Vast Resources Shares Rally 15% on Revised Baita Plai Mine Plan, Sales

Shares of Vast Resources PLC (LON: VAST) rallied 15% after releasing a new mechanised mine plan for its Baita Plai mine in Romania. According to the new plan, the company intends to generate up to $17.2 million from April 2021 to April 2022.

The company’s revenues are set to rise to $28.2 million in 2023, then jump to $33.4 million in 2024, before hitting a peak of $34.7 million in 2025. The mining company also raised its cash flow forecasts in tandem with the revised revenue figures.

The new cash flow forecasts have raised Baita Plai’s valuation above $100 million, which gives its a solid financial background to issue new debt in future.

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Vast Resources shares are currently trading near their all-time lows, as seen on the weekly chart below, and today’s announcement could be the right trigger for a future rally. The company’s shares have significant upside potential, given that they once traded at 2.27p in 2015.

Investors will be watching the company closely to see if it will meet its revenue and production targets, which could fule a long-term rally.

Vast Resources shares appear very attractive at their current valuation, given the latest revenue forecasts. Bullish investors may find that now is the right time to add to their positions or open new ones.*

Andrew Prelea, Vast Resources PLC’s CEO, said: “This upgraded mine plan, made possible with the employment of a mechanised approach to mining and with the benefit of XRT technology which will produce a primary crushed high-grade pre-concentrate that will feed to the mills and will be implemented by our new team of mine managers who bring with them many decades of practical experience in mine expansion and optimisation.”

Adding:

“The Capex required for this process is fully funded from existing resources, and we expect to deliver a healthy revenue and cash flow from this asset during the 12 months from 1 April 2021, building considerably in the years thereafter.”

Vast Resources share price.

Vast Resources shares rallied 15% higher to trade at 0.115p after rising from Monday’s closing price of 0.10p.