공지 • Oct 21
Vast Resources plc Announces the Second Quarter 2024 Production Report for Its Baita Plai Polymetallic Mine in Romania
Vast Resources plc announced the Second Quarter 2024 production report for its Baita Plai Polymetallic Mine in Romania, provide an operational update following the reorganisation at the mine, and provide an update on the Concentrate sale. The Company is also pleased to provide an update on production improvements at the Aprelevka mine and the status of product deliveries at the Takob project in Tajikistan. The Second Quarter period, as indicated in a previous announcement, registered lower production both due to the factors that led up to the reorganisation announced on 10 June 2024 and due to the delay in financing which constrained production. The reorganisation plan has targeted lower levels of production in the short-term, the immediate reduction of the workforce, and management’s focus on achieving positive operational cashflow as soon as is possible. The significantly reduced labour force and reduced operational costs through improved working practices have already been achieved; the workforce now numbers 162, down from 326, and further optimisation initiatives are being implemented, including focussing on high grade areas to conserve the Company’s cash resources, improve project outcomes, and provide a stable platform for phased growth. Management has calculated that the steps that have been made possible as a result of the reorganisation process have reduced the operating break-even production levels from around 275 dmt to 130dmt of Cu concentrate per month, without taking into account processing income from the former Hanes Gold Mine. For clarity, and to avoid any misunderstanding, it is important to note that under Romanian law, although the reorganisation of Vast Baita Plai SA, the Company’s wholly owned Romanian subsidiary that holds the Baita Plai association licence, is under a judicial court process, it is of a voluntary nature under which administrators are appointed by the Company. Vast Baita Plai SA, and with it Baita Plai, continue to be controlled by and operated by the Company through Andrew Prelea as Special Administrator, appointed under that judicial process. This reorganisation has made it possible to reduce the labour force, to redraw labour contracts and work practices, and at the same time obtain up to four years repayment terms for its accrued debts and eliminate nuisance claims. The process is ongoing with a Court date set for 14 November 2024, at which the Company’s Judicial Administrator will present the rejected creditors and argue the merits for rejecting any creditors from the initial creditors table, as well as presenting the progress made since entering reorganisation, and present the initial step plan for the reorganisation. Baita Plai processing – former Hanes Gold Mine; Baita Plai, as part of its activities, has, as announced on 11 September 2024, also commenced processing the First Agreement product derived from the former Hanes Gold Mine, that is anticipated will generate long-term income for the Company. This activity combined with the mine’s own production is calculated to allow Baita Plai to be net cash generative towards the end of the year. The initial results from first production of the First Agreement material is a polymetallic concentrate containing in excess of 10 g/t of Au and in excess of 1200 g/t of Ag. 500t Concentrate sale; The Company is awaiting final assays to enable the shipment of the first consignment of the concentrate under the Second Agreement, as announced on 11 September 2024. It was hoped that these would have been received by now; but when they are received and assuming that they are as expected satisfactory, the Company will update the market upon shipment departure. Baita Plai Production for second quarter 2024 is Tonnes mined 10,239, Concentrate produced (DMT) 229, and Cu concentrate grade 20%.