Member Info for APD708

Hi @Max, if the international bank signs on the asset backed debt finance linked to Baita then that means there is copper in Baita. And if Vast can't repay the debt then the bank will see to recoup. The relevant questions are, is there enough copper and its value in $$$$$$$$$ as per Craig Harvey's estimates and what terms will Vast be able to negotiate with the bank?

of course it will go towards 1p and beyond if things improve with Vast. The relevant questions are when will things improve with Vast and when will the SP start marching up? We are at least 12 to 18 months away even with Baita producing and copper prices on the up.

@Pecten11, I don't know if you read the RNS on 26 Nov 2020, all the folks you have mentioned were given shares as part of SARS scheme for doing a great job I guess. So they probably have no reason to buy more.

The fact is Vast is at an inflection point as I have shared in my previous posts (and the Board knows this), Vast need to continue to generate free cash flow from Baita and we hope the estimates that were produced by Craig are fairly accurate. A signed deal on asset backed debt finance linked to Baita with the international bank will be essential to avoid another raise to settle Atlas's debt.

Go long on Vast but in the coming weeks the SP will drop if things don't improve.

@MU345, I am sure you know but the estimates that you have referred to were produced by Craig Harvey COO which is not the industry best practice. An independent entity ideally needs to do the JORC and estimates.

There are many subtle and important points such as this one which are preventing a gradual and steady increase in SP.

1. We actually don't know whether the bank wanted AP and Roy to sell their share of Baita to Vast. We are assuming that the bank had a condition to do so which is perfectly reasonable.
2. It is all about the terms linked to Baita that the bank will offer Vast and if any trade offs either party needs to make to have the deal signed
3. Long term for Vast - is definitely a Tick
4. How much SP will rise long term - very very difficult to predict given where Vast is at the moment

+ve or -ve news, we will know in the next 48 hours max. Is it tactics for not releasing RNS today or the discussions with the international bank are still ongoing today and may continue tomorrow which is possible as if the international bank asked for too much in return for the asset backed debt finance then we can appreciate Vast will be negotiating hard to keep as much possible for them and us (the shareholders).

*institutional investors

Leaving Atlas's debt aside, Vast need to pay its employees & pension which is $3.2 million (179 employees as per page 48 of the 2020 Audited Annual Report) and other expenses such as bills. Just with the recent placing I don't believe Vast is in a safe zone.

Vast paid $0.5 million principal of the first tranche of the Atlas Capital Markets facility of $7.1 million drawn down on 31 Jan 2020 as per Page 3 of the 2020 audited report released on 29 Oct 2020.

As per page 61 "The Group had interest bearing debts at the current year end of US$ 8.540 million (2019: US$ 5.749 million). These loans are repayable as follows:
- Within 1 year 179,000
- Between 1 and 2 years 8,361,000

Be cautious investing more in Vast until we hear on the asset backed debt finance and its terms offered to Vast by the international bank which as per AP is a Tier 1 Bank which will bring intuitional investors.

As per the audited 2020 Annual Report published on 29 October 2020, Vast had a net debt of circa $ 8.2 million (page 63). Roughly, $7 million is owed to Atlas and AP's plan is to settle the Atlas debt on or before 31 December 2020 (as per the RNS on 10 Nov 2020 and AP's recent interviews with the analysts)

As per the RNS on 10 Nov 2020, AP and Vast still planning to use Atlas for Zimbabwe "The agreement does not affect the potential drawdown by the Company of Tranches 2–4 of the Bond issuance Deed for its diamond division in Zimbabwe."

It will depend on the terms of the asset backed debt finance agreed with the Tier 1 bank. Read the last two paragraphs by one of the analysts - https://www.proactiveinvestors.co.uk/companies/news/933811/vast-resources-could-be-generating-more-than-us70mln-in-revenues-from-baita-plai-and-chiadzwa-by-2022-933811.html

What gives me hope is the future of Copper - https://www.bloomberg.com/news/videos/2020-12-11/cooper-is-screaming-one-way-ride-trafigura-economist-says-video. I think we all know that Copper will have a big role to play with EVs, charging infrastructure, etc.

Let's hope we get to know who the Tier 1 Bank is tomorrow (if RNS will be released tomorrow) and let's hope it is actually a Tier 1 Bank.

I am cautious due to AP's past performance and the number of shares issued (which will increase even more by 755,587,515 of the Placing Shares on or around 15 December 2020 (the ‘First Admission’) and that Admission will become effective and dealing will commence in respect of the issue of 2,916,063,924 of the Placing Shares on 23 December 2020 (the ‘Second Admission’)) but still long on Vast.

@Stressful, even the RNS on 15 May 2020 (Page 2 of the pdf) says "Debt financing
The Company announces that negotiations with two institutional investors in relation to a nonequity linked asset backed debt structure linked to Baita Plai have now reached a well developed
stage. Such financing would be used inter alia for refinancing the Tranche 1 Convertible Bonds
issued to Atlas Special Opportunities LLC.
Due diligence to secure the financing has commenced and in order to expedite this the Company
is now accelerating and expanding its drilling and metallurgical test work process. The Company
looks forward to updating the market in due course on further developments regarding the
refinancing."

@Stressful, have you read the RNS on 30 Nov 2020? From which RNS did you understand that Tier 1 bank will provide asset backed debt finance for all of the Vast's assets? If I have misunderstood I would like to learn and correct.

Specifically for Zagra, as per AP's interview with Cruz Investor on Nov 11 from Vast's twitter account (listen between 14:00 and 20:00 minutes of the interview) Vast need a major mining company as Zagra will require significant investment.

Hi @East, I think we all know but just to reiterate "the Bank" is only providing asset backed debt finance for Baita as per the RNS on 30 Nov 2020 and not providing finance for any other vast assets like Zimbabwe, Manaila, Zagra and Blueberry (which as per AP will be a separate IPO if and when that will be).

This point is vital to understand as how Vast finances its other projects is definitely unclear as per RNSs.

Monday will be definitely interesting depending on Brexit news over the weekend. And of course, for Vast, lets see if we get any news on Tuesday with any news of Tier 1 Bank.

1. Placing on the 9th Dec (which was a total surprise to most shareholders except those who took part in the placing)
2. Update on sales of Baita Plai concentrate on the 10th Dec (so we got paid for 1st delivery on 10th Dec which the company would have obviously known before the 9th Dec then why do we require placing? To satisfy "the bank's" pre-condition for asset back debt finance. Really??? Doesn't make sense at all.)
3. Development work on the Antonio North skarn as posted on twitter on the 10th Dec (this could be a picture from anywhere. I have the highest regards for the miners who risk their lives.)
4. Director purchase on the 11th Dec by Brian Moritz of a meagre 15 million shares @ 0.139 (roughly £20,850) - is this to show Brian's confidence in Vast's future? If he had bought £200,000 worth then that would be a strong vote of confidence.

Numbers don't lie and they are since FY 2019/20 till date
1. No revenue from any Vast operations until the recent first sale of Baita production (we don't have visibility of how much we were paid)
2. Circa £11 million placings so far in 2020
3. Shares outstanding nearing circa 20 billion (a year ago they were probably less than 10 billion)
4. on 26th Nov 20 management were issued shares as part of Share Appreciation Rights Scheme (SARS) scheme, why? To recognise which of their achievements?

It is not standard practice in mining to provide monthly sales figures. In mining, the production varies month on month. Severe winter weather affects production as well.

I do agree with @Shanni10, AP is planning to cash out his enormous number of shares by next year or year after and then leave. It seems he is not interested in being with Vast beyond 1 or 2 year. I hope I am proving wrong.

may I ask you thoughts on why you say so?

AP circa 1.5 billion shares were issued in November this year for his sale of 10% or 20% in Baita to Vast and they have a lock in period of 12 months. So maybe he is planning that SP will be higher by next Nov, he will sell his shares, make a profit and leave. I know this is a far fetched idea of mine.

The reason I said time is running out, is because as per AP is his interview with the analysts in the last couple of months (which can be accessed from Vast twitter) Baita's revenue after two months will be operationally cash positive meaning all the investment that went into Baita will be paid off by the revenue from the first two months.

As we know Baita has been producing for a couple of months now (right?) so why do we need placing? Of course, in mining operations the production varies month on month basis, some months there may be a lot more production than anticipated and less is some months.

I don't think it is a condition from "the bank" that Vast have circa £4.8 million cash (recent placing). The "real issue" is Vast don't have much cash and that is why "the bank" has asked for cash as Vast need to pay salaries, other expenses and settle some Atlas debt.

I worked out from the beginning of this year, Vast raised £11,222,516.66 from placings. £4.8 million is roughly 46% of the £11 million. I am hoping AP is being honest in that "the bank" has asked for this cash and "the bank" will approve and sign off the asset backed debt financing on 15 Dec 2020 or in a couple of days after that.

Bottom line is Vast need to generate cash from Baita ASAP and then if it wants to become a mid tier mining company then it needs to draw down from "the bank" and carefully start other projects with a robust plan and a well thought out management plan.

I don't think AP has shown his best management skills this year. I hope he will learn from this year very quickly.