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I think the peak of pessimism is probably now in place on this stock after a terrible few months of leadership & PR. The buy case remains the same and that is the upside is the Oporto make life ch aging amounts of money.
The stock, like all biotech, carries risk, but we know we are entering a period of frenzied M&A in biotech
There is nothing priced in for Beutong, yet it is enormous with a JORC of 5.3billion pounds of Copper plus large silver & gold resources. To put it into perspective it’s not much different in scale SOLG’s Cascabel asset & that’s valued alone at more than 15 times Asiamets market cap.
Asiamet priced at 1.3p is just a case of low sentiment & a bear market on AIM and small cap. That is changing now.
AS has served the company well. Like almost founders there comes a point where a company reaches a stage when someone else is better equipped to run it. In the case of this company the time is now.
Christina Coughin comes with vast experience and an exceptionally strong background to take the business to the next stage. I suspect we will see further appointments & strengthening of the team soon.
She will also be very focused on farm out licences, commercial deals & potentially a full takeover. Unlike a founder she will be focused on maximising shareholder returns.
The company has never been in a better position, with exceptional data, strong cash position & as outlined in the recent update record revenues. I note the revenue has been overlooked by the market. Why ?
I suspect we see major news flow over the coming months.
Share price doubles or more in next 3 to 6 months.
Regular 1m buys coming in for days. Someone is accumulating a position here.
The company have said on a number of occasions now that they have inbound interest, site visits done and data room open.
An offer now would need to be at a 150-300% premium.
Chart wise clear run to 1.6pence.
BKM is one of only a handful of advanced Copper discoveries with a full feasibility study completed. Advanced engineering plans for mine build, complete infrastructure plan & almost all permits in place.
Of course a major player would take this on & with the right funding advance the project to mine build & production Quickly.
Asiamet will be sold as a whole company or they will sell KSK & buy a producing asset or developed Beuetong.
It’s now a case of how much they sell KSK for. NPV of BKM at these copper prices is greater than 6p per share. Remember
BKM is one of many deposits in the KSK district.
Nobody is talking about Beutong - which hold 5.3billion lb’s Copper plus Gold & Silver.
Copper price pushing towards $100000 a tonne. Looks highly likely to make a new All Time High soon.
Asiamet continues to be valued below 20£million. For a company with an advanced copper project that will generate 25,0000 tonnes Copper Cathode annually the level of cash flow is enormous.
I highly suspect we will see the first offer for KSK come in shortly.
Asiamet has been leaky for years.
Current volume increase and share price movement upwards suggests something of significance is coming.
We all know that this could easily double on one rns.
Downside risk is minimal based on market cap being so low.
It’s a compelling short term trade.
BKM NVP on the detailed & refined feasibility study is well above $200m at these copper prices. BKM sits in the KSK district which is part of the Asiamet assets. KSK has another 20+ project targets with the other major one being BKZ which again is detailed.
With a company valuation at 15 £million it is a compelling takeover target with one of the few global near term copper projects so advanced.
Anyone buying at these levels of share price would double their money easily and likely do much more than that.
Selling has now moved to buying and can easily see this stock moving really fast with such a low free float.
One of the best, if not the best value, junior miners on LSE/AIM.
Investors may have been rocked by the 50p placing, but it raised more than expected & funds the company for two years. I think now it will quickly move back up towards £1 as new investors come on board.
This is not a time to ponder and wait. It will move really fast once it gets going.
This is Beutong:
Contained metal in Resource on a 100% basis comprises 2.43Mt (5.3BIb) copper, 2.11Moz gold and 20.9Moz silver (1.95Mt (4.30Blb) copper, 1.69Moz gold and 16.73Moz silver on an 80% attributable basis)
The Beutong porphyry and skarn system(s) remains open to the east, west and at depth. The deepest drilling completed to date has intersected porphyry mineralisation to around 800 metres below surface and approximately 200-300 metres below the depth of Resource delineation drilling completed to date.
Strong copper, gold and molybdenum grades and the presence of highly mineralised chalcopyrite-bornitemagnetite bearing breccia clasts proximal to a large magnetic body modelled at depth below current drilling highlight excellent potential for the discovery of a high grade core similar to that seen in world class porphyry systems such as Wafi Golpu, PNG (Newcrest) and Cascabel, Ecuador (Solgold
The positive out of today is that they have taken more money because the placing was oversubscribed. This now gives them a 12 month cash runway, which is time to really advance the data.
For all shareholders, unless they decide to sell now, this should give the platform for the share price to gradually recover some ground.
Good luck to all retail investors now.
I said last week they needed to raise £25-30million & they have only got away £13million .
This means they will be back with more dilution within 6 months.
They simply have to keep raising money to pay the huge cash outlay.
No real technical support now until 50p.
Market just does not get the valuation of this business at £200m. Also does not believe they can get funding away unless at a heavy discount.
Thought it might consolidate around 72p but too much selling for that to happen.
Some investors I suspect panic selling as they realise this is early stage biotech & you can get hugely diluted or even lose everything.
In investing you must never be an Ostrich. You cannot bury your head in the sand. You have to listen to all opinions & you then have to take a balanced view.
Just pumping out messages about how good the data is does not solve the funding issue.
Don’t get me wrong if I was already invested I would hold here, but I would not be adding until funding is resolved.
Just my opinion. Shout it down if it makes you feel better.
Unless there is significant news or they close funding then before any meaningful & sustained rise in this stock will only come after volume drops & we see a period of consolidation.
At the moment this wants to retest the recent low of 72p & likely it then puts in another low.
Funding is a major issue for all biotechs however good the data.
It either double bottoms at 72p now or drops a lot further.
The issue remains the same. The enormous market cap for a business that’s not even anywhere near phase 2 data closure.
People need to read the success rates of early stage biotech’s. The number that actually get through phase 2 & 3 then approval is tiny.
Anyone invested here needs to understand the risk of losing everything.
In the meantime they need to raise cash.
The winners today will be the short term traders who bought in on the back of this mornings pump. They will then sell into this dead cat bounce.
Anyone saying the bottom is in is calling that way too early.
Next week will be a slow drift back down unless some big news lands.
Key technical support was broken so now support is 43p. The 52 week low of 83p looks like it’s about to break.
Have to assume now the cash raise will need to be £30million minimum so a dilution of around 20-30% for all shareholders.
There is always an outside chance of a commercial deal to get cash into the business, but the issue is the company is still valued at £240m.
It will be a painful period now until cash is raised.