Here’s Why Vast Resources Shares Plunged 8.13% Despite Upbeat H1 2020 Results

Shares of Vast Resources PLC (LON: VAST) fell 8.13% despite the mining company reporting spectacular results for H1 2020, largely due to investor indifference towards the company, which raised $6.4 million in December 2020.

The company’s positive six-month results went largely unnoticed as markets were focused on other hot stocks such as Gamestop where retail traders were squeezing out professional traders who had shorted the shares.

Vast did not report any revenue for the period since its Baita Plai Polymetallic Mine(“BPPM”) had not started sales until after the period ended, and the Manaila Polymetallic Mine (“MPM”) is still in care and maintenance.

The miner reported a 15% decrease in administrative and overhead expenses for the six month period ended 31 October 2020 ($1.672million) compared to a similar period in 2019 ($1.959million).

Vast booked foreign exchange gains of $2.015 mln for the period compared to a loss of $0.773 mln in 2019. The firm’s largest achievement was a 70% decrease in losses after taxation from continuing operations in the period to $1.040 million compared to 2019’s $3.524 million loss.

The company sold its first shipment of concentrate in November 2020 and increased its exploration target for BPPM from 1.8-3 million tonnes to 3.2 -5.8 million tonnes.

The recent pullback in Vast Resources stock price presents a unique opportunity for bullish traders to establish long positions in anticipation of an excellent earnings report for the next six months as the company starts generating revenues.*

However, nothing is guaranteed in the markets and traders should have a loss-limit on their positions.

Vast Resources share price

Vast Resources shares fell 8.13% to trade at 0.1156p having fallen from Wednesday’s closing price of 0.125p.