Asiamet Resources (LSE:ARS) — Investor Presentation

0:01 Good morning, ladies and gentlemen, and welcome to the ASIAMET RESOURCES LIMITED investor presentation. Situated on the right hand corner of your screen. Please just simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company will review all questions submitted today and publish responses where it is appropriate to do so, and these will

0:32 be available via your investor meet company dashboard. Before we begin, if I may, I would like to submit the following poll. And if you could give that your kind attention, I'm sure the company would be most grateful. And I'd now like to hand you over to CEO, Darren McClelland. Good morning, sir. Good morning. Thanks, Jake. I appreciate, yeah, appreciate the opportunity this morning, this evening where James and I are, to meet with investors today and to be able to discuss the BKM copper project and and information we've just released related to our feasibility study. So I have by way of introduction, I'd just like to introduce James Dio, our our chief development officer. He's been with ASIAMET for for a good number of years and has been integral in assisting, assisting me in delivering the updated feasibility study.

1:17 So, yeah, I'd like to jump into it and take you through the presentation. Okay. So today we'll be talking the BKM copper project, build ready copper mine in Indonesia. We think perfectly timed for the energy transition. So some of the highlights from the feasibility study update, which we've just completed, certainly delivering some robust economics, just under 163,000,000 NPV post tax, excluding closure. Initial life of mine revenues, US1.4 billion dollars Payback period of three point four years, which is which is excellent. We've got a third of the the the current life of the BKM project.

2:02 Internal rate of return of of 21%. EBITDA over the life of mine of $655,000,000 an initial mining life of nine point two years. The actual heap leaching life is right on ten years of our production, our copper cathode production out of the heap leach. C1 cash costs, a dollar 91 a pound. And and applying the the NPV to our our share count, we'd get a a project project value NPV per share of five dot 5.95 p. So certainly certainly some significant significant upside there for us. And and as we have spoken, the the BKM copper project, the Heap Leach project certainly enables us to to take steps forward to realizing the upside across the the BKM district and the KSK contract of work.

2:54 So just quickly, as as part of our release of, the feasibility study update, we also have released an updated ore reserve for BKM. This is utilizing the new cost information from the work that we have done through the feasibility study update. So our current ore reserve for DKM sits at 40,800,000 tonnes and a total copper grade of 0.70.5% soluble copper. So total contained metal, two seventy two kilotonnes of total copper and 198 kilotonnes of soluble copper. We have done some I won't go into too much detail, but our flow sheet there on the right hand side, we've made some changes as part of this process of the feasibility study update, have been enabled by us through the way in which we have approached design of the heap leaching facility in particular.

3:44 It's allowed us to do some optimization work on setup of the processing circuit for VKM. Some physicals most of these we have discussed previously when we had released the updated physicals for the life of mine. None of these have none of these have particularly changed. Really can see that in terms of our our copper profile, we have a couple of strong years in in the early part. So year year one is a is a ramp up of the of the heap leach, so there's there's less production. And then we hit the the first the the next two years, years two and three, maximum maximum copper production just under 20,000 kilotons. And then we average around 16 kilotons over the course of the next six years before the the final year of the heap leaching operation, just final irrigation of the heap. So we're able to achieve the high production rate at the start. So we we do access some some very good grade, high soluble copper grade at the beginning of the mine life in those first couple of years and allows us to deliver those high copper tonnes and then drops down to that steady state rate of 16,000 tonnes per annum.

4:53 In terms of our CapEx, a slight change from what we had released previously, which was sort of $236,000,000 We made some final changes and adjustments to a couple of the I guess, couple of the areas around some mining infrastructure and a couple of additional items which which came in, but we're also able to look at a couple of areas where we had some savings. So so overall CapEx, slightly lower than what we had, yeah, what we had issued to the market last month. In terms of capital cost intensity, looking looking quite reasonable, sort of sitting around that 16 to 16 to $17,000 per ton of per ton of copper produced. Certainly, you know, when we talk about some of the opportunities there, they could be you know, we we'd like to look at some further opportunities for improving the capital cost and certainly protecting any any sort of drift to the upside.

5:47 Yes. It's it's well placed when we look at it relative to, yeah, relative to a broader a broader set of of projects as you can see on the right hand side. In terms of the the financial and economic results, certainly, the some of the high points here. So we we have used a a long term copper price of of $3.98. And and certainly and certainly some good, you know, some good numbers in terms of copper cathode premiums being paid in Asia. So we're confident to use a current number of $100 a tonne for LME grade A copper cathode premiums. Revenue, as we've spoken, 1,400,000,000 and EBITDA of CAD65 million and net profit after tax of just under CAD379 million.

6:35 So on cost side, these are all of the new operating cost models that we've developed through the feasibility study. So our current mining cost of a tonne, an overall processing cost of $6 and 10. And our remaining support services direct costs around 34¢ a pound of copper. Total cash cost of of a dollar 91, all in sustaining costs, so inclusive of additional indirects plus also our sustaining capital of $2.25 a pound. So in terms of our overall metrics, as as you just mentioned, we have some some other details on the right hand side. So we've already mentioned our total construction cost, 235.4. We have a sustaining capital budget of of 35,400,000, which is largely the which is mostly related to ongoing development of the the Heap Leach facility as as we build that out over time. We also have made a a significant closure and rehabilitation provision in financial model.

7:32 So we'll up excluding closure, our 162,800,000 NPV and 21% internal rate of return in the three point four year payback period. Here's some work that we did on on sensitivity. So looking at our base case of $3.98. The average year to date copper price, that was was up to April April twenty twenty three. So $4 and 6. We see that there's been a bit of weakness in the copper price just in the last just in the last week or so. And, certainly, you can see some some leverage certainly leverage in terms of NPV return rate return as as we see stronger copper pricing moving forward. The project is is well leveraged to the to higher copper prices.

8:21 In terms of in terms of overall sensitivities in the project, certainly, the the project is more sensitive to copper price and and less sensitive to to changes in in operating cost and capital cost. So you can see the the operating the changes in operating cost relatively modest at 5%, 10% increases. Still seeing NPV ranges of sort of 120,000,000 to $140,000,000 even with increases in those costs. The sensitivity is applied to the total cost for those items. So it would be a 5% or 10% increase in mining and processing and the support services cost is the information that's seen in this graph here.

9:07 So the the FS I mean, I guess, importantly, you know, the the FS was being done in a period where it was relatively high in inflationary costs. And and certainly some of those costs have started to come down. You know, in in even in seeing some of the information that is coming forward, you know, sort of coming forward now, there is there's obviously a lowering of of some of the inflation pressure, although it's still, you know, relatively high across a number of jurisdictions. But, you know, compared to to where it was six months ago, certainly some yeah. Certainly, a bit of easing there. So there's, yeah, there's some opportunities there that, again, you know, when when we're looking at construction and taking this forward into the into the subsequent years, then and, of course, things can change, but just just important to realize the, I guess, the environment in which the the work was done over the course of the last last nine months.

10:01 There we have we have identified several opportunities that we can see as being some some further improvements to to the project. And and these and, certainly, you know, we we have to draw a line in the sand of of completing a a study as to where it is now. And and some of the opportunities came in came in later than yeah. Came in late in the late in the process, so we weren't able to to look at at these, you know, for fear of certainly pushing out, you know, delivery of the feasibility study further. So so there's a few there's some some good things here, and and, you know, we wanna look at starting some work on these soon, you know, very soon. So, you know, the the first one is probably the most significant, and and that's a body of work that that have been speaking with people today about where I am at the moment.

10:49 And so, hopefully, we can we can look at starting some work on that in in early June and and be able to to sort of sort go through that process and be able to look at the proposed relocation of the heat facility and and really understand conceptually if it if it makes sense to do that and, you know, what the potential improvements would be. So we're we're aiming to to work on that through June and and have an answer by the end of June, early July. And and, I guess, the the range of other things as of optimization processes, yeah, which we can certainly look at once we once we clear the decks of of all of the detailed the the detailed requirements and and reporting required for the feasibility study, which I'll I'll get to shortly.

11:28 Just wanna touch on ESG strategy framework. So this this is work that you know, this this is work which we have reported and which, yeah, was was worked on with a, you know, a well known international consultancy. And and really setting out, yeah, setting out our framework of how, you know, of how we wish to to take forward environmental, social, and governance governance aspects for ASIAMET as a business and and then how we will apply those to the to the KSK project. So, yeah, certainly, you know, certainly, we have some some good things in place at the moment and and, you know, an area that that KSK and and our BKM project is particularly strong in is the is the social aspects. We need to build it up further, particularly on the environmental management side as we come into, obviously, construction and development and then into operations.

12:17 And as we grow as a business, certainly our governance processes can also grow with us as a business.

12:25 In terms of our next steps, so we are just completing the completion and compilation of all of our all of our chapters for the BKM project FS update. So we've we've, issued recently our our RNS announcements. We've also issued the the executive summary. So we're just pulling together all of the final final pieces for all of the final chapters and and all of the technical reports and details that come along with that and and being able to wrap that all up and close that out within the next three weeks. We would like to formally appoint a lead bank for project financing. There's been discussions which have been held certainly over the course, yeah, over the course of this feasibility study period and and, you know, certainly think that we'd like to be able to to to to make a formal announcement on that in, you know, certainly soon going forward.

13:14 And then taking you know, then from from the lead bank, you know, taking through that independent technical expert, the IT process, they will need to do a detailed review of the the 2023 FS documentation as as is required by the bank's credit committees and be able to give their independent view on the outcomes of the project and taking that forward. We will close out the work which I've mentioned before on capital and operating cost savings opportunities and look at wrapping those up and be able to, you know, and and be able to, you know, deliver on you know, look at the opportunity to deliver on those and and how they can feed into the you know, into an update of of CapEx and OpEx as it comes out of the the process with the ITE and leading into final financing.

13:58 Be ideal to commence engineering design works, well, for soon. There's some there's some early works that, that can be done on the yeah. That can be done on the project and and certainly being able to recast and and and, put put in place, you know, final information in relation to the particularly, you know, any changes to process design criteria and some other things which are the the building blocks going into the into the detailed design. There's an opportunity, of course, you know, subject to funding and finance, then, you know, it would be good to get those works done sooner rather than later to be able to lead into the into the detailed engineering process. Yeah. Over this time, I mean, we will be certainly, you know, engaging in, you know, a wide range of project finance discussions and and engaging a broad a broad broad group of a broad group of, I guess, you know, opportunities for for financing financing BKM.

14:52 Certainly looking at bank bank debt, product offtake, equipment finance, and even potentially export credit finance. So I think there's a there's a wide range of opportunities open to us, and and, you know, we certainly wanna look at exploring exploring those opportunities, but we have to bring them to, you know, we'll have to bring them to a head, you know, as quickly as practical and as practically as possible. And certainly an opportunity to commence some some early works on-site. There there will be some some works that we need to do early in the process that aren't related to to specific site works and some off-site works, which which would be beneficial to be able to do on the project relatively early, and we'll have all the information we need to do that certainly before yeah. Within the next couple of months. So so there would be an opportunity to to do some preworks off-site not too far in the future.

15:42 Just a list of the people that have assisted sorry, groups that have assisted us with compilation of the feasibility study. Some really good work done by a wide range of consultants in the key areas that needed to be addressed in this updated feasibility study.

16:02 Finally, so going into this, I'd just like to reiterate how we view the KSK property and and how we're thinking about its its evolution over time. We've said often often in discussions and and communicating that, you know, the BKM copper heap leach SXEW is a is a first phase of of development of of KSK and and the BKM mineral field. It's a good starting project. We make copper cathode immediately. We have no challenges in terms of, you know, the the processes of of selling and trading that. So delivering that final product is our first, you know, as part of our first project is is ideal for us in, you know, in in the situation we're in. So so it's a really good starter project, and it and it enables us to to, you know, build and put in place a number of the the key stepping stones and building blocks to to allow us to continue to develop the project.

16:53 See the next phase the next phase is being an opportunity to to further, you know, further expand the the extraction of the resource for BKM. As we know, we have a over 450 over 450,000 tonnes of contained copper in in BKM. You know, we're we're recovering a 156,000 tonnes of that of that copper as copper cathode in the heap leach project. There's copper remaining in the heap, and there's copper remaining in the resource still within BKM. So, you know, our view is that and and others are taking this view in within Indonesia as well. There's there's an opportunity there for us to look at the, you know, the the concentrate concentrate route for for copper and pyrite to be able to deliver more value out of the BKM resource. And and as we and and we realized that as we develop BKM, you know, the the future of BKM, you know, is is most likely moving into the into the flotation concentrate area. So it it makes sense that we move into that area for for BKM that potentially produce that pyrite and and copper concentrate. And then that naturally evolves into the the process of a third phase of developing a prospect like BKZ, which has zinc, lead, copper, gold, silver, and, you know, will will be processed through the the the route of flotation and making, you know, different concentrates, lead concentrate, lead concentrate, copper, and and then potentially a high precious metals lead concentrate as well.

18:20 So the evolution of the heap leach gets us started, it's not necessarily the future of the longer term future, but it allows us to get that footprint and get us started on-site and then allows us to to be able to work on and and develop the second and third phases of of this business on KSK. And and this is only just in the BKM mineral field, and there is there's additional exploration that needs to be done in in the BK area. And, of course, then we have other prospects across the across the contracted work. Yeah. So so ultimately getting to a getting to a point where we'd like to, you know, be producing, you know, the equivalent of 35 to 40,000 tons of contained copper over, you know, over a ten year period out of the out of the BK mineral field itself.

19:09 So that's our that's our vision. It's our our current vision to, yeah, to reach a 30 to 40,000 kilotons per annum of copper equivalent coming out of coming out of just that one part of the of the the KSK contracted work, the Gurungkanan mineral field itself. And, certainly, there's there's, yeah, additional prospectivity and and exploration follow-up that we need to do just within that area as well as other areas across the contracted work. DKM heap leach project unlocks this unlocks the KSK contracted work, and it and it really establishes an operational operational platform platform that we need to grow the business. We need to grow that, grow the contracted work. So, yeah, the the phases one and phase two can can be, you know, are able to come out of the the BKM deposit as as a copper only as a copper only deposit, and then we get a chance to to look at the third phase and be able to develop BKZ as a as a polymetallic polymetallic deposit. We know that we need to do additional drilling in in BKZ.

20:07 The the resource is open in a number of directions, and and, of course, we'd like to like to step up the the confidence from inferred to to high levels of resource categories so, you know, we could start doing workarounds, you know, supporting supporting development of that of that asset. But, you know, it all it all becomes you know, we'd like to think that it all becomes it all becomes unlocked once we can actually get an operational footprint on-site, and and that's what the BKM heap leach project allows us to do.

20:35 And, that's that's it. Thanks, Jake. We'll finish there. Thank you. Perfect. Darren, James, thank you very much indeed for your presentation this morning. Ladies and gentlemen, please do continue to submit your questions just by using the q and a tab that's situated on the top right hand corner of your screen. But just while the team take a few moments to review those questions that were submitted already, I would like to remind you that a recording of this presentation along with a copy of the slides and the published Q and A can be accessed via your investor dashboard. Darren, James, we did receive a number of pre submitted questions ahead of today's event. And as you can see there in the q and a tab, we've also received a number of questions throughout your presentation this morning as well. So firstly, thank you to all of those on the call for taking the time to submit their questions. And perhaps, guys, if we just get straight into it, the first question that we have here reads as follows.

21:26 You have talked about the project opportunities and next steps in your presentation. Can you please elaborate on these a bit further with respect to timing of delivery and execution along with some of the anticipated savings that you are projecting? Yes, sure. Sure. Thanks, Jake. So, yeah, the opportunities which we mentioned before, heap leach relocation, looking at potentially the mine scheduling, some some some opportunities on on refinements of of some of their mine scheduling and and our contracting strategies. Yeah. All of those all of those items, you know, I I would like to have investigated and closed out. So we're I guess our focus now for the next sort of two to three weeks is just getting everything done on the on the main feasibility study document, getting getting all of the technical work together and being able to deliver that because that that is that is ultimately the requirement for the discussions with an independent technical expert, etcetera, that that needs the all all of the detailed documentation. So that's our focus over the next sort of two to three weeks is get everything closed out with the current study.

22:30 And then the intention will be to to start work on the additional some of these additional opportunities, you know, starting from early June. I mean, today, I had a I had a discussion with our consulting engineers here in Perth talking about the the opportunities for the for the heap leach the heap leach facility, and and, you know, we're working on a a scope of work to to have a look at that as well as potentially a couple of other opportunities for just just understanding a couple of the inputs into the processing design. So yeah. But all all of those bodies of work, we would like to complete sort of, let's say, June, July, you know, and and into close them off in August because, ultimately, they potentially lead to some decisions about execution and and some changes. And and there's a couple of things that, you know, we'd like to bring in sort of within that time frame. So, yeah, that's that's sort of where we see those those coming from. In in terms of in terms of the cost savings for those, yeah, a little bit a little bit difficult to, yeah, a little bit difficult to say for a couple. I mean, I have I guess I have some some sort of rough ideas in my head from some very preliminary work that we've done.

23:34 But it it's one of those things where, you know, some of the changes are gonna have flow on effects to other things, so we need to see how all of the things fit together. I think from from my perspective, the the biggest I guess, the biggest opportunity to try and realize is is potentially this relocation of our our heap leach facility because that potentially has a has a more straightforward conversion and allows us to probably, like, to build too much earthworks and also helps us at the time. So that's the one that we're largely focusing on, you know, certainly starting in the next month in understanding that to make sure we we could realize that. If if it doesn't have other other yeah. We need to make sure it doesn't have other impacts or or other flow on effects from from the process. Thank you very much for that, Darren. The next question that we have here asks the additional IT pre review process was lengthy.

24:26 Given that the project has already been examined in detail by the IT, do the company expect the process to be quicker this time around? Okay. I I mean, they they will be two two two relatively different processes. The the the sort of the pre feasibility sorry. The the prework that was done with the IT was, yeah, was reviewing the old the the previous documentation and and giving, you know, and and giving us that there was an engagement that that ASIAMET took on themselves with the with the IT to to to get feedback into what was needed to be in the in this feasibility study update. So the next process that that happens will for an IT, they they will be working for the bank, and they will be that will be the the technical advice going to the bank to say, you know and and for the bank to go then go on to its credit committee to to say that, you know, this, you know, this is a solid investment.

25:20 You know, it's, you know, a solid, know, a solid project to be able to, you know, to pay back your to pay back your money. So, you know, it if anything, this may take this may take a bit longer. I think that the previous process didn't didn't drag on too long, And it gave us a huge amount of information to to be able to take forward into the into the the current study. And and I've just spent the last, you know, last couple of days updating the risk assessment that was done by the IT previously and and listing out the things that we have done as part of the study to address the items that were raised previously. And and, you know, I I feel confident when I look at all the things that we've done, you know, that we had gone, you know, a really long way to addressing, you know, addressing concerns that they had when they reviewed previous previous work. So, yeah, I think that's good.

26:06 And and I I had a chance to meet with the IT lead today and and take him through the well, yeah, most likely proposed IT lead and and be able to talk through, you know, the work that we've done. And and, yeah, it was a good chance to catch up and and give an update on where things have gone. Perfect, Darren. Thank you very much for that. Perhaps just turning on to the next question that we have here that talks to the ore reserves report and asks, what was the significance of the ore reserves report, which immediately preceded the delivery of the FS? Yes, sure. So as part of delivering the the feasibility study, it required us to do an update of an update of the ore reserve. And and so we had it's it's one of one of the I guess, of the situations in doing these in doing these studies is that you you need to do you need to do a process of of some optimization and and basically a almost a a mini reserve at the start of your at the start of your study process with the best information you have available so you can subsequently do the the production scheduling and financial modeling, etcetera, to to be able to take your your process through. And and what's important at the end of that process is that you you usually end up with some different information from where you started with. So it's important that you you take all of your final information from from your work and and effectively feed it back into the process of the the the open pit optimization and and

27:37 a final pit design and and sort of confirm where your, you know, I guess, where your where your economic order comes out. So so I guess for for us, what was, you know, what was extremely pleasing is that we we adopted a a pit design, you know, six months ago as as as a key input into the process That's followed all the way through. And and when we've come to do our our our final reserve number, we things have been yeah. Things things have moved in costs up and down. It's all it's really all about operating costs and and from where we started with. But but, ultimately, we've been able to effectively keep exactly we have kept exactly the same pit and been able to report the the economic material from within the the pit design, which we have held over the over the course of the feasibility study. So that was a yeah. That was it's a it's a really good check yeah. An an important check to to show what has happened over a period of time and and delivery of the economic material out of the project.

28:33 So there is a slight diff yeah. There is a slight difference between what we're showing in our feasibility study. Our feasibility study schedule of 38,400,000 tonnes being processed and our our economic ore reserve of 40,800,000 tonnes. That it's a slight difference because there is a bit of a difference in in some of the cost inputs and and we have a bit lower production schedule at the moment in, you know, in our in our feasibility study. But, again, that's actually one of our opportunities when we come to look at the redesign of the heap leaches. We'll have a look at being able to contain all of the ore reserve, which actually means, you know, potentially some additional copper tonnes can come into the production profile with a slightly bigger heap leach facility, yeah, adopting what we have as the final ore reserve for the project. So, yeah. I mean, a a good a good outcome that it is it is very close to to what we have taken forward is the FS schedule.

29:27 I mean, they're very close to each other. Depending on it's slightly slightly larger, you could could argue that our feasibility study inputs are probably slight maybe slightly conservative, I guess, if one of a better term. Thank you very much for that. The next question that we have here asks, the FSLOM is stated to be nine years. Moving beyond moving beyond the starter pit, how long would you estimate the mine could operate for?

29:58 Okay. That yeah. It's a it's a good it's a good question. So in so when when we're looking at I guess we we've shown the production schedule just in in the in the presentation. So, yeah, at at present at present, we have a a ten year sorry. A ten year production life from the heap leach. It's nine nine well, just over nine years of mining, ten years of production from the heap leach. So when when we're looking at our longer term plan, I guess, I have just looked at what the opportunity might be to allow us to bring in, additional stages of processing to utilize existing capacity and some of the equipment in the in a processing plant. So you you actually increase the overall copper production units, coming out of the because we we get to 20,000 tonnes in the first couple of years and it drops to 16. The idea is that at around that time it drops is to is to look at having the second phase come in and be able to to supplement, you know, additional copper units plus, plus pyrite and acid, etcetera. So, yeah, being able to to add additional copper units into to at least maintain or even increase the the the copper production out of the out of the facility. And then, yeah, the opportunity is towards the end where you have a a third phase with with PKZ to look at sort of expanding production capacity further.

31:22 Now we haven't we haven't done we've yet been able to do work on you know, there's there's a lot of work that needs to be done to to look at how we would assess the economics of BKM. We've just done economics on on, you know, what is economic for heap leaching. We we need to do a whole body of work which would tell us what is the economics of, you know, further extraction of the BKM resource, but putting it through a different a different processing route and a different type of a different different type of recovery. So it's a little bit hard to say exactly what that life would would extend, what could it could extend to. You know, at this stage, we've got, you know, a potential profile that goes out to ten years, which which shows, you know, an increasing level of of equivalent copper production.

32:08 Certainly, you know, the resource, when I look at at the loss of BKM, you know, there's there's definitely some additional you know, there's definitely additional years beyond sort of beyond the ten year life if we can, you know, if we can find the best economic way to to assess the primary the the copper which is remaining. So that's the that's the key thing for us. I mean, we we know we know we could mine it because it's it's still sitting there in the pit. It's really the the economics of of processing and recovering, that, that remaining copper, which is the key there. So that's what we need to that's what we will need to work on, particularly in that second phase of work. Thank you very much for that. And perhaps just turning on to the next question, which asks, what is the preferred way forward on BKM, KSK, perhaps direct investment at project level? If so, are DOID still interested, or is it more likely that another party could step into this?

33:06 Yeah. It's a yeah. A a good question. The certainly well, I guess going back in our going back in our history, the the intention was to to look at project level investment. And and we still I mean, we see that as a, you know, as a as a way for us to go as as opposed to to doing, you know, to doing something more dilutive. So, yeah, I mean, we're definitely project level investing is is definitely an option that that we are we are very open to. And and certainly, you know, that that was Doyne's initial intention. And and, you know, we have only just received we have only just issued the feasibility study. Yeah. There's there's obviously some some discussions that could be had there and and, you know, they you know, DOID haven't been directly involved in the compilation of the feasibility study other than the fact that, you know, one of their teams has helped us with capital cost estimation.

34:01 But apart from that, you know, that they have seen the outcomes of the of the study at the same time everyone else everyone else has seen those outcomes, when we've released yesterday. So so, certainly, I'm sure that there's some opportunities for those discussions. Yeah. Those discussions to take place. But, yeah, we are, you know, we are open to you know, we we're certainly open to to other potential investors who who see who see value in the in in BKM, as a standalone, but I think also, you know, I see value in a shared vision of how we can how we can further develop that mineral the the mineral province that is, you know, within within the BK area and and also the greater KSK contract of work. So yeah. So so definitely, you know, it's it's definitely our our we we see that project level, you know, investment is is definitely, you know, one of the one of the big opportunities for us here.

34:52 Thank you very much for that, Darren. The next question that we have here reads as follows. Are DOID still penciled in to appoint a board representative? Yes. There's there's processes. There there's there's internal review processes, and and it was you know, in in our in our announcement when they made the the the placement in November of last year, it was was the opportunity to appoint two board members. There's there's our own ASIAMET internal government governance processes, and and those, you know, those processes are ongoing. So, yeah, certainly, you know, when when those appointments can can be made and and announced, then, yeah, they certainly will be to the to the market. But those, yeah, that those opportunities are there and and remain, yes, remain available.

35:44 Thank you very much for that. I know you did talk briefly to ESG throughout your presentation, but perhaps if there's anything further to add here. A question asked, can you please elaborate a little on the ESG framework you presented and the benefits leading into financing? Yeah. It's yeah. Yeah. Sure. The the the ESG, yeah, the ESG framework which which we developed which, yeah, was developed with, you know, with significant well, thanks, James, I think, with with assistance from that's yeah. I get yeah. It's a, you know, sort of three pronged approach. It looks yeah. It's it's similar to to other models which have which have been seen, but it it you know, it was drawn out of the a detailed materiality assessment that we did with the you know, in the business as it stands as it stands now. And and also, you know, I think my view is that we will do another, you know, another one of the material another material assessment, you know, by the next year, maybe later towards next year and as we sort of move in towards operations because some of the some of the materiality impacts or the materiality aspects will probably change as we get closer to to the operational phase of the business. But yeah. So it was it was a a great you know, it was a good exercise.

37:04 We also it also benchmarked against other sort of leading Indonesian mining mining companies and and sort of where their materiality assessment sat and and, you know, the, I guess, the key issues that they have in their the the key sort of issues that they have in their ESG ESG strategy. So for for us as, you know, to their first project, it's it's been an exploration. One thing I can definitely say is that for KSK and and certainly, you know, leading into the BKM project, There would be be very few projects that I know of that have, you know, such a strong a strong social buildup of social capital associated with the project just through the through the the very long association that the company has had in developing its social links and in developing the foundation, YTS, that that, you does a lot of the work that's related to to community engagement and community empowerment in in the Central Calumetin area and and directly related to our our business.

38:05 So, you know, from beef we've gotta make sure that as we as we we go forward, you know, the, yeah, the impacts, yeah, the impacts have been modest in terms of, obviously, what we've done as an exploration group. But, you know, those impacts become more significant as you start developing, constructing, and and operating a business. So we need to make sure that the yeah. From a social perspective, we we we maintain, you know, the engagement that we have and and and increasing And and increasing engagement that we have and and look for for all of the opportunities to ensure that that local communities are empowered and and and, yeah, do benefit, of course, from, you know, from development of this project. Our environmental frameworks, yeah, of course, will expand and improve over time as we move into construction and construction and development and and and operations. You know, we have a a significant you know, in in our plans for the future, have a, you know, a significant group, you know, associated specifically with environmental management on the site. And and, you know, it's gonna be a a critical success factor for the business to to be able to to deliver on those environmental the environmental outcomes which are which are really critical that we've shown in the feasibility study.

39:14 And, of course, our governance processes as as we grow as a business, you know, some of those some of those governance processes, which are very strong at the moment, you know, we'll we'll also need to grow and and we'll have to develop some additional processes as we know, as we move into a, you know, a funded construction project and into into operations. So yeah. So I think there's yeah. This this is a good framework. I think, yeah, one of our next steps will be to to have a look at, you know, what are the opportunities for us for for a a simple reporting framework that also you know, that's good for for sort of smaller scale companies like us and and how we can get into effective ESG reporting, you know, without, yeah, without sort of being burdened by some of the some of the large sort of administrative requirements of of sustainability reporting. So, yeah, some really good opportunities out there for smaller groups to to get active in in sustainability reporting and ESG reporting and and certainly wanna have a look at that, you know, not too far down the track.

40:10 Perfect. Thank you very much for that. The next question that we have here reads as follows. Many investors considered yesterday's FS announcement extremely positive and yet found the share price reaction quite surprising. Do management have any understanding for why the stock reacted the way it did? I'm not sure. Sorry. Sorry. I'm I'm not I wish I knew. I I wish I knew the answer because I I I would try and do something different. So so it didn't happen. I yeah. I mean, I I yeah. I mean, in in of direct communications I've had with with some of our investors and and, yeah, we've been yeah. I know we've been looking to to deliver this information for a long period of time, and and I and I appreciate and and accept that, you know, we haven't hit some of the yeah. We haven't hit milestones as we put them forward. And and, you know, there have been reasons for that, but that's, you know, that's that's on me, and and we certainly need to deliver better into some of those than than what we have.

41:07 But this is sort of a combination of a, you know, of a lot of work and and and getting, you know, getting this information out. Yeah. The the expectations, a bit hard to know whether the expectations of of investors who hold the stock haven't haven't been met or or, you know, see as, you know, some challenges going forward. I this, you know, this this feasibility study was the you know, as as I said, is the key to being able to unlock all of the things that have to happen going forward. I mean, we've needed to we need to put needed to develop this and put this out, and then it starts all of the discussions around financing. Every everyone has been waiting for us to to be able to present this so we can actually start the next phase of work, which, you know, will a lot, you know, is largely just a role revolving around our our financing process and looking at at bringing together all the things we need to for for project financing financing BKM.

42:01 So, you know, I'm I'm I'm I'm disappointed it it wasn't received favorably. I mean, as the CEO of the company, I I'd like to, you know, I'd like to see that information, you know, be received received favorably. I'm not entirely sure why why it wasn't, but, you know, we just need to keep focused on, you know, the we have a we have a project that delivers a significant NPV. You know, the the market for copper is is yeah. It it may be down this week, but it's it's, yeah, it's been been oscillating a bit in over the course of the last couple of months, a bit range bound. But, you know, the future the future for the copper market is is so strong. I mean, I I I can't yeah. The number of reports that that we all probably read about, you know, where the copper market is going and the challenges associated with meeting demand in the future, I I just I mean, I still remain you know, I will remain extremely bullish on copper, and and I think that that is yeah. That's really the focus. We wanna we just yeah. We have a we have a project. We have a project we can execute.

43:02 Let's get it funded, let's start getting it constructed so we can get into, you know, get into producing copper metal at a time when the world is going to need more copper. Perfect. Thank you very much for that. Perhaps just turning on to this question here. Can you explain where we are in relation to permits? Okay. So, b k so the the project I mean, I'll I'll start with I mean, the the one the one major permit which is which is outstanding is what we call our our PPKH. And so this is a this is a permit that allows forestry concession or forestry designated land to change change its use, basically. So it's a it's a changing of changing specifically a forestry land to another use. So, yeah, in this case, we're changing because because where BKM is situated is a is a forestry concession held by a forestry concession holder company, and we're required to to convert the area which we have as our boundary into usage, you know, into a different use other than forestry, which in this case is is mining. But, you know, there's there's other uses.

44:15 So we're converting from forestry to a mining concession. So we we got our we received our sort of preliminary permit for that on its application last year. It was in eighteenth of eighteenth of April oh, sorry. Twenty fifth of April last year. And we had twelve months to complete to to sort of complete a series of activities associated with that, that which are sort of like conditions precedent of getting that permit. So we we completed all of those activities. There is there's one there's one final act there's one final activity which is which is an agreement with our the I'm gonna say, the the operator of the the access road into the into the site. So, yeah, we we've been discussing a a a memorandum of understanding of of sort of sharing sharing the access of that road.

45:04 We didn't quite get all of the negotiations finished, but we've submitted all of our information for this permit. The other activities we've all completed, this is one that's that's outstanding and we're going through a follow-up process now to to work to close that out. Once that final piece is closed out and and gets submitted to the ministry, then there's a a process of a of a couple of months, you know, probably between two and three months to to go through all of the the internal processes before the the final permit is is issued. So so we're confident. We we we didn't we didn't push that permit particularly too hard because, you know, there's, you know, there's things that become yeah. That we need to do as as a result of that. So, yeah, we wanted to to make sure we optimize the time of of, you know, working through that permit and being able to, you know, being able to take it forward along with the along with the project. So so that's the that's the key outstanding permit.

45:55 As a result of the feasibility study, there'll be some there'll be some things that we need to update as part of, you know, some some preceding works some preceding works which were based on on previous the previous feasibility study. There are some things which we will need to update, is a natural a natural sort of progression of things associated with the the regulatory framework in Indonesia. So, yeah, we need to do updates to to some of the feasibility studies and and other studies, which had been submitted previously now that we have new information. And in and in most of the cases, yeah, a lot of the changes we've made are positive, largely driven by the fact that we have a smaller footprint project now. You know, a lot of the things around disturbed land and area and stuff have reduced from from what we had previously presented. So, you know, some some positive impacts from the work that we've done, but that needs to be reflected in some updating of of some of the documentation which the government has at the moment. So, yeah. So so a lot of things in you know, those things are already in place, and and they're part of our plans to do as we came out of the as we came out of completing the the feasibility study. So so I think, yeah, feel feel sort of well placed with the way our our permitting is sitting at the moment.

47:04 Thank you very much for that, Darren. Perhaps just segueing on to the next question here reads as follows. Why did you select biomass power to site? And how long will it take to build a new biomass power station? Yeah. It it's yeah. A good question. I know our our last announcement was, yeah, was related to working with the state owned state owned electricity company, PLN, and and looking at a at a transmission line from from their local substation. We we have we sort of still have, I guess, those aspects available to us. But but as as we sort of came towards the the end of bringing the feasibility study together and having a look at at the benefits of, the biomass power station or connecting into the connecting into the grid and and, I guess, some some of the some of the challenges which potentially could be presented as as connecting into the grid, it it started to the I guess, the the pendulum started to shift towards the biomass power station as a dedicated as a dedicated facility as, you know, being probably the the better option. And from a from a, I guess, a financial modeling perspective, the outcomes also were somewhat positive in in going into that direction.

48:21 So and we also and, you also, there's a, you know, quite a strong view that it is yeah. It's a renewable it's a renewable power source. You know, there's there's some ample ample fuel available for this biomass power station in, you know, in the area where we are in in Central Calumetin sort of, you know, off you know, sort of just off the off the logging list. But, yeah, certainly, you know, in in the discussions with the the proponents of the biomass power station, they they are aware of the time frame in which, you know, we are looking at, you know, developing the project and when we would like to have power onto the site. So they you know, as as long as, you know, as long as they're able to to start work on that not too far into the future, then, you know, they're confident they can meet the the timeline of having power into the site, you know, as, you know, as required by our current, our current production schedule, our current construction schedule.

49:21 So yeah. So, I mean, I I'm confident there's some yeah. There's some there are some advantages. It becomes a yeah, I guess, a a stand alone project on its own, and and, you know, there's there's less, I guess, less linkages with others in terms of of how that is, you know, of how that is approached. So there's some some advantages in going to that that dedicated that dedicated facility, you being able to supply power to to the site. Yeah, it it sort of it it sort of came in and and, yeah, I guess, has sort of come in an but but towards the end of this process and start looking at at sort of the benefits and and, yeah, sort of weighing up the the pros and cons, it, yeah, it it sort of came out ahead of of the other opportunities at this point in time. Perfect. Thank you very much for that, Darren. I'm just conscious of time, perhaps just a bit more time for a few final questions.

50:10 One of those being, as described previously by the company, could Darren please detail what further upside might be able to be captured from BKM itself once into production? Okay. I guess yeah. I mean, we've spoken about some of the opportunities that are that are related to being able to exploit more of the BKM the BKM deposit. In in terms of looking at, you know, different different technologies, if that's through different processing techniques, producing concentrates, and being able to recover more copper metal, but but obviously requiring some further further downstream downstream processes.

50:58 Yeah. In in terms of the resource, you know, in in in terms of improvements or upside in in the resource, certainly, you know, exploration, you know, we've done we have done work on on other areas, you know, limited work on other areas like BK South, you know, just just obviously to the South of of BKM. We have another prospect, BK West, to BKZ. I mean, yeah, all all of those, you know, those those prospects need we we need to do more more exploration across even just the the BKM District, the area that we have. I mean, there's there's significant potential exploration upside that we need to need to continue to look to develop. And I guess, you know, in in terms of realizing that upside though, yeah, one of the things that we need to be conscious of is, you know, yeah, whether there's a likelihood of finding more of the more of the material which is suitable for heap leach, you know, which might be limited. But, yeah, the resources we find may be more sort of primary type materials and and and require sort of that downstream processing, which is different to heap leaching. So, yeah, if we're we're looking at developing that capability on the site, then that that sort of also significantly expands, you know, the ability to to find more economic resources if you have established, you know, a way of, you know, effectively recovering those resources. So, you know, exploration is one thing, having the resources, but, you know, being able to convert them into to economic material through the the right techniques is is also important.

52:25 Well, I think one one of the other I mean, one of the other interesting things around around upside, yeah, which is something that we'd like to explore a bit further. I'm not sure we're right at that time now, but there's there's actually been quite a lot of quite a lot of discussion in the last six months about different techniques and even technologies that have yeah. That that different groups are developing to to improve the leaching of, you know, lower grades effectively improving lower grade heap leaching recoveries and and and improving copper recoveries out of, you know, from the harder to leach sort of mineralogy that that you see in some of the deposits. And there has been some big some big announcements made over the course of the last over the last sort of two or three months. And and, you know, I'm I'm we're a bit smaller than some of the things that are happening, but I I'm I'm really keen to to try and, you know, have a look and see if there's some opportunity for for us to do some work with some people to to see whether or not our our BK material can its recovery can be enhanced. If you can can do something that improves the recovery of the existing heap leach and you get extra copper units out of recovery, then that's a, you know, that's a huge bonus, you know, without having to process any more material. So yeah.

53:32 I mean, there's a lot of yeah. There is a a lot of focus on on more effectively processing lower grade materials and and some companies which are developing techniques and technologies specifically dedicated to that, which we have actually have actually looked at starting some engagement with. But, yeah, just just looking at how we can do that going forward. Thank you very much for that. And perhaps a good question to end on here. I mean, of course, we will be able to give you back all of the questions that have been submitted by investors for you to review immediately after the presentation. But perhaps this question here. What are your thoughts about the future of the company and your learnings over the past twelve months? I'm I'm plea yeah. Things okay. What what maybe I'll start with the learnings.

54:22 Learning's saying some some some things take longer than than what you originally yeah. Than what you originally expect them to and and need to be need to be mindful of, you know, of of engaging with with a whole range of groups and how how you can bring all of that information together and and, you know, the the time frames in which you can do things. And and, you know, we we we want to you know, we will be working hard to, you know, to improve delivery and and make sure that, yeah, break our workflows into, I guess, into smaller pieces, make sure we're delivering on those, communicating communicating regularly, and and and making sure people are are aware of of how things are progressing in the work that we're doing. Been a little bit challenging on some of that with the feasibility study, but but as we go forward, you know, things like financing and other works, then, you know, look at improving our our communication and our delivery against smaller targets and just just knocking things off and and making those those progressive wins and and making our way go forward. So, yeah, it's it's important. You know, we are a we are a small the thing is that we're we are a small team Taking this forward, we are we are going to have to we are going to have to grow. And and, you know, there's some there's some key disciplines which we which we will need to build out, you know, as we as we move towards being financed and and definitely taking things into, obviously, construction and and development. You know? There is there is going to be a need to for us to to grow a team that helps support, you know, what will be a what will be a significant business. So, you know, that

55:52 that's you know, we are excited about the opportunity to to look at recruiting and and and bring on the team. We got a lot of good we have a lot of good people, and there's opportunities with our own internal people to to look at how they can, you know, how they can develop themselves. But, yeah, we will certainly be wanting to to look at bringing the right, yeah, the right people, the right capability into the into the business. But I I no. I'm I'm yeah. I'm let's say, I'm positive about the future. I we have a we have a project here. I mean, I I myself I mean, I've put my own sort of blood, sweat, tears into this into this study as well. And and, you know, I know what others have put into it and and and where we've got to. And, yeah, I I really like the the opportunity we have here to to develop this first mine. I mean, a developing a mine is no is no simple feat. It's a you know, it's it's getting harder and harder as as as, you know, people are people are finding out and, you know, having having an opportunity here to to build a starter project, which which really does help us unlock.

56:52 Yeah. What is a what is a really prospective mineral field is is really exciting. So, you know, I mean, I'm talking a lot about KSK today, and, I mean, that's that's obviously what it is. It's a focus on, you know, focus on on, you know, where we are with our our near term. Yeah. ASIAMET is a business. It obviously has Buton. You know, we we still have, you know, we still have a lot of work to do there and and sort of getting through some things to to allow us to do that, but that that certainly is an exciting area for the an exciting area for the business. You know, we are this is you know, the the the timing of this is is great. I I it's the yeah. Maybe three or four years ago, the role of copper going forward was just seen as a as its normal, you know, its its normal industrial self, and it was gonna grow at two or 3% a year as normal GDP growth goes. But, you know, the the transition everything that has come about in the last four or five years in terms of transition of energy, transition of transportation to to electrical energy, you know, the the use of copper is is but it's growing exponentially, and and the the world needs to have sources of copper. And and ours ours is not a big source, but it's a it's a source nonetheless. And it's a it's our opportunity, and and I think it's the right time it's the right time to develop, you know, the project.

58:06 Perfect. Thank you very much for that, Darren. And thank you very much indeed for being so generous of your time there and addressing all of those questions that came in from investors. And, of course, if there are any further questions that do come through, we'll make these available to you immediately after the presentation has ended, just for you to review, to then add any additional responses, of course, where it's appropriate to do so, and we'll publish all those responses out on the investor meet company platform. But, Darren, perhaps before just looking to redirect those on the call to provide you with their feedback, which I know is particularly important to yourself and the company, if I could please just ask you for a few closing comments to wrap up with, that would be great. Yeah. Yeah. Sure. Thanks. Thanks, Jake. And and, again, yeah, thanks to thanks to everyone for for taking an error out of the you know, all of the investors on the call for for taking the time out of their day to to, yeah, run through this with me. And and, yeah, I really, you know, really appreciate questions that have yeah. I really appreciate the questions that have come through. And and I know we haven't, you know, we haven't been able to get to to all of those questions.

59:03 But, certainly, I've got an opportunity over the of course, over the next, you know, the next period, maybe over the next sort of four or five days to be able to go and review all of the questions, and and I can also give give answers to those that that we haven't been able to get to today. So I appreciate, yeah, appreciate appreciate people's time and and and making the, yeah, making the time to join us and and also to ask questions. So, yeah, I really, really appreciate that. And and, yeah, I I do I do see a a positive future for the company. I'm I'm looking forward to looking forward to taking, you know, the next steps next steps in our journey beyond delivery of this study as a as a key enabler and and, you know, wanting to to look at getting this project financed and be able to to be able to build a project. And and and work with, you know, work with people who see the value in the who see the value in the business. It's our job to to make sure that we can, yeah, we can show and demonstrate to people, you know, and and groups, organizations that, you know, what value we have inherent in our projects and and be able to make sure that, you know, it's appropriately valued in that way. So I appreciate it.

1:00:06 That's great. Darren, James, thank you very much indeed for updating investors this morning. Could I please ask investors not to close this session as you'll now be automatically redirected for the opportunity to provide your feedback in order that the management team can better understand your views and expectations. This will only take a few moments to complete, but I'm sure it'll be greatly valued by the company. On behalf of the management team of ASIAMET RESOURCES LIMITED, we would like to thank you for attending today's presentation. That now concludes today's session. So good afternoon to you all. Thanks, Jack.