Asiamet Resources Share Discussion Threads

[snickerdog] 20/9/2017 01:13

Horneblower - what's interesting is the work beginning at new assets which may add a lot of value especially BKZ the polymetallic zone containing not only copper but high grades of Zinc & Lead and some Gold credits too

[horneblower] 19/9/2017 23:16

Guys, don't lose the plot.
The big push is not due and won't be for a little while yet.
Copper has just entered an interim, mini bear phase which is perfectly normal.
Many months still need to pass before the big action starts.
ARS.s share price will no doubt ease off for a while but lth's should not get worried.
Feb/March next year is most likely the time to get excited.
If the share price drops back even to 4p you should not worry. A risk of a 20% fall when the potential gain, just to start,is over 100% is a sensible risk profile...and I strongly believe the upside is far greater than that...but don't expect it tomorrow.

[mount teide] 19/9/2017 22:34

ARS need to be very careful that their communication is consistent because hawkeyed shareholders will point out to them that just 4 days ago the Interims contained the following statement:

'This has been accomplished by making important strides forward in our efforts to advance our flagship asset, the BKM Copper Project, through the development curve and towards delivery of the Bankable Feasibility Study in early 2018.'

Today, in an interview/article we have:
'The full bankable feasibility study (BFS) should be completed by the year-end; metallurgical work is ongoing and resource drilling will be concluded soon.'

If this is the case it could have been communicated a little better for greater market impact.

For instance, imagine the impact releasing the following RNS in late September/early October could have:

BKM Copper Project - Bankable Feasibility Study(BFS)
"Important operational progress across a range of work streams has been made to advance our flagship asset, the BKM Copper Project, such that we expect to compete the bankable feasibility study(BFS) some three months ahead of schedule by year end 2017"

[mr roper] 19/9/2017 21:58

I think the Indo feasibility study will be done by year end with bfs in Q1

[cyberbub] 19/9/2017 21:38

When that article says the BFS will be ready by "year end" that sounds earlier than many on here have been assuming?

[adorling] 19/9/2017 21:31

Mr R .... great post and one all those side line investors should read several times. The rewards of patience will create incredible wealth for LTH's.

[charles clore] 19/9/2017 15:31

In fact, let's round it down... to 5p

[mr roper] 19/9/2017 15:19

Indonesia-focused Asiamet Resources keen to build on the momentum already generated by 'amazing' team
11:55 19 Sep 2017

Peter Bird has a clear idea of his task: to get the BKM deposit in production as quickly and seamlessly as possible

Indonesia-focused Asiamet Resources keen to build on the momentum already generated by 'amazing' team

INVESTMENT OVERVIEW: ARS

Indonesia-focused Asiamet Resources PLC's (LON:ARS, CVE:ARS) chief executive Peter Bird brings with him bags of experience and a desire to build on the momentum already generated by the company’s small but motivated team.

“They have done an amazing job to get this project right up to feasibility stage with just a handful of people,” he says of the work carried out on the 65mln-tonne BKM copper deposit on the island of Kalimantan.

The full bankable feasibility study (BFS) should be completed by the year-end; metallurgical work is ongoing and resource drilling will be concluded soon.


Putting together the BFS, raising the finance and building a mine requires an odd assortment of skills – project management, technical know-how and capital and debt markets experience are just three.

Bird, a veteran of the sector who started his career with Western Mining in Australia, has that eclectic mix: he’s held roles with gold giants Newcrest, Newmont and Normandy Mining.

He was also Australia’s top rated gold analyst with Merrill Lynch and worked in investor relations; in other words he has a holistic view of the world of mining.

And just to add to the mix he has on the ground experience of working in Indonesia.

“Wherever you go in the world they have their own unique challenges,” Bird observes. “It is never easy, but I’ve found nothing is insurmountable.̶1;

No small task

The task Bird has taken on is no small one – it is to finance and develop BKM into a 25,000-tonne-a-year cathode copper operation.

A preliminary economic assessment (PEA) estimates the capital cost of such an undertaking, which would include a solvent extraction and electro-winning plant, to be an eminently ‘fundable̵7; US$164mln.

Meanwhile, C1 cash costs of US$1.28 per pound to produce from this near-surface discovery would make BKM one of the most economic pits in the world.

In mining, as in life in general, timing is everything and the development of BKM comes at a time when the copper market is headed into a period of deficit.

So, many commentators, including the mining investment guru Rick Rule, are expecting the market to go stratospheric over the next 12-18 months.

The cyclical deficit is exacerbated by a lack of new supply – in other words there are very few projects such as BKM coming on stream to fill the gap.

Perfect storm

While a negative for the consumers of the red metal, it should provide long-term support for Asiamet, which is also sitting on the Beutong, a copper-gold deposit with the potential to churn out 50-70,000 tonnes a year.

This is a huge potential kicker. But new CEO Bird is clear: the first task is to get BKM financed and built. And in that respect “this is not my first rodeo”, he adds.

In fact the Asiamet team is full of experienced mine developers, including chairman Tony Manini.

He was one of the founders Oxiana Ltd, which from a modest start went on to agree a multi-billion dollar merger with Zinifex to create the business now known as Oz Minerals. Manini’s private incubator also spun off Nexgen Energy onto the Toronto exchange, which is now valued at C$1bn.

Track record

He has been instrumental in getting the wheels rolling at Asiamet And has done so on a shoestring.

So, will Manini be taking a backseat now Bird is on board? “Not a bit of it, he is executive chairman,” says the chief executive. “He’s not about to walk away from this.”

The valuations of Central Asia Metals and Atalaya Mining (US$334mln and US$204mln respectively) reveal how just how highly prized producing copper miners are by investors here on London’s AIM market. Asiamet is worth US$41mln.

To put that in perspective, CAML’s production last year was 14,000 tonnes (BKM is expected to be 25,000). CAML’s big advantage is its best in class 43 cents per pound C1 costs.

Another way of looking at this is from the incremental uplift to be gained from developing BKM.

Significant potential

Undeveloped copper projects of decent scale tend to trade at 4 cents per pound of copper in the ground, while a fully-developed and producing mine is worth 18-25 cents.

If we accept the market has done its job by correctly valuing Asiamet (and that’s not given), then in two years’ time BKM could be worth US$188mln-$250mln.

If you toss in the KSK Project (host to BKM) and world-class Beutong deposit, you understand why some observers believe Asiamet has the assets to build a US$1bn business.

Bird won’t be drawn on what other people think; he is laser focused on the job in hand: “We aren’t fluffing around here. We are a team of mine builders and our path is pretty clear.”

The company has also commenced drilling on exciting prospects in the vicinity of the known deposit, and drill results are showing there could be plenty of upside in the wider district.

[charles clore] 19/9/2017 14:48

Relax - the market has decreed today's news was not worthy of a share price rise

[tromso1] 19/9/2017 14:29

Agreed. The article also highlights the current valuations of CAML and AYM which are both several multiples of ARS. If ARS is in production in a couple of years then it's certainly realistic to expect a similar capitalisation. Beutong would be the icing on the cake.

[x54v] 19/9/2017 14:15

$250m is about £185m.

So £185m for BKM in 2 years time vs current mcap of just £36m i.e. 5x current price.
And that's without Beutong.

$1bn would be £740m or 20x the current price.

The potential upside if it comes off is mind-blowing.

[x54v] 19/9/2017 14:10

"If we accept the market has done its job by correctly valuing Asiamet (and that’s not given), then in two years’ time BKM could be worth US$188mln-$250mln.

If you toss in the KSK Project (host to BKM) and world-class Beutong deposit, you understand why some observers believe Asiamet has the assets to build a US$1bn business."

[mr roper] 19/9/2017 13:16

"'Various corporate initiatives' Which is what?"

Partnering Beutong would be most likely imho. On various podcasts over the last 12mths TM has stated that this is being worked on.

[goldguru2017] 19/9/2017 13:13

Kestrel Gold (TSX Venture Exchange symbol KGC.V)

Please allow me to bring your attention to this low-market capitalisation, high potential gold/copper exploration company that has assets in the ‘Eye of the Storm’ – the White Gold Area in the Yukon, Canada.


- Recently acquired acreage in one of Canadas most prolific gold areas – the ‘Eye of the Storm’ White Gold Area in the Tintina Gold Belt.
- Easily accessible, excellent infrastructure, safe jurisdiction.
- Sampling just finished, funded drilling programme about to commence
- >100g/T Gold sample from Clear Creek – excellent potential
- Peak values of 12,400 ppb Au from soil sampling on Val Jual
- Relative low market cap – CDN$4.2 million
- CEO with proven track record of growing public companies share price by multiples
- Leading Canadian gold geologist, Jean Paulter, running drilling campaign
- Nearby to discovered goldmines (Coffee, Golden Saddle)
- Val Jual /10 Mile Creek acreage surrounded by active 2017 programs by other companies
- Drilling news flow expected before year-end

Please do your own research on the Company before investing. Thank you for your time.

[cpap man] 19/9/2017 12:45

Cameron McRae: Copper Prices Are In Bull Market Territory And Will Continue to Climb



Cameron thinks the recent run-up in price has been long overdue. He thinks the copper price will go higher and stay there for longer and that demand will continue to be robust. The demand-supply balance is finely tuned, and the sector has been spoiled for some years with no supply disruptions. He says there is unpredictability with mining in Indonesia right now.

Declining grades and resources at the worlds best mines ensure there is a significant upside in demand coming. The mining industry has been focused on cost reduction for the past several years, and Expansion budgets have been slashed. The supply deficits will have to come from places like Peru, Congo, Zambia, and Russia. Hardly places that risk adverse financiers would regard as safe.

He discusses Oyu Tolgoi now Mongolia's largest mine. Phase one of the project took over 15 years and cost one billion dollars. Then there was six billion in investment creating the mine and supporting infrastructure. When the underground part of the project is completed, the mine will still represent less than 3% of worldwide production.

Cameron discusses in depth the economic and government factors to development in Ecuador and Mongolia. He is quite happy with the overall outlook for the future of mining in Mongolia and discusses a couple of companies with potential for prospects there.

Cameron has been involved with Kincora (CVE:KCC) and he is a believer in the Southern Gobi region having major discoveries. They have some exciting targets that they have just begun drilling.

Talking Points From This Week’s Episode
The prospects for the copper price remains very strong.
Supply deficits are likely to be an issue as exploration budgets were cut.
Jurisdictional challenges with governments and infrastructure problems remain.
Cameron feels that Mongolia is a safe bet for investors.
Cameron has an extensive career in the mining industry globally. He is from Australia and was schooled in both Australia and Africa and obtained a MBA (Monash University/ Mount Eliza) and a Bachelor of Financial Administration (University of New England).

Cameron served a 28 year career at Rio Tinto, holding executive level positions in 5 countries. Cameron was CEO-President of Oyu Tolgoi (OT) copper-gold business in Mongolia, CEO of Richards Bay Minerals in South Africa, Managing Director of Murowa Diamonds in Zimbabwe. He is currently Chairman of TerraCom Limited and CEO of Tarva Investment and Advisory. He is also President of the Institute of National Strategy in Mongolia.

[aim0raider] 19/9/2017 11:35

To be fair, we need more bravado and enthusiasm.

We need some broadcasts to SH's asap and some detailed verbal's on this and everything else that is happening. The co now needs to start providing something else alongside short, 'staged' podcasts/webcasts, now that II's are on board, or as we are told, 'circling'.

From today's RNS:

"We look forward to keeping all
stakeholders updated as we simultaneously advance the BKM BFS and
daylight the inherent value of our project pipeline through ongoing
exploration and various corporate initiatives."

'Various corporate initiatives' Which is what?

[mount teide] 19/9/2017 11:21

In interviews Peter Bird comes across as an intelligent, cool, calm individual not prone to hyperbole, so for him to use the word "exceptional' in the exploratory update is very interesting since, a dictionary defines exceptional as: extraordinary, unprecedented, outstanding.

[walter walcarpets] 19/9/2017 10:54

They better come up with the goods given all that bravado and enthusiasm.

[charles clore] 19/9/2017 10:25

Great exploratory update this morning and a nice lift to the share price to boot!

[x54v] 19/9/2017 10:14

"Having recently returned from a visit to the BKM Project site I can reaffirm that the potential for additional copper and polymetallic mineralisation within the KSK Contract of Work appears exceptional."

"exceptional" - sounding very good indeed.

[adorling] 19/9/2017 08:31

I particularly like PB's statement....

"The operational team is moving quickly to test the grade and continuity of the copper mineralisation, which if successful could have an immediate positive impact on what are already as defined in the PEA"

BKM is definitely turning into a very valuable asset for ARS which as time progresses is getting bigger and more valuable. Really looking forward to seeing the full BFS published in early 2018 as it will set out the real net worth of ARS and that will be markedly different from what the PEA calculated.

[adorling] 19/9/2017 08:27

Another positive RNS.

[mr roper] 19/9/2017 07:15

Bks and bkw being prepared as well.

[mr roper] 19/9/2017 07:04

And we're off!

Drilling underway on bkz. Results expected by end of the month.

[snickerdog] 18/9/2017 22:41

Probably similar, I'd think project level financing aspect. When Beutong comes in the roof may be blown off but until then a already rise. Institutions come in around market and sounds like a lot have been warmed up already