- Vast Resources shares surged 37.7% after releasing an operations update.
- Investors cheered the 236% jump in the miner’s overall revenues in Q1 2022.
- The miner’s prospects look quite promising as it embraces mechanisation.
Today, investors cheered the update Vast Resources PLC (LON: VAST) issued regarding its corporate and mining activities. The junior mining company revealed that its group revenues had soared 236% in Q1 2022 compared to Q4 2021, driven by significant revenues from its non-mining activities.
The mining company also grew the number of tonnes milled by 24.2%, while the dry metric tonne production improved by 16.8%. In addition, investors cheered the company’s decision to implement mechanisation at its Baita Plai mine, translating to higher output and revenues for the company.
Vast Resources expects to deploy two Mantis CMR4 Jumbo Drilling rigs and the Aramine miniLoader L130D with remote control capability. The three machines will allow the company to extend its drilling operations past the 17 level at which it had stopped due to safety concerns for its employees after several pillars collapsed.
The second Mantis drill rig will be deployed to advance the main belt incline to the 19 level and finally 21 level. The rig will allow the mining company to expand its drilling operations on the Antonio skarn at Baita Plai, with significant potential resources.
Vast Resources expects to start producing ore from the Long Hole stopes set to be drilled at the 17 level by the Matis rigs in June 2022, generating more income for the miner. In addition, the company expects its production output to increase significantly due to mechanisation.
The company also intends to conduct further resource drilling at the Antonio skarn, where it will drill 28 drill holes up to a depth of 2,240 metres. The drilling campaign will help identify areas with significant deposits for future mining.
Overall, investors were happy with Vast Resources’ update, evidenced by the share price rally. However, like many junior miners, the company revealed that it operates with minimal cash reserves but is doing everything to keep its operations going.
Vast shares have been in a downtrend since October 2019, when its shares were trading at 53.63p, and many hope that today’s rally will translate into a sustained uptrend. However, only time will tell. Still, the junior miner looks like a compelling buy after today’s events as the company’s fundamentals are likely to get better over time.
I would buy at current prices, but there are no guarantees that we will get a sustained uptrend. Still, the odds favour a rally higher.
*This is not investment advice. Always do your due diligence before making investment decisions.
Vast Resources share price.
Vast Resources shares rallied 37.77% to trade at 0.4753p, rising from Friday’s closing price of 0.3450p.