Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
I've been looking at the cost of both Reverse Circulation and Diamond Core Drilling in Australia in order to estimate the companies financial position.
I'll begin with the Red Setter licence area, and it's 3000m Phase1 Diamond Core Drilling Program first.
From what I've seen so far, Diamond Core Drilling (In Australia) costs between AUD$200/m and AUD$400/m. I will therefore assume an average cost of AUD$300 per meter.
On that basis, the average cost for the Phase1 Diamond Drill Program is just short of AUD$1M.
AUD$300/m x 3000m = AUD$900k
This does not include costs for any lab analysis of the cores (assays).
The other current drill program taking place is the 2000m Reverse Circulation drilling at the companies Wishbone II Licence area.
Again, from what I've seen, Reverse Circulation drilling costs between 25% and 40% less per meter than Diamond Core Drilling does. Therefore, I will assume that the average cost per meter of RC drilling is approximately AUD$200.
Given that, the assumed total cost of the current 2000m Wishbone II Reverse Circulation drill program is just short of AUD$0.5M.
AUD$200 x 2000m = AUD$400k.
As the Wishbone II, and the Red Setter drill programs both commenced in 2022, their combined costs (AUD$1.3M ~ £760k) can be deducted from the 'cash in the bank' that was stated in the final Results, which was approx £3M (as of 31st December 2021). This leaves £2.2M.
looking now at the companies operational expenses (currently at £100k/month) the company would have already consumed £800k of that £2.2M from the 1st January 2022, up until the end of this month, leaving only £1.4M cash at hand today.
We could reduce this £1.4M again, to just £1M if we were to consider the £400k operational expenses required to cover the company costs from the beginning of September 2022 up until the 31st of December 2022.
So......In the scenario above, the company has paid for the phase1 drilling at Red Setter, it has paid for the 2000m Reverse Circulation drilling on Wishbone II, and has covered operational costs till the end of the year, and so far has £1M cash remaining in the bank.....
However, the remaining £1M will actually be far less in reality, given that any assay results will need to be paid for, and also the costs for any surveys conducted in 2022, on any of the companies assets will need to be deducted aswell.........So how much available cash does the company have left??
Can anyone confirm the costs of these two services or contracts?
To be fair, the company doesn't appear to have much room (in terms of cash) to further advance exploration on any of its assets, and a possible cash call could be on the cards in the next few months??
On another note, and on the assumption that the company discovers a valuable or viable deposit at Red Setter, what does the company plan to do with the asset?
News Bihor (27 June 2022)
An underground miner employed at a copper mine in Bai?a Plai suffered a serious work accident after a piece of rock from the ceiling of the gallery where he was working broke off and fell on him. The 52-year-old man suffered a fractured pelvis and had to undergo surgery in Timisoara, after initially being taken to the County Hospital in Oradea.
According to the head of the Bihor Territorial Labour Inspectorate, Marius Rotar, the accident took place last Thursday, 23 June, at around 7.30pm, in a mine belonging to Vast Bai?a Plai SA, owned since 2011 by two Australian companies, Vast Resources PLC and AP Mining Ltd, and managed by a Romanian Australian.
"While he was moving in the gallery, holding a perforator (n.r. - equipment similar to a picamer, specific to work in mines), a piece of rock detached from the ceiling of the gallery and fell on him," the head of ITM Bihor explained to BIHOREAN.
Rotar said that the work accident was reported to the Territorial Labour Inspectorate and, immediately after its occurrence, the help of an emergency medical team was requested, which transported the injured miner to the County Hospital in Oradea.
"According to our information, the victim was later transferred to Timisoara and underwent surgery, the diagnosis being a pelvic fracture," said the head of ITM Bihor
https://m.ebihoreanul.ro/stiri/un-miner-din-bihor-accidentat-in-subteran-o-roca-din-tavanul-galeriei-s-a-desprins-si-a-cazut-peste-el-172112.html
Completely agree with Pecten11 and TopGun333. This article provides nothing more, or nothing new to shareholders at all........read the RNS instead.
The writer of this article, similar to one of our resident Rampers, has also highlighted the companies 236% increase in revenues aswell, which sounds fantastic, but it means absolutely nothing without the numbers to measure it against.
Why has the writer not picked up on this?.
Also, the writer doesn't seem overly concerned that the company has attempted to hide the revenues generated from Baita Plai through the merging of two revenue sources.
Why has the writer not questioned this?
Has the writer not considered that there was a 'secret agreement' between Vast and Mercuria for the concentrate at Baita Plai?.
Has the writer not considered that Mercuria might be getting the concentrate for such a low price, that even the company would rather keep it quiet?.
The article is pretty poor to be fair, and adds nothing. Most probably written by another Ramper.
"For those wondering if Vast Resources is still an excellent investment, the short answer is"..........No, not until there is more clarity regarding the value of the concentrate from Baita Plai.
How many tonnes of concentrate do we need to sell to Mercuria (at an unknown value) in order to cover our costs?
Stay Cautious.
Protect your pot.
Save Money.
Joeydavison
"I don't know if he had duplicated accounts or not but that's what it looks like given he got the boot"
There are many things a poster can be banned for. So how have you concluded that "That's what it looks like" ?
Surely there must be another banned account you can point to in order to make that conclusion?.
Joeydavison
"Banned and deleted for duplicate accounts by looks of it."
How can you possibly know that Realtimerob had multiple accounts?
You don't.
Given the volume of posts by that user, and the fact that the poster was constantly challenging the rampers (all day every day), I find it hard to believe that he could even manage any other account at the same time.
Personally, I think you are intentionally trying to attach this poster to a "Duplicate Account" in order to discredit that user, even though you have no proof whatsoever........Does this make your ramping easier?
"Q.E.D Added to filter list .obvious deramper"
Mickey1122 - I actually wasn't talking you.
However, given your response, I take it that you must be one of IQ157's little cheerleaders I refered to in my last post?
Are you able to answer the question, or debunk my theory of a upcoming raise?
"VAST will come very good in the near term.
If you are new to Vast, get some research done and filter the resident Troll
GLA
I am off to enjoy my weekend."
IQ157 - Do you, or one of your little cheerleaders care to explain to those that are "new to Vast" how you think the company plans to pay for the interim period between now and that point (as you say) when "VAST will come very good in the near term"?
I'm of the opinion that a company raise is looking highly likely at the moment. The sudden drop in share price seems to suggest that too.
I havnt been following our subsidiaries legal cases recently, so im not too sure if any of the defaults have been settled, or are still outstanding?. As a result, I'm still of the mind that refinancing is completely off the table.
As for Baita Plai, It's quite clear that the current production is simply not enough to cover either the operational costs of the asset, or to service the debt owed to Atlas.
Given that, I find it impossible to think that the company isn't going to raise cash through a placing.
Andrew Prelea's failure to include the companies current cash position in the latest announcement is a clear sign that the company has no cash, or at least, has very little of it. It also suggests that any revenues generated from Kajikistan has also already been depleted too.
The very fact that the company has allowed Atlas to convert their warrants, as opposed to cash settle, also says the company has no cash.
Everything seems to point to an upcoming raise. The question is, how large is the placing likely to be?
Given the huge drop in share price, I'm under the impression that the company is looking to fully settle the Atlas debt. I also think that that the company could possibly go further and raise enough cash to support the operational costs of Baita Plai, until Baita Plai is able to support itself..........whenever that maybe?.
Is anybody keeping track of the converted warrants? What is the current outstanding debt to Atlas?
Ive really enjoyed reading the Vast bulletin board over the last three days. Some of the price predictions being thrown about by the new arrivals have been hilarious.
"5p"....."10p"......"45p".......For me, the best one was from a Ramper yesterday who tried to create an illusion of balance and reasonability by placing a "conservative 3.5 pence" on the share price, which hasn't even come near yet.
I'm not sure where they get their numbers from, I don't think they do either, but it's fascinating to watch.
The excitement on this board the other day was absolutely ridiculous. I've seen young girls with front row tickets to their favourite boy band able to hold their composure better than some of the adults arriving here.
In all fairness to them, they have just discovered a new country called Tajikistan. I can imagine that even Christopher Colombus probably lost his composure and began shouting out random numbers on his discovery too, much to the amusement of his deck crew.
Anyway, today I'm now reading that some of our new explorers are already eyeing up the moon.........Andrew Prelea hasn't even grasped Earth yet.
Good luck to you anyway guys, and thanks for all your random number stuff? it's really opened my eyes, I never would have thought that investing could be that simple...........amazing stuff.
Formin SA was the company contracted to drill both Piciorul Zimbrului and Magura Neagra.
Formin TJK SRL (I assume) is a subsidiary of Formin. Formin TJK SRL has only recently been registered (21.01.2022)
Some time ago, I mentioned a romanian company named Zagra Mining SRL, the company was registered with the 'Trade Register In December 2018. The company had three shareholders, and two Directors.
Directors:
- Andrew Richard Prelea
- Vasile Sebastian Albulescu
Shareholders:
- Vast Resources PLC (50%)
- Vasile Sebastian Albulescu (25%)
- Mavgo Holding SRL (25%)
Sadly (or Intentionally) there doesn't seem to have been much information about the company, or its activities published anywhere............which has always bugged me.
Anyway, I've just noticed a newly registered company that some of you may find interesting....or suspicious?.
Central Asia Investments Ltd
Registered Address
- Nettlestead Place (Roy's Manor)
Date of incorporation - 04.02.22
Directors
- Andrew Richard Prelea
- Vasile Sebastian Albulescu
Shareholders
- Formin TJK SRL (51%)
- Vast Resources PLC (49%)
https://find-and-update.company-information.service.gov.uk/company/13894797/officers
I don't think Craig Harvey can be held responsible for how this disaster has turned out. He has no control over how the company spends its money.
Any geologist would have clearly wanted to understand the resource first (the age of the rocks, the types of mineralisation present etc).........it's their field of interest.
I genuinely believe that all data so far relating to Baita Plai, and confirmed also by Craig Harvey, has been accurate, and can be proven.
The problem is, is that Andrew Prelea rejected the idea of drilling the deposit to begin with, and in doing so, he has limited Craig Harvey's ability to fully understand the deposit............which I believe was intentional.
If Andrew Prelea had allowed funds to be allocated towards drilling, then I'm sure Craig Harvey would have identified the problems from day one........"friable ground" for instance.
The question here really should be......why did Andrew Prelea reject the idea of drilling? And was this rejection related in anyway to the rushed sale of his asset?
I find it hard to blame anybody else for this disaster but Andrew Prelea.......I think he is the problem with this company.
"Off with his head"......as they once said.
I've actually tried to detach myself from the company recently, I suddenly realised that I was following it for all the wrong reasons......
To be honest, Im shocked this pig is still bleeding out after all this time, the abattoir have done an appalling job...........It really ought to be put out of its misery.
As for theories on Shaun Dowling's recent purchase..........I'm not too sure?, Maybe he knows something about "friable ground" that we dont?
Taking this private......I don't think Shauns purchase is required for this. In most cases, it's far easier for private investors to sell up, then it is to vote against it. It's merely a company decision now.
The only other reasons I can think of are...
1. It was mis-sold to him.
2. Its a forgotten about drunken mistake.
3. It's a punishment from his wife.
4. It's an 'out of control' gambling habit.
5. Pure stupidity.
6. It's actually Firwood.
On another note, I heard that Andrew Prelea was trying to bring Manaila back from the dead...........He must be really desperate. It's painfully entertaining.
A quick question to everyone......Does anybody here actually hold shares, or are we all patiently waiting for the same 'thing'?
Baita Plai was a terrible asset, Andrew Prelea knew this all along. He intentionally avoided proving up the resource in order to sell it to Vast at an over inflated price.
Andrew Prelea hid both his, and Roy Tucker sons names under "Romanian Managment" until the last moment. Both sons were deemed "Non related parties", and therefore, avoided having their collective 39.48% holdings touched. This could have been dumped on day one for £1.9M.
After the sale, shareholders discovered something they already knew........that Baita Plai was a terrible asset.
Andrew Prelea knew that his and Roy's shares were worthless all along........but having a son can be useful.
He robbed everyone, and has milked a salary since his appointment.
This share is dead......RIP
If Zelensky's Government did allow his male citizens to leave Ukraine to be with their families instead of fighting, I wonder how many would have left?
If those Ukrainian men were truly free to make their own choice, would the resistance force suddenly shrink?
Would it become too difficult for western Governments and Media to trumpet "Fighting for Freedom and Democracy" if their resistance force was free to leave at will?.
Zelensky is effectively sending those men to their death..........is this the price we are willing to pay to avoid giving Russia some simple security guarantees?
The Ukrainian Government has effectively surrounded Ukraine and refused to give these men a safe corridor out of the battle arena........yet our Media is pointing their cameras at the surrounded city of Mariupol claiming the Russians aren't creating a safe corridor for them.......?
Russia only asked for some security guarantees, this is something we all want....... Western reluctance has led Russia to get these guarantees by force.
This could all have been avoided.
The drilling currently taking place at the companies Red Setter licence area is not necessarily the beginning of a 30,000m drilling campaign.
The 'Program of Works' approval, announced on the 20th of May 2021 allows the company permission to drill for UPTO 30,000m. This doesn't necessarily mean that the company plans to do so.
The application itself, requesting upto 30,000m, was (in my opinion) an exercise of obtaining advanced permission, with the goal of avoiding any future permitting delays, in the event initial drilling is successful.
Furthermore, I don't think that paying out for 30,000m of drilling at this early stage would be the best way to utilise the companies cash, given that the company has no revenues, and is reliant on raising funds through placings for its exploration.
A single drill hole (300m) through the center of the anomaly would be the most cost effective method of confirming if Wishbone has something beneath its feet or not. Maybe a single hole at each of the high priority targets would be reasonable.
At this stage, and subject to positive assay results, the company could then justify further expenditure on a second phase of drilling.........which would have already been approved.
In the scenario where the assay results are not satisfactory, the company can then walk away from licence area, with the retained capital used to accelerate exploration activities on the companies other assets.
TrekMadone
In relation to your (Wed 17.27) post
"My fag packet has the cash burn at $3.5m for the 6 months to end of January 22"
Can I ask how you came to this answer?
As I understand it, the company had approximately $5M at hand, as of 30th June 2021, and is (according to the latest Interims) burning through it at a rate of approximately $120k a month.
On that basis, the company would have consumed an approximate $840k for the seven month period between 30th June 2021 and the end of January 2022, leaving $4.16M cash in hand.
Clearly, there are exploration costs to consider during this seven month period, and given the huge discrepancy between my $4.16M and your $1.5M ($2.66M) I can only assume that you are including those exploration costs.
If this is the case, could you point me to where I can find the information relating to any of the companies planned exploration expenditure for this recent period.
Thanks.