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
Tony
Manini
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
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.