RE: Valuations to surprise everyone.5 May 2025 15:04
Also, think about how the capital inflow from the diamonds can help the other current projects:
Baita Plai Polymetallic Mine (Romania):
Ownership: 100% via Vast Baita Plai SA. Production: Copper, lead, zinc, gold, and silver.
JORC-compliant resources of 608,000 tonnes at 2.58% copper equivalent, with exploration targets up to 5.8 million tonnes.
Takob Mine (Tajikistan): Interest: 24.5% indirect stake via Central Asia Minerals and Metals.
Production: Fluorite, lead, zinc, and precious metals.
Royalty: 12.25% of non-ferrous concentrate and precious metal sales.
Aprelevka Gold Mine (Tajikistan): Interest: 4.9% effective stake in earnings.
Production: ~11,600 oz gold and 116,000 oz silver annually, targeting historical peaks of 27,000 oz gold/year.
Offtake Agreements
Trafigura (Baita Plai): Covers copper, silver, and gold concentrates.
Pricing tied to LME benchmarks with grade-based adjustments.
Extended until June 2025, supporting production ramp-up
At the current sp if Vast’s market capitalization is significantly below the in-ground value of its attributable resources-especially given current high spot prices for copper and gold-then the company could be considered undervalued.
With offtake agreements in place and production increasing, future revenues could rise substantially, which may not be fully reflected in the current share price. Also, exposure to multiple metals and jurisdictions reduces risk and provides upside from commodity price movements.
Baita Plai
With 608,000 tonnes of JORC resources at a copper equivalent grade of 2.58%, this equates to approximately 15,686 tonnes of copper equivalent metal. At current copper prices, this alone would be worth over $152 million (ignoring recovery rates, costs, and by-product credits). The mine also produces gold, silver, lead, and zinc, further enhancing potential revenues.
Takob and Aprelevka
Although Vast’s economic interest is smaller, these mines provide exposure to gold, silver, lead, and zinc. For example, Aprelevka’s annual gold production (~11,600 oz) at current prices is worth about $38.5 million in gross value (Vast’s 4.9% share would be ~$1.9 million). Silver production adds further value (~$3.8 million gross, or ~$186,000 to Vast at 4.9%).
Offtake Security
The Trafigura offtake provides price certainty and a reliable sales channel, which is crucial for a junior miner’s financial stability and supports the ramp-up of production