Work is continuing at the BKM copper development project in Indonesia in preparation for the project financing stage.
The borrow-to-use permit on BKM, which is expected to be granted in the final quarter of this year, is the final approval required for construction to commence.
Asiamet is also in talks with its largest shareholder, Aeturnum Energy, over its acquisition of the KSK contract of work (CoW), which includes the BKM, BKZ, and BKS deposits.
A successful offer would significantly de-risk the BKM project, said Berenberg.
Once the borrow-to-use permit is in place, the broker expects financing to complete in the first quarter of 2021, a start to construction will follow shortly after and copper production begin in the second half of 2022.
Berenberg kept its share price target unchanged at 6p and a ‘buy’ stance in the expectation the shares will re-rate on a revised offer from Aeturnum and the granting of the borrow-to-use permit.
Shares were unchanged at 2.4p.