Vast Resources PLC (LON:VAST) said its latest half year charted a period of highs and lows as it continues to advance its mining operations in Zimbabwe and Romania.
There was a 5% increase in revenues to US$14.9mln in the six months to end September from the Pickstone-Peerless gold mine in Zimbabwe and the Manaila mine in Romania.
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The former saw a 20% uptick in gold output in the six months.
There was a 45% decrease in overheads to US$2.5mln, and earnings before interest and tax (EBIT) was up 30%. The loss before tax increased to US$12.6mln compared to a profit of US$0.3mln in 2016, due to a US$12.5mln exceptional charge.
This charge relates to the loss on the disposal of interest in subsidiary loans of US$12.5mln connected to the transaction with Sub-Sahara Goldia Investments, which saw the sale of a 25% interest in the Pickstone-Peerless Gold Mine and the Giant Gold Mine in Zimbabwe, which was only completed after the end of March this year.
Graded metal at the Manaila polymetalic mine fell short of what was expected because of funding constraints limiting overburden removal in areas of higher grade. There was a 9% decrease in zinc concentrate produced to 270 tonnes in the period.
However, as indicated in September, copper concentrate volumes and quality have improved at the mine, while Zinc concentrate quality is also meeting off-takers' requirements and volumes are slowly improving.
A third revenue stream through a pyrite concentrate, which includes gold and silver, is also being ramped up.
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Post period end, it emerged that chief executive Roy Pitchford will resign with effect from December 31 to be replaced by Romanian national, Andrew Prelea, the president of Vast's Romanian subsidiary, as the group moves to focus more on developing its open pits in the country.