Asiamet Resources Share Discussion Threads

[mr roper] 07/8/2018 12:00

A bid would make things very interesting. I'm still of the the thought that one or more bids comes shortly after the bfs is published unless they announce the funding with it.

[2lb] 07/8/2018 11:57

Indeed

It raises the concern about the worry of a low ball offer.

We were a sitting duck at 12p.

At 9.5p we are more like a flapping drowning pigeon!

[tektonik] 07/8/2018 11:51

Well said adorling.

[adorling] 07/8/2018 11:48

The rewards will come from sitting tight and today’s price is an excellent opportunity for any new investors to start building an ARS core holding. You just cannot ignore the macro picture over the next 3-5 years with copper deficits (ignore today’s price as we don’t produce yet!), core infrastructure growth from China, India and several other Asian economies, the consensus forecasts on the EV revolution and green energy. It is overwhelmingly in favour of a developing copper miner about to evolve into a producer.

....and let’s not overlook that several of the worlds biggest miners have now stated publicly they need to invest in copper as their current mines deplete and their grades continue to decline. ARS has outstanding Management with proven CV’s of creating $billion mining companies. BKM, Beutong and the wider BSK District puts us firmly on the map of possible targets. It will happen - it is just a matter of time and all the big levers are pulled in our favour so sit tight or buy yourself part of a real quality Company.

[tektonik] 07/8/2018 11:44

No problem Shieldbug. "As you can see from the red line, in the chart, the biggest risk is at the exploration stage but its between this stage and the feasibility study where the greatest appreciation in the value of the company occurs (thick maroon / black line).

As you can see, the value of the company, generally, increases by 500% or more from exploration to the feasability study. Then from pre-feasibility to becoming an operating, revenue generating, mine rises by around only 50%."

I'd say these percentages will be substantially higher when viewing with Copper lens. Copper due to enter deficit very soon and as things stand all bets will be well and truly off in 3-5 years time.

[bubblingup] 07/8/2018 11:42

Re Beaufort administration, there was an article recently in the Questor column of the Telegraph

I read this in the print edition and can't presently access the digital edition, but he basically said that protection was in place for most investors due to the government protection scene, and only 10 investors were likely to lose out. Most mainstream online brokers such as HL and II were extremely unlikely to be at risk in the same way as Beaufort investors, and the writer said he was quite happy himself investing with a mainstream broker. The maximum protection for investors under the government scheme is set to rise from 50,000 to 85,000 pounds apparently. Well worth a read if you can access it.

[shieldbug] 07/8/2018 11:34

Great graph Tektonik. The ability to reduce risk element looks like it would hold true for the various design stages of any large construction infrastructure project. Thanks for sharing that, very helpful.

[edjge2] 07/8/2018 11:21

good rns and dowmn she dives, just makes you wonder if really negative news kicked her ars!

[tektonik] 07/8/2018 11:14

Agreed Mr. R, ARS does not have the finances and resources required to drill deep and abundantly. However, I think there's an err of caution that must be taken with that approach. Proving up the resource too quickly could attract unwanted attention from majors at this stage, i.e. cheap bids based on current share price I'd like to see this activity once we've maybe got BKM up and running and the share price is at it's current target or higher.

[mr roper] 07/8/2018 11:06

Logic would suggest selling 20% of Beutong to a major for 50m bucks is the way to take the asset forward rapidly.

Good news today. Macro environment weighs heavy but all may not be as it seems. Patience as ever is required

[amaretto] 07/8/2018 11:04

Peter Bird on Proactive tomorrow apparently.

[arf dysg] 07/8/2018 11:03

zho (15323) "...volume of around 800 million shares over the last year, and no RNS announcements on holdings."

What's the law on this one? Is someone allowed to sell an enormous quantity of stock, but not announce it until they've sold the last share? That could easily result in sales beyond notifiable quantities, but only announced at the last minute.

[2lb] 07/8/2018 11:02

I've never bought into the Beaufort theory , this is pure trading , boredom , copper impact , time of year and general sentiment.It's tough, but we just have to stick to the long term belief.

[tektonik] 07/8/2018 11:01

For all novice investors in this sector, I'd like to share with you a fantastic graph that demonstrates how value for resource companies is built over time - scroll down to "THE VALUE CREATION CURVE OF RESOURCE COMPANIES" graph.



Ignore the company that is the subject of the article - I know little about it.

[jimbo310813] 07/8/2018 11:00

How many did you manage to get at 8p Charles?

[zho] 07/8/2018 10:48

I think the scale and duration of the selling argues against the Beaufort explanation.

[arhaych] 07/8/2018 10:44

Another disheartening day of share price action after a positive RNS, seems to be a theme with this share.

[plasybryn] 07/8/2018 10:36

I think it is to do with the Beaufort administration. A number of AIM stocks effected. Forced selling. Price Waterhouse Cooper to conclude their work by September.

[mount teide] 07/8/2018 10:15

Never underestimate MM greed(they are venal charlatans at best)- if they have a large line of client stock to sell at an average price of say circa 10.5p - should they dispose of 75% of it at an average above that level, it allows them to dispose of the rest considerably cheaper - thereby generating a self serving opportunity to pick up some cheap stock(their clients!) for their own book!

Always remember - MM's are not in any way your friend - they will legally mug you given half a chance!

[tektonik] 07/8/2018 09:48

Finance of BKM is the only thing that will see a consistent rise for this stock, for me at least, not Beutong drills unless they are hitting strong grades at depth. The number of additional holes planned on Beutong isn't enough in my view to materially challenge the existing JORC or the way the market perceives this resource. I want to state that the BOD have done a fantastic job to date on this and are delivering. I recall a discussion about this in June, I think HG sums up what I believe here:

HG - post 14295 - "We understand they are drilling 8 holes for about 4500 metres but to me, that doesn’t seem a lot in terms of providing sufficient data to provide an improved JORC and therefore expand the resource officially. I absolutely get it that deep drills will significantly expand a conceptual resource beyond the previous 2013 drilling that provided the resource to date. What I think the market needs is a little more clarity on the drilling programme and outcomes with a critical eye on whether they need more drilling resources on site to shape the outcomes. In my head , we should have an upgraded JORC by year end and a Scoping Study/ PEA by mid 2019".

Mine development finance is also a challenge for this industry. Financing is becoming more expensive due to an increase in interest rates and of course the negotiation process itself can stall or even collapse. Looking forward, I’d like to see the BKM BFS RNS as a fast follower to this great news today maybe with 70/30 debt-equity. This is a big, big ticket item for me and de-risks BKM. With a good deposit, a couple of things will happen between the PEA and the bankable feasibility study. In the two years it takes to get from PEA to bankable feasibility study, the deposit is likely to be bigger and higher grade. More important, the bankable feasibility study gives legal cover to the outside directors of an acquirer. It takes courage to take over a company based on a PEA; with a bankable feasibility study in hand, you are covered. I expect the share price to really begin its head towards true value - but not like a knife cutting through butter as many here may expect. IMO, DYOR.

[ayesha4] 07/8/2018 09:48

Increased from 500k to 700k

[2prsimo] 07/8/2018 09:38

I was wondering that too edjge

Charles - can you see it going into the 8's?

[edjge2] 07/8/2018 09:34

An aside, is some of this due to recent quakes over there?

[edjge2] 07/8/2018 09:33

Casptain round up at this price and ghetting a stronger rersouce in a bottoming market, stonking what a discount.