Analyst Richard Knights has started Asiamet with a ‘buy’ rating and a target price of 20p, with the shares currently changing hands at 10.25p each, up 2.2% on Tuesday’s closing price.
READ: Asiamet Resources announces positive results from column leach test work on the BKM copper deposit
In a note to clients, Knights said: “Asiamet is an advanced copper exploration business with assets both near to production and globally significant in scale.
“It has 2.9mt of attributable contained copper eq. resources (M,I&I)* in the ground across two projects in Indonesia at an average 0.62% Cu (eq.).”
The analyst added: “Exploration is ongoing and further resource additions are expected in 2018, as is the financing of its initial 25ktpa SX-EW mine at BKM.”
He concluded: “Our SOTP valuation of 20p reflects 100% upside, but EV/Resource comparisons and recent M&A activity in the region imply similar levels of mispricing.”