Shares of Vast Resources PLC (LON: VAST) edged 5% higher after releasing a video tour of its mining operations at the Baita Plai mine in Romania.
The video highlighted the end-to-end processing chan at Baita Plai even as the firm ramps up the mine’s production company by drilling on Level 19 as mining continues at levels 17 and 18.
Investors initial reaction to the video was positive, but the shares late gave up most of their gains and headed lower.
Vast Resources has been ramping up production at Baita Plai, but this is not reflected in its shares price falling since the company announced a 100 to 1 reverse stock split, which took its shares above 8p apiece.
The miner’s shares have kept falling despite the company operationalising the Baita Plai mine from which it started shipping concentrate in November 2020.
Investors tracking Vast Resources share price performance are wondering why its share price has not been rising despite the numerous positive announcements. There could be a few reasons behind the constant decline.
A group of investors might be dumping their shares in a bid to force lower prices and generate profits for their short positions. However, the more likely scenario is that retail investors who trade primarily in the AIM are no aware of the company’s immense potential.
Regardless, Vast Resources shares have been falling despite the many positive milestones achieved by the miner. I am long-term bullish on the company and would not be buying at current prices.
However, nothing is guaranteed in the markets, and we could easily see Vast Resources shares drop further, given that they are now trading at a higher price with bigger room to fall much lower.
I’ll keep monitoring the company to see if its share price shall turn around and head higher.
*This is not investment advice.
Vast Resources share price.
Vast Resources shares rose 8.63% to trade at 8.49p, rising from Monday’s closing price of 7.815p, but later fell into negative territory.