TIDMARS
RNS Number : 3250W
Asiamet Resources Limited
10 December 2019
10 December 2019
Company Update
Asiamet Resources Limited ("Asiamet or the "Company") provides
the following Company update with respect to its projects following
the recent share price movement on 9 December 2019. The Company is
not aware of any operational or corporate reason for the large
price movement.
From an operational perspective, the Company has had a very
active 2019 with a number of milestones being achieved, these
include;
-- A comprehensive drilling program at the BKM project with some
good copper results that further strengthened the Resource;
-- Maiden Ore Reserves for the BKM Copper project comprising (JORC Code 2012)
-- 21.1Mt @ 0.6% Cu for 137k contained tonnes of copper in the Proved category;
-- 30.4Mt @ 0.5% Cu, for 166k contained tonnes of copper in the Probable category; and
-- 51.5Mt @ 0.6% Cu, for 303k contained tonnes of copper in the Proved and Probable category
-- Delivery of a robust Feasibility Study for the BKM Copper
project with the following key metrics
-- An initial 9 year life of mine producing 25,000 tonnes of copper cathode per annum;
-- Life of mine revenue of $1.27 billion and EBITDA of $563.3 million;
-- Post Tax NPV(8) of $124.8 million; and
-- C1 cash cost of $1.65/lb and AISC of $1.78/lb
-- Additional value to be generated through clearly identifiable
value enhancements to improve the Feasibility Study by a minimum of
$35 million on a risk weighted basis;
-- Planned exploration work on four strategic targets in close
proximity to the BKM Copper project to further add life through
satellite discoveries.
The Company has increased its contained copper metal inventory
from 1.37Mt in 2016 to 2.37Mt of contained copper in 2019. This is
largely due to the successful exploration programs and its
increased equity position from 40 to 80% in the Beutong copper-gold
project.
With respect to our licences at the KSK Contract of Work and
Beutong IUP projects, both licences are in full compliance and in
good standing. The Company is awaiting a drilling permit for
further exploration work over the proposed production area to be
granted from the Government. This permit is currently with the
Government of Indonesia awaiting approval. Once approved the
Company will use its own drilling rigs and personnel to drill the
four strategic targets identified (refer KSK Exploration Update
RNS, 26 November 2019) to generate further upside for the Contact
of Work area.
At Beutong, the strategy remains to test the deeper targets and
the higher grade copper-gold zones of the porphyry system. Along
with this, undertake metallurgical test work to generate
development optionality for potential of early staged project
construction and development through heap leach or alternative
mining and processing methods.
From a Corporate perspective, strategic discussions with respect
to partnering continue with highly reputable and interested
parties. A number of participants are active in the corporate data
room. With on-going discussions, the Company will provide an update
when a position is formalised.
The copper market continues to trade sideways as a number of
macro factors such as US/China trade negotiations and BREXIT
continue to drive uncertainty with respect to global growth.
However, we are starting to see global copper inventories fall with
restocking across Asia providing some short term support to the
copper price. The simple fact remains there has been a lack of
investment in the copper sector over a number of years and with the
copper consumption market having grown at a steady rate over the
last decade, supply from existing projects will not be able to meet
future demand causing a constraint in future supply. With a copper
dominant portfolio and two projects in different stages of maturity
the Company is well placed to take advantage of upcoming shortage
in copper supply. This is also notably reflected by those the
Company is currently in strategic discussions with.
ON BEHALF OF THE BOARD OF DIRECTORS
Peter Bird, Deputy Chairman and CEO
For further information, please contact:
-Ends-
Peter Bird
Deputy Chairman and CEO, Asiamet Resources Limited
Email: peter.bird@asiametresources.com
Tony Manini
Executive Chairman, Asiamet Resources Limited
Email: tony.manini@asiametresources.com
FlowComms Limited
Sasha Sethi
Telephone: +44 (0) 7891 677 441
Email: Sasha@flowcomms.com
Blytheweigh Communications Limited
Tim Blythe/Megan Ray
Telephone: +44 (0)20 7138 3204
Email: Tim.Blythe@blytheweigh.com /
Megan.Ray@blytheweigh.com
Asiamet Resources Nominated Adviser
RFC Ambrian Limited
Bhavesh Patel / Stephen Allen
Telephone: +44 (0)20 3440 6800
Email: Bhavesh.Patel@rfcambrian.com /
Stephen.Allen@rfcambrian.com
Berenberg
Matthew Armitt, Detlir Elezi
Telephone: +44 20 3207 7800
Email: Matthew.Armitt@berenberg.com /
Detlir.Elezi@berenberg.com
Liberum
Clayton Bush, Kane Collings
Telephone: +44 20 3100 2000
Email: clayton.bush@Liberum.com
Optiva Securities Limited
Christian Dennis
Telephone: +44 20 3137 1903
Email: Christian.Dennis@optivasecurities.com
Follow us on twitter @AsiametTweets
FORWARD-LOOKING STATEMENT
This news release contains forward-looking statements that are
based on the Company's current expectations and estimates.
Forward-looking statements are frequently characterised by words
such as "plan", "expect", "project", "intend", "believe",
"anticipate", "estimate", "suggest", "indicate" and other similar
words or statements that certain events or conditions "may" or
"will" occur. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors that could cause
actual events or results to differ materially from estimated or
anticipated events or results implied or expressed in such
forward-looking statements. Such factors include, among others: the
actual results of current exploration activities; conclusions of
economic evaluations; changes in project parameters as plans
continue to be refined; possible variations in ore grade or
recovery rates; accidents, labour disputes and other risks of the
mining industry; delays in obtaining governmental approvals or
financing; and fluctuations in metal prices. There may be other
factors that cause actions, events or results not to be as
anticipated, estimated or intended. Any forward-looking statement
speaks only as of the date on which it is made and, except as may
be required by applicable securities laws, the Company disclaims
any intent or obligation to update any forward-looking statement,
whether as a result of new information, future events or results or
otherwise. Forward-looking statements are not guarantees of future
performance and accordingly undue reliance should not be put on
such statements due to the inherent uncertainty therein.
This announcement contains inside information as stipulated
under the Market Abuse Regulations (EU) no. 596/2014 ("MAR").
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
UPDTMBFTMBABMJL
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