Vast Resources plc / Ticker: VAST / Index: AIM / Sector: Mining
28 October 2021
Vast Resources plc
(‘Vast’ or the ‘Company’)
Vast Resources plc, the AIM-listed mining company, is pleased to announce its audited final results for the 12-month period ended 30 April 2021.
A copy of the annual report will be available on the Company’s website at www.vastplc.com.
For further information, visit www.vastplc.com, follow the Company on Twitter @vast_resources and LinkedIn, or please contact:
|Vast Resources plc
Andrew Prelea (Chief Executive Officer)
+44 (0) 20 7846 0974
|Beaumont Cornish – Financial & Nominated Adviser
+44 (0) 020 7628 3396
|Shore Capital Stockbrokers Limited – Joint Broker
Jerry Keen (Corporate Broking)
Toby Gibbs / James Thomas (Corporate Advisory)
+44 (0) 20 7408 4050
Axis Capital Markets Limited – Joint Broker
|St Brides Partners Limited
+44 (0) 20 7236 1177
Market Abuse Regulation (MAR) Disclosure
Certain information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018 (“UK MAR”) until the release of this announcement.
OVERVIEW OF THE YEAR ENDED 30 APRIL 2021
Vast Resources plc (‘Vast’ or the ‘Group’ or the ‘Company’) is focused on two key mining opportunities in Romania and Zimbabwe. These opportunities comprise the Baita Plai Polymetallic Mine (“BPPM”) in Romania, and the Group’s expected diamond opportunity in Zimbabwe. The Group continued to hold the Manaila Polymetallic Mine (“MPM”) on care and maintenance during the reporting period with the expectation of a funding round at a later stage.
During the period the Company completed the installation of new equipment and the rehabilitation of existing mining infrastructure at BPPM resulting in commissioning of the plant and the commencement of concentrate production in October 2020. Following initial production experiences and Covid-19 travel restrictions preventing Craig Harvey being on site and necessitating remote management from November 2020 to the end of January 2021, the Company implemented a revised mining plan for BPPM in March 2021 incorporating a more mechanised mining method. Significant value has been added to BPPM and the Company has strengthened the Romanian management team subsequent to the period end and has further improved processes, procedures, and training to realise the value of the asset.
Discussions continue regarding the conclusion of the Company’s diamond agreement with its Zimbabwe stakeholders. These discussions are in line with previous expectations, save on timing.
- 3.7% increase in other administrative and overhead expenses for the year ended 30 April 2021 (US$4.2 million) compared to the year ended 30 April 2020 (US$4.1 million).
- Foreign exchange gains of US$2.6 million for the year ended 30 April 2021 compared to losses of US$2.0 million for the year ended 30 April 2020. Included within the US$2.0 million of foreign exchange losses last year is US$0.640 million in respect of the Company’s operations in Zimbabwe.
- 7.1% decrease in losses after taxation in the year ended 30 April 2021 (US$7.7 million) compared to the year ended 30 April 2020 (US$8.3 million).
- Cash balances at the end of the period US$1.385 million compared to US$0.478 million at 30 April 2020.
- In June, the Company was granted the Manaila Carlibaba Extension Exploitation License which will allow the Company to re-examine the exploitation of the mineral resources within the larger Manaila Carlibaba license area. The enlarged exploitation license is 138.6 hectares in size, an increase of 410% in surface area from the existing exploitation license at Manaila (27.2 hectares).
- In October, the Company has also received a time extension of five years on the entire Manaila Carlibaba licence area in accordance with Romanian Mining Legislation.
- Commencement of production at BPPM in October 2020.
- In October, the Company published a JORC 2012 complaint Measured and Indicated Mineral Resource for BPPM which covers the first three to four years of production.
- In November, the Company increased the exploration target tonnes at BPPM which had been reported as part of the October 2021 JORC from 1.8 million – 3.0 million tonnes to 3.2 million – 5.8 million tonnes.
- In November, the Company acquired the remaining 20% interest in BPPM (thus increasing its interest in BPPM to 100%) together with further interests in Romanian assets. The Acquisition was satisfied through the issue of 2,850,000,000 new ordinary shares of 0.1p in the Company.
- In August, the Company entered into a conditional agreement for the acquisition of Gem Diamonds Botswana (pty) Ltd, a wholly owned subsidiary of Gem Diamonds Ltd which owns the Ghaghoo Diamond Mine in Botswana.
- Continued discussions to finalise the agreement with Zimbabwe Consolidated Diamond Company (Pvt) Ltd (“ZCDC”) regarding the right to mine diamonds for the Company at the community diamond concession.
Post reporting date:
- As announced on 1 October 2021, the Company confirmed the suitability of X-Ray Sorting Technology (‘XRT’) to optimise MPM’s production profile resulting in a substantial improvement in the economics of the mine. The test results conducted by TOMRA indicate that an XRT machine can substantially reduce transportation and production costs. It is for these reasons that the Company is planning to recommence production which will be dependent upon obtaining financing.
Fundraising share issues during the year (gross proceeds before cost of issue):
|£||$||Shares issued||Issued to|
|10,624,097||13,900,997||7,285,151,531||Placing with investors|
|109,800||136,807||61,000,000||Subscription by investors|
|45,000||56,653||30,000,000||Subscription by management|
|117,006||147,957||69,989,038||Settle interest costs|
|6,231||8,070||1,246,132||Exercise of open offer warrants|
Additionally, the Company issued 2,850,000,000 shares to settle the acquisition of the 20% NCI in the subsidiary company Vast Baita Plai SA.
Post reporting date:
|£||$||Shares issued||Issued to|
|2,886,940||3,985,515||78,395,870||Placing with investors|
|225,600||312,467||3,580,952||Subscription by investors|
On 6 May 2021 the Company concluded a capital reorganisation which comprised two distinct parts, firstly a consolidation of the existing Ordinary Shares on a 1 for 100 basis, and then a subdivision of each resulting ordinary share of 10p into one new Ordinary Share and eleven new Deferred Shares. The effect of this reorganisation was to reduce the number of ordinary shares in issue by a factor of 100 (the “New Reorganised Ordinary Shares”).
- During the period the Company repaid US$1,000,000 of principal of the first tranche of the Atlas facility. US$500,000 was in the form of cash, and US$500,000 was through the issuance of shares.
- Resignation of Eric Diack as Non-executive Director on 4 May 2020.
- Resignation of Mark Mabhudhu as Executive Director of the Company’s Diamond Division on 22 September 2020 following his appointment as Chief Executive Officer of Government owned Zimbabwe Consolidated Diamond Company (Pvt) Ltd.
- Appointment of Marcus Brewster as General Manager of BPPM on 1 March 2021.
Post reporting date:
- Appointment of Nicolae Turdean as Romanian Country Manager, reporting to Craig Harvey (COO).
- Appointment of Stancu Viorel as General Manager, reporting to Nicolae Turdean (Country Manager), replacing Marcus Brewster who left the Company.
- Appointment of Nigel Wyatt as independent Non-executive Director.
Political and Covid-19
- Covid-19 restrictions continued to…
Read More: Final Results