30 September 2024
ASIAMET RESOURCES
LIMITED
("Asiamet" or the "Company")
Interim Results for Six
Months Ended 30 June 2024
Asiamet Resources Limited (AIM: ARS)
announces its unaudited interim results for the six months ended 30
June 2024 ("H1 2024" or the "Period").
The Company's 2024 Half Year Report
is available on the Company website at www.asiametresources.com
and will be sent to shareholders who have
requested a printed or electronic copy.
ON
BEHALF OF THE BOARD OF DIRECTORS
Darryn McClelland, Chief Executive
Officer
For further information, please
contact:
Darryn McClelland
Chief
Executive Officer, Asiamet Resources Limited
Email: darryn.mcclelland@asiametresources.com
Tony
Manini
Executive Chairman,
Asiamet Resources Limited
Email: tony.manini@asiametresources.com
Investor Enquiries
Sasha Sethi
Telephone: +44 (0) 7891 677
441
Email: Sasha@flowcomms.com
/ info@asiametresources.com
Nominated & Financial Adviser
Strand Hanson Limited
James Spinney / James Dance / Rob
Patrick
Telephone: +44 20 7409
3494
Email: asiamet@strandhanson.co.uk
Broker
Optiva Securities Limited
Christian Dennis
Telephone: +44 20 3137
1903
Email: Christian.Dennis@optivasecurities.com
Follow us on twitter @AsiametTweets
MARKET ABUSE REGULATION
DISCLOSURE
The information contained within this announcement is deemed
by the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014, as it forms part of
United Kingdom domestic law by virtue of the European Union
(Withdrawal) Act 2018, as amended.
FORWARD-LOOKING
STATEMENT
This news release contains forward-looking statements that are
based on the Company's current expectations and estimates.
Forward-looking statements are frequently characterised by words
such as "plan", "expect", "project", "intend", "believe",
"anticipate", "estimate", "suggest", "indicate" and other similar
words or statements that certain events or conditions "may" or
"will" occur. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors that could cause
actual events or results to differ materially from estimated or
anticipated events or results implied or expressed in such
forward-looking statements. Such factors include, among
others: the actual results of current exploration activities;
conclusions of economic evaluations; changes in project parameters
as plans continue to be refined; possible variations in ore grade
or recovery rates; accidents, labour disputes and other risks of
the mining industry; delays in obtaining governmental approvals or
financing; and fluctuations in metal prices. There may be
other factors that cause actions, events or results not to be as
anticipated, estimated or intended. Any forward-looking
statement speaks only as of the date on which it is made and,
except as may be required by applicable securities laws, the
Company disclaims any intent or obligation to update any
forward-looking statement, whether as a result of new information,
future events or results or otherwise. Forward-looking statements
are not guarantees of future performance and accordingly undue
reliance should not be put on such statements due to the inherent
uncertainty therein.
CEO's statement:
In the first half of 2024, the
Company focused its efforts on optimising the BKM Copper heap leach
project (the "BKM Project" or the "Project") to significantly
reduce the pre-production capital cost. To achieve this, the
Company adopted two fundamental strategies, namely relocation and
redesign of the Heap Leach Facility accelerating the Company's path
to production.
To advance this we engaged
heap-leach design expert Mineria & Servicios SPA, Chile
("M&S"). M&S completed an update of the new Heap Leach
Facility design which is now incorporated into the project layout.
Additionally, the Company appointed Indonesian Engineering
Procurement and Construction Management ("EPCM") firm, PT Rexline
and Engineering Indonesia, and leading Chinese process engineering
firm, Beijing Research Institute of Mining and Metallurgy
("BGRIMM"), to complete engineering design for all process
infrastructure based on a new copper production
schedule.
On 25 June 2024, the Company updated
the market on the significant project physicals improvements
achieved through the project optimisation. Relative to the 2023
Feasibility Study, mining material movement reduced by 47% with the
subsequent processing rate reduced, albeit at a higher soluble
copper grade. Copper cathode production capacity has reduced to
10,000-11,000 tonnes per annum over 13 years. This strategic change
is expected to shorten construction timelines, improve the overall
project development schedule and expedite timelines to first
revenue and cashflow.
On the power supply front, we
advanced plans for using regionally sourced biomass power for the
BKM Project. A comprehensive biomass feedstock study has
successfully demonstrated the availability of sufficient material
for the purpose of power generation. The Company is advancing its
engagement with parties which have significant experience in the
development of biomass power projects to deliver new power plant
equipment design and construction cost estimates aligning with the
Project's reduced production scale.
Copper prices surged during the
first half of 2024, rising substantially from $8,000 per tonne,
hitting an all-time high in May 2024 of $11,105 per tonne ($5.03
per pound) on the London Metal Exchange. The copper price has since
stabilised around the $9,000-$9,500 per tonne range. The medium to
longer-term outlook for copper remains robust due to the strong
underlying demand fundamentals driven by the global shift towards
renewable energy and decarbonisation. This is set against a
predicted shortfall in new mine supply whilst M&A activity in
the sector continues to increase as larger mining groups look to
replenish their resource inventories and future growth
pipelines.
Overall, H1 2024 was a period of
significant progress as we made excellent progress towards the
development of the BKM Project. Asiamet is well positioned with an
advanced copper development project in Central Kalimantan,
Indonesia, the BKM Project, and a second, substantially large
copper asset in Aceh, Indonesia, the Beutong Copper Gold Project,
especially as the copper market is forecast to enter a supply
deficit.
With industry analysts forecasting a
rise in copper prices and quality, development-ready copper
projects being scarce, it is envisaged that the confluence of these
factors will position the Company to benefit significantly from the
progress we have made, and continue to make, on our projects.
Looking ahead, based on the Group's cash forecast, the Board is
planning for the additional funding that will be required in the
next 12 months, up to the end of September 2025, to maintain
momentum. With BKM project financing expected to commence in Q1
2025 and advanced discussions with strategic and funding partners
ongoing, we are confident in our ability to secure the necessary
funding to continue delivering on our strategy. This approach will
ensure that the Group remains well-positioned to realise its
assets, meet its liabilities in the normal course of business and
continue advancing our exciting projects, starting with bringing
the BKM Project into production.
I would like to thank all of our
stakeholders for their ongoing support and look forward to
reporting progress as we execute our strategy to build a company
that supplies the much-needed materials for the energy
transition.
On behalf of the board,
Darryn McClelland
CEO
30
September 2024
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 a
re $ unless otherwise
stated.
Notes to the condensed consolidated
financial statements (unaudited)
For
the six months ended 30 June 2024
1. Corporate
Information
The unaudited interim condensed
consolidated financial statements of Asiamet Resources Limited and
its subsidiaries (collectively, the "Group") for the six months
ended 30 June 2024 were authorised for issue in accordance with a
resolution of the directors on 27 September 2024.
Asiamet Resources Limited (the
"Company") is a publicly traded company incorporated under the laws
of Bermuda. The Company's shares are quoted on the AIM market
of the London Stock Exchange ("AIM") under the trading symbol
"ARS". The Company's corporate office is located at Ventura
Building, 2nd Floor, Suite 201, Jl. RA Kartini No. 26, Jakarta
12430, Indonesia.
The Group is principally engaged in
the exploration and development of mineral properties. The
Company's principal mineral property interests are located in
Indonesia.
2. Significant accounting
policies
2.1
Basis of preparation
The interim condensed consolidated
financial statements for the six months ended 30 June 2024 have
been prepared in accordance with IAS 34 Interim Financial
Reporting.
The interim condensed consolidated
financial statements do not include all the information and
disclosures required in the annual financial statements, and should
be read in conjunction with the Group's audited annual consolidated
financial statements for the year ended 31 December
2023.
The interim condensed consolidated
financial statements for the six months ended 30 June 2024 and 30
June 2023 were not subject to review and were unaudited. The
comparative information for the year ended 31 December 2023 was
approved by the Board of directors on 9 May 2024 and the
Independent Auditor's Report on those accounts was
unqualified.
2.2
Going concern
The accompanying financial
statements have been prepared on a going concern basis, which
contemplates the realisation of assets and the satisfaction of
liabilities in the normal course of business. The Company is a
development stage entity and has not established any sources of
revenue to cover its operating expenses. The Company will engage in
limited activities without incurring any significant liabilities
that must be satisfied in cash until a source of funding is
secured.
For the six months ended 30 June
2024, the Group incurred a loss of $2.444 million (30 June 2023:
$2.972 million) and had cash outflows from operations of $2.322
million (30 June 2023: $2.864 million). The Group's cash balance as
at 30 June 2024 was $1.796 million (31 December 2023: $4.136
million) and current assets exceeded its current liabilities by
$1.356 million (31 December 2023: net current assets of $4.267
million).
Based on the Group's cash forecast,
the Board is aware that the Group will require additional funding
in the next 12 months to the end of September 2025 to ensure the
Group will be able to realise its assets and discharge its
liabilities in the normal course of business.
The Board has considered the funding
and operational status of the business in arriving at their
assessment of going concern, including that:
· The
Company is in advanced discussions with strategic partners for
funding and financing arrangements for the BKM Project.
· The
Company has completed a Feasibility Study in 2023 for the BKM
Project which demonstrated a robust copper cathode project with
significant upside potential for mine life increase through
Resource growth and development of satellite deposits. Optimisation
efforts so far have identified significant cost savings in excess
of US$26 million primarily due to new equipment selection, process
flowsheet simplification, and material reductions in earthworks
relative to the 2023 Feasibility Study designs further improving
the economics of the Project.
· The Company
has the ability to raise funds from equity markets to meet ongoing
development, exploration and working capital
commitments.
· The Company
has the ability to manage the timing of cash flows to meet the
obligations as and when they fall due including implementing cost
control initiatives and varying expenditure commitments.
At this stage, based on discussions
with strategic partners, there are reasonable grounds to believe
that debt and/or equity funding will be available to the Group as
and when required. The Board considers that the going concern basis
of preparation to be appropriate for these financial
statements.
While the Company has been
successful in the past in obtaining financing largely through
private placements and equity raises, as and when required, there
is no assurance that it will be able to obtain and/or conclude
adequate debt or equity financing arrangements in an acceptable
timeframe or that such financing will be on terms acceptable to the
Company, as future funding is uncertain until secured. These
factors indicate the existence of an uncertainty which may cast a
significant doubt on the Group's ability to continue as a going
concern.
The financial report does not
contain any adjustments relating to the recoverability and
classification of recorded assets or to the amounts or
classification of recorded assets or liabilities that might be
necessary should the Group not be able to continue as a going
concern.
2.3
New standards, interpretations and amendments adopted by the
Group
The accounting policies adopted in
the preparation of the interim condensed consolidated financial
statements are consistent with those followed in the preparation of
the Group's annual consolidated financial statements for the year
ended 31 December 2023, except for the adoption of new standards
effective as of 1 January 2024. The Group has not early adopted any
standard, interpretation or amendment that has been issued but is
not yet effective.
Several amendments apply for the
first time in 2024, but do not have an impact on the interim
condensed consolidated financial statements of the
Group.
3. Exploration and evaluation
expenditures
The details of exploration and
evaluation expenditures expensed during the period ended 30 June
2024 and 30 June 2023 are as follows:
|
|
|
2024
|
2023
|
|
|
|
$'000
|
$'000
|
|
KSK
CoW
|
|
|
|
|
|
Administration support
|
102
|
118
|
|
|
External relations
|
98
|
113
|
|
|
Drilling & Field
support
|
57
|
91
|
|
|
Technical services
|
503
|
390
|
|
|
Tenements
|
155
|
164
|
|
|
|
915
|
876
|
|
|
|
|
|
Beutong IUP-OP
|
|
|
|
Administration support
|
28
|
22
|
|
|
External relations
|
23
|
14
|
|
|
Drilling & Field
support
|
4
|
1
|
|
|
Tenements
|
39
|
38
|
|
|
|
94
|
75
|
|
Total exploration and evaluation
expenditures
|
1,009
|
951
|
4. Plant
|
|
|
30-Jun
|
31-Dec
|
|
|
|
2024
|
2023
|
|
|
|
$'000
|
$'000
|
|
|
|
|
|
|
Opening net book amount
|
|
28
|
36
|
|
Additions
|
|
4
|
6
|
|
Depreciation charge for the
year
|
|
(5)
|
(14)
|
|
Closing balance
|
|
27
|
28
|
|
|
|
|
|
|
Net
carrying amount:
|
|
|
|
|
Cost
|
|
32
|
584
|
|
Accumulated depreciation
|
|
(5)
|
(556)
|
|
Closing balance
|
|
27
|
28
|
5. Receivables and other assets
|
|
|
30-Jun
|
31-Dec
|
|
|
|
2024
|
2023
|
|
|
|
$'000
|
$'000
|
|
Current
|
|
|
|
|
Receivables - employee
advances
|
|
32
|
2
|
|
Receivables - other
|
|
9
|
6
|
|
Prepayments
|
|
154
|
123
|
|
Total current receivables and other assets
|
|
195
|
131
|
|
|
|
|
|
|
Non-current
|
|
|
|
|
VAT - Indonesia
|
|
43
|
-
|
|
Provision for impairment
(1)
|
|
(43)
|
-
|
|
|
|
-
|
-
|
|
Security deposits
|
|
58
|
65
|
|
Total non-current receivables and other
assets
|
|
58
|
65
|
(1) The Group has provided an allowance for impairment against the
Indonesian VAT receivables which will be recoverable once
production commences in accordance with Indonesian regulation. An
impairment expense of $0.043 million was recognised for the half
year ended 30 June 2024 (30 June 2023: US$0.082
million).
6. Provisions
|
|
|
30-Jun
|
31-Dec
|
|
|
|
2024
|
2023
|
|
|
|
$'000
|
$'000
|
|
Current
|
|
|
|
|
Annual leave
|
|
126
|
132
|
|
Restructuring
|
|
158
|
164
|
|
Total current provisions
|
|
284
|
296
|
|
|
|
|
|
|
Non-Current
|
|
|
|
|
Indonesian Employee Benefits
liability
|
|
611
|
615
|
|
Total Non-current Provisions
|
|
611
|
615
|
7. Leases
a)
Lease Liabilities
|
|
|
30-Jun
|
31-Dec
|
|
|
|
2024
|
2023
|
|
|
|
$'000
|
$'000
|
|
|
|
|
|
|
As at 1 January
|
|
-
|
59
|
|
Addition
|
|
-
|
-
|
|
Accretion of interest
|
|
-
|
2
|
|
Reassessment
|
|
-
|
-
|
|
Payments
|
|
-
|
(61)
|
|
Foreign exchange
|
|
-
|
|
|
Closing balance
|
|
-
|
-
|
The Melbourne office lease ended as
per 14 June 2023.
b)
Right-of-use assets
|
|
|
30-Jun
|
31-Dec
|
|
|
|
2024
|
2023
|
|
|
|
$'000
|
$'000
|
|
|
|
|
|
|
Opening net book amount
|
|
2
|
16
|
|
Additions
|
|
10
|
-
|
|
Depreciation charge for the
year
|
|
(5)
|
(14)
|
|
Closing balance
|
|
7
|
2
|
8. Related party transactions
There have been no new related party
transactions other than the arrangements that were in place at 31
December 2023. For details on these arrangements, please refer to
the Group's annual financial report as at 31 December
2023.
9. Share based compensation
For the six months ended 30 June
2024, the Group has recognised $0.110 million (30 June 2023: $0.382
million) of share-based compensation expense in the statement of
profit and loss for performance rights to non-executive Directors
in respect of their 2024 director fees.
10. Subsequent events
On 1 September 2024, the Group
entered into a 24-month office lease for its corporate office in
Jakarta. The lease commenced on 1 September 2024 for a
2 year term, with the option to renew for an additional 2
years.
There were no other significant
subsequent events occurring after balance date.