Asiamet delivers robust optimised feasibility study for BKM, moves to engage lenders
Asiamet Resources () has completed its optimised feasibility study for stage 1 of the BKM copper project in Indonesia.
BKM Stage 1 has been engineered as a simplified, lower-capex, staged-build heap-leach operation focused on near-surface, higher-grade ore.
It is designed to deliver LME Grade-A copper cathode, fully compliant with Indonesia's downstream processing requirements.
Target average annual production is set at approximately 10,000 tonnes of copper cathode.
The study establishes BKM Stage 1 as a technically robust, financeable project with highly attractive economics and is a strategic first step in laying the foundations for long-term value creation across the broader KSK Contract of Work. With key infrastructure and execution significantly de-risked, the Company sees substantial upside potential from the immediately adjacent BKZ base and precious metals deposit, BKM primary sulphide resource, high-grade copper drill hits at BKS, and multiple additional targets across the KSK licence area.
Mine life is set at 13 years, with life-of-mine revenues ringing in at US$1.192 billion. The study estimates the life-of-mine EBITDA at US$612.2 million.
The initial capital cost will be US$178.4 million, including US$11.1 million (7.6%) growth allowance and US$21.8 million contingency
The study puts the post-tax NPV at US$122.4 million, using an 8% discount, with post-tax IRR at 17.7%, although these numbers go higher with more aggressive copper price forecasts.
Payback will be 4.5 years.
Life-of-mine all-in sustaining costs are set at US$2.37 per pound.
The study also reflects direct feedback from prospective lenders, updated permitting schedule and robust execution planning incorporating the latest royalty and fiscal framework established by the Government of Indonesia.
Asiamet will now initiate formal engagements with its prospective lenders and update data rooms.
"Completing the BKM optimised feasibility study marks a major milestone on our path towards becoming a copper producer,” said Darryn McClelland, Asiamet's chief executive.
“The optimised study balances scale, production rate and mine life - qualities we believe will attract strong interest from local and international lenders. The study delivers a technically robust, development-ready copper project featuring updated capital estimates, a compact execution footprint, and alignment with prospective lender requirements. The simplified development approach materially reduces execution risk while retaining strong leverage to copper price upside.”
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Note that potential lenders were involved in formulating the parameters of this study – a hopeful sign that they will be ready to put pen to paper when debt financing talks move into the formal stage. What’s more, the market has suffered some Trump-related nerves in regards to commodity prices lately, but the longer-term outlook for copper remains robust. That means more attractive copper prices might materialise by the time production begins, which in turn would mean the mine would outperform the lower-end estimates provided in the study. Things could start moving pretty fast now.
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