Optiva Securities has given Asiamet Resources Ltd (AIM:ARS) the thumbs up following news of a non-brokered, private placement to Indonesian holding company Delta Dunia Makmur (DOID) worth £2.65mln at an issue price of 1.15p per share.
Proceeds of the placing will be used to finalise AIM-quoted Asiamet Resources’ BKM copper project bankable feasibility study update, advance project financing works for the development of BKM and for working capital purposes.
“BKM as an asset has the potential for near-term production and significant upside, with the company targeting production ramp-up by the second half of 2024,” noted Optiva’s analysts.
Optiva estimates a target net asset value of £173.3mln for Asiamet’s combined portfolio of copper/gold and polymetallic assets.
Based on the post-money issued share capital from today’s announced fundraising, this implies a target price per share of approximately 7.9p.
“Based on the current share price of 1.11p, this represents significant growth potential, at a time when markets are starting to turn the corner towards bullishness on base/industrial metals,” stated Optiva.
ARS shares have risen 9.85% to 1.02p in the past five days, giving the company a market capitalisation of £19.52mln.