REG - Asiamet Resources Ld - Interim Results for Six Months Ended 30 June 2024
30/09/2024 12:01
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RNS Number : 2592G Asiamet Resources Limited 30 September 2024
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 (http://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
(mailto:darryn.mcclelland@asiametresources.com)
Tony Manini
Executive 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
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.
Interim condensed consolidated statement of financial position
As at 30 June 2024
30-Jun 31-Dec
2024 2023
Note Unaudited Audited
$'000 $'000
Assets
Current assets
Cash 1,796 4,136
Receivables and other assets 5 195 131
1,991 4,267
Non-current assets
Plant 4 27 28
Right-of-use asset 7 7 2
Receivables and other assets 5 58 65
92 95
Total assets 2,083 4,362
Liabilities and Equity
Current liabilities
Trade and other payables 351 270
Provisions 6 284 296
635 566
Non-current liabilities
Provisions 6 611 615
1,246 1,181
Equity
Share capital 25,902 25,902
Equity reserves 67,478 67,378
Other comprehensive Income 126 126
Accumulated Deficit (89,416) (86,972)
Other reserves (3,246) (3,246)
Parent entity interest 844 3,188
Non-controlling interest (7) (7)
837 3,181
Total liabilities and equity 2,083 4,362
Interim condensed consolidated statement of comprehensive loss (unaudited)
For the six months ended 30 June
30-Jun 30-Jun
Note 2024 2023
$'000 $'000
Expenses
Exploration and evaluation 3 (1,009) (951)
Employee benefits (1,090) (1,282)
Consultants (42) (55)
Legal and Company Secretarial (75) (60)
Accounting and audit (1) (2)
General and administrative (117) (134)
Depreciation (10) (16)
Share-based compensation 9 (110) (382)
(2,454) (2,882)
Other Items
Foreign exchange losses 1 (8)
Finance costs 52 -
Impairment expense 5 (43) (82)
10 (90)
Net loss for the half year (2,444) (2,972)
Items that may not be reclassified subsequently
to profit or loss:
Actuarial gain (loss) on employee service entitlements - 1
Total comprehensive loss for the half year (2,444) (2,971)
Net loss attributable to:
Equity holders of the parent (2,415) (2,945)
Non-controlling interests (29) (27)
Total comprehensive loss attributable to:
Equity holders of the parent (2,415) (2,945)
Non-controlling interests (29) (27)
Basic and diluted loss per common share (cents per share) 0.12 0.15
Weighted average number of shares outstanding (thousands) 2,240,894 1,942,542
Interim condensed consolidated statement of cash flows (unaudited)
For the six months ended 30 June
Note 2024 2023
$'000 $'000
Operating activities
Loss before tax (2,444) (2,971)
Adjustments for:
Depreciation 4 5 16
Right-of-use asset (5) -
Share-based compensation 9 110 382
Net foreign exchange (loss)/gain 4 (3)
Impairment expenses 5 43 82
Finance costs - 1
Adjustment to Provisions (16) 7
Changes in working capital:
Receivables and other assets (100) (63)
Trade and other payables 81 (314)
(2,322) (2,863)
Interest payments - (1)
Net cash flows used in operating activities (2,322) (2,864)
Investing activities
Purchases of plant and equipment 4 (4) (6)
Net cash flows used in investing activities (4) (6)
Financing activities
Payment of principal portion of lease liabilities - (58)
Equity raising costs (10) -
Net cash flows from financing activities (10) (58)
Net decrease in cash (2,336) (2,928)
Net foreign exchange differences (4) 2
Cash at beginning of the year 4,136 5,185
Cash at end of the period 1,796 2,259
Interim consolidated statement of changes in equity (unaudited)
For the six months ended 30 June 2024
Total equity
Other attributable Non-
Share Equity comprehensive Accumulated Other to the controlling
capital reserves loss deficit reserves parent interests Total
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Balance at 1 January 2024 25,902 67,378 126 (86,972) (3,246) 3,188 (7) 3,181
Loss for the half year - - - 8,387 - 8,387 (10,831) (2,444)
Total comprehensive income - - - 8,387 - 8,387 (10,831) (2,444)
Transactions with owners in their capacity as owners
Contribution by parent in NCI - - - (10,831) - (10,831) 10,831 -
Equity Raising Cost (10) - - - (10) - (10)
Share based compensation - 110 - - - 110 - 110
Balance at 30 June 2024 25,902 67,478 126 (89,416) (3,246) 844 (7) 837
Interim consolidated statement of changes in equity (unaudited)
For the six months ended 30 June 2023
Total equity
Other attributable Non-
Share Equity comprehensive Accumulated Other to the controlling
capital reserves loss deficit reserves parent interests Total
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Balance at 1 January 2023 21,831 66,921 71 (81,743) (3,246) 3,834 (7) 3,827
Loss for the half year - - - (2,945) - (2,945) (27) (2,972)
Other comprehensive income 1 - - 1 - 1
Total comprehensive income - - 1 (2,944) - (2,944) (27) (2,971)
Transactions with owners in their capacity as owners
Contribution by parent in NCI - - - (27) - (27) 27 -
Share based compensation - 382 - - - 382 - 382
Balance at 30 June 2023 21,831 67,303 72 (84,715) (3,246) 1,245 (7) 1,238
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.
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