The broker argued that Asiamet could see a boost in copper prices driven by China’s accelerating infrastructure development in time for two key dates: 2021, the 100th anniversary of the Communist Party, and 2022, President Xi’s 10th year in office.
In a note to clients, Arden analysts said: “Once any positive outcomes from trade talks between the US and China are firmed up then we think this, combined with improved China PMI data, will start a copper run.”
“We believe that China is about to go into a major growth and regenerative phase that will be copper dependent, which, combined with predicted supply shortfalls, should support rising copper prices above US$3/lb in the long term.”
Arden named the exploration company as one of its top four copper picks for 2019 with others including SolGold, MOD Resources and Central Asia Metals.
Asiamet’s main assets are its ownership of KSK and an 80% stake in Beutong.
KSK mainly comprises the BKM copper project, where a decision on construction is apparently imminent as well as the BKZ polymetallic project, which is in early-stage exploration mode.
Beutong is a large copper-gold porphyry deposit, which has the potential to become a tier-one asset.
In a note, Berenberg’s analysts said: “Emerging low-cost producer: Asiamet offers a tier-one exploration opportunity and a near-term development project with attractive economics.
“It is, therefore, one of the most appealing development opportunities in the junior copper space with both near-term cash flow and exploration upside.”