Vast Resources PLC (LON:VAST) continues to look forward to the ‘transformational’ commissioning of the BBPM project, in Romania, which promises to generate cash flow to the support the group’s growth plans.
Completion of the metallurgical processing facility at Manaila, also in Romania, is seen as another significant step for the company, it said in its financial results statement for the 12 months ended March 31.
“The persistent shortage of funding in order to avoid shareholder dilution for the Group’s operations in Romania has been a growth-limiting factor. We are determined that this issue will be overcome,” Vast said.
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“The short to medium term objective of the Group in Romania is to achieve economies of scale by having two cash generating mines and in Zimbabwe to have three cash generative mines, whilst seeking to develop or acquire additional and potentially larger mining operations in both countries, a large part of which to be financed by third parties.”
At the same time, Vast is seeking joint venture deals with well-funded partners, on much larger projects. Discussion about such projects are presently underway, it explained.
Elsewhere, in Zimbabwe, the company is expanding its production profile at the PPGM operation with the annual milling tonnage rising to 33,000 tonnes per month.
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At Eureka, meanwhile, the company aims to resuscitate dormant mining operations, and, Vast also highlighted its excitement over the potential unlocking of diamond resources.
Vast added: “Trading in the group’s shares is dominated by day traders and market makers.
“Our objective near term is to encourage institutional investors to acquire meaningful stakes in the group to mitigate share price volatility.
“The outlook for the group’s two main commodities, copper and gold, is encouraging.”
In terms of financial results, the company reported a 29% increase in revenue to US$30.7mln from US$23.8mln in the prior year.
It made a US$2.01mln profit from operations, versus a US$1.66mln loss in the year before, while a US$18.7mln comprehensive loss for the year included a negative US$12.5mln impact following the sale of a Zimbabwe subsidiary’s loans.
Vast described its Romania business as “net cash absorber” whilst noting that the award of the Baita licence has adversely impacted the group’s financial results.