Vast Resources Plc (LSE:VAST) is an AIM listed mining company with copper mining operations in Romania and a diamond concession Zimbabwe.
VAST Resources was admitted to AIM in June 2006 (under the name of African Consolidated Resources) and raised £4 million in gross proceeds by selling c. 33.34 million ordinary shares at a share price of 12 pence each.
Following the admission, VAST had c. 189 million shares in issue and the market capitalisation of the company was £22.7 million.
In August 2023, the company had 3.414 billion shares in issue and the VAST share price was 0.33 pence giving it a market cap of £11.3 million.
Overview of the company’s assets
The key assets owned by the company are as follows:
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80% Interest in the Baita Plai Polymetallic Mine (‘BPPM’), located in Romania
The Baita Plai mine had been in production up until 2013 but was mothballed due to lack of capital investment. VAST estimate that the replacement cost of the infrastructure in place when they acquired the licence, would be over US$ 50 million.
According to the company broker SP Angel, once the mine is ramped up, it is expected to deliver 13 thousand tonnes of copper per annum and generate an EBITDA of US$ 17 million (assuming a copper price of US$ 7,500 p/t).
A maiden JORC-compliant Resource and Reserves report released in October 2020 confirmed Measured, Indicated & Inferred mineral resources of 608k tonnes copper at 2.58% Cu equivalent, of which 486.4k tonnes was attributable to Vast Resources.
The mine is estimated to contain an in-situ value of US$ 104.5 million, assuming an initial mine production life of 3 to 4 years and a copper metal price of US$6,655 p/t.
In October 2020, the company advised that the floatation plant was fully operational and first delivery of copper concentrate amounting to 350 to 400 tonnes is expected to take place in early November 2020.
2. 59% Joint Venture share (expected) of the Heritage Diamond Concession in Zimbabwe.
The Diamond Concession project is expected to produce c 1.2 million carats annually and generate an EBITDA of $45m (assuming a rough diamond price of US$ 58 p/ct).
At present, there is no independent JORC-compliant statement confirming the mineral resources or reserves in place.
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