Tough questions for VAST with measured, tenacious and very confident answers in reply.
“…How dependent are the Companies finances on the Diamonds? Do they even exist? What other options do the Company have? Is there any game changing news due?…”
The macro picture for Vast Resources plc is multi-faceted and the intention of the management team in the next 12 months is to “create a revenue-generating company that will bring returns to its shareholders.”
The retail shareholders of the mining company too are numerous and many borderline mutinous as they await news about the company’s diamonds being held by the Zimbabwean administration.
Chief executive Andrew Prelea is muted about their return as he is bound by delicate and politically sensitive retrieval negotiations surrounding the precious gems. “We know they exist, so that’s not even open for debate,” and he believes that the handover is “close.”
Prelea though insists that Vast is not a one hit wonder as the other elements to the exploration, development and now advisory business have the potential to be company makers.
“We have Baita. We have Manaila that we plan on restarting this year and we have other pipeline working opportunities that the management team is working tirelessly on to also create other short term revenue for the company.”
He also emphasises that the creditors, who are insiders in the business, remain very, very supportive because they understand the bigger picture and have sight of the near-term revenue drivers that reassure them Vast is a viable business. Prelea is also confident that creditors will keep extending their loan, subject to terms and conditions, until Vast is in a position to repay.
What the market may have missed or not appreciated was what Prelea describes as a “feather in the cap” Aprelevka Gold Mine transaction which should provide Vast in its role as mine manager “with a further meaningful source of revenue in the near-term whilst insulating shareholders from dilution.”
While Vast’s investor updates are punctuated with caveats, in this interview with Sarah Lowther, Andrew accentuates the positives about Vast’s potential.
Follow the company on X @vast_resources
Vast Resources features in our 20 mining companies to watch in 2024 sector profile
The author was remunerated but does not hold shares in the company
