The Vast Resources PLC (LON: VAST) share price rallied 13.2% after releasing an update on the operations at its flagship Baita Plai polymetallic mine in Romania. The company told investors it had started loading the planned mid-November concentrate shipment.
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Investors cheered the news as the company reiterated that this would be its largest delivery by tonnage to its offtake partner since it started extracting minerals from Baita Plai. Furthermore, Vast Resources confirmed that it would make another shipment in mid-December in an apparent acceleration of its activities at Baita Plai.
Vast shares have fallen 84.32% this year as the company raised money from investors severally to fund the expansion of its operations at Baita Plai. However, the recent increase in its concentrate output should put the company on the path to profitability.
While the mining company did not reveal the volume of concentrate shipped in November and December, it promised to release the total tonnage numbers in early January 2023. The company wants the reporting period to end to compile a report for the last calendar quarter of 2022.
I can’t help but think that Vast Resource shares are trading at a discount after the massive decline witnessed this year. However, I expect the shares to rally next year, especially after the release of the Q4 data, which I expect to be highly positive.
Vast Resources raised £1.467 million by placing 652 million ordinary shares at 0.225p each. The company had cash reserves of £1.556 million and short-term liabilities of £933,000 following the capital raise, which left it in a strong financial position.
So, would I buy Vast shares? The short answer is yes, I would. The company has a market capitalisation of £4.22 million despite generating revenues worth $US3.8 million in the year ended 30 April 2022. So the likelihood of the shares rallying higher next year is relatively high.
*This is not investment advice.
Vast Resources share price.
The Vast Resources share price rallied 13.2% to trade at 0.283p, rising from Friday’s closing price of 0.250p.
