Asiamet Resources
Financials:
Primary ticker: AIM:ARS
Stage of development: Exploration, Development
Primary minerals: Copper, Gold, Zinc
Project to promote: BKM Copper Project
Project location: Indonesia
Website: www.asiametresources.com
Corporate presentation: Click here
Asiamet holds two strategically important assets in Indonesia. The group controls 100% of the KSK Contract of Work located in Central Kalimantan where the BKM Copper project is located. KSK also holds the polymetallic BKZ resource (Pb, Zn, Cu, Au, Ag) which is less than 1km north of the proposed BKM Copper mine. The KSK CoW holds several exploration targets associated with polymetallic mineralisation.
Asiamet also holds 80% of the Beutong IUP in Aceh Province, which contains globally significant copper resources of 2.4Mt (100% basis) of which 553kt is in Measured and Indicated status. The deposit holds commercially attractive volumes of gold and silver.
Cash: USD3.8M
Debt: NIL
Major shareholders:
PT Delta Dunia Makmur – 24.18%
Hargreaves Landsdown Stockbrokers – 14.46%
Interactive Investor Services – 7.32%
Asipac Group – 5.63%
Optiva Securities – 4.56%
Management Ownership – 11.1% (includes Asipac Holding, Bruce Sheng ARS Director)
Management Profile
Darryn McClelland – Chief Executive Officer
Mr McClelland has over 26 years of development, operations and senior management experience across Australia, Africa and South East Asia. His extensive experience covers mine development of base metal and gold open pit mining operations including copper leaching and base metal flotation, and over seven year’s direct operating experience in Indonesia.
Prior to joining Asiamet, Mr McClelland was Chief Operating Officer for PT Agincourt Resources leading the operational and exploration functions of the +300,000 ounce per annum Martabe Gold Mine (Martabe) in North Sumatera, Indonesia.
Mr McClelland has qualifications in Engineering (Minerals Processing) Business Administration, Mining Engineering and Occupational Health and Safety.
What is your rationale for taking part in 121 Mining Investment?
We have completed and issued a definitive feasibility study for our Heap Leach copper cathode project in Central Kalimantan, Indonesia. We are active in the financing process working on both debt and equity requirements. I am keen to talk with investors, financiers about various options relating to financing this new copper mine development. Asiamet’s second property is a significantly larger prospect and in time we will likely be seeking a strategic partner/investor to assist in progressing its development. Our immediate focus will be on financing our first mine development, the BKM Copper project.
What recent news would you like to highlight to investors attending?
Q4 expecting to announce appointment of Lead Arranger for the Senior Debt facility. Also expect to be able to make announcement regarding agreement with copper cathode offtake partners.
What are your key goals for the next 3, 6 and 12 months?
3 Months:
Complete reviews of improvement opportunities for BKM Copper Project identified during recent update to FS.
Complete technical due diligence on behalf of lead bank for senior debt facility, complete first round of credit committee approvals.
Review Project Execution models for delivering of BKM Project, final decisions to be made on key scopes of work.
Sign term sheet with preferred Copper Cathode Offtake service provider.
Finalise last Operating Permit needed for BKM Project.
6 Months:
Close out all financing requirements for the BKM Copper Project.
Commenced early works in terms of detailed engineering and early site construction.
12 Months:
Commenced full project construction on BKM Copper Project.
Developed detailed work plan for Beutong Copper deposit including additional drilling and required studies to update its Feasibility Study to international standards.
Seek other potential copper, copper gold, base metal projects that could be brought into the Asiamet group, preferably with a focus in South East Asia.
What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?
The ability to finance the BKM Copper project at acceptable terms is a risk as we are potentially moving into a softer market with various macro headwinds which could lead to lower levels of risk tolerance from lenders. That being said, if we look through these issues the market dynamics for copper look compelling and new projects with new metal has to be brought on line to deliver the electrification goals of governments.
Execution risk is always an aspect of any new mine development. Being placed in Indonesia there is significant resources available to execute these projects however with a vastly expanding resources industry there could be pressure on finding and retaining the quality of people needed to deliver the project.
What do you think makes your company such a compelling investment?
2.5Mt of copper in the ground (attributable to ARS) with significant additional value in base and precious metals. One project in the process of financing for development and moving to production, long term potential growth path across both projects. Located in one of the most mining friendly jurisdictions in the world, particularly for development of “future facing” metals. Would provide an excellent platform from which to develop a meaningful metals producing business.
What are the top 3 key investor takeaways?
Globally significant copper resources held in a mining astute country setting.
Near term project development delivering copper cathode into a rising copper market in second half of this decade with potential for expansion.
Long term development options for both assets delivering a great platform from which to grow a significant base metals (copper focused) business head quartered in Asia.