Vast Resources (VAST ), an AIM-listed mining company with projects in Romania, Tajikistan, and Zimbabwe, reported a 69.2% increase in revenues for the 6 months ended 31 October 2022 to US$1.934m compared to year's US$1.143m. Its shares were up 103% on the news.
The miner also managed a 16.6% decrease in administrative expenses to US$1.934, compared to last year's US$2.318, accompanied by a decrease in after-tax losses to US$6.78m from last year's US$7.32m. Cash balances at the end of the period stood at US$0.6m, compared to US$0.06m on 31 October 2021. Debt was down to US$8.9m from US$10.32m on 30 April 2022.
In terms of operational progress, Vast commenced long-hole stoping in 3Q22 at its flagship Baita Plai polymetallic asset in Romania and completed a second mining milling circuit at the project's processing plant.
Vast also had an official opening of processing at its Tajikistan JV in August 2022.
View from Vox
A stellar report from Vast Resources, marking significant progress across the company's balance sheet, and driving shares up over 200% so far this year.
The increased revenue was due to higher production volumes at Vast's flagship Baita Plai polymetallic mine in Romania, allowing the company to make one-two deliveries per month in calendar 4Q22. With consecutive quarterly production increases set to continue into 2023, the company is on track to meet its 1H23 target of profitability with 14,000 tonnes/month of name plate capacity.
Baita Plai production
Indeed, we expect the trend of production increases at Baita Plai to continue. Since 30 April 2022, Vast has gradually transitioned to mechanised mining at Baita Plai, and the mine is now active in four separate high productivity areas utilising long-hole stope methodology. The completion of Spiral #3 should further increase production from 2Q23. The presence of bismuth and molybdenum at Baita Plai further underscore its strategic value.
Investors should also stay tuned for a possible upgrade of Baita Plai's resource in 2023. The company has engaged a 3rd party technical contractor to review and reprofile the mine resource at the site, for an updated resource report expected in 1H23.
Regarding its other projects, Vast's Manaila Polymetallic Mine in Romania continued to remain on care and maintenance during the period with plans to restart production once new financing is found. Simultaneous production at Manaila and Baita Plai should provide more favourable export logistics and represent a value inflection point for Vast that investors should be mindful of.
Additionally, Vast officially opened its Takob JV in Tajikistan in August and continues to assist with the ramp up. The JV should provide an increasing stream of revenue for Vast from future sales of non-ferrous concentrates and other metals from the mine. Vast also made progress during the period in settlement discussions relating to the release of a historic parcel of diamonds held in custody at the Reserve Bank of Zimbabwe.
Overall, the economic fundamentals for Vast's polymetallic business remain strong. Increased demand for copper and tightness in supply have significantly lifted copper prices. The forecast global growth in EVs will keep pressure on supply over the next decade, exacerbated by declining grades, water supply issues, and community resistance. Demand for other critical metals used in renewable tech is likely to follow a similar trajectory.
Vast's bullish outlook on polymetallics is therefore justified. Moreover, a continued reduction in Romanian and Zimbabwean country risk premiums has the potential to provide significant medium-term growth for the company. In both countries, Vast holds further mining claims and other interests, which are under appraisal.
Follow News & Updates from Vast Resources: