Vast Resources (VAST) , an AIM-traded mining company with projects in Romania, Tajikistan, and Zimbabwe, announced final results for the 12 months ended April 30 2023. The company's flagship asset is the Baita Plai polymetallic mine in Romania.
Vast reported unchanged revenues for the year at US$3.7m, compared to last year's US$3.8m as higher sales were offset by lower copper prices. Vast achieved a 14% decrease in administrative and overhead expenses at US$3.9m compared to US$4.5m a year ago largely attributed to a reduction in its expatriate employee headcount.
Losses narrowed to US$10.5m from last year's US$15.5m. Taking into account currency swings, losses remains broadly unchanged at US$11.9m. Forex gains for the year amounted to US$1.4m compared to losses of US$3.8m last year. Cash at the year-end was US$0.5m from US$0.13m a year ago.
Operationally, Baita Plai increased milled production significantly to 60,750 Mt from 38,108 Mt on April 30 2022. Vast continued to invest in Baita Plai to support its transition to mechanised mining with long-hole stopping introduced during the period and a second milling circuit completed.
Vast aims to upgrade Baita Plai's existing mineral resource including a JORC compliant exploration target of 11.65 to 12.65 Mt at 0.98% to 1.69% copper, 0.23% to 0.57% lead, and 0.17% to 0.62% zinc. The company said initial results from the drilling campaign were "very encouraging", confirming the potential to extend the mining area.
At the Takob project in Tajikistan, Vast achieved steady state production of 95% fluorite and successfully executed an exclusive offtake contract with Trafigura PTE, one of the world’s leading commodity trading companies, for the sale of bulk concentrates produced at Takob.
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While Vast's revenues and loss remained broadly unchanged year-on-year as higher sales and forex gains offset lower commodity prices, the company made significant operational progress, setting it up for future growth. Baita Plai production increased by 60% accompanied by an aggressive shift to mechanised mining. A drilling campaign is underway to establish an enlarged JORC compliant mineral resource with an exploration target of 11.65-12.65 Mt and encouraging initial results.
At Takob in Tajikistan, Vast also made material progress to develop its position in polymetallics as evidenced by the recent signing of an MoU in connection with the Aprelevka gold mines in the Tien Shan Belt. Additionally, first shipments of lead and zinc from the mine were delivered to offtaker Trafigura post-period. For its participation in Takob, Vast will receive a 12.25% royalty on all sales of non-ferrous concentrate and any other metals produced.
Overall, the economic fundamentals for Vast's polymetallic business remain sound. Continued demand for copper has buoyed prices, despite current geopolitical risks. The forecast global growth in EVs remains likely to create a shortage of copper as producers struggle to meet demand. If commodity bulls continue to drive polymetallics and Romanian risk premiums continue to drop, Vast has potential for significant medium-term growth.
Vast remains well-funded after raising £1.8m through a placing earlier in October, following a £1.7m fundraise in July, providing sufficient working capital to develop and expand its portfolio. The company is also waiting on the recovery of a historic parcel of 129,400 rough diamonds held in custody at the Reserve Bank of Zimbabwe, following a High Court Order in Vast's favour.
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