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My knowledge of Romania mines is limited but my understanding for copper mines was that the grade and costs associated with them made them non viable from a financing point of view. Of course this may have now changed with technology advancements and increase in copper price.
Anyway I think we all agree Vasts BoD have a consistent track record for not delivering.
I don't disagree on competency of partner chosen. The jurisdiction is good to raise finance compared to Romania. Of course this doesn't take into accounts Vasts BoD ability to arrange it.
BOD probably looked at mine and technically they probably believe they can make it work but it's a risk so would rather leave the finance to partner to arrange. Ultimately BOD would have been the initial operator of mine and therefore dealings with VAST from operational point of view would have been limited.
The company I work for has bought out numerous companies and due diligence is done but we have had our fair share of dodgy owned acquisitions which we have had to sort out.
Well JC probably thought not providing finance, acquiring 10% of mine with potential to increase percentage if it works out. What do we have to lose as,
'Vast to provide the full finance for the acquisition and to bring the mine into steady state production up to a maximum of US$15 million without any reduction in BOD's share. BOD to have the right to contribute to earn up to a further 20%.'
Agreed its always jam tomorrow never today. Been talking about refinancing since Atlas provided funding as they saw this as temporary stop gap. Financing was expected to be completed Q1 but no expectation from shareholders considering endless stream of broken deadlines and targets.
At least Botswana Diamonds are seeking alternative investor. It may actually get done but its high risk for anyone joining as the main liability falls on new partner. Unfortunately can't see Vast exiting this position easily.
On the plus side Vast still thinking they will be around on the 10th May so can only assume refinancing is going well.
Great update. Still looking to hit 20,000 ounces for the year and potentially 10% above this. Looking at free cash flow of approximately 18,000,000.
SP will be launched today and will continue to bring in the money
I say big sells as they are in the hundred of thousands. Only worth a few thousand now but expect they would have been bought in the tens of thousands originally. Anyone got any news as looking dire. Not that the SP looked anything else for the past 5 years!
That's right 25% longer term but will take a number of years to fulfil 10,000 ounces and subsequent 5,000 ounces before reducing to 25% depending on ramp up. I'm not sure if I will be invested here in 5 years plus to the amount commited currently. Therefore working on 50% for near to medium term. For most here probably considered long :P
Less than 3% of revenue has been from gold during lifetime of Ming mine to date. This deal with Elemental only provides 50% of gold to Elemental with minimum of 1200 ounces a year delivered to them. 20% of market price of gold will also be provided to Rambler on ongoing basis. Based upon these figures you can see the value of Rambler being significant over the long term once fully ramped up. Even on short term basis shows you what 1.5% of gold value is worth (that doesn't take into account 20% payable per ounce) to Rambler!
Great deal by Rambler to boost capital for next expansion phase which once again looks to be sourced via debt (loans or bonds?). Can't wait to see plans and what the expectation is for the future. What I do believe is that Rambler are considering a serious ramp of mining activity now that the Rambler has de-risked mining by developing multiple stopes and putting mill to full use going forward.
Great news for additional funding to support development of mine without affecting copper sales. I always saw the gold byproduct as an extra but this had added significantly to working capital after settlement to Sandstorm. Additional 10% when viewed against mkt cap. Great work and not resting on current arrangements.
The ore sorter is only required when targeting lower grade ore. When the ore grade is near to 2% it is not likely to be economically viable. There are currently 4 stopes in production and therefore Rambler can mix grades to make best use of the mill. As stopes are mined the grading I believe should increase. In view of this there is no reason to be purchasing ore sorter at this time but will be needed in the future. One to check on next question and answer session.
There are a lot of other cost saving measures which can be looked at in the interim such as shaft refurbishment.
Just my view on current position on ore sorter as some seem to be stuck on a broken record here.
The deramping and trolling has been going on for months/years whilst SP has continued its downward movement. Maybe they are more realistic and looking to protect potential shareholders. Looking back maybe I should have been more attentive of their views. I'm seriously down here.
An extremely positive RNS.
Plenty of positives from recent drilling, defining a new potential stope, short term production opportunity, confirmation of hedge completion and now selling at market rate.
New jennings zone open on all fronts allowing near term exploration as well as production as near to existing infrastructure.
Rambler has now confirmed its turned around its fortunes. Plenty of positive news still to follow short term such as gold assay results.
I would love Rambler to be mining 2000TPD by end of first quarter 2022 but not likely until ore sorter in place. I expected we will be at around 1350tpd and looking to increase slightly in future if mill input can be increased without jeopardising future input.
Overall a good article.
Yes been a lot more expensive to get to current position than expected. The second egress has obviously delayed full production and hence requirements for additional cash.
Lots of talk on not hitting targets but if it had not been for second egress being required Rambler would most likely hit redevelopment target in 2021. I see no reason to doubt BoD in this respect. They have been clear on position of mine after first half in 2021.
Some output detail provided for 2022 which looks good.
AP had previously stated,
"The proposed acquisition of the Ghaghoo Mine in Botswana is a highly compelling opportunity for Vast to deliver diamond production in a relatively short period, benefitting from a fully equipped mine that has $250 million of investment, infrastructure and a significant Resource of quality gems that include large stones and fancy colours. Importantly Ghaghoo is substantially de-risked both from an exploration and development perspective, and also from the funding structure that we are advancing with third party financiers.
"Furthermore, this transaction also aligns with our longer-term strategy to maximise and crystallise the value of our interests in Zimbabwe and the Southern African region."
At the time AP was convinced Finance could be independently raised of BP mine and should not be an issue in this jurisdiction compared to Romania. Just another prime example of Vast BoD not underestimating risk and requirements. There will be costs involved with this failed transaction which Vast cannot afford.
A positive in not being able to raise finance as may concentrate focus on producing asset which they are at risk of losing control if finance not agreed.
Massive positive:
Rearranging Atlas debt
Otherwise:
Still awaiting positive cash flow - hardly any funds left so expecting a further placement but at least company still operating
Ghangoo mine - No news whilst comments on Zimbabwe. Maybe progress being made but no holding statement does not sound like competence to me.
Production figures improving but once again from a very low position. At least half produced in December so maybe they will get this right one day. With rigs due in Q1 once again maybe some real progress can be made.
Manaila mine - No finance agreed but as expected. Until company can show its competent lenders will reluctant to offer terms. One for later in the year.
Positive: Appointment of external consultants to work out efficiencies.
Virtual money I stand corrected. I thought I had read Vast was unable to pay back interest but cannot trace this so looks to be only conversion of warrants. This is actually more positive as gives the impression Vast are able to refinance otherwise why convert!