The culmination of a year-long effort for Asiamet Resources (ARS) to systematically reshape its BKM copper project in Indonesia - enhancing economic returns, lower risk, and positioning it for project financing - is now within reach.
The capex numbers, released just before Christmas, confirmed a US$58 million reduction in pre-production capex to US$176.9 million, a major step in making BKM a more streamlined and financeable development. Now, the company is in the final stages of delivering updated operating costs and project economics, critical components required to progress financing discussions.
Some adjustments have been necessary along the way, and when the fine-tuning is finally over, Asiamet is set to reassert itself as one of the few development-ready copper projects of its size in Asia - strategic posturing indeed in a region where new supply remains limited.
A Stepwise Approach to De-Risking the Project
Investors had initially expected all the updated financials in December, but CEO Darryn McClelland explains that the decision to release capex separately allowed further refinement of operating cost inputs to finalise project economics.
"The goal has always been to put forward a financial model that is as robust as possible—one that can withstand scrutiny from lenders and investment partners." McClelland says. "The work we undertook in 2024 was about paring project scope and thus capex back to allow for a more reasonable solution while ensuring the project retained strong economic returns.”
That work included reconfiguring key infrastructure, optimising the pit design to prioritise higher-grade, near-surface material, and streamlining development plans to improve efficiency and reduce construction risk.
Crucially, these efforts have not taken place in isolation. Asiamet has worked closely with lender due diligence teams throughout this optimisation process, shaping the smaller, lower capex project to ensure it meets the stringent investment criteria of potential lenders.
“Our work has been heavily informed by ongoing dialogue with the financing due diligence teams. The final model needs to be watertight from both an execution and financial perspective,” McClelland notes.
With financing in mind, cost controls have been a top priority, particularly as financiers assess construction risk in an inflationary environment, requiring greater contingencies.
A Leaner, Lower Risk Project
The revised plan sees BKM initially producing between 10,000 and 11,000 tonnes of copper cathode per year, with processing undertaken by solvent extraction and electro-winning.
Adding in the soon to be complete operating cost numbers will allow Asiamet to publish the updated BKM project economics, a key pre-cursor for launching the formal debt financing process.
“As we transition from optimisation to execution, we are ensuring that every aspect of BKM is prepared for a streamlined financing process,” McClelland adds. “The depth of engineering and planning work means we are in a strong position to advance discussions with lenders.”
Notably, while initial production has been scaled back, the overall life of mine has been extended, based on the current resource and once Asiamet turns cash flow positive, funds will be available to drill out and advance multiple other high-grade projects and prospects within the KSK licence.
"Once we get BKM set, it will allow investors and funding partners to look to the future - to our expansion plans beyond a BKM Stage 1, it's a great starter project - essentially an enabler for accessing the KSK district-scale play within which BKM sits" says McClelland.
Financing Discussions Underway
Asiamet’s financing efforts are already well underway. The company recently hosted financing due diligence representatives for an on-site due diligence visit, providing insight into project readiness.
Additionally, a new Head of Corporate Finance has been appointed, leading engagements with a number of banks, including key Singapore-based institutions. Given BKM's strategic location in the growing Southeast Asian copper supply chain, interest from metals traders and other potential partners remains a strong possibility.
McClelland notes that Asiamet has multiple discussions ready to progress as soon as the final project economics are released.
Positioned for the Copper Cycle
With a streamlined project, advanced financing discussions, and a supportive copper market, 2025 is shaping up as a transformational year for Asiamet.
A key factor to watch will be the copper price, which has remained resilient in 2025. Copper recently closed at $4.58/lb, reflecting continued market strength. McClelland remains comfortable with the price assumptions being used in Asiamet’s financial model—based on consensus forecasts from some of the most respected institutions and analysts in the sector. The full details will be released alongside the operating cost numbers.
But perhaps more significant than today’s price is the bigger picture. Analysts widely anticipate a structural supply deficit emerging later in the decade, driven by surging demand from electrification, renewable energy, and tightening global supply. Asiamet’s BKM project is positioned to capitalise on this cycle at an opportune time.
For Asiamet, the focus remains clear: finalising the project opimisation, securing project financing, and transitioning into development. The extensive de-risking completed in 2024 ensures that BKM is not only viable in the current market but also primed for long-term growth.
As McClelland concludes:
“2025 is shaping up to be a defining year for Asiamet as we bring BKM closer to reality. With financing advancing, a construction-ready project, and a market increasingly aware of the need for new copper supply, we are entering a pivotal phase.”
With momentum building, Asiamet is approaching a major inflection point—one that could unlock substantial value as it moves toward development.