LONDON (ShareCast) - (Sharecast News) - Asiamet Resources updated the market on its projects on Tuesday, following a serious slide in its share price on Monday.
The AIM-traded firm said it was not aware of any operational or corporate reason for the large price movement, and said that from an operational perspective, it had a "very active" 2019 with a number of milestones being achieved.

Those milestones included a comprehensive drilling program at the BKM project, with some "good" copper results that further strengthened the resource.

It reported maiden ore reserves for the BKM Copper project comprising 21.1 million tonnes at 0.6% copper for 137,000 contained tonnes of copper in the proved category, 30.4 million tonnes at 0.5% copper, for 166,000 contained tonnes of copper in the probable category, and 51.5 million tonnes at 0.6% copper, for 303,000 contained tonnes of copper in the proved and probable category.

The company reported the delivery of a "robust" feasibility study for the project with a number of key metrics, including an initial nine year life-of-mine producing 25,000 tonnes of copper cathode per annum, life-of-mine revenue of $1.27bn and EBITDA of $563.3m, and a post-tax net present value of $124.8m with a C1 cash cost of $1.65 per pound and an all-in sustaining cost of $1.78 per pound.

Additional value would be generated through "clearly identifiable" value enhancements to improve the feasibility study by a minimum of $35m on a risk-weighted basis.

It said it had 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 1.37 million tonnes in 2016 to 2.37 million tonnes of contained copper in 2019," the board said in its statement.

"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 said it was 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 to generate further upside for the contact of work area."

At Beutong, the board said its strategy remained to test the deeper targets and the higher grade copper-gold zones of the porphyry system.

Along with that, it said it would undertake metallurgical test work to generate development optionality for the 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."

Asiamet said the copper market was continuing to trade sideways as a number of macro factors, including US-China trade negotiations and Brexit, continued 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."

Asiamet said that was also reflected by those it was currently in strategic discussions with.

At 1614 GMT, shares in Asiamet Resources were up 6.73% at 1.89p.

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