UK-headquartered Vast Resources has pushed back the start date of planned higher production volumes at its Baita Plai mechanised mine, in Romania, citing labour constraints, geotechnical challenges and supply chain issues.
The company said that the fundamentals of the mechanised mine plan remained in place and valid and that the ramp-up of mining and production continued.
These operating issues have been addressed and Vast said that Baita Plai would become profitable on a monthly basis by the end of 2021.
Internal projections for May 2022 to April 2023 remain substantially the same as previously indicated, although those prior to May 2022 have been revised down.
CFO Paul Fletcher commented that he believed there was the potential for significant further valuation upside to the Baita Plai and Manaila assets through the successful execution of the Baita Plai mining plan and the Manaila restart.
“Independent commentators have placed values on Baita Plai and Manaila in excess of $100-million, with Baita contribution $80-million. This represents a substantial premium over the company’s existing share price,” said Fletcher.
The company traded at 3.89p a share on Monday, down 7% on the previous trading day’s closing price.
Meanwhile, turning to plans to develop a diamond business in Zimbabwe, Vast said that there had been a breach of confidential information by a counterparty to confidentiality agreements.
The company has instituted an internal enquiry by the senior independent nonexecutive director into the circumstances under which the confidential information was discoursed and any associated internal corporate governance issues.
Further, Vast said that COO Andrew Hall would be appointed to the board.