Asiamet Resources Share Discussion Threads

[angus thermopyle] 04/11/2016 13:02

The RNS gave us a little momentum on the sell side and the markets being down today just adds to it. I'll be adding monthly it's just a shame I did most of my initial position building on the ride up to 2.8 but as I see this as a 3 to 5 year project with milestones along the way I'll just try to ignore the current price for now (as best I can). It's just very frustrating.

[ayesha4] 04/11/2016 12:17

2LBits not at a premium unfortunately but at least its a small amount. Should not detract from the long term goal.

[2lb] 04/11/2016 11:00

If a discounted placing was in progress then it's probably now a premium placing...

We remain one positive RNS away from a significant rise but it's some time now since we had anything other than a BAU update.

TM repeatedly uses the words "ridiculously low" in respect of the MCAP so it's time they did something to address the valuation and make a material piece of progress.

The key piece of news is not in the hands of the company, that being the Beutong license conversion , which is frustrating for all parties.

We've wasted the potential benefit of a copper price rise with that RNS this week as well.

[bsg] 04/11/2016 10:50

Maybe it's softening the blow of a discount placing?

[cyberbub] 04/11/2016 10:47

Charles... or that the broker is just a bit sloppy...To be fair, the mining sector has been struggling badly for the last 4 years so "market conditions" are not exactly rosy!But that's no reason to make a big deal of it in an RNS.The key point is that even in difficult conditions, Asiamet's advanced project has very attractive returns, and will stand out from the rest of the dross. That's the bet we're all taking anyway!

[charles clore] 04/11/2016 10:44

To all the RNS critics something to ponder. If the BOD is truly intelligent enough to run this company and put into words what they actually mean then it must be assumed from the negative phrasing of the RNS that all is not as well as it seemed.

[cyberbub] 04/11/2016 10:38

Spread narrowing - I think we're near the bottom now?Patience - these dips will seem pathetic in 12 months time.

[mr roper] 04/11/2016 10:01

indeed, 2LB. The last RNS was certainly game changing...

[2lb] 04/11/2016 09:47

Absolutely Mr Roper - this is why we are all here


"With more newsflow likely to come soon from the ongoing work on the feasibility study and some “extremely interesting” conversations with potential strategic partners in the region, Manini thinks that Asiamet could be on the “cusp of game changing things”"

[mr roper] 04/11/2016 09:38

last para....

One day, Asiamet Resources Ltd (LON:ARS) could join the ranks of the 100,000 tonnes per year copper producers.

That’s no small aspiration, as delivered by Tony Manini, the company’s chief executive.

But he’s done it before. He was a key man in the development and growth of Australian copper giant Oxiana which, like Asiamet now, was also focussed on Asia.

Oxiana eventually merged with Zinifex to become OZ Minerals, and then slipped under the control of Chinese interests.

And it’s the Chinese will also be key to the fate of Asiamet, although at least at this stage in the development of the company, rather more indirectly.

As it stands, at the smaller of Asiamet’s two copper projects, Beruang Kanan Main (BKM), the company stands to make a cash margin of U$0.90 on every pound of copper produced. That number is drawn from data published in a preliminary economic assessment published last year, and may yet be improved upon as a result of the full-blown feasibility that’s now ongoing.

But if Asiamet manages to shave a few more cents off the operating costs, the real margin upside will nevertheless come from the overall supply and demand picture in the copper market – and that, in a large part, is down to China.

Manini is a frequent visitor to China, and he is able to gauge the mood pretty well. He talks of the One Belt, One Road strategy as being meaningful and realistic to businessmen inside the country and, perhaps what’s more pertinent, of the central role Indonesia and its resources will play in that strategy.

Under the One Belt, One Road idea, China is aiming to develop two separate China-centric economic zones of influence, one running overland north and west – the “belt” – and one running across the South China Sea and out over the Indian Ocean – the (maritime) “road”.

The fostering of co-operation among the countries encompassed in this idea, which range from Germany and Italy in the west, is key to China’s idea of global growth in the coming decades, and the demand stimulated by associated infrastructure development and other economic stimulation will be key to the future pricing of copper.

At the moment, Manini is comfortable that Asiamet is working up BKM at the right time.

“We think that it’s a very good time in the cycle to be building,” he says. “Consultants are short of work. The price of things has come down. It’s a good time actually to be doing what we’re doing. The mining business is counter-cyclical and this is the time to catch the up-cycle when it comes.”

Hence, BKM is well advanced through feasibility, mining and geotechnical consultants have been appointed, and the work should be completed fairly soon.

Because there will come a time when copper comes good again and the US$0.90 margin that can be spoken of at BKM will morph much higher. Manini

“We’ll be producing copper into significantly increased demand and widely forecasted structural supply deficits” says Manini. “And the anticipation and expectation of all the forecasters is that prices into 2018 - 2019 will really begin to lift.” He adds that “when the world does see a big uptick in the copper price that all hell will break loose for the share price of those few listed developers with quality copper projects”

Even now, the market’s pretty much in balance, he says.

But if the global economy, including China, starts to improve, then demand will pick up. That will be the time for Asiamet to hit the market with product, so that it can recycle cash into the development of the much larger Butong project, which could deliver production at three-to-four times the levels of BKM.

This, then, is the long-term upside of which Manini speaks: a copper price that’s set to rise, a short-term production profile with strength in depth coming from a second, larger project.

It’s not a bad position to be in, and even if the shares have come off the highs they hit in the late spring, it’s worth remembering too that at the current 2.4p they’re still trading at more than double the 12 month low of 1.05p.

With more newsflow likely to come soon from the ongoing work on the feasibility study and some “extremely interesting” conversations with potential strategic partners in the region, Manini thinks that Asiamet could be on the “cusp of game changing things”.

[gary38] 04/11/2016 09:33

In recognition of the difficult market conditions currently faced by theCompany,I would like to know what are they to warrant the statement of the above.

[2lb] 04/11/2016 09:05

Can't even bring myself to comment on the PR and comms anymore....they speak for themselves.

When I stated that November was the start of a pivotal 3 month period this isn't exactly the start I had in mind, chopping off one of your own legs.

Still, no change in the fundamentals or the prospects once positive news starts to flow, if they can somehow manage to issue a release that doesn't somehow claim scientists have proved copper is in fact poisonous....

[richsmithsmith] 04/11/2016 09:00

^ new article about asiamet on proactive investors...

[adorling] 04/11/2016 08:40

FFS - we are now back to August levels so all those hard won gains now wiped out. Bloody frustrating for investors.

[mr roper] 04/11/2016 08:35

just incredible how much damage a badly worded RNS can do. 20% knocked off in a few days.

[highly geared] 03/11/2016 22:10

Would be interested in views on SAV (Savannah Resources). Their Oman copper project looks interesting and good grades!

[mr roper] 03/11/2016 17:05

Charles, they can definitely run a business, that's not in doubt. Just their communications sometimes let the side down.

[charles clore] 03/11/2016 16:59

What a flipping bargain these are now after that thoughtlessly worded RNS earlier in the week. I couldn't believe my luck! Even got to thinking if these people are that stupid should I trust them to run a business with my hard earned money? After a lot of thought I finally decided the answer was yes!

[mr roper] 03/11/2016 16:35

copper flying, looks like it wants go break out higher.

[richsmithsmith] 03/11/2016 16:17

Copper up again ?

[mr roper] 03/11/2016 15:21

lol 2LB.. the copper price is "experiencing a difficult market"

[2lb] 03/11/2016 15:19

If we did then we would probably say it was going down.......

[mr roper] 03/11/2016 14:17

copper strong again. Least we can't issue an rns about that.

[angus thermopyle] 03/11/2016 14:02

Not many trades going through today. I've done my bit and topped up lower than my last few purchases here.