Vast Resources plc, is an AIM listed mining company with mines in Romania and Zimbabwe focused on the rapid advancement of high quality brownfield projects by recommencing production at previously producing mines in Romania and commencement of the joint venture mining agreement on the Community Concession Block of the Chiadzwa Diamond Fields in Zimbabwe.
The Company’s portfolio includes an 80% interest in the Baita Plai Polymetallic Mine in Romania, where work is currently underway towards developing and recommissioning the mine on completion of funding and the commencement of the of the Community Concession Block in Chiadzwa, Zimbabwe
Vast Resources owns the Manaila Polymetallic Mine in Romania, which was commissioned in 2015, currently on care and maintenance, and is focused on its expansion through the development of a second open pit operation and new metallurgical complex at the Carlibaba Extension Area.
OVERVIEW OF THE 13 MONTHS ENDED 30th APRIL 2019
Vast Resources plc (`Vast’ or the `Group’) has repositioned the business to focus resources on two key mining opportunities in Romania and Zimbabwe with the intention of starting production at these mines in the current financial year. These opportunities comprise the Baita Plai Polymetallic Mine (`BPPM’) in Romania, and the Group’s expected diamond concession in Zimbabwe. This establishes the platform to support Vast’s strategic objective to expand its footprint in these jurisdictions.
In repositioning the business, the Group has divested its 25.01% stake in its Zimbabwean gold operations, reduced debt, strengthened its management team, and directed resources exclusively to placing its key Romania and Zimbabwean assets into production.
The Group was awarded the Baita licence on 15th October 2018 but was unable to draw on Tranche B of the Mercuria prepayment facility in order to fund capital expenditure programs at BPPM and the Manaila Polymetallic Mine (`MPM’). The objective of these programs was to restart production at BPPM and to improve operational efficiency at MPM. Consequently, the Group is well advanced in the process of arranging new funding which it is prioritising for BPPM and its diamond concession given the short lead times expected to generate free operational cashflow, and has placed MPM on care and maintenance in expectation of a second funding round at a later stage.
- US$ 8.6 million gain on disposal of Zimbabwean gold operations.
- US$ 21.4 million reduction in the carrying amounts of loans and borrowings to US$ 5.5 million (2018: US$ 27 million)
- Total revenue, including operations that were discontinued in April 2019, increased to US$ 34.7 million (2018: US$ 30.7 million).
- Revenue from continuing operations increased to US$ 3.4 million (2018: US$ 3.1 million)
- Romanian operations continued to be a net cash absorber given a delay in financing the required capital expenditure to place BPPM into production and to improve profitability at MPM.
- Cash balance at the period end of US$ 0.569 million (2018: US$ 1.3 million).
- Baita Plai Association Licence executed on 15th October 2018, giving the Group the right to mine at BPPM.
- 1,725 and 242 tonnes of copper and zinc concentrate respectively produced at MPM from April 2018 to December 2018, at which point MPM was placed on care and maintenance.
- 29.41% economic interest acquired in the Blueberry Polymetallic Gold project in Romania which has raised US$ 1 million to meet exploration costs.
- Hiring of key management and technical personnel for the Group’s Zimbabwe diamond opportunity.
- The Chiadzwa Community Diamond Concession Joint Venture was signed post period end.
Full Update HERE
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