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Vast Resources (VAST) Share Price Is Down 58.3% in 2022. Is It a Buy?

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Updated 1 Jul 2022

Key points:

  • The Vast Resources share price has fallen by 58.3% in 2022.
  • Yet, the mining company has achieved significant milestones.
  • So should you buy vast shares? Read on to find out.

The Vast Resources PLC (LON: VAST) share price has fallen by 58.3% in 2022, having lost 22% of its value in the past month. Given the recent decline, I am not surprised that some investors are asking whether now is the time to buy some Vast shares.

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Looking at the Vast share price chart below, we can see that the shares are trading slightly above a support zone, which from a technical analysis perspective, could lead to a bounce and a rally higher. Therefore, the technical analysis supports the bullish case for Vast shares.

Also read: The Best Copper and Mining Stocks To Watch In 2022.

Turning out attention to the company’s fundamentals, we find that it recently announced the completion of the second milling circuit at its flagship Baita Plai Polly metallic mine in Romania, six weeks ahead of schedule.

Completing the milling circuit was a crucial milestone for the company since it doubles the mine’s production capacity to 14,000 tonnes per month if the two mills are working at full capacity and have no downtime. In addition, Vast Resources further plans to accelerate its long hole stope mining starting next month, which will increase its production capacity once completed.

Vast Resources is also progressing on its other projects, such as the Takob Mine in Tajikistan, where it is scheduled to start processing two months’ worth of stockpiled ore in July 2022. The company is also about to complete the refurbishing of the Takob plant.

The mining firm has already purchased new equipment for the Takob mine, awaiting commissioning after installation. In addition, the company expects to receive a 12.25% royalty on all non-ferrous concentrate sales and other metals produced from the Takob mine.

Therefore, it is clear that Vast Resources is firing on all cylinders, as evidenced by the milestones highlighted above. Yet, its shares have fallen 22% in the past month bringing its total market capitalisation to 10.53 million.

I believe that Vast Resources shares should be valued much higher since it has an active mining operation at Baita Plai, unlike other junior miners. Therefore, should you buy Vast shares? I would buy Vast shares at current prices with a stop below the 0.58p support level.

*This is not investment advice. Always do your due diligence before making investment decisions.

Vast Resources share price.

Vast Resources share price 07-01-2022
Source: IG

The Vast Resource share price has fallen 58.3% in 2022. Should you buy the shares?