ASIAMET RESOURCES LIMITED Asiamet Resources Limited
(the "Group", the "Company" or "ARS")
Interim Results for the Six Months Ended 30 June 2022
Asiamet Resources Limited (AIM: ARS) announces its unaudited interim results for the six months ended 30 June 2022 ("H1 2022" or the "Period").
Chairman's Statement
The first half of 2022 was marked by supply chain and travel disruptions globally following the Covid pandemic lock downs and restrictions. These disruptions coupled with the war in Ukraine and its impact on the energy market have driven significant supply side inflation. Even though commodity prices generally tend to do well in these environments, the potential for a global economic recession has depressed the commodities market.
Against this backdrop, Asiamet continues to make solid progress. Notable milestones included the BKZ resource update, the appointment of Mr Darryn McClelland as Chief Executive Officer (CEO), continued Feasibility Study update works for the BKM Copper Project and completion of the due diligence process with PT Delta Dunia Makmur Tbk. (DOID) including a first phase diligence by an independent technical expert recommended by a financial institution.
The Company's focus over the coming months will be to update the BKM Feasibility Study including all technical work streams and economic outcomes, including an update of the financial model for the project. As part of the BKM Feasibility Study update, the study team is reviewing key elements of the project including logistics and power sourcing which includes the potential for the inclusion of renewable energy. The update of the BKM Feasibility Study is anticipated to be completed before the end of the year.
BKZ Mineral Resources
Following the completion of an 8,630-metre drilling program at BKZ in early 2022, an update of the BKZ Mineral Resource was announced with a significant increase in JORC compliant copper and zinc Mineral Resource estimates over those reported in 2018. Potential for a very significant gold and silver deposit immediately adjacent to the copper and zinc resources was also delineated, with limited further metallurgy and drilling required to covert the current gold-silver Exploration target to a Mineral Resource. This limited 2021-2022 drilling program delivered significant value with a 50% increase in contained zinc and a 75% uplift in contained copper. These results provide further confirmation of the very high prospectivity of the Beruang Kanan District. This rapid increase in the mineral inventory at BKZ illustrates the potential pipeline of organic growth opportunities that are available to the Company following the establishment of a mining operation and associated infrastructure at BKM.
Corporate
At the corporate level, the management team was strengthened with the appointment of Mr Darryn McClelland as the Chief Executive Officer of the Company. Darryn brings over 25 years of mining development, operations and senior management experience across Australia, Indonesia, Laos, Vietnam, Eritrea and Ghana. Of particular relevance to Asiamet is his extensive experience in mine start-ups and commissioning of copper and polymetallic
open pit mining operations, including copper leaching, and over seven years of direct operating experience in Indonesia. Prior to joining Asiamet, Darryn was the Chief Operating Officer for PT Agincourt Resources leading the operational and exploration functions of the +300,000 ounce per annum Martabe Gold Mine in North Sumatera, Indonesia.
We are very pleased to have a mining professional of Darryn's calibre join the Company as CEO, and the team looks forward to working with him to complete the feasibility study update and project financing, and to progress the BKM Copper Project into the mine development stage later this year.
As announced on 29 June 2022, Asiamet's largest shareholder, DOID, completed its due diligence on the BKM Copper Project. This process covered all technical workstreams including completion of a first phase of due diligence by a bank recommended Independent Technical Expert with no red flags or fatal flaws of a technical nature identified. The Company remains in continued discussions with DOID in respect to consolidating a strategic partnership to advance the BKM Copper Project through to project financing and mine development.
The Beutong copper-gold Project remains an important strategic asset for Asiamet. The Company continues to engage with the local community to better understand their long term needs and alignment with the Company's overall project execution plans.
The copper price came under pressure during the first half of 2022 as a result of inflationary pressures and a subdued outlook for global economic growth in the near term. However, the medium-longer-term fundamentals for copper remain very robust due to the strong underlying supply-demand fundamentals driven by urbanisation and industrialisation in the developing world, a global push towards renewable energy and decarbonisation, against a predicted shortfall in new mine supply. With one of the few near-term copper development projects in the Asian region, Asiamet remains well positioned to benefit from the predicted stronger copper price environment.
I would like to take this opportunity to thank all our stakeholders for their ongoing support and look forward to reporting further on progress as we advance our strategy to build a highly successful copper mining business.
On behalf of the board
Tony Manini
Chairman
17 August 2022
Notice to reader
These interim condensed consolidated financial statements of Asiamet Resources Limited have been prepared by management and approved by the Audit Committee of the Board of Directors of the Company. The Company discloses that its external auditors have not reviewed these interim financial statements and the accompanying notes to financial statements.
The Company publishes its accounts in United States dollars ($) and all figures in the accounts and this report are $ unless otherwise noted.
Interim condensed consolidated statement of financial position
As at
30-Jun | 31-Dec | ||
Note | 2022 | 2021 | |
Unaudited | Audited | ||
$'000 | $'000 | ||
Assets | |||
Current assets | |||
Cash | 5,182 | 9,060 | |
Receivables and other assets | 5 | 27 | 33 |
Non-current assets | 5,209 | 9,093 | |
Plant and equipment | 4 | 46 | 60 |
Right-of-use assets | 5 | 7 | |
Receivables and other assets | 5 | 68 | 71 |
Total assets | 119 | 138 | |
5,328 | 9,231 | ||
Liabilities and Equity | |||
Current liabilities | |||
Trade and other payables | 820 | 537 | |
Provisions | 6 | 283 | 285 |
Lease liabilities | 99 | 159 | |
Non-current liabilities | 1,202 | 981 | |
Provisions | 6 | 714 | 794 |
Total liabilities | 1,916 | 1,775 | |
Equity | |||
Share capital | 19,393 | 19,393 | |
Equity reserves | 65,975 | 65,975 | |
Other comprehensive income | 49 | 49 | |
Accumulated deficit | (78,752) | (74,708) | |
Other reserves | (3,246) | (3,246) | |
Parent entity interest | 3,419 | 7,463 | |
Non-controlling interest | (7) | (7) | |
3,412 | 7,456 | ||
Total liabilities and equity | 5,328 | 9,231 |
Interim condensed consolidated statement of comprehensive loss (unaudited)
For the six months ended 30 June
Note | 2022 | 2021 | |
$'000 | $'000 | ||
Expenses | |||
Exploration and evaluation | 3 | (2,236) | (1,003) |
Employee benefits | (1,073) | (912) | |
Consultants | (185) | (41) | |
Legal and Company Secretarial | (64) | (99) | |
Accounting and audit | (4) | (1) | |
General and administrative | (153) | (182) | |
Depreciation | (20) | (20) | |
Share-based compensation | 8 | (104) | (92) |
Other items | (3,839) | (2,350) | |
Other gains | - | 122 | |
Foreign exchange losses | (54) | (150) | |
Finance costs | (5) | (10) | |
Impairment expenses | (146) | (33) | |
Other income | 1 | 1 | |
Net loss for the half year | (204) | (70) | |
(4,043) | (2,420) | ||
Net loss attributable to: | |||
Equity holders of the parent | (3,937) | (2,335) | |
Non-controlling interests | (106) | (85) | |
Total comprehensive loss attributable to: | |||
Equity holders of the parent | (3,937) | (2,335) | |
Non-controlling interests | (106) | (85) | |
Basic and diluted loss per common share (cents per share) | (0.21) | (0.15) | |
Weighted average number of shares outstanding (thousands) | |||
1,942,542 | 1,625,081 |
Interim condensed consolidated statement of cash flows (unaudited)
For the six months ended 30 June
Note | 2022 | 2021 | |
$'000 | $'000 | ||
Operating activities | |||
Loss for the half year | (4,043) | (2,420) | |
Adjustment for: | |||
Depreciation | 20 | 20 | |
Share-based compensation | 8 | 104 | 92 |
Net foreign exchange gains | (4) | (18) | |
Impairment expenses | 146 | 33 | |
Finance costs | 5 | 10 | |
Movements in provisions | (80) | (20) | |
Changes in working capital: | |||
Receivables and other assets | (145) | (12) | |
Trade and other payables | 180 | (194) | |
Other adjustments: | |||
Interest payments | (5) | (10) | |
Net cash flows used in operating activities | (3,822) | (2,519) | |
Investing activities | |||
Purchases of plant and equipment | (6) | (5) | |
Net cash flows used in investing activities | (6) | (5) | |
Financing activities | |||
Payment of principal portion of lease liabilities | (50) | (75) | |
Proceeds from equity raising | - | 14,089 | |
Equity raising costs | - | (735) | |
Net cash flows from/(used in) financing activities | (50) | 13,279 | |
Increase/(decrease) in cash | (3,878) | 10,755 | |
Cash at beginning of the year | 9,060 | 1,186 | |
Cash at 30 June | |||
5,182 | 11,941 |
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Asiamet Resources Ltd. published this content on 17 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 August 2022 10:03:05 UTC.
