Asiamet Resources Share Discussion Threads

[zho] 25/9/2018 14:22

Getting the bankable feasibility study for BKM ready has been the main focus for Asiamet this year, and it should be delivered within the next couple of weeks

[mr roper] 25/9/2018 14:02

Interesting. Today could be the day the Ping cometh!

[mount teide] 25/9/2018 13:56

Picked up another 100k via CFD at 10.0p before the MM's all cleared off to 10.4p or above.

L2: 2 v 1 / 9.9 v 10.4p(rest 10.5p - 10.75p)

[mount teide] 25/9/2018 12:33

L2: strengthening sharply - 2 v 1 / 9.9p v 10.0p (1 x 10.4p / rest 10.5p or higher)

[snickerdog] 25/9/2018 12:10

Had to go to the Report section on the website to read the CEO statement - posted below, it does refer to the aim to get the BFS out by Q3 end, whatever the case doesn't seem far away


Chief Executive Officer statement
Peter Bird, CEO said:
“Asiamet had a strong first half of 2018. The year started on a strong note with the receipt of the production licence for the Beutong copper-gold porphyry project in early January 2018. The receipt of this licence satisfied the final milestone in accordance with the Joint Venture agreement and allowed the Company to increase its ownership from 40% to 80%, which completed on 25 June 2018. The Beutong project has resources in accordance with JORC of 2.4Mt (5.35Blb) copper, 2.1Moz gold and 20.6Moz silver on a 100%-owned basis and 1.92Mt (4.24Blb) copper, 1.68Moz gold and 16.48Moz silver on an 80%-owned attributable basis), therefore the increase in ownership resulted in a significant increase in the copper inventory for the Group.
In April 2018, the Company commenced a 4,000 metre infill drilling programme at the Beutong project and the results to date have been excellent with the best drill hole intersecting 456 metres of pervasive mineralisation grading 1.06% copper equivalent from 10 metres below surface, stopping in mineralisation at 608 metres due to rig capacity. The results of this programme together with the metallurgical and geotechnical test-work programme will dictate the Company’s development strategy for Beutong.
In March 2018, we finalised the Contract of Work negotiations with the Government of Indonesia, an important milestone for the BKM project as it secures our operating tenure for the next 30 years. During the first quarter of 2018, the Company continued drilling activities at the BKZ polymetallic deposit where we intersected broad intervals of mineralisation and in March 2018 we established a maiden JORC compliant Mineral Resource Estimate from only a small drilling programme. The BKZ deposit is only 800 metres north of the BKM project and remains open in multiple directions. The Company believes the BKZ project has the potential to be a stand-alone project, benefiting from the significant infrastructure the Company will build at the BKM project.
Simultaneously, the Company continued to make significant progress with the feasibility study for the BKM project. This study has been the primary focus for much of the current half year with a number of peer reviews completed together with initial optimisation work for key technical areas including the open pit and the heap leach. Capital and operating costs are being reviewed with a view to release to the market by the end of the current quarter.
On a corporate level, Stephen Hughes resigned as a director in May 2018 to return with his family to Canada, having spent 22 years in Indonesia. The Company will continue to transition from explorer to developer and ultimately producer and will see the management and leadership team evolve during this transition. We will continue to right-size the organisation to meet the changing needs and manage the risks of the Company going forward. In June 2018, Dominic Heaton was appointed to the Asiamet Board. Dominic is a seasoned mine-developer with significant experience in building mines in South East Asia and Indonesia. In particular he was instrumental in the development of the 300,000 oz per annum Martabe gold mine in Sumatra and will be invaluable as we develop our projects.
Our Group continues to focus on the rapid development of the BKM and Beutong projects. We believe the Company is very favourably positioned amongst peers as we have two significant copper
1
development projects at a time when the copper supply side is showing signs of weakness while demand for copper remains robust.”
H1 2018 Operational Highlights
Beruang Kanan Main (BKM) Copper Project
• Completed Contract of Work (CoW) amendment negotiations and secured long term tenure for the proposed BKM Copper development (see release dated 26 March 2018)
• Assay results from the 2017/18 geotechnical drilling programme (completed as part of the feasibility studies) indicate the highest grade copper mineralisation drilled at BKM to date (see release dated 3 April 2018)
Beruang Kanan Zinc (BKZ) Polymetallic Prospect
• Completed a maiden Mineral Resource Estimate for the BKZ Polymetallic (“BKZ”) deposit (see release dated 16 May 2018):
o The Upper Polymetallic Zone Inferred Mineral Resource comprises:
􏰀 High Grade Domain - 750,000 tonnes at 8.0% Zinc, 3.4% Lead, 50g/t Silver and 0.35g/t Gold containing 132Mlbs zinc, 57Mlbs lead, 1.2Moz silver and 8,400oz gold at 4% Zn cut-off grade;
􏰀 Low Grade Domain - 590,000 tonnes at 1.6% Zinc, 0.5% Lead, 13g/t Silver and 0.15g/t Gold containing 20 Mlbs zinc, 7Mlbs lead, 247Koz silver and 2,800oz gold at 1% Zn cut-off grade
o The Lower Copper Zone Inferred Mineral Resource comprises:
􏰀 High Grade Domain - 1.1M tonnes at 1.1% Copper and 13g/t Silver containing
26Mlbs copper and 460,000 ounces silver at a 0.5% copper cut-off grade
o Mineralisation remains open in multiple directions at both the BKZ Upper Polymetallic Zone and the BKZ Lower Copper Zone and many targets with potential to expand the Resource base remain to be tested.
Beutong (ARS 80% Equity)
• Equity interest in Beutong increased to 80% through exercise of the option and delivery of recent milestones including the key long-term production licence required to advance project to development stage (see release dated 25 June 2018).
• Key production licence granted for 5.3Blb Cu, 2.1Moz Au, representing a major de-risking milestone for the Beutong project securing long-term licence for +20 years (see release dated 8 January 2018).
• First diamond drill hole of the 2018 drill campaign at Beutong East Porphyry Copper - Gold Project ("BEP") has intercepted near surface, high-grade copper mineralisation (see release dated 14 June 2018). Highlights include:
o BEU0900-08 456.0m at 1.06% CuEq (0.93% Cu, 0.15g/t Au) from 10.0m;
o Shallow intersection, with assay results confirming up to 2.49% copper over 2-metre sample
intervals at BEP;
o Initial assays confirm that copper mineralisation in this hole at BEP is potentially leachable; o Metallurgical test work will commence soon.

[mr roper] 25/9/2018 11:38

No leaks on this ship lol

[highly geared] 25/9/2018 11:33

Mr R. Spot on!

[shareideas1] 25/9/2018 11:25

Most likely the seller is back in the market on the small tick up this morning...

[mr roper] 25/9/2018 11:21

Or maybe they got a whiff an rns wa about to be released, thought it was bfs, jumped in and bailed when it was only the interims

[mount teide] 25/9/2018 11:20

JBER and SCAP both trying to out muscle each other to get on the offer.

[bcockrell] 25/9/2018 11:19

There must be some real novices trading this one given the sell off post interims. Perhaps they sold because there was a loss lol. Crazy

[mr roper] 25/9/2018 11:07

Pretty good cash position and no debt.

[mount teide] 25/9/2018 10:35

The copper market found a bottom in H1/2016 and saw the copper price more than halve after a brutal 6 year recession that saw new production development investment fall off a cliff after 2012 and some high operating cost mines either close or get temporarily shut-in.

Yet, demand during that entire period and since has continued to grow at circa 2-2.5% per annum. The rising copper price post H1/2016 has failed to generate sufficient new production(despite some shut-in mines reopening) to meet the growth in demand, resulting in a supply-usage deficit in 2017 that further depleted stock inventory to near decade lows.

The only way warehouse stock levels are going to build is if supply increases above demand - and with supply deficits forecast as far as the eye can see over the next half decade or more, that is unlikely to happen anytime soon unless the copper price spikes dramatically. A copper price averaging above $3.25 should however be sufficient to trigger the development of enough new production to at least slow down the rate of supply deficit that is forecast to rapidly escalate over the next 3-5 years.

The supply-usage deficit by 2025 is currently estimated at 5m tonnes - a hair-raising 23% of current global production! To put this in persecutive circa 400,000 tonnes per annum of production is required to be classified as one of the world's 10 largest copper mines - suggesting the equivalent of 12 mines capable of getting into the World's top ten will need to be put into production over the next 6 years to meet the estimated growth in demand. I can say with complete certainty, there is more chance of Dianne Abbott winning the Grand National riding side saddle on a Shetland pony than that happening!

AIMHO/DYOR

[mr roper] 25/9/2018 09:56

Hb, yes I get that. The point is the bfs will improve the economics and in v the gap between publishing and being financed I wouldn't be surprised if there is some corporate interest. Look at Solg. Bhp bought 6% and didn't even talk to the bod. Imagine if free port or EMR picked up 5% here....

[highly geared] 25/9/2018 09:50

Yep, it’s all about getting it financed and the structure of said financing in terms of debt/ dilution.A reason outcome will completely underpin where we are now and at a materially higher share price. If you’ve been here 2-3 years the next 3-4 moment will seem a short term wait for more value accretion...

[arf dysg] 25/9/2018 09:45

Mr Roper (16444) "I suspect the bfs will blow the doors off."

It had better not do any more than that, or Michael Caine will start moaning about it.

[aim0raider] 25/9/2018 09:34

I suspect they'll take the weekend for last minute checks on BFS. Then issue next week.

[horneblower] 25/9/2018 09:22

Mr R, All those juicy things you mention are great but nothing to do with the bfs. It is the financing of the project that will zing the share price The bfs may come along with a financing package and that will make the share price fly but the bfs alone may not cause a huge spike.

[horneblower] 25/9/2018 09:18

I would say that they are waiting for copper to bounce back, which I believe it will. However I can't see it regaining $3 until December and that will no doubt include a butt tightening period of retrenchment.
I don't think they can, or should, wait that long.
My guess of w/c 8th October is as good as any.

[mr roper] 25/9/2018 09:17

Or not. I suspect the bfs will blow the doors off. How many interested parties did TM say he'd spoken, a dozen offtakers, private equity, global banks, Asian banks, indo partners...guess you can add EMR and tigers to that lot. What's the odds on cash costs of less than a buck a lb?

There will be a lot of interest. ...

[charles clore] 25/9/2018 09:14

zho - if they miss the deadline we could see yet another opportunity to top up at sub 10p!

[zho] 25/9/2018 09:07

There seems to be a growing feeling that the BFS will be modestly delayed. This is a typical posting (from LSE): “If they miss am told it will be fairly immaterial as it is so close”

[mount teide] 25/9/2018 09:01

HG - Considering the sector will by then be in its third year of a supply drought of new production from major scale mines, I would bet serious money on an average price above $3.30 for 2022 - risked strongly to the upside since that price is still 36% below the peak of the previous copper market cycle.

[mr roper] 25/9/2018 08:51

I remember when Optima were the only broker and had an 8p target while we were at 3p. 6 weeks later..goodbye 8p. I'm expecting similar shortly