Questions with Answers with Vast Resources
“…Funding extensions shows Vast’s creditors want to be part of the growth path for the long term…”
Early stage exploration and development is an expensive business until the transition to production, break even and then cash flow positivity.
Vast Resources PLC has got the confidence and the backing of its lenders who are insiders of the business, who understand the strategy, the multi-region asset potential and perhaps recognise that cash flow positivity isn’t wishful thinking but a possibility.
This month’s debt funding update, says Chief Executive Andrew Prelea is a demonstration that creditors A&T Investments and Mercuria Energy Trading is “an indication of of them wanting to stick around and wanting to be part of the Vast growth path.”
Prelea highlights that the parties extending their warrants “shows their confidence in what we’re doing in our strategy in the foreseeable future” and could mean “they were still going to be around in another year or two.”
So what will the immediate future yield for creditors, warrant holders and shareholders alike?
“There are several things to take note of,” says Prelea who references production improvement at its Baita Plai Polymetallic Mine in Romania and updates on opportunities that the company has already shared in the public domain.
Watch Andrew talk to Sarah Lowther about the company doing what it said it was going to do in Romania, and how chatter concerning the repatriation of a historic package of diamonds may be undermining delicate negotiations surrounding their handover back to the company.
Follow the company on Twitter @vast_resources
The author was remunerated but does not hold shares in the company