coincided with Emmerson’s interim results for the six-month period ending June 30, along with an update on the company’s activities during the third quarter.

In its update, Emmerson stated that it was conducting a re-evaluation of the Joint Ore Reserves Committee- (Jorc-) resource at Khemisset, taking into account the KMP’s impact. The re-evaluation is expected to be completed by the fourth quarter.

Additionally, the company reported the successful completion of second crop trials, with final results pending.

As of June 30, Emmerson had a cash balance of $2.4-million, which has since decreased to $1.7-million.

In March, the Commission Ministérielle de Pilotage requested an update to the ESIA to incorporate KMP optimisations. These changes include a significant reduction in water consumption and the elimination of waste brine disposal, which positively impacts the project’s economics. The updated ESIA was resubmitted in April and is currently being reviewed by the CRUI.

During the third quarter, Emmerson continued to engage with Moroccan authorities to ensure all technical concerns, particularly regarding water preservation, were addressed. The company believes the approval process is nearing its conclusion and anticipates announcing the outcome, which it expects will be positive, within the current quarter.

"We have continued to prioritise engagement with the Moroccan authorities towards the granting of the ESIA approval while pursuing technical workstreams to maximise integration of the KMP’s benefits into the project design," Emmerson CEO Graham Clarke said.

Meanwhile, the second round of agronomic trials focused on evaluating KMP products for providing phosphates to lettuces. While final results are pending, visual indicators suggest KMP products perform comparably to traditional phosphate sources and better than controls with no phosphate, the company noted.

The trials seek to confirm that KMP products, which offer multinutrient and slow-release advantages, could reduce phosphate use and mitigate environmental impacts such as phosphate runoff.

The KMP enhancements, initially focused on brine management, have transformed the project's economics.

As such, the estimated net present value more than doubled to $2.2-billion, as announced in February.

The company has also begun working on a revised resource estimate, expected by the fourth quarter, which will reflect the improved potash recovery and monetisation of previously discarded micronutrients. The revised mine sequencing will potentially increase profitability by focusing on areas high in magnesium and iron.

Additionally, the KMP process changes will enable Emmerson to produce industrial-grade salt, which commands a higher price than de-icing salt and provides an additional revenue stream. Further value-adding optimisations are being considered and may be implemented as modular enhancements later in the project.

Emmerson's financial review for the six-month period reflected a loss of $1.6-million, consistent with the previous period. Capitalised intangible costs amounted to $200 000, and after net proceeds of $2.3-million from equity placing, the net cash flow was $500 000, leaving the company with $2.4-million in cash reserves at the end of June.

Looking ahead, Emmerson’s primary focus remains on obtaining environmental approval for the Khemisset project and advancing technical studies, including the updated resource estimate in the fourth quarter.

Clarke highlighted the importance of water preservation in Morocco, especially in light of recent droughts.

"The benefits of the KMP, along with previous improvements such as using recycled water and switching to dry stack tailings, underline our commitment to delivering a project with robust environmental and social credentials,” he said.