Asiamet Resources Share Discussion Threads

[cyberbub] 01/12/2016 12:48

Charles, wrong, *some* people know everything... insiders... the ones who make the real money...

[charles clore] 01/12/2016 12:41

2LB - you certainly have a good point on the matter of volume. If it's not a placing I don't know what. Just seems strange that anyone would sell now against rising copper and such a strong portfolio of projects that is potentially worth multiples of the current share price. I guess that's why the market is so interesting. One never knows everything.

[richsmithsmith] 01/12/2016 12:29

add in the dips :)

[2lb] 01/12/2016 12:26

It can do Rich - look at SXX which "appears" to have been hit hard by it.

Personally I don't believe this is going on here , the volumes don't support it, I think it's just short term traders selling out having got bored of trying to catch a "silver bullet" RNS.

I've nibbled a few more today.

[richsmithsmith] 01/12/2016 12:21

and the thought that that is happening here is driving the price down?

[2lb] 01/12/2016 12:16

Sadly CC forward selling, despite being illegal, remains commonplace....

[richsmithsmith] 01/12/2016 12:13

CC.... thanks for the explanation.

[charles clore] 01/12/2016 12:01

My fund raising theory relies upon the fact that there has been persistent selling for the past few weeks and this goes against the dramatic improvement in the price of copper and the company's improving prospects. The selling would appear to be consistent with the practice of forward selling of placing shares. This happens when the placees take advantage of a higher price than the new issue price and short sell into the market prior to the issue and closing their short on receipt of their newly issued shares. This results in a reduction in the share price. If the placing price was higher than today's share price there would be no point in short selling and they may even be buying more and making a profit that way! Either way I don't know how they get away with trading a share as insiders!!

[richsmithsmith] 01/12/2016 11:45

Seems like everyone is concerned about funding… Not sure if it’s working capital for next year or project funding for BKMain. But…

$4M for 2017… question here is: will they add more than $4M of value to the firm in 2017/8? Yes – the resource upgrade will be many multiples of that, some of us (me included) think it’ll add $100M to the NPV when the resource upgrade comes in (now March/April 2017). For the sake of a few million quid the existing investors aren’t going to let the project disappear and it’s not dilution if you increase shareholder value (I know this isn’t the same as the market capitalization).

Capex funding for BK Main. Payback of 2.5 years and IRR or 39% using just the PEA numbers in BK Main. Add into that the economies of scale for BK West, South and BKZ (these aren’t in the PEA), the better drill results, the lower strip ratio, the heap leach not needing acid and a mine life of 12 years (8 in the PEA and Tony said another 4 on Monday) and suspected better costs than $1.50 per pound which makes a firm producing multiples of current market cap each year in free cash flows until 2031. Why would this project not get funding?

Tony’s said in open forums that he has various options for each and wants to do the best for the shareholders. Makes me sit here and scratch my head… is there a concern that it’ll get diluted to zero? Or a worry that we just won’t get funding and the whole thing will be mothballed?

[2lb] 01/12/2016 11:41

Charles - it does not have to be - technically it can be at any price those subscribing are happy to pay.

Generally this is lower than market price - but this is not a typical situation and those subscribing will be very educated an in for the 2-3 year ride.

Just try to buy tens of millions of shares in the open market and see what happens.....

[angus thermopyle] 01/12/2016 11:32

Just topped up with 20k shares taking me to 741k.

TM did talk about the frustrations of the current share price but did add he is not so much focussed on the price from here to here (pointing at a point on a graph and just above) but fully focussed on getting us from here to up there (again pointing but much higher).... Or words to that effect.

[jackbal] 01/12/2016 11:11

Why does it have to be? Not arguing with your point but trying to learn from it.

Fastjet did a placing at 50p when share was trading at 30 odd p

[charles clore] 01/12/2016 10:56

The fund raising price HAS to be lower than the current price. When the current downward trajectory hits the placing price then forward selling will cease.

[2lb] 01/12/2016 10:25

Yes, fair point but most (myself included) have added to existing holdings post PEA at prices higher than 2.2p taking the steady accumulation approach.

[mr roper] 01/12/2016 10:16

2LB, the irony is the share price is up 100% this year and it's still felt like a slog and a half..lol

[2lb] 01/12/2016 10:09

Have said all along I expected both to progress in tandem then drop into the RNS box one after the other igniting the share price through to BKM resource upgrade.

Still looking like a decent bet now that we are in December.

2016 has been a tough slog for ARS shareholders at times but there is still time to end on a high.

[mr roper] 01/12/2016 09:52

I hope so, 2LB.. just in time for a Beutong Xmas Cracker!

[2lb] 01/12/2016 09:43

It's unlikely Mr R

Personally I think we will see funds raised at a decent price over the next couple of weeks then we are funded all the way to BFS and all nagging doubts will be gone.

[2lb] 01/12/2016 09:00

Last placing was oversubscribed at 3.1p when copper was on the floor and we had far less info and general progress on BKM.

TM keeps stating multiple funding options so let's see which one he goes for, I really don't mind as long as it's done quickly and we can move on.

I think the endless delays in the license conversion for the other projects have caught him out a bit as he was planning on the Jelai cash to part fund the BFS sooner and also the Beutong license to massively increase his options and corporate deals capability.

Sub 2p not a chance therefore IMO, either close to previous price or take on debt from TM and his network at reasonable interest rate.

[bsg] 01/12/2016 08:51

2LB Don't you believe it, under 2p IMO.

[2lb] 01/12/2016 08:49

I agree - funding will be welcome.

It's not like its possible for it to be at a discount at these levels in any case now.....

[2lb] 01/12/2016 08:45

We are now at the same price we were when copper hit the bottom at 2.05 and we had yet to receive the excellent BKM drilling updates.

Farcical.