Asiamet Resources Share Discussion Threads

[mount teide] 22/5/2018 12:06

How strong is the recovery stage of this latest commodity sector cycle?

Look no further than the FTSE 100 for a clue - commodities have helped drive the index to another new all-time high this week - it's up close to 1,000pts since the March 24 higher low - 14.1% in 8 weeks.

Following the commodity sector 8 year recession and cyclical low set in Feb 2016 the FTSE has risen 37% from 5707 to 7859, thanks largely to its heavy weighting in commodity stocks and a weaker GBP.

The size of the contribution from the commodity sector is best gauged by the performance of the FTSE 350 Mining Index, which has risen 197% since Feb 2016 - yet is still some 40% BELOW its previous cyclical high set in 2008-2010.

Best heavyweight performer is specialist copper producer Kaz Minerals, which has risen an astonishing 1,089% from 90p to £10.60 in barely two years, yet is still some 58% BELOW its previous cyclical high set in 2008 - $5bn market cap Kaz fell 94.8% peak to trough during the last cycle before bottoming out in Jan 2016.

[mount teide] 22/5/2018 11:52

Calabrian - 'Where is the money coming from to keep the company going until mining starts?'

That's a easy one - the same place as where the same management got the cash when they took Oxiana Metals from a $3m junior to a $6bn mining heavyweight during the recovery/boom phase of the last commodity cycle.

[mount teide] 22/5/2018 11:37

Investors should expect volatility in any quoted company whose valuation has gone up close to 1,500% in barely 2.5 years since the commodity cycle bottomed in early 2016 and then moved strongly Northwards.

In a company like ARS that is systematically building value from world class assets through the drill bit and by fast tracking the high grade BKM copper resource into early production in an accelerating copper deficit environment - an investment is all about where the valuation is likely to be in 2-3 years. Shorter time scales are largely background noise to be taken advantage of through averaging up in line with the strengthening investment case, as management and the institutional investor base continue to do.

Considering how close the Asia Met is to publishing a BFS for BKM - if previous company statements and verbal comments from management is a reliable guide, i expect a resource development partnership deal with a local mining sector heavyweight is probably at a very advanced stage.

[snickerdog] 22/5/2018 10:58

A lot of newbies here looking for re-entry. Interesting

[buildit1] 22/5/2018 10:39

I also think "fast" money has moved into oil stocks given move in the oil price. When we got no reaction to the BKZ resource I think some have decided to reallocate towards the oils.

[jc2706] 22/5/2018 10:21

Who knows? I am seeing a number of companies across AIM where the same sort of selling patterns are occurring. It could be just that these companies have risen sharply and, hence, are experiencing the inevitable retrace but I can't help thinking about the Beaufort administration with the costs being incurred and the inevitability of portfolios in nominee accounts being liquidated. Putting two and two together suggests that such a liquidation is going to have an overhang on the market of certain companies. ARS is a popular company and may well have had a decent representation amongst the portfolios of Beaufort customers.

[pyglet] 22/5/2018 10:03

Who's selling?

[stark industries] 22/5/2018 09:51

Not enough buyers here to take the slack off the seller.No idea as to how many the seller(s) are off loading but seems it could go sharply lower if 10p down trend breaks Keep powder dry on your next top as it could be cheaper aimho

[mr roper] 22/5/2018 09:49

saying that, if they did decide to raise a bit extra to fast track beutong now i could only guess that it's because they're starting to recieve quite a few expressions of interest and fear a lowball takeout.

Either way, the news will come soon. Steve seemed very happy with the cores he'd seen so far from the first beutong drill. Numbers 2 and 3 will go into unchartered territory. These could be transformational.

[stark industries] 22/5/2018 09:21

Sellers out in force again.May go lower still

[mr roper] 22/5/2018 09:15

BKM funding will come from selling a share of KSK to an indo partner most likely. Read the latest notes from Liberum and Optiva. As part of that i'd expect them to raise another 10-15m to keep the momentum up on Beutong and the other KSK zones.

either way, there won't be a raising until they've sorted the bkm financing. Those discussion have been going on for a long time already.

[hawks11] 22/5/2018 09:14

Thanks for that Cyberbub, clear and concise.

ARS are very good at updating their Twitter account.
I know this has already been mentioned above, but their content is excellent.

[arf dysg] 22/5/2018 09:10

Calabrian (13754) "Where is the money coming from"

It's all fictitious anyway. Money is a theoretical construct and only exists as long as we all believe in it. We might as well say "leprechauns" instead.


To answer your question, the leprechauns are coming from Elbonia. In a box.

[calabrian] 22/5/2018 09:00

They have plenty of cash? 2016 loss 3.8 mill 2017 loss 7.5 mill. What will the 2018 loss be? Almost 1 billion shares in circulation. Where is the money coming from to keep the company going until mining starts?

[mr roper] 22/5/2018 08:21

Good work, Tony. Plenty of copper required by your company I'd have thought

[stark industries] 22/5/2018 08:21

Will be buying another 200k within 10 mins

[stark industries] 22/5/2018 08:19

That's my 200k at 10.5p

[charles clore] 22/5/2018 08:13

Looks like it will be testing 10 soon

[cyberbub] 22/5/2018 07:46

Stock charts are not controlled by laws of physics. They simply record past human behaviour. There is no reason at all that "gaps must be filled" - except humans' belief that this is so.

[edjge2] 22/5/2018 07:40

Chart gap at 10p still not filled. Did not see that one maybe explains price dip to just touch or below 10p before we go onwards and upwards. What abargain imo. These gap have a bad habit of being filled if you spot them on a charty!
Mr Roper I think now you'll be able to bag it even better.

[mr roper] 22/5/2018 07:36

Would think they are most likely in the position of waiting for the first Beutong drill results to come back while drills 2 and 3 aimed at extending the resource East and at depth will now be drilling in parallel.

Next month or two should see some serious news. If they can confirm an extension to the mineralisation it won’t be long till the majors are following up their initial interest imv.

[sos100] 22/5/2018 06:20

latest ARS tweets-

#ARS 1/2 Maiden BKZ Resource surpassed our expectations & validated rhetoric that KSK not just about getting BKM into production but also district scale exploration opportunity with considerable upside Very keen to get stuck into 12 priority projects on our exploration pathway.


#ARS 2/2 We also await results from our Beutong project on Sumatra from huge 607m hole drilled by our AIDT 600 rig. Perhaps one of our most important drillholes yet Beutong a globally significant asset. We can’t wait to drill really deep 1km holes when new ID1800 rig arrives

[edjge2] 21/5/2018 22:55

look like fill the truck below 11p in my book, may be lower by end of the week who knows.