VSA Capital Market Movers Asiamet Resources and Centamin
Date
7/10/2016 9:19:49 AM
(MENAFN- ProactiveInvestors - UK) Accendo Markets , Thu
Asiamet Resources (LON:ARS)
Asiamet Resources (ARS LN) has announced an update on its recent progress. It reports 13 holes for a total of 1585m of core have been completed to date as part of the infill drilling program on the Beruang Kanan Main (BKM) deposit. Four drills are operating and approximately 100 holes over 9km of resource drilling and 15 holes over 2km of metallurgy drilling is planned. First drill results are likely to be released in the coming weeks and should enable ARS to increase the confidence limits on the current resources.
ARS have appointed an experienced manager to oversee the programme. His experience in mine development includes work for Tiger''s Realm Coal in Russia and BHP Billiton on potash in Canada. Among the firms specifically contracted for the feasibility work, we note Core Labs and Millermet on the metallurgical testing and PT Lorax on the Environmental monitoring; firms with long experience in detailed mine planning studies.
We remain positive on the outlook for ARS and the company''s ability to deliver further development progress towards a small scale low cost open pit copper mine.
We reiterate our SPEC BUY recommendation and 6.2p price target.
Centamin (LON:CEY)
Centamin (CEY LN) has reported strong gold production results for Q2 2016, up 30% YoY and 12% QoQ to 140koz. The quarterly throughput at the process plant was up just 2% QoQ which implies stronger grades and recoveries. Indeed, open pit grades were up from 0.87g/t to 0.99g/t QoQ whilst underground grades were up from 7.77g/t to 9.3g/t QoQ. We expect this to have a positive impact on earnings as the strong grades should result in lower unit costs.
With strong positive momentum behind the gold price due to the current geopolitical uncertainty, CEY''s strong operational announcement should provide strong support for the shares.
Accendo Markets