Asiamet Resources (LON:ARS) following the sharp rally in the share price, which is up 181% since the start of March 2016, has issued a clarifying statement in that the PEA due to be released at the end of Q1 2016 remains on track. The increase in copper prices of 14% YTD has also supported the share price somewhat, in our view.
We expect the PEA to demonstrate the potential for a low cost open pit project with a low strip ratio. ARS previously announced that two open bit shells form the basis of the plan. Project infrastructure, transport and logistics are also being considered as part of the plan.
ARS also stated that it is continuing to progress the conversion of its exploration licenses to production licenses for both the Beutong and Jelia projects.
As a consequence of the share price performance our target price and recommendation have been placed under review.