Asiamet Resources (LON:ARS) has announced interim results which highlight the company’s strong H1 2016. With the majority of the PEA costs completed in advance of the period, the net loss was narrowed to US$0.8m from US$5.4m in H1 2015. As well as the reduction in exploration expenditure of US$570k, the prior period was affected by a significant impairment of US$3.8m as a consequence of the weakness in commodity prices.
Cash at the end of the period to June 2016 was US$1.9m following a capital raising post the PEA. The PEA, on the Beruang Kanan Main deposit, was released in April 2016 and demonstrated the strong potential for the development of a low cost copper project. ARS is now working towards a feasibility study and funds are currently being deployed on an infill drilling programme and the initial results have been positive and we note that the resource remains open to the North and at depth. Further results are expected in the near term which should provide positive momentum for the shares.