Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
I see you are cross ramping on several other boards too dude. You have also commented on CLON’s board that you have been accumulating for a couple of weeks. So you have a good head start on others, not sure I’d sell big here when there’s no news yet for CLON, saying that though I’ve already taken a little punt at 1p myself. However patience is needed, news for VAST could land anytime on several fronts. We are the verge of starting mining with BP and unlike Romania Gov, I don’t think Zim Gov will wind down for Xmas, news could come anytime.
For those who might skip the link:
John Teeling, chairman, commented, "Zimbabwe is opening up to investment. The country is rich in resources and has significant diamond potential. Vast Resources is at an advanced stage in finalising an agreement with the Central Authorities on a package of ground in the Chiadzwa / Marange area. This is a revised package from that on which Botswana Diamonds and Vast Resources had previously agreed to cooperate. In the light of this development, our previous agreement with Vast has been revised on new terms acceptable to the board. We look forward to the diamond agreement being concluded and to work starting on what is highly prospective ground. Botswana Diamonds is also studying additional opportunities in Zimbabwe."
https://www.lse.co.uk/rns/BOD/zimbabwe-update-4j9hafsyg53ddra.html
Note John Tealy's comments at bottom regarding Vast, very encouraging.
"Vast Resources is at an advanced stage in finalising an agreement with the Central Authorities on a package of ground in the Chiadzwa / Marange area"
Sounds pretty confident to me.
"Vast Resources is at an advanced stage in finalising an agreement with the Central Authorities on a package of ground in the Chiadzwa / Marange area"
Volumn is drying up due to head room, once we are passed previous high of 3.69, then 4 pm would be seen as the next challenging resistance level, That is roughly around 10% increase from here, which is still a good trading target, however as we get closer to 4p there is less head room to trade, but at the same time more confidence to hold & less people wanting to get back in for a fraction of the price. The closer we get the more confidence their will be that 4p+ is now achievable, traders will question, is it worth the risk of missing out. After pushing past 3.35ish resistance & found good support around their too, confidence has also increased that the likelihood is we won't fall lower. Add the fundamental that the remaining warrants expire end of play yesterday it would seem that a morning RNS would give us a much appreciated push in the right direction, could be an awesome day ahead or at the very least another positive step closer to 4p in my opinion.
Thanks Castaway, I had a feeling we had not given up the ghost with Manaila, although I guess AP main focus now will be BP, but I am interested to see what will develop for Manaila too. The dream of having two active mines in Romania would be a sweet reality, plus as licensing is already there it makes perfect sense to pursue both mines.
Things are really heating up with Vast, so glad I hung on to my shares. My average is about 61, but i’m feeling very optimistic that we will pass that before the end of year.
Thanks for clarifying Batfink, was starting to get little concerned. I expect will get some news soon to clarify the companies position. Very much on tender hooks to see how this restructure will manifest itself.
I don’t think they will be able to sell eureka due to the fact that it‘s linked to the 3.4m debt with Sub Sahara. From what AP said in AGM, their is nothing to sell as it was technically bought with that debt. AP had stated in the AGM that they had been in discussion with them recently to clarify their position, hope they new about the governments plans regarding the concessions back then, otherwise things could get very tense. Perhaps that is what has geared them into restructuring the company, knowing that if they didn’t act fast they would loose their mining rights for Eurika & be faced with squaring up that debt with Sub Sahara. According to AP in the AGM they were going to RNS the outcome of those talks shortly. Will be interesting to see how this play out.
Vast has several inactive mines in Romania, vast could consider selling some of these, but I don’t think they will as in later years these could become future projects for the company, plus I get the feeling Vast consider Romania as their turf & don’t want to offer it up to the competition. Perhaps they could consider selling the mines back to the government, but will they get a good price? I doubt it. I do however think they should review those other mines to consider whether there is any salvageable equipment that could be used elsewhere. Not sure on the legality of this idea, due to licensing etc, but perhaps it might be worth taking an inventory even though the mines are old & the equipment most likely obsolete.
Vast are obviously not going to sell either of their licensed mines, even though one of those mines seems to be struggling & is currently closed. Perhaps a joint venture could be considered in order to come up with the capital to make manaila profitable. Again though I don’t think Vast want anyone else to gain a foothold in Romania, even as a partner, so the offtake seems the only way to secure the cash required to transform Manaila into a positive cash flow for the company. Nothing recently has been mentioned as to whether we’re still getting the new trucks to increase production flow. Plans to move the processing plant nearer to the mine seem distant memories, now that mercuria dropped out & royally shafted Vasts progress in that respect. Vast need to sort out their current cash & debt structure pronto. If my understanding is right that is the whole reason for this restructure & until it’s done, no offtake will be agreed. The company needs to be water tight before anyone considers giving us a good deal. Let’s hope we hear something soon in this respect as the clock is ticking for Vast.
I would have liked to have attended the investor show this year, but could not due to other commitments, it would have been nice to have spoken to them about the restructure directly. I guess they would probably not given much away, but to hear their reassurances face to face, may have given me more confidence in that respect. I’d love to hear more from others who did attend, Lee especially as I enjoyed discussing the future of the company with him at last year’s advent :).
I too find this strange, why 0.3, surely they could have agreed a placing at a better price considering their current price was over 0.5 and for such a small amount of cash in comparison to previous placings, why drag the sp so low. Surely they are not desperate for the money. The recent RNS is extremely positive regarding the plans for the SPV. Either they are extremely optimistic that the SP will rerate & could not be bothered to shop around or they needed the cash pronto to tide them over till SPV comes online. I too would like an explanation for this.
Really comes down to whether you believe the company will achieve great results in the future. I for one do. I’m not to bothered by price dropping as i’m In this for the long term. Nothing has changed to make me think they won’t come through. Also there is no justifiable reason for this drop, just impatient traders, or people listening to unjustifiable hype who are selling out of fear. People just have to be patient & zone out the noise.
If manaila really is such a cash guzzler, then perhaps the company needs to consider letting someone else mine it for them while they continue to own it & take a %. Getting a license to mine in Romania is no easy task as BP proved. So i doubt the company would want to sell so easily, but some kind of joint venture with a larger company who has the financing to make it work might make sense. This would definitely leave vast open to consentrate on BP and other assets that would prove more profitable for them at this stage. Definitely worth considering. What do you guys think?
Thanks for posting that Daz, was trying to find it just now in past RNS. Mercuria dropping out of T2 seems quite grim to say the least.
I’m not sure I agree with earlier statements made regarding selling manalia, as at least it’s in production. Are we still expecting new trucks in February? Would it not be wiser to sell other mines in Romania, from what I remember from Roy’s presentation back in the day we own quite a few, which we bought for next to nothing from Romanian government. Fair enough vast are in a much better position to mine in Romania than most, but there must be over competitors who would be interested. If not Romania then perhaps one of the Zim mines instead as long as it’s not one which is already producing. There were also plans to build further facilities closer to Manalia too, to increase productivity & revenue. However nothing more appears to have been said of recent in that respect as we need fund to get it in to play. Perhaps selling some of the inactive Romanian assets might allow the company to do that.
Yes my LSE is definitely not working on my iPad for some reason, cheers for the advise Daz, have already set one up through the London stock exchange website for email alert. Will follow the link from email in future so I don’t miss out.
Perhaps my Ise is currupted:
Vast Resources plc / Ticker: VAST / Index: AIM / Sector: Mining
17 January 2019
Vast Resources plc
(“Vast� or the “Company�)
Update on US$5.5 million Tranche B Mercuria facility
Vast Resources plc, the AIM listed mining company with operating mines in Romania and Zimbabwe, announces that the US$5.5 million Tranche B Mercuria facility will not be received by today, being the last day of the 30 day period in which Bergen Global Opportunities Fund LP is not able to exercise its conversion rights in respect of the US$1.575 million Convertible Security issued to it pursuant to the US$3 million Bridge Facility announced on 20 December 2018.
The Company continues to expect receipt of the Tranche B Mercuria facility.
**ENDS**