Vast Resources PLC (VAST) has released a first quarter production report for its Baita Plai polymetallic mine in Romania.
During the first three months of 2024 Vast mined 25,388 tonnes of ore to produce 613 dry metric tonnes of concentrate grading 20% copper.
That compares with the 24,178 tonnes mined in the previous quarter, which produced 652 dry metric tonnes of concentrate at the slightly lower grade of 18% copper.
In the corresponding period a year earlier, Vast mined 20,728 tonnes to produce 475 dry metric tonnes of concentrate at 23% copper.
The improvement in the copper content of the concentrate over the previous quarter came as the company began to access higher grade zones.
Even so, production levels have been constrained ahead of finalisation of the refinancing with the owner of the Swiss investment company. The licence extension documentation for the mine was finalised and submitted by the 12 May 2024 deadline.
Progress has also been made at the Aprelevka mine, where the company has implemented cost savings of approximately 25%, by decreasing crushing size and reducing grind sizing, decreasing the use of cyanide and consumption of carbon as well as reducing the amount of elutions from once per day to twice per week.
These improvements have resulted in an increase in gold recoveries from 78% to 84.3%.
The changes in crushing have also resulted in an increase in throughput through the plant from 800 tonnes per day to 950 tonnes per day.
Gold production has increased from an average of 622 ounces per month from January through March 2024 to 805ounces in April and 933 ounces in May, with further improvements ongoing that will realise further gains in gold production.
The mine is re-commissioning two mills this week to commence the reprocessing of tailings in tandem with ore production to enable further increases in gold and silver production in June, following test work that yielded high recoveries from the tailings.
View from Vox
Positive steps from Vast, as copper concentrate output and grade improved and gold production at Aprelevka also rose. Accordingly, the shares opened nearly 14% higher, as the market at last decided to cut the company some slack. There’s still a lot of ground to recover of course, but although the summer lull is coming there have been signs of life in the mining sector of late. A couple more positive announcements and the shares might show real signs of life once autumn rolls around. Margins will be key, of course, but as metals prices start to rise, the premium will be on production. Vast has that, and a reasonably long track record of it too.