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Shares of Asiamet Resources Ltd (LON: ARS) edged 12.2% higher as investors finally started paying attention to the copper and gold mining company operating in key growth markets within the Asian continent.
Analysts at Optiva Securities, a London-based specialist stockbroker, recently upgraded the miner with a price target of 8.9p, citing the recent change in mining processes at its BKM copper project in Indonesia.
Asiamet Resources changed the BKM project into a concentrate tank operation from a heap leach operation, increasing the percentage of copper recovered to 40%, resulting in significantly higher copper production rates.
Investors initially ignored the ratings and price target upgrades, which bode well for the miner’s stock price as there was little change in its share price after the announcement.
The company is well-positioned to profit from the expected surge in copper demand over the next few years as countries embrace 5G technology and build up new networks to operationalise the technology.
The analysts also pointed out that Asiamet’s board quickly terminated the binding sale and purchase agreement signed with Indokal Limited when the latter failed to remit the first tranche payment of $2.5 million within the set deadlines.
Asiamet Resources’ board noted that Indokal kept asking for extensions and did not provide a reasonable explanation for the delayed payment. Indokal had breached multiple conditions of the SPA leading to the board’s decision.
We will be monitoring the stock to see if it will break out of the sideways trading range and print new highs.
Asiamet Resources share price.
Asiamet Resources shares edged 12.24% higher to trade at 2.75p, having risen from Wednesday’s closing price of 2.45p.
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