Asiamet Resources Share Discussion Threads

[edjge2] 03/4/2018 08:48

Should be 12+ IMO. Highly encouraging RNS.
Perhaps that is the final revist of 11.5 or so. Gap closed.
Onwards and upwards until euphoria dissipates. Would have added at 11.5 odd if I'd seen it.

[mr roper] 03/4/2018 08:48

Bkm payback will be rapid with the starter pit focussing on these grades.

[highly geared] 03/4/2018 08:40

When you think most miners are happy with grades at 0.5-0.8% copper,these grades are truly world class and continue to reinforce how good BKM will be. The BFS will have some great numbers and should build on the PEA numbers already known..

[barneycosmo] 03/4/2018 08:32

Just topped up at 27,942 at 11.9p :-)

[mr roper] 03/4/2018 08:22

We could do with a podcast to cover the last few rns and also the forward drill plan for bkw/bks and any other sites.

[knobbly] 03/4/2018 08:09

... just keeps giving ...

[adorling] 03/4/2018 08:04

Another $billion Company RNS - “ highest copper grades” - going to be one hell of a starter mine!

[snickerdog] 03/4/2018 07:58

Off the chart

[mr roper] 03/4/2018 07:50

Grades “higher than anticipated “

From memory it’s bkm044 that will be used for the starter pit. No wonder, near surface and phenomenal grades.

[waterloo01] 03/4/2018 07:34

Grades look excellent. Again.

[mr roper] 03/4/2018 07:30

bkm reserve report due in H2
Beutong increase in operating interest due shortly

[highly geared] 02/4/2018 22:11

In 4 weeks we are in range of 2 JORC initial resources for BKZ upper polymetallic and lower copper zones. My view, a $billion resource based on the deposit size,grades and the fact it remains open in several directions.
Within 8 weeks we are in range of the BKM BFS.
Expect first Beutong drilling results within 2 weeks.More to come in May and June.
Plenty of reasons to buy for what’s coming in the next 3 months...

[cyberbub] 02/4/2018 21:54

Going to be interesting to see trading this week, the last few days of the tax year, will there be some people selling out to bank gains, or funds doing some window-dressing? Hopefully anyone selling shares will be gladly bought out by people with a longer term view...GLA

[mount teide] 31/3/2018 21:31

CRU Consulting, the London-based mining consultancy, the industry go-to independent research house who i closely follow in the copper sector, were one of very few consultancies to correctly call the bottom in 2016 - and when many analysts were predicting weaker prices in 2017, they were a lone voice in correctly forecasting a strong recovery in late 2016 and through 2017 - and for prices to continue trending higher through to 2021.

CRU Consulting's webinar last week titled: Copper Market Outlook: Onwards and Upwards gave a new forecast, and it is incredibly bullish.

'The copper market will move out of a three-year surplus in 2018 to a deficit market starting next year, spurred by a lack of investment in new mine capacity. A slew of labour negotiations this year at Chilean mines might bring that deficit scenario forward.

As such, CRU predicts prices will hover in the $3/lb-$3.25/lb range for now, before climbing higher. CRU copper lead analyst Vanessa Davidson predicts an average 1% growth in new supply, trailing well behind world industrial production growth at 3% this year and 2.5% in 2019.

New supply will arrive in 2019 through the expansion of the massive Grasberg mine in Indonesia and the start-up of a new mine by First Quantum Minerals Ltd. in Panama.

However, these new sources of copper will not be enough to replace lost tonnage due to depleting ore grades and capacity closure. The market deficit is set to deepen through 2022, CRU said.

In addition to that, new demand sources for copper will increase at that point – from wind turbines and solar panels to electrical vehicles (EV).

Even with Chinese demand growing at a slower rate compared with the phenomenal double digit growth seen in the last decade, the increments in tonnage terms will be much higher.

Ultimately, the financial drought that has decimated junior mining since 2012 is the reason why commodity industries stagger through boom-to-bust cycles. The market desperately needs new major orebodies unearthed, and in new locations.'

[monttim] 31/3/2018 19:45

“ And in the meantime, don’t even think of bothering us, we won’t be picking up the phone “.

[highly geared] 31/3/2018 16:38

Freeport, BHP et al; come and talk to us mid 2019 when we’ve better defined how big Beutong is....

[mount teide] 31/3/2018 15:23

Addressing the copper exploration crisis - Mining Journal 26 March 2018

A few snippets from a long 12 page report since its a subscription site.

'The current crop of tier-one assets - many of which were discovered in the early 20th century and have been operating for several decades - are becoming uneconomic as grades fall, sustaining capital outlays rise and processing costs step up.

It takes, on average, just over 10 years for a discovery to move into production across the mining space, but, in copper, it is more than double that.

CRU copper analyst Hamish Sampson put the requirement in simple terms.
"Miners have prioritised investment in near-term mine expansions and brownfield developments, which may boost supply beyond expectations in the short term," he
told Mining Journal.

"However, to ensure copper demand is met beyond the next few years, there needs to be more investment in greenfield projects."

Following five years of steep falls in exploration budgets the major miners allocated just 0.5% of their revenues for such work across all commodities in 2016. This is just a quarter of the 2% of cashflow they set aside in 1997 when demand was running at a much lower level. 2017 exploration budgets have remained almost identical to 2016......

....The majority of miners are slowly coming to terms with the idea that the copper mines of the future are buried at depth. The strategy of building a close-to-surface openpit mine and, thereafter, moving underground has changed. They are skipping the former and going straight to the latter.

"We need to be mindful that the near-surface search space is quickly disappearing ... Any world-class orebody that was partially exposed has, most likely, been discovered," des Rivieres told Mining Journal.

That is why some 85% of BHP's current exploration budget is focused on looking at deposits under cover - concealed orebodies that start anywhere from 100m to 1,000m below what can be volcanic ash or post-mineral gravels......

....As soon as companies settle on this type of deep exploration, the grade-profile requirements increase. Companies would be looking for at least 1.2-1.3% copper-equivalent for potential new underground mines, some increase on the 0.37% Cu grade First Quantum plans to mine from Cobre Panama. "We need about three times the grade than we do if you work in an openpit."

We need to be mindful that the near-surface search space is quickly disappearing ... Any world-class orebody that was partially exposed has, most likely, been discovered.

Spreading the majors' exploration budgets across a number of project generators could be the answer.

"To me, if I was a major mining company.... i would also be looking at the junior explorers ....i would be finding the smartest guys in the smartest belts and doing something with them," .......'

[mount teide] 30/3/2018 22:35

Since the H1/2016 market bottom Copper, Lead and Zinc have experienced the following price rises:

+52.5% - Copper
+52.7% - Lead
+125.7% - Zinc

'But in the longer term, zinc does not have much exposure to EVs and should underperform its base metals peers, Sardain noted.'

Why did't the article mention that the Zinc market is currently in significant deficit, and is forecast to remain so until at least 2020/2021, and:

LME - Zinc Stocks
1.24 million tonnes - March 2013
0.18 million tonnes - Dec 2017 and March 2018(after latest delivery)

So, the Zinc market is in deficit and forecast to remain so until 2020/21 and stocks are down by 86% over the last five years - and this 'analyst' is calling the top of the Zinc market!

Sardain should send his CV to the UK Treasury as this is the type of quality 'research' and 'forecasting' they are renown for!

Where i would agree with him is that since Zinc has seen nearly triple the percentage price growth of copper and lead following the recession lows, it could be argued that copper and lead have a lot of catching up to do, while Zinc after a stellar recent performance has less scope to outperform.

[mr roper] 30/3/2018 21:34

hxxps://investorintel.com/market-analysis/market-analysis-intel/analyst-says-copper-deficit-set-deepen/

[mr roper] 30/3/2018 21:34

hxxps://www.fastmarkets.com/base-metals-news/asia/forecast-copper-nickel-outperform-zinc-prices-likely-peak-mid-2018-victorem/

[highly geared] 30/3/2018 16:08

MT; I think Peter Bird used the phrase ‘yet to be fully explored or appreciated’ in a recent RNS about KSK. This is exemplified by BKZ where where could well have a c.$1 billion zinc rich polymetallic resource from surface down to 60-70M and the possibility of a deep feeder copper structure ,70-120M, the resource of which should contribute a further year to BKM mine life. This didn’t exist 6 months ago.

With another 6 similar known prospects across KSK, you can understand Mr Birds comments. I also note that BKM hasn’t really been deep drilled with the likelihood the 8 year life of mine will be extended once the current pit has been mined ,providing access to the deeper strata.

I’ve been like the institutions and directors in that I’ve averaged up as the story/ assets have developed and the risks were higher. In terms of where we are now, I remain of the view the story has hardly started.

With the Beutong Production UIP and KSK long term tenure now sorted out the direction over the next 3 years should reflect management experience in taking resources through the development curve and bringing a mine into production. The risks of ownership, production rights; those issues that affect funders putting up mine development finance appear addressed.

The world macro picture interests me and particularly how China performs,being the dominant world copper importer. We are due a recession and with record sovereign, corporate and personal indebtedness, interest rates rising , QE being unwound in USA, 2019-20 might see set backs. But, being copper specific, demand predictions in terms of EV’s and energy renewables appears to support copper.

With many countries now having record levels of employment and positive signs from a Europe and with China likely to be managed, I wonder if the inflation genie is about to get out of the bottle( good for commodities). The other subtlety is $ pricing of commodities. The Shanghai Energy Exchange opened last week; a vehicle for China, Russia and Asian countries to buy oil in Yuan or gold. The long term aspiration will be to break the petro dollars dominance. It will no doubt be something that takes decades to play out but if we see a slow decline in the Dollar Index then copper and other commodities priced in $ will become more expensive.

Getting back to ARS, it’s a ‘long game’. I think it will take to mid 2019 and possibly early 2020 before we’ve drilled sufficiently to have a good understanding of what we’ve got and what it could be worth. I think the Board have similar thoughts. As an investment now with a 3-5 year timeline ,it’s compelling and perhaps as much so now as it was in 2015 when the share price was a fraction of what it is now.

[mount teide] 30/3/2018 14:34

Arguably, Asia Met's most remarkable financial statistic to date, is that they have been able to find top tier II's to support placings at a collective average price at close to a 700% premium to the 2015 low and, collectively totalling nearly four times the then market cap!

Including a recent II placing at an incredible 1200% premium to the 2015 low, totalling nearly two times the then market cap.

Averaging up as the investment case strengthened from success with the drill bit has proved a very sound strategy - and likely to continue to be so, considering the potential of the assets yet to be fully explored and the current stage of the commodity cycle.

AIMHO/DYOR

[knobbly] 30/3/2018 10:41

littlemadam,

I had the same issue with AJ Bell. Was a couple of years ago, but IIRC their argument went along the lines that it would be considered as payment into ISA and so would exceed my ISA limit. They were flexible though and offered to postpone the service payment until the next ISA year.

[cyberbub] 29/3/2018 23:12

littlemadam,

It does seem surprising that II wouldn't let you just pay them a separate £22.50 using a debit card....