The independent research house Arden Partners has restated its positive stance on copper mine developer Asiamet Resources PLC (LON:ARS) with a price target of 23p.
This compares with a current share price of just 5p, that, according to Arden, fails to reflect the progress to date at the BKM copper project, in central Kalimantan, Indonesia.
City broker Liberum, which while not quite as bullish, rates the stock a ‘buy’ up to 16p – which still leaves significant upside.
So, what’s the problem?
Well, according to Arden, the market took a contrary view of the company’s BKM feasibility study, which, along with a slight softening in the copper price, wiped out 2019’s gains.
It’s worth noting that in the first-quarter, Asiamet had been one of AIM’s star performers with a 75% advance.
WATCH: Major inflection point for Asiamet
Setting aside the fickle short-term nature of London’s junior bourse, the company offers significant long-term potential, according to Arden, which ranks it among its top picks.
“We see good value at current levels, particularly when taking a longer-term view of the stock and the value creation to come through Beutong,” the research house said in a note.
Beutong, described in some quarters as Asiamet’s ‘jewel in the crown’, is a large porphyry copper-gold system located on the island of Sumartra, Indonesia.
Separately, S&P Global, in a piece of recently-minted research, said it expects the copper price to improve to US$6,176 per tonne in the second half from US$5,978.60 currently, with an easing in trade tensions improving financial sentiment. Declining stocks of the metal underpin S&P’s 2021 forecast of US$6,542.
In other words, market conditions are currently supportive for developers such as Asiamet.