Asiamet Resources Limited (LON:ARS) can reap substantial benefits from a change at the BKM copper project to a concentrate tank operation from heap leach, according to broker Optiva.
A detailed review of the flowsheet for the new process at the deposit in Kalimantan is to start shortly, Asiamet said last month.
Changing the processing method can mean higher copper recoveries (40% more) through significantly faster rates of production of copper cathode, said Optiva in a note.
It would also enable production to be maintained at 25,000t per annum for the full eight years of the initial mine life, extending the life of mine from existing reserves before the conversion of resources.
Optiva also applauded the action of Asiamet’s directors in terminating the Indokal Limited SPA and securing additional funding to strengthen the company’s financial position.
Buy with a price target of 8.9p per share is Optiva’s recommendation.