Asiamet Resources Share Discussion Threads

[richsmithsmith] 08/8/2016 14:24

China's coming for your copper project
Faced with declining domestic production, China's top copper company says the "only solution is going overseas"

[harrissen] 08/8/2016 13:28

If he gets a good result in China - JV or such like - this will treble the share price immediately imo.

[richsmithsmith] 08/8/2016 11:17

and... he was in Indonesia last week talking to potential partners.

[2lb] 08/8/2016 11:11

Great summary

TM flying to China today - huge partnership potential......

[harrissen] 07/8/2016 05:43

New Indonesia Mining Minister to 'transform' mining/oil industry!

Looks like our permits and licences could be fast forwarded under new management plans
.............


International
Indonesia: energy minister vows to transform oil-mining industry


(AGI) - Jakarta, Jul 28 - Newly-installed Indonesia's Energy and Mineral Resources Minister Archandra Tahar vowed on Wednesday to transform oil, mining and power industries. "Transformation in the energy and mineral resources sector is not an option but a must," Archandra said in his speech during the ceremony in which he officially took over from former minister Sudirman Said. He said his program in transforming the industries consist of three pillars: 1. Making business process efficient, transparent and measurable 2. Competent human resources supported by knowledge, skills and experience 3. Utilizing appropriate and on-target technology so that human resources and business process that are being developed become effective and efficient.

[richsmithsmith] 05/8/2016 14:04

yeah... and I guess as the Cu price improves

[2lb] 05/8/2016 10:31

Thanks for sharing Rich.

I think we can point to 7 out of 7 as the company develops....

[mr roper] 05/8/2016 09:55

agree Rich. The value is there, that is clear. Unlocking it is what the market wants to see. The PEA is tremendous but most realize that further funding is required to progress through feasibility to Production. Once Tony makes large strides towards resolving this (JV, strategic investors) I'm pretty sure a significant rerating will happen.

[richsmithsmith] 05/8/2016 09:45

I'm writing a paper for a consultancy project at the moment about Rappaport's Shareholder Value Add theory. For those that don’t know it’s an old (1986) and kind of forgotten way of attributing value to actions. It came back into fashion recently as a way to counteract the shot-termism that led to the 2008 crash (i.e. there is much more to value of a company than the numbers of shares times the price).

After doing the research on Asiamet (been in since the start of this year) it seems obvious to me that we’re undervalued. Even if it was just a mining project with a net present value of $205M, mining licence and drill results which keep improving its worth a lot more than its sub£20M market cap. When we add into this the value of the Beutong Licence, Jelia sale or whatever and Baroi you easily get over the £1BN market cap that the CEO was talking about in the podcast yesterday.

But… this is an investment right, not a short term play… so if it’s an investment let’s look at if Shareholder Value is actually being created. Referring to Rapport’s model, he suggests there are 7 drivers of value.

1) a growth in sales < more potential product is being discovered with each results update
2) an increase in the operating profit margin < the methods they’re using are the most cost effective ways of extracting the copper
3) a reduction in the tax rate < they had a million $ back this year
4) a reduction in the working capital investment < they are doingthe drill results to work out where best to drill first in order to maximise cash flows at the start of the project. This lowers the need for capex, lowers the requirement for debt and makes the BKM project more profitable
5) a reduction in fixed asset investment < as above and looking at JVs with other producers lowers this as well.
6) a reduction in the WACC < the cost of capital goes down as they derisk the project and management of #4 helps with this as well.
7) an increase in the competitive advantage period < licence conversion will sort this out... they are looking at long term licences on these projects (40 plus years?)

anyway… wanted to share this with you guys. It’s easy to get carried away with the day to day craziness of the share price. What we should be looking for (if we’re investors) is if the company’s management is building shareholder value or not.

[richsmithsmith] 05/8/2016 09:12

yeah... nice start
nice to see 600k bought and it move up so much

[mr roper] 05/8/2016 09:01

interesting move today...

[harrissen] 05/8/2016 04:13

Guardian Stockbrokers

04 August 2016



Asiamet Resources Limited (ARS.L) Announced that Resource infill and extension drilling at the Beruang Kanan Main copper deposit in Central Kalimantan, Indonesia continues to intersect shallow high grade copper mineralization within the BK058 Zone. 30 holes for 3100 meters of diamond core drilling have now been completed and three holes are currently in progress. A further 90 holes and 8000 meters are planned. The excellent thickness and continuity of near surface high grade 1-3% copper mineralization intersected in feasibility study drilling to date further strengthens the key fundamentals of the Beruang Kanan Main project. The delineation of these discrete zones of continuous, shallow, high grade mineralization that are easily accessible for early mining has the potential to lower operating costs and further enhance project economics. The company is very pleased with the progress being made on the feasibility study to date. All the longer lead time studies are underway and all resource definition drilling completed in the higher grade BK058 zone thus far has intersected strong near surface copper mineralization with excellent continuity and thickness.

[richsmithsmith] 04/8/2016 16:25

Yes (from memory) he'd had verbal that both exploration licences for Jelai and Beutong had been extended (just waiting on letter from the governors).

Jelai extraction licence was taking longer than expected (so will be October) and the Beutong licence was any day (Ramadan slowed down the process a bit). In the stocktube video today he mentions the licences and says that there was a minor thing he'd been requested to sort out (10m20secs).

He's off to China next week... so thought he wanted it sorted by then.

BTW. there is a licence for BKM in place (I think a lot of people forget this).

[knobbly] 04/8/2016 15:24

2LB, "Licence conversion confirmation still the only thing that will boost the share price in the short to medium term."

From a recent presentation (can't remember which one, but it lasted about an hour) TM said that he had no concerns about the licence conversion, it was just a rubber-stamp process. So not sure if announcement of the conversions would get the share price moving.

Hoping it does though!

[2lb] 04/8/2016 13:59

Worth listening to the above from 6 minutes on where TM is basically answering the question "why is your MCAP so low?"

[richsmithsmith] 04/8/2016 13:04

New video out...



“If you can produce 50,000 tonnes of copper a year you're a billion dollar plus business. The asset base is very capable of achieving that and we've got the team in place that's done this multiple times before and has the ability to execute on that plan."

[2lb] 04/8/2016 12:54

Depends what you call low ball Mr R

Very good update today for long term holders, essentially just providing validation.

totally predictable price reaction as it has reinforced the underlying message that real value is months away not days or weeks so more short termers will sell as they realise that the "strong and exciting newslfow" continuously promised is still yet to appear and they are better punting their cash elsewhere.

Much as the update lets us knows things are still on track, I am not quite sure why it was put out as it was only every going to spark some sells , ARS just love to create more "top up" opportunities for their LTH I guess....

Licence conversion confirmation still the only thing that will boost the share price in the short to medium term.

[mr roper] 04/8/2016 12:38

starting to get just a little bit worried about a low ball takeout...

[richsmithsmith] 04/8/2016 10:30

Technical Coverage on Zak's 3 Stocks in 3 Mins via Vox Markets


gives a 3.5p short term target

[richsmithsmith] 04/8/2016 10:29

Note from Trader Tim about this morning's RNS


"These discrete easily accessible higher grade zones with potential for lower strip ratio mining and lower operating costs early in the project life continue to confirm BKM as an outstanding copper development opportunity"

[richsmithsmith] 04/8/2016 10:24

Here's the link to the VSA note this morning

[richsmithsmith] 04/8/2016 10:18

VSA morning miner gave it a 6.2p price target after the RNS this morning