The Vast Resources PLC (LON: VAST) share price plunged 24% after issuing a very brief update regarding the settlement of a historic parcel of debts that was supposed to be settled by now. The company noted that it could not settle the historic parcel due to the ongoing elections.
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However, the company promised to settle the parcel as soon as possible and reiterated its commitment to doing the same. Investors were highly disappointed by the news, as evidenced by the decline in the Vast share price as the number of sell orders exceeded that of buy orders.
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Investors were unhappy that the company was unable to settle its debt commitments; first, the Asset-Backed Debt facility from A&T Investments SARL (Alpha) as announced on 16 May 2022, and the debt owed to Mercuria Energy Trading SA (Mercuria) relating to Tranche A of the Prepayment Agreement announced on 21 March 2018.
The company was supposed to settle the two debts on or before 30 June 2023 but was unable to and had requested an extension allowing it up to 29 September to repay the two debts. However, its latest update indicates that it might take longer for the company to repay its outstanding debts.
Vast Resources continues to operate its flagship Baita Plai mine in Romania, having released its Q2 production report earlier in August. The company noted that it had achieved operational breakeven at Baita Plai in June 2023.
The company attributed the higher production at Baita Plai to the opening of sub-level 5, which allows mining on multiple fronts. Vast produced 514 WMT of concentrate in Q2 2023 with a content of 21% copper. 55% of the production occurred in June due to preparations made in April & May to access the new mining area in sub-level 5.
The June production also saw an increase in the quality of concentrate produced, marked by an increase in copper grade up to 22% Cu concentrate. The company’s operations are on the right track as it seeks to become profitable at Biata Plai after achieving the crucial breakeven milestone.
Vast Resources (VAST) share price
The Vast Resources share price fell 24.04% to trade at 0.1899p, from Friday’s closing price of 0.2500p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.