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Emmerson PLC on Monday said its annual loss widened significantly after it recorded a $21.1 million impairment on its flagship Khemisset project in Morocco, following continued regulatory setbacks. The Morocco-focused potash development company reported a pretax loss of $25.8 million for 2024, ballooning from $3.0 million the year before. Administrative expenses rose to $4.4 million from $2.7 million, contributing to a basic and diluted loss per share of 2.319 cents, compared with 0.293 cents in 2023. The loss was driven by the rejection of an updated environmental and social impact assessment for the Khemisset project in October. The company had sought approval after incorporating a new low-impact processing method known as the khemisset multi-mineral process. Emmerson has since launched arbitration proceedings against the Moroccan government, claiming breaches under a bilateral investment treaty with the UK. The claim has been submitted to the International Centre for Settlement of Investment Disputes and values the Khemisset project at $2.2 billion. ‘’The rejection of our ESIA during the year was extremely disappointing and we have initiated arbitration proceedings against the Kingdom of Morocco,‘ said Chief Executive Officer Graham Clarke. ’This is now the company’s primary focus, and we are confident of a successful outcome. ‘In the meantime, we are also exploring ways to valorise our proprietary potash processing methodology, known as the KMP, while remaining focused on minimising expenditure. We will provide updates on the progress of our activities during 2025.’ To support the legal effort, Emmerson secured a $11 million litigation funding agreement in January and raised an additional $1.1 million in December 2024. Looking ahead, the company said its 2025 priority is to progress the arbitration case, while also exploring potential commercial applications of the KMP technology. Shares in Emmerson closed 5.6% higher at 1.90 pence in London on Monday. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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