Vast Resources (AIM:VAST) has unveiled to investors an internal operational cash flow forecast and production schedule following confirmatory drilling at its Baita Plai project.
The AIM-listed mining company said in its development and production plan that it expects to be producing over 2,000 tonnes of concentrate by the second quarter of 2021, generating around $4.7m of net revenue and around $5.1m revenue by the third quarter of 2021.
To date, Vast has already produced 150 tonnes of prepared copper concentrate at the Baita Plai project in Romania. It said this will form part of the group’s first sales to commodity trading company, Mercuria, which is expected to be delivered in October this year.
Vast also noted a safety issue at the railway bridge access point between the mine and the floatation plant that has caused a minor delay of 3 to 4 weeks to first sale of concentrate.
Shares in Vast Resources have risen from lows of 0.15p in the past three months and were trading 1.33% lower this morning at 0.185p.
The group has now instructed the immediate replacement of this access point to the floatation plant and contractors are already engaged in fabricating an alternative steel structure.
Commenting on this morning’s forecast, Andrew Prelea, CEO of Vast Resources, said:
“As illustrated in the copper equivalent Cost & Margin curve chart above, following the completion at the end of 2021 of the current underground development down to the next level, Baita Plai is expected to be one of the lowest cost per ton copper producers globally.”
He added, “The low operating costs will ensure Baita Plai remains a viable commercial operation regardless of the potential future commodity market fluctuations.”
Vast received ‘excellent results’ last month from metallurgical test work at its Baita Plai mine in Romania, confirming the group’s overall confidence in the quality of the project.
The company said today’s forecast information will form part of the input for the JORC Reserve and Resource report for Baita Plai expected to be released during October 2020.
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