REG - Asiamet Resources Ld - BKM Copper Project Optimisation Works Update

Asiamet ResourcesAnnouncement

14/11/2024 07:00

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RNS Number : 2369M  Asiamet Resources Limited  14 November 2024

14 November 2024

Asiamet Resources Limited

("Asiamet" or the "Company")

 

BKM Copper Project Optimisation Works Update

 

Following the successful completion of its recent fundraising, Asiamet is
pleased to provide a further update on optimisation works being completed in
preparation for project financing on the BKM Copper Project ("BKM" or the
"Project") located in Central Kalimantan, Indonesia. The Company's core focus
is delivery of key milestones to enhance project economics and drive
shareholder value.

 

Highlights

 

·   Process Plant Engineering Complete: Optimisation engineering on the
process plant by Rexline Engineering and Beijing Research Institute of Mining
and Metallurgy ("BGRIMM") is now complete.

Asiamet has received all essential deliverables which are in final review.
 Updated costs delivered through engineering are now being incorporated into
the capital cost model. An overall reduction of US$50-$80 million in upfront
capex is targeted with US$26 million savings having been delivered from
previous work.

·    Comprehensive Project Execution Plan (PEP): Indonesian Project
Management Consultants, PT Prosys Bangun Persada ("Prosys"), have been engaged
to provide project planning and project management deliverables to feed into a
capex estimate update.

·   Power Solution Significantly Advanced: Extensive engagement with
industry-leading biomass power generation equipment suppliers and construction
contractors to deliver a power plant capital cost estimate. Detailed
engagement with palm oil producers located closest to the BKM site to supply
required biomass fuel for power generation.

 

Project Optimisation Update:

 

All engineering inputs from Rexline Engineering and BGRIMM have been received,
covering the full scope of Process Infrastructure. Detailed cost estimates for
materials fabrication and supply are being incorporated into the master
capital cost model.

As part of the close out process with Rexline, CEO Darryn McClelland visited
their fabrication facility near Surabaya, East Java, meeting the fabrication
team and confirming capability to deliver the structural steel and conveyor
modules designed for BKM. Photos of this visit are included below.

Asiamet has appointed Prosys to deliver project management services including
development of a detailed manpower schedule and cost estimate for engineering,
procurement and construction management ("EPCM"), utilising a 100% Indonesian
team which will be reflected in the updated BKM Project capital cost estimate.

 

Power Supply:

 

Asiamet and its biomass power consultant, PT Britmindo Sumber Daya Hijau
("Britmindo"), are engaged with equipment suppliers and EPC contractors
working to deliver capital cost estimates for biomass power plant equipment.
Recent visits to Central Kalimantan palm oil milling facilities have provided
inputs into biomass supply quality and pre-processing needs. These
collaborations aim to secure the power plant biomass fuel source and deliver
an updated power tariff for a smaller 7-8MW power plant now needed for the
Project.

 

Remaining Optimisation Milestones:

 

Asiamet remains on schedule to complete remaining engineering and optimisation
objectives by the end of Q4 2024. Key milestones and anticipated news flow
include:

 

·    Q4 2024: Finalisation of materials cost estimates, construction
schedule, and financial model with updated capex and opex estimates.

 

·    Q1 2025: Re-engagement with banks for debt financing facilities,
supported by final engineering studies and bank due diligence.

·     Q1 2025: Resource drilling on the Rinjen limestone deposit to lock
down a local source of processing limestone supply.

 

Darryn McClelland, Chief Executive Officer of Asiamet Resources, commented:

 

"With substantial progress made on the optimisation of the BKM copper project,
we remain on track to complete the revised capital and operating cost estimate
before year-end. The refinement of our project economics, bolstered by
targeted cost reductions and streamlined construction planning, positions BKM
as a competitive copper project as we lead into project financing.

 

As the global demand for copper continues to intensify in line with the energy
transition and electrification themes, the BKM copper project stands out as a
valuable, strategically located asset that can deliver meaningful returns to
investors in the years ahead.

 

Further updates will be provided as the optimisation work is wrapped up and
project financing gets underway to move the project into the construction
decision phase."

 

 

Photos from Visit to Rexline Engineering Indonesia Fabrication Facility

 

Photo 1: Entrance to Rexline Engineering Indonesia's Fabrication Workshop
outside the large industrial city of Surabaya, East Java.

 

 

Photo 2: Asiamet CEO Darryn McClelland accompanied by REI Workshop Manager
Bagus Suryo commencing tour of Fabrication Workshop facility. Noting either
side of photo the significant structural steel members completed
fabrication.

 

 

Photo 3: Inspecting some completed Conveyor Rollers (still require final
coating). REI fabricate their own design and brand of Conveyor Rollers in this
facility with a production rate of approximately 3600 rollers per month. The
conveyor system design for BKM completed by REI and fabrication of all
materials would take place in this facility in Project Execution.

 

 

Photo 4: Examples of large structural steel fabricated pieces awaiting
protective coating.

 

 

Photo 5: Inspecting 2m wide 4 roller press for rolling large plate steel for
conveyor pulleys and tank sections.

 

 

Photo 6: Inspecting Automatic Plasma and Laser cutting unit. Steel cutting
design is completed in the workshop engineering office and downloaded to the
cutting unit for execution.

 

 

Photo 7: Asiamet CEO discussing aspects of the Fabrication Workshop activity
with site management.

 

 

ON BEHALF OF THE BOARD OF DIRECTORS

Darryn McClelland, Chief Executive Officer

 

-Ends-

For further information, please contact:

Darryn McClelland
Chief Executive Officer, Asiamet Resources Limited

Email: darryn.mcclelland@asiametresources.com
(mailto:darryn.mcclelland@asiametresources.com)

 

Tony Manini
Chairman, Asiamet Resources Limited

Email: tony.manini@asiametresources.com
(mailto:tony.manini@asiametresources.com)

 

Investor Enquiries

Sasha Sethi

Telephone: +44 (0) 7891 677 441

Email: Sasha@flowcomms.com (mailto: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 (mailto:asiamet@strandhanson.co.uk)

 

Broker

Optiva Securities Limited
Christian Dennis

Telephone: +44 20 3137 1903

Email: Christian.Dennis@optivasecurities.com
(mailto:Christian.Dennis@optivasecurities.com)

 

Follow us on twitter @AsiametTweets

 

 

FORWARD-LOOKING STATEMENT

This announcement 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.

 

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