Shares of Vast Resources PLC (LON: VAST) are down 11.6% this year and are trading near their all-time highs; could they rally higher?
The mining company’s shares have been trading sideways since dropping to their current lows in early December 2020 after announcing a $6.4 million capital raise to fund ongoing operations.
Vast reported excellent H1 2020 results in January, which went mostly unnoticed as investors were focused on other hot stocks at the time.
The company managed to lower its losses after tax by a massive 70% to $1.040 million compared to 2019’s $3.524 million loss.
Vast also started exporting concentrate from its Baita Plai Polymetallic Mine (“BPPM”) after concluding its first shipment in November 2020. It increased its exploration target for BPPM from 1.8-3 million tonnes to 3.2 -5.8 million tonnes.
The company has started generating revenues. I’m looking forward to its next earnings report, which will include the first sales from Biata Plai and hopefully more shipments that could eventually turn the company profitable.
Vast could be a good investment for long-term investors in the mining sector, given its prospects, but as we know, nothing in the markets is guaranteed. A negative earnings report could trigger further declines.
Vast Resources share price.
Vast Resources shares are down 11.6% in 2021, and they are trading near their all-time lows. Can they rally higher?