Asiamet Resources (ARS) reports total expenses for the quarter ended March 31 of US$0.69m while raising post quarter end £1.5m (cUS$2.2m) to offset a working capital deficit carried into the current quarter of US$0.15m. In addition, a further US$0.98m has been received from the Indonesian government for refund of VAT. ARS published a robust PEA concerning developing the Beruang Kanan project to a producing copper mine during the quarter.
ARS reported earlier this month the start of feasibility studies at Beruang Kanan project, BKM deposit, on the island of Kalimantan. Concerning its Beutong copper project on the island of Java, a final presentation to the Ministry of Energy and Mineral Resources is scheduled for 31 May, 2016 and a decision on the grant of the IUP production is expected shortly thereafter.
The Jelai gold project, also on Kalimantan, is reaching the end of its IUP exploration permit. ARS has submitted a one year extension application while it awaits decision of the Exploration Ministry on its application to convert this project to a production IUP as well.
We see ARS as moving right along with its advancement of its copper and gold projects in Indonesia. The quality of its projects is recognised by investors with the success of the most recent fundraising to carry on with its work plans toward production.
We retain our 6.2p target price and SPEC BUY rating.