Vast Resources (LON:VAST) is generating cash from two mines with a third on the way, says City broker Daniel Stewart, which has kicked off coverage of the shares.
The house broker rates the shares a 'buy' with a target price of 3.7p, representing over 200% upside from the current price of 1.2p.
The firm has two producing mines in the 1.8Mt Manaila Polymetallic mine in Romania and the Pickstone-Peerless gold mine in Zimbabwe containing 3.56 million ounces of gold at 1.8 g/t.
The other near-term revenue generative mine in Romania is the 1.8Mt Baita Plai polymetallic mine.
Conversion of the Russian resource into JORC code will result in a significant re-rating, reckons the broker.
Meanwhile, capital expenditure of the mine of US$320,000 at Manaila is covered by cashflow, the broker notes, with the firm saying will be no further dilution for shareholders from this operation.
The Baita Plai mine is currently on care and maintenance and Vast estimates that recommissioning would cost an estimated US$2mln to bring it back into production.
A steady state production rate of 120,000 tpa may be achieved within two months, reckons the company.