logo-loader
Asiamet Resources

Asiamet buoyed by exercise of options by a senior manager, bullish comment from Liberum

Tthe AIM-listed firm said it had received notification from Mansur Geiger, the group’s Vice President-Indonesia, to exercise options over 1,000,000 new common shares at a price of C$0.05 each

Copper
Meanwhile, in a mining sector note, analysts at Liberum repeated a ‘buy’ rating and 20p per share target price on Asiamet

Asiamet Resources Limited (LON:ARS) shares were up 12% on Monday buoyed by news of an exercise of options by a senior manager and by bullish comment from Liberum Capital.

In a statement today, the AIM-listed firm said it had received notification from Mansur Geiger, the group’s Vice President-Indonesia, to exercise options over 1,000,000 new common shares at a price of C$0.05 each.

READ: Asiamet hails two key approvals for its BKM copper project

As a result, the company added, it has issued the shares to the option holder and has received C$50,000 in return.

Meanwhile, in a mining sector note, analysts at Liberum repeated a ‘buy’ rating and 18p per share target price on Asiamet.  

The analysts said: “After announcing last week two key approvals for its BKM project, the company is just waiting on the results of its Bankable Feasibility Study in Q2 before being in a position to bring on a local financing partner. Shares have almost doubled from the December lows, but still trade at less than half of our 18p valuation.”

They added: “As per our NPV and EV/production analysis in the previous section, the potential upside from development of Asiamet's Beutong orebody is significant and the stock trades at a material discount, even to other greenfield exploration peers.”

The analysts concluded: “The scale of the returns Asiamet can deliver in the near-term will hinge initially on how the next stage of development of BKM is financed, which may or may not include a deal on Beutong. With such a wide variability of outcomes we need to make some broad assumptions in generating our target price (BKM financed with 50% gearing, dilution at 9p).

“However, our confidence in the direction of travel in the shares hinges on the quality and scarcity of its assets (highlighted above), management's track record in the region and the desire of well-funded regional partners to enter the copper business.”

In late afternoon trading, Asiamet shares were 12.3% higher at 7.75p.

Quick facts: Asiamet Resources

Price: £0.04

Market: AIM
Market Cap: £33.86 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Asiamet Resources named herein, including the promotion by the Company of Asiamet Resources in any Content on the Site, the Company receives...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Asiamet Resources announces maiden resource for BKZ deposit

Steve Hughes, VP of exploration for Asiamet Resources Ltd (LON:ARS), discusses with Proactive's Andrew Scott the maiden mineral resource estimate for the BKZ polymetallic deposit in Kalimantan, Indonesia. The initial Mineral Resource Estimate is subdivided into the BKZ upper polymetallic...

on 05/16/2018

2 min read