ammonnews.net

Ammon News - EFG Hermes, a leading financial services group, has delivered an upbeat projection of the performance and stock price of the Jordan Phosphate Mines Company (JPMC), thanks to improved operations and more efficient production.

In a statement, EFG Hermes based its growth forecasts of the JPMC on an increase in the company’s output, a tangible drop in operating costs compared to previous years, and a rebound in global phosphates prices in the second half of 2020.

The financial group also indicated that it raised its classification of the JPMC share driven by projections that the stock is likely to yield positive returns over the next two years and the company’s ability to upgrade operations, cut debt and increase output in the next few years.

Additionally, EFG noted that the JPMC has succeeded in pursuing proactive and effective measures to manage the production process and control costs since its current board of directors assumed its duties in early 2017.

EFG Hermes referred to the set of steps taken by the JMPC Board of Directors, which, it said, had a great impact on the company and enabled it to control production costs.

In this context, it noted an agreement signed to supply the Southern Industrial Complex in Aqaba with about 4 million cubic feet of natural gas to reduce the energy bill as well as another agreement to build a desalination plant that will provide 8 million cubic meters of water for production purposes in the complex.

Hermes confirmed that a recent increase in phosphate fertilizers prices and continuous operational improvements will "undoubtedly" contribute to lifting the company's profits and its financial flows significantly during the coming period.