Member Info for Dunk_Biscuit

Vast HAVE to get those diamonds back ...soon !!

I think it's highly likely that there is going to be considerable news flowing from Vast . Hopefully all good . 👍 The company will have cash flowing and opportunities opening up in multiple directions from now on . DYOR etc., etc..

Yes I totally agree that BP will become profitable and sooner rather than later !

Very good news for Vast . It's going to be far more profitable than mining copper !

A simple investor ...I'm not going to spend any more time trying to explain it to a simpleton like you !

The 20% is worked out on the difference between revenue and all costs (including processing and any taxes due) . Then , once the royalty has been worked out based on that formula , Vast makes a counter charge (I.e. raises an invoice ) to Explore Eco Mining to recover the processing costs of the gold at BP . That's how I see it .

I think the way it should be interpreted is that the 20% royalty is worked out on sales less all costs plus government taxes etc . . Then an inter-company charge is made from Vast to recover the cost of processing the gold at BP .

This is what the RNS states ......

"The Company will receive an effective royalty for providing technical support, processing and marketing services under the First Agreement equal to 20% of the difference between revenue and all sales and production costs (including government royalites and taxes) payable monthly. The Company in addition will be entitled to make a charge for processing material at Baita Plai in accordance with industry norms."

The last sentence states ...."The company in addition will be entitled to make a charge for processing material at Baita Plai in accordance with industry norms "

The charge for processing will be charged to the company who holds the lease on the old gold mine and rock dumps . It's not a cost that Vast will have to accommodate and will be fully recovered.

Quick ballpark calculation of costs based on four articulated 44 tonne tipper trucks capable of carrying 29 tonnes each . Each truck would do two round trips per day each round trip is a total of 140 miles . Fuel consumption 40 litres every 70 miles .

Cost of fuel £900 for 4 trucks

Cost of hire of truck plus driver £300 x 4 = £1200

Cost of hire of loading trucks + operator £300

Total transport costs £2400 per day .

Revenue 232 tonnes per day with 1 gram gold @ £68 per gram = £ 15 , 776

Less costs as above = £13,376

Revenue before tax to Vast is 20% of £13,376 = £2675 per day . Over a 22 day month that's £58,000 approx.

This doesn't include the charge Vast will make for processing at BP .

If Vast can process 250 tonnes a day , each tonne having one gram of gold say at £68 per gram that's

£17,000 per day . Take off the cost of doing that and then take 20% of that net figure. Nice flow of money coming in every month .

Vast is moving in the right direction now and to concentrate (no pun intended) on gold is very sensible . It's a lucky and quick solution to their cash flow problems which has always been a constant issue with Vast . What has happened in the past isn't a reflection of what will happen in the future.

I hope with the gold projects Vast can become profitable in a short space of time . The gold will also help greatly in any refinancing deals . It's fortuitous that Vast are in the right place at the right time . If it wasn't for the huge hike in the price of gold then it would be a different story .

There should (I hope ) be lots of positive news flow over the next few weeks and months . Interesting times ahead 😀 The worst of the dilution is over ...onwards and upwards !

Click on commodity to see chart ....

https://tradingeconomics.com/commodities

Gold doesn't seem to be flagging in it's march upwards ! Watch this space !

https://www.fxempire.com/forecasts/article/will-the-new-brics-currency-supercharge-gold-prices-1471128

Good move by Vast to get going with gold !

https://www.fxempire.com/forecasts/article/will-the-new-brics-currency-supercharge-gold-prices-1471128

Https://miningmetalstj.com/en/

Four very large trades today ...looks like news is coming folks !

If you missed the video here it is again ....25 million of proposed up-front funding to start production 🙌 Once started the gold byproduct will pay for the projects . Gold consistently reaching all time highs means a golden opportunity ✨️ DYOR etc , etc..

https://youtu.be/WfRx_IyoJdU?si=AGvihv4GQaCbH7Qp