Business
Updated BKM FS Delivers Excellent Economics
Updated BKM FS Delivers Excellent Economics.
About this update from Asiamet Resources Limited
[{"type":"text","content":"\n\n10 May 2023\n \nUpdated BKM Feasibility Study Delivers Excellent Economic Outcomes\n \nAsiamet Resources Limited (Asiamet or the Company) is pleased to announce the results of the updated Feasibility Study (FS) for its 100% owned BKM Project located in Central Kalimantan, Indonesia. \nIn line with significant changes in the macro-environment for new projects, a very comprehensive update to the previously announced 2019 FS for the BKM copper deposit has now been completed. The updated 2023 study is based on open pit mining, and heap leaching of crushed ore followed by solvent extraction and electrowinning ('SX-EW') to produce LME Grade-A copper cathode (the 'Project') for sale into local and export markets.\nCompletion of the updated study enables the Company to accelerate its engagement with key financial institutions, commodity traders and equipment suppliers for a project finance package to develop the BKM copper mine. The proposed development timeline for the BKM Copper Project is well timed to take advantage of the looming copper supply constraints predicted by leading industry analysts. Development of this initial mine and associated infrastructure is expected to unlock significant potential for further mine developments based on deposits already identified within the KSK Contract of Work.\nA summary of the highlights of the Feasibility Study are detailed below and the Executive Summary of the Feasibility Study is available on the Company's website at www.asiametresouces.com\nHighlights - 2023 BKM FS Update:\n· Initial 9.2 year mine life producing up to 20ktpa of copper cathode per annum\n· Life of Mine ('LOM') Revenue of $1.4 billion and EBITDA of $655.3 million\n· Capital cost of $208.7 million (excluding growth and contingency $26.7 million)\n· Post Tax NPV8 $162.8 million, IRR 21.0% (post tax, excluding closure costs)\n· Payback Period 3.4 years\n· C1 cash costs of $1.91/lb and AISC of $2.25/lb\n· Base case uses consensus long term copper price of $3.98/lb\n· Total Measured, Indicated and Inferred Resources unchanged at 69.6Mt @ 0.6% Cu for 451.9kt of contained copper.\n·  ...