Asiamet Resources Share Discussion Threads

[mostyn] 27/9/2023 09:44

The presentation of the results was uninspiring, and certainly won't encourage anyone to invest. I'm not sure how companies are able to account for exploration assets in the balance sheet, but the US $80m of exploration expenditure to define the existing assets just disappears.

[adw198] 27/9/2023 09:02

No Dorset you are wrong not every company needs to report that they’ll need funding within 12 months or they’ll go bust. For example , an explorer called Asiamet Resources specifically quoted in their 2021 interims that they had enough money to last at least 12 months.

It’s not a big thing it’s just a simple fact. Personally I don’t find a “reasonable chance” of simply staying in business that promising - but I guess it just reaffirms that this is a high risk investment and not the banker you like to portray.

[dorset64] 27/9/2023 08:50

ADW, Asiamet are an explorer, of course they will need money at some point over the next 12 months, it’s what every single explorer ever floated does, burn money then raise more until the very very few make it to a producer.

Why do you struggle to get your head round that and understand the simple stuff?

[dorset64] 27/9/2023 08:48

V11SLR, you can’t take the previous 12 months spending on exploration, evaluation, 3rd parties reports, consultants visits/reports etc for the BFS, divide that by 12 and say that’s the monthly spend going forward. IMO their current spend is very little.

ADW, the above post by V11 imo is absolute tosh for the reasons explained, that’s just common sense.

As for who’s paying for the ITE I know not but would imagine it’s the same as when you went for a mortgage from the bank as in, the bank employs and dictates who to use but you have the priveledge of paying for the valuation. That’s my guess.

[adw198] 27/9/2023 08:47

Perhaps if Dorset is angry at your projection as to when the cash will run out he could give his own guesstimate? Or perhaps we can all agree that it’ll be needed within the next 12 months at best. Which is what the interims acknowledge and not what every other company has to state.
If DOID hasn’t ponied up by November 7th the share price will be under a penny imo.

We saw a glimpse into the Dorset investing mindset earlier in the week when he said if DOID buy in it’s a massive show of strength in the prospects of the project - and if they don’t it might be for other reasons. Very objective :)

[v11slr] 27/9/2023 08:30

OK, lets knock off the whole of the exploration and evaluation spend, that's $950,000. Loss of $2m in 6 months, 3 months on another $1m, that leaves $1.25m at the moment. 3.75 months cash left or second half of January.

[adw198] 27/9/2023 08:27

Sorry, what exactly is tosh? The facts are the facts - if you think they’ve got enough to last 12 months we’ll just have to agree to disagree as that’s interpretative.

Who is paying the ITE in your eyes Dorset?

[dorset64] 27/9/2023 08:16

Absolute tosh.Spending was high producing the BFS so how in the world do you divide the cash spend over the previous 12 months on a going forward basis. I would say apart for monthly wages for staff there's not a lot else of great expense so this cash would last far beyond Xmas as you seek to say.ADW, download any companies FULL report and you'll see the exact same thing in not so many words, you're again homing in on a non-event.

[adw198] 27/9/2023 08:04

To be fair I’m sure the FS was pretty expensive but yeah that’s an eye watering summary.

[v11slr] 27/9/2023 08:00

Rough rounded figures. Almost $3m loss in 6 months, $2.25m left at the end of June, we're 3 months on so another $1.5m spent, that leaves $0.75m or 1.5 month's worth.

[adw198] 27/9/2023 07:56

“Reasonable ground to believe that debt and / or equity funding will be available to the Group”

Not the most comforting statement given theres only 6 weeks left for DOID to trigger their option. And without the funding there’s a significant doubt we can continue. Not every interim report needs to quote that.

Cash slightly higher than I thought too, but difficult to imagine there’s 12months left given the cash burn over the last few years. Sounds like we’re paying the ITE
too.

My general takeaway is there talk of
Medium - long term copper prices shows there won’t be sufficient short term interest to get this funded. A few more waves of DOID dilution I imagine.

[v11slr] 27/9/2023 07:54

At the current rate of spend they'll be out of cash before Christmas.

[dorset64] 27/9/2023 07:43

Mostyn,

I believe todays RNS has answered your question.

Cash is a little more left in the bank than I was expecting so no immediate need for a fund raise and given that most of the past years expenditure was on the BFS/bank etc etc, I would guess this sum would last quite a while.

Given that it will be interesting if DOID, which I’m guessing they will, do in fact exercise their next lot of shares, if they do they only have 6-8 weeks left to do it.

[fireplace22] 27/9/2023 07:40

I detect a lack if interest here on the board?

[mostyn] 26/9/2023 13:42

Dorset64,

"Hopefully the interims this week will give notice of current cash flow"

Why do you expect the interims this week? Has this been announced anywhere?

TIA

[adw198] 25/9/2023 18:15

The work is currently being done to see if we can raise the required $230m. I very much doubt the project has been declared a non starter yet, just like it won’t be approved yet. It’s ongoing and we’ve been guided later this year at best.

Given DOID are the biggest shareholder it absolutely follows they’d want to be on the Board as this plays out. The appointment was a positive (if overdue) and if they pay the $5m at a 20% that will be an even bigger one. It doesn’t mean the funding is guaranteed tho.

[dorset64] 25/9/2023 17:35

Mostyn, I actually disagree on the funding point as with DOID being insiders, and now also having their top mergers & acquisitions guy on the BoD’s, if they were to purchase any amount of further shares I’d say that was a resounding soundbite for shareholders.

If you were an insider and found out there was zero interest, no-one making or even likely to make an offer, with Asiamet not speaking to anyone and the project likely being a non-starter, would you be wasting your time by putting your top guy on the BoD’s and also looking to waste your own shareholders money again by buying another £5m worth of shares, when in reality you’re already underwater with your shareholders money if they project was not to proceed or no hint of a term sheet/JV. I very much doubt it.

That said if they don’t buy there could be many reasons for that too including their larger shareholders saying no, as it has already cost them money, only time will tell us the answer.

Hopefully the interims this week will give notice of current cash flow although, even if we had £20m in the bank, there’s nothing to stop DOID from exercising their rights over the coming weeks if they are inclined to or we need the backing.

[2lb] 25/9/2023 17:28

Exactly as above.

[mostyn] 25/9/2023 16:14

They need to announce something soon, as they haven't made any demonstrable progress since the announcement of the FS on May 10th, otherwise the share price will continue to drift. By demonstrable progress I mean something concrete that can be announced to the market as having been completed, rather than the platitudes about all the alleged interest in the project/company. If the FS created that much interest why has there been no action (not even a rumour) in the past four and a half months. If DOID were to stump up some cash, it would be good for the company and for DOID, but it wouldn't exactly be the sort of progress to enthuse shareholders.

[adw198] 25/9/2023 15:31

DOID now have 6 weeks left to trigger their $5m option. Hard to know why they wouldnt try to renegotiate the amount and / or the agreed price - pretty sure we won’t be able to get a 20% premium via any other funding source (if indeed there is one) so their shareholders might not be delighted with them essentially overpaying.

Those of us interested in our ability to stay afloat will be keen to see what unfolds from here.

I could see them taking a smaller amount and it being spun as better for us on the basis we don’t need the full $5m.

[napoleon 14th] 23/9/2023 12:52

Regardless of other board members, any fundraising should be on condition of
Tony Manini's resignation from the board and the company.
Until then there is no sense in funding ARS.

[apotheki] 23/9/2023 08:55

Hi Noirua take a look at TSXv listed C3Metals - TSXv:CCCM / www.c3metals.com

This is LSE:ARS other play that I promised to let you know about - listed in Canada but focused on both mining exp [mainly copper] in Peru and Jamaica

[mostyn] 22/9/2023 09:02

I thought the appointment was positive, in particular:

"He has extensive experience and networks within the banks covering the resources sector, particularly in Australasia. This further strengthens Asiamet's capability as the Company progresses the BKM copper project."

I did wonder if they were having problems with their preferred lead bank, considering the time they have supposedly been talking to them, and this appointment would perhaps help to introduce other options.