The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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What we do know from the Podcast and Cashflow projections 7th Sept is that FCF in 2021 is set to be around $9m just over ... and then 2022 onwards $14m+ FCF ....
Also no waiting 30 days or invoicing then waiting to be paid .. .Mercuria will pay Vast once the ore is on the vessel within 24 hours. Its a FOB Contract.
We also know the full JORC is not done with VAST. The Extra 600k Tonnes that the recent JORC has found is about 5% Of the total resource. 1 out of 16 Skarn Deposits.
Ore Has gone from 1.8MT To 3.6MT of Copper, Gold, Silver, Zinc and Molybdenum ...
Copper recoveries range between 88.2% – 93.8% into a copper concentrate - That's High Quality
Gold recoveries into the copper concentrate range between 72.7% – 78.2%
Silver recoveries to the copper concentrate range between 69.3% – 83.0%
Zinc recovery of 51.1% into a zinc concentrate with gold and silver credits
Molybedenum recovery of 65.3% into a molybdenum concentrate with gold and silver credits
Gravity recoverable gold potential as visible gold was seen on the shaking tables when attempting the de-leading of copper concentrates
AP suggesting 5-6x current SP at the end. Perhaps the 1p is possible one day. Fingers crossed. GLA
Ichi - you are quoting copper metal price - VAST are producing copper concentrate(probably around 30% ish- we don't know yet, unless AP has told the Telegram group), so your revenue figure needs adjusting - plus VAST wont get full price , as Mercuria will take a chunk as middleman
Fantastic news Max...
Alot more positive today after all the negativity yesterday
The good news there is all things going well, there will be no further need for dilution to pay ATLAS!!!!!!
First consisgnment of approx 350t to be delivered next week or so.
$6500 per ton....!!!
Payment within 24 hours of hitting the ship.
Could see over $2m hitting the bank in November
Some big buys starting to show up.
Got a feeling this is about to take off.
The value and upside here is huge!
Payment in 24hrs is perfect! So we know from the RNs on the 22nd that BP was on target to exceed 400t of ore, but assuming they only deliver 375t or more, I think we will be good!
https://www.**********.co.uk/articles/vast-resources-blasts-past-delivery-targets-at-baita-plai-2f7a2bb/ Incase any one missed...
Vast Resources PLC (LON:VAST) has said it will publish a JORC 2012 compliant Measured and Indicated Mineral Resource for the Baita Plai Polymetallic Mine in Romania in a few days at the end of October.
The resource estimate will cover the first four years of production and further drilling will be conducted, with the objective of publishing an expanded JORC 2012 Mineral Resource, the group said in its latest full-year results statement.
In Zimbabwe, at the Chiadzwa Community Diamond Concession, Vast said there had been a delay in the finalisation of the joint venture agreement with government owned-Zimbabwe Consolidated Diamond Company.
Vast added that its expectation currently is that it will conclude an agreement once coronavirus (COIVD-19) restrictions are eased and this will enable the procurement of a Special Grant for the exploration, development, and mining of the concession.
In the year to April 2020, Vast reported a loss of US$8.3mln (2019: US$9.1mln). Cash at the year-end was US$478,000 since when the junior has raised US$6mln through share issues and arranged a US$15mln bond facility with Atlas Capital Markets.
Yes payment within 24 hours once the ore is on the vessel. My question is whether that initial payment will see us through as we have no idea of the current sale cost for our shipment
The upside of BP is 'phenomenal'! Like it.
It is stated in the podcast. Mercuria pays once the ore is on the vessel and payment is received to Vast within 24 hours.
I though AP said in an interview that we got paid when it was on the trucks to the port
Good podcast lots of decent information and calms alot of worries from the people spouting that its a 4 year mine yesterday....
What is left unanswered is to whether we will need another placing next month see us through or will the first offtake cover the running costs into the next offtake at which point as stated by AP the mine becomes profitable
Blue CLOSE... We are getting closer to production... Placings done.. no more placing for time being... what not to like... BARGAIN
This is lowest you will buy... Money in bank.. BP NEWS SOON... BUY BUY You wont get chance to buy any lower.
Notes from the V OX Market Podcast PART TWO OF TWO
Final Committee Aproval in Dec - Bank waiting on Final reports coming Mid Nov and Term sheets end Nov and Drawdown sometime in Dec once final committe approval done by the bank.
Mark is welcome to come back to VAST once done. He is counterpart to our JV. His presence will speed up process of JV in Diamond space. No conflict of interest, His job is to get the JVs in Diamonds sped up.
Manaila and Carlibaba are the same mine. Manaila open pit is what we mined - put on care and maintenence - historically to put a plant but previous management did not do this ... we went deeper and cost increased. We looked at it and did not want to deplete the ore as there is profit with a new plant. Focus is on BP. Looking at finance equity for Maniala which is when that will re-open. Could potentially be either the current Tier 1 bank or another entity. Once finance is sorted (for plant etc) the mine will reopen. 5 years extended license which can be renewed every 5 years as long as can prove there is a resource there under Romania law. Still on hold no plan to re-open in near term. Probably some time next year or the year after.
Finance is to take out ATlas T1 and further expansion for Baita to accelerate production and increase production and potentially increase the resource (JORC funding). Options to extend the facility to things like Manaila and other projects in Romania. First part though is for Baita and Baita Alone with option to expand and borrow further money.
Currently focus is on Copper as this is highest yield for company. Currently stock piling other metals like zinc and in talks with several offtakers or may put out to tender. Same for Molybdenum.
AP believes with Mark at the reigns of ZCDC Things may now move relatively quickly. Still confident of proceeding with the JV.
Wow last 2 questions ... did you misjudge how much was required for funding? AP says due to covid and other delays was a 2 month delay but he has provided value to the shareholders and in grand scheme of things the asset is worth 10 times as much that has been invested (Around $10m) and the ROI is something to look for and once the market sees the quantom of income coming from the mine and the value of the asset in a whole I think and hope all will be forgiven.
Notes from the V OX Market Podcast PART ONE OF TWO
Mercuria will accept anything 200tonnes or more a month
600k tonnes on new deposit is what the JORC is ... (Plus 1.8MT Historic)
So theoretically gone from 1.8mt to 2.4MT of ore and identified another 1.2m tonnes so now 3.6m tonnes but JORC has strict guidelines and cant really include the 1.8MT but not to say it is not there are Russians also had a sophisticated method of measuring when this was done
BP Cashflow positive after 2nd month of Production
Full Production estimated May 2021 but if we can do it sooner we will. New Machinery to Arrive Early 2021.
7 Square KMs has been Jorced (1 Skarn out of 16 Skarns) Less than 5% of mining area is the area we talk about the 3.6MT of Ore ... the 600,000 of ore is minimal and upside potential is phenomenal.
To do a full jorc would cost millions of $$ - something we will do as we progress and do it (A jorc) 2-3 years at a time. Looking at doing the next 7 to 8 years of mining after the intial 3 to 4 years starting in Jan 2021 as cashflow generation will allow us to do so.
TO Jorc entire area 10s of Millions $$ which is why it was not done.
Done what was required to get into production and know what to mine for the nextg 3 years.
We have not downgraded the ore ... the 600k is additional grade to the 1.8MT.
Look at 7th Sept Cash Flow projection estimated $9m+ FCF in 2021moving to just over $12m for 10 months of 2022. Over say the 12 months about $14.5m (FCF 2022) This is without taking into account any higher grade ore. so at $14 with a PE of 10 for a European Jurisdiction. Shareholders DYOC ... SP angel will do an updated NPV soon.
Vasts NPV on what we have exceeds $100m on PE of 10 based on cashflow of $14m FCF. Shareholders can do their own math.
First sale early November. Analysis done before loading and once on vessel payment is received within 24hours. A matter of availability of vessels. Waiting on Mercuria to provide details of shipping and will be sold.