The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Perroverde , that's the reason i spent the time and posted today and not yesterday. There are lots of emotions around vast at the moment which is understandable, but this is also effecting investors who hold but don't have the real time to dig down and get a clear picture. If i can help filter out some of the noise this will help them in their decision making on the the way Vast is heading. Thanks
Yes Angus i did take part in the placing , unfortunately i would have liked to take a lot more but circumstances restrict me at present. As you know i have always been honest when asked this question, i have nothing to hide and i will support any placing when it ticks my investment boxes. Honesty is the way to be , no hidden agendas just honest opinions. That's how respect is gained with other investors in my opinion.
Above is a summary of the recent news as I see it, my View may be totally different to others but it’s an honest indication how I see what Vast are achieving. Vast has transitioned from Explorer to producer in the past, looking back mistakes happened the way some of the partnership deals were set up which have come back to bite us, namely Pickstone Peerless. That was the major cause for the recent restructuring that Vast has just had to undertake. This is now in the past and restrictions placed upon us the way the deals were set up have now been released. Finances consolidated, Vast has a short term focus on delivering BP and completing the Heritage concession. Finance for these two major projects is in either advanced stages and in the form of Term Sheets. I look forward to the completion and production at both these cash generative assets coming on line. It has been a very tough ride investing in vast but my honest opinion is that we are now on the cusp of completing all the above and motion is in place to build a very successful company. I fully understand investor’s positions at the moment and yes we are all at significant losses, but for me the future is bright and I have not come through all the pain not to be here when this company is succeeding in the very near Term. Hope some of the investors who don’t get the time to spend hours researching can get some true feeling of where I feel vast is heading. Good Luck
RNS: 30th May 2019 “SUBSCRIPTION TO RAISE £900,000 BEFORE COSTS”
1, “As announced on 29 April 2019, the Company has received a draft term sheet containing the material indicative terms from a Swiss bank for a loan finance of up to US$10 million. This is to be applied in connection with the Company’s Romanian projects including full repayment of the US$4 million plus accrued interest by the Company to Mercuria. While due diligence on the provision of the Swiss bank loan finance and/or any equivalent (the “Loan Finance”) progresses, the Company plans to incur some of the necessary pre-production expenditure for Baita Plai in advance of the receipt of the Loan Finance. This will significantly reduce the lead time up to commencement of production.
The pre-production expenditure will include the commencement of the installation of a seven-kilometre tailings pipe to the tailings dam and, as is required in the Company’s licence, the installation of a new and independent electricity supply at Baita Plai in addition to the supply the Company has already installed. Expenditure will also include the cost of the independent report from SRK Consulting (UK) Ltd as mentioned in the Company’s announcement of 28 May 2019. The money raised from the Placing will be applied for these purposes plus for general expenses at Baita Plai and for general corporate purposes.”
Yes I agree we all not happy with any placing, this is not just a Vast issue but its AIM. But sometimes they are a necessity to advance production. We have had a clear mandate what the funds are used for and why this decision has been taken. Whilst like I say I am not happy with the placing, taking my emotions away and looking from a Business view this is 100% the correct move. Vast has been starved of free cash flow mainly due to the legacy issues and the transition from explorer to producer, mistakes have been made I agree. Vast has been hugely criticised in the past for this, I know some strategic investors have had issues with the free cash flow problems at Vast. These are now been addressed and the company is ensuring that by Christmas BP is operational and generating revenues,
3, Due Diligence with the Swiss Bank is progressing.
3a.Clearly there are no issues with the Bank Debt Financing , because if they were this would have to be announced as per AIM rules. All investors who have said there are issues with the Swiss Bank, its there in Black & White there is NO issue.
4, The Company is also in possession of an indicative financing term sheet in connection with the Heritage Concession in Zimbabwe and further indicative term sheets for this project are expected shortly.
4a.Can Vast come out with this comment if they don’t have a term sheet ready? NO.. So once the granting of the Heritage concession we have funding in place. How can this be a negative? Funding completed as per indicative term sheet sorted ahead of the project never heard of within Vast.
5, Discussions towards finalisation of the contract in relation to the Heritage Concession are progressing well. Additionally, the Company is pleased to see the change in government policy which has resulted in the cancellation of the country's indigenisation laws for diamonds.
5a.Go back 1 year and the DIAMONDS were not even on the Radar, AP and Will Maybeley & Mark Mabhudhu have done a brilliant Job in putting vast back on the Radar for Zim Diamonds. The work that they have performed within the community and the expertise we have along with our approach towards the Zim Gov is testament to the team that AP has Built out in Zimbabwe..
2, The Company has retained a specialist natural resources debt adviser, Carlingford, a division of GFI Brokerage Ltd., for the purposes of assessing debt capital for Vast's continued development. It will also assist the Company with the structuring of the loan finance from the Swiss Bank, which has given Vast a draft indicative term sheet containing the material indicative terms for loan finance of up to US$10 million (the "Swiss Bank") (as announced on 29 April 2019).
2a.The funding from the Swiss bank is being managed and concluded by Carlingford, these guys are experts in proper corporate Banking financing .Take a look at http://www.gfigroup.com and here is their impact statement
“Carlingford is a commodity structuring and advisory business working with clients across a wide range of products globally. We are transaction focused. We help to arrange the finance, hedge and execute solution-based requirements for commodity clients. Our unique process allows you to achieve price competitiveness and effective deal execution. Carlingford's knowledge and extensive experience in the global commodities market allows for the development of clear solutions while delivering an integrated advisory and arrangement service.”.
This is not a Tin Pot company taking on the Swiss bank Debt Funding process & in my opinion Carlingford will also be liaising with Debt Capitals in their contact list. They will be looking to bring in further investments of Debt Capital as the assets develop.
Putting the 2 statements released together a picture of what AP is doing is starting to unfold, if you understand how these things work. All it takes is a little research and analysis to get to the nuts and bolts of how these things work.
Vast have never had a true valuation done on the Romanian assets, this is due to the Hugh expense and the time scales of producing a true PFS. Ask ourselves how many times have we as investor moaned at the valuations from Brandon Hill etc??.
Quite frankly they added Zero value to Vast, unlike the set up vast has undertaken to ensure we have a true and independent valuation of our assets. Now in my opinion this is a necessity for all Institution or Family officers to come onboard, I would expect this report in the next 4-6 weeks (give or take a little) then those serious Institution & Family office’s could quite well be coming on board. Remember with a NPV of $80-$100 million and a M/C of $10 Mill,with the SRK report giving true Data for the mines and a reflective valuation I expect them to be taking big chunks.
Investors here are my thoughts on the recent announcements of Vast, Namely the last 2 RNS statements.
I have identified the way I feel the business is growing and how I see that the events unfolding. This is not a Ramp or a De-ramp, it’s there for the investors who have contacted myself asking for my thoughts. Take away from this what you feel but it’s an honest opinion of my investment in Vast and what I believe is happening and the way the company is developing.
28th May 2019 “RESULTS OF GENERAL MEETING AND CORPORATE UPDATE:
1. Vast has engaged with SRK Consulting (UK) Ltd. to prepare Scoping Studies, Preliminary Economic Assessments and/or Preliminary Feasibility Studies, as may be appropriate, for Baita-Plai, Manaila, Carlibaba and the Carlibaba further extension with the intention of enabling independent evaluations for those assets, which will further highlight the potential of the Romanian portfolio.
1a. This statement in my opinion has been massively overlooked or the effect of this has been misunderstood by many investors. Many investors have stated “This is because there are issues with the Swiss Bank”. How and where has this information come from to make them think this way?. Again people pressing their own self destruct buttons because of the historical issues in financing, I fully understand the mind set of investors, but historical finance is not connected in any way to the Swiss Bank deal, this is the first of its kind for Vast (Bank Debt Financing) and if there were issues Vast would have to update the Market.
LOOK what’s written!! SCOPING STUDY, PEA, PFS..These will give Vast a true independent valuation based on NET PRESENT VALUE, this information will be taken from all the drill core data and samples received on BP, Manaila, and Carlibaba extension with financial modelling done by Paul Fletcher .
In my opinion I would expect the outcome of the valuation to be somewhere in the region of $80-120 Million, current MC of vast is approx $10 Million??? That to me indicates a clear disconnect between the NPV ( Romanian assets only) and the current SP??. I have not added any value for the Diamond claim because that asset is not booked to Vast at the present time. Looking at the next paragraph regarding Carlingford, you will see clearly how I have engaged my thought process.
TBTT , more rubbish . You obviously don't understand Finance. Go ask your Brother to explain this situation to you , while you are talking to him please supply me with all the other answers i have asked for which you were getting off him.
Why don't you accept defeat gracefully and hold your hands up and say you were WRONG, that way you may gain respect from shareholders ! Carrying on with this nonsense and does the total opposite/.
TBTT, its in the RNS . this just shows to go how much you really understand about Finance and Mining (i suggest you speak with your brother as es n as you say ;-). TBTT you have not posted 1 correct post , give it a rest.....
""" indicative terms from a Swiss bank for loan finance of up to US$10 million to be applied in connection with the Company’s Romanian projects including in full repayment of the US$4 million plus accrued interest indebtedness by the Company under the Mercuria Prepayment Agreement. """
There you go just for you....
Perroverde he's not the only 1 who has a different outlook on other boards , look who's been piping up and where else they post.
1 believes in 88E for the future , when you look back at 88E exactly same story as vast (troubled history)but that gets the thumbs up, the same can be said about most of them. strange !!!. Proof that this is personal agenda for some IMHO.
So tick box move on and lets get some info for new investors posted. All members who have helped turn this BB around well done , its even been reflected in the trades today. Lets keep it that way......
Sandy the 10 mill term sheet is a phenomenal Step forward in the right direction, investors have take no notice of it at the moment (foolishly imho) Swiss banks don’t issue term sheets willy nilly , it proves they are happy with the assets and management team . If putting 10 mill debt finance out to vast does not show a commitment then what does ?? .
Suki the Market is looking backwards at our history, Very soon i recon they will be looking ahead at the great assets in Rom and the Diamonds in Zim. Every major company starts off small you just need the vision by the BOD to grow the company exponentially, lucky we have AP who has big aspirations here.
HT , If we stop responding and feeding their ego's along with their destructive mission they will get muted out. Non of this personal but investors are sick to the back teeth with derogatory comments and misleading potential investors. Don't feed them , its nice to see this BB getting back to Normality.
Don’t forget the team he has built in zim Castaway , he has brought the diamond claims just awaiting final confirmation. That team AP put in place will have been instrumental in helping Vast to obtain these claims . They are company changers in the making .
Dodge I have explained the point you raised in the RNS, which was before the GM was held. That was in the RNS so investors knew that the restructuring would also effect the future funding for Rom . If you ask Sammy nicely I’m sure he will show you on his recording where clearly Brian Moritz states “sscg have no hold over vast once resolutions passed” . What this means is we have passed the notion and the transaction to release vast from sscg has started. Therefore we can say we’re no longer in the sscg shackles because legal contracts will have been signed disposing of pp and all technicals between to two companies including the hold on assets . Accept defeat on this all those who are trying to destroy this bb without success!. WELL DONE to all who have stood up to these investors with nothing but negativity, if we keep it up and don’t feed the negatives they will finally be muted and we can get back to a good bb again .
Piker as i have said before make an effort guys and go to General Meetings , these sort of questions get asked by investors and they are given answers. In the Last GM when the restructuring resolutions were passed the BOD was asked when does this transaction complete ? immediately once passed. Brian Moritz explained all assets will be released. I have covered this before see my posts stating that line is in there to enable investors to understand if they voted resolutions through they would free assets up. You may even find it on Sammy's recording....... ps this has been explained you just need to take your cloudy glasses off and read RNs and Chairman reports instead of giving miss information yet again.