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Friday, 22 December 2017

Interim Results

     

Published: 08:00 CET 22-12-2017 /GlobeNewswire /Source: Vast Resources plc / : VAST /ISIN: GB00B142P698

Interim Results

Vast Resources plc / Ticker: VAST / Index: AIM / Sector: Mining

 

Vast Resources plc

("Vast" or the "Company")

22 December 2017

 

Interim Results for the six months to 30 September 2017

 

 

Highlights

 

Financial

  • 5% increase in revenue to $14.9 million (2016: $14.1 million) from the Group's two operational mines in Romania and Zimbabwe
  • 45% decrease in overhead expenses ($2.5 million) compared to the same period in the previous year (2016: $5.5 million)
  • 30% increase in EBIT to $0.56 million (2016: $0.43 million)
  • Loss before taxation $12.6 million (2016: profit $0.3 million) due to $12.5 million exceptional items
  • US$1,600,000 loan raised during the period to fund Romanian operations
  • US$5,023,337 overdraft raised during the period to fund construction of the sulphide plant in Zimbabwe, which is now operational
  • Cash balance at period end $1.7 million (2016: $2.8 million)

 

Post period end

  • Placing to raise £1 million ($1.32 million) at 0.525p announced 21 November 2017
  • Open offer to raise up to £1.23 million ($1.60 million) at 0.525p announced 24 November 2017; offer oversubscribed by 35%
  • Cash balance of $2.0 million in the group plus a further $60 thousand held in the Zimbabwean subsidiaries as at 14 December 2017

 

Operational development

  • Pickstone-Peerless Gold Mine (Zimbabwe)
    • 20% increase in gold production to 8,775 Troy ounces from 7,326 Troy ounces in the six months to 31 March 2017 (six months to 30 September 2016: 9,452 ounces). The new sulphide plant is fully operational.
  • Manaila Polymetallic Mine (Romania)
    • 35% increase in copper concentrate produced to 1,910 tonnes from 1,415 tonnes in six months to 31 March 2017 (six months to 30 September 2016: 1,343 tonnes)
    • 9% decrease in zinc concentrate produced to 270 tonnes from 297 tonnes in six months to 31 March 2017 (six months to 30 September 2016: 35 tonnes)
  • Baita Plai Polymetallic Mine (Romania)
    • Chosen to be granted a right to mine at Baita Plai as part of a competitive selection process

 

Post period end:

  • Following selection process holder of head licence at Baita Plai, Baita SA has formally requested its shareholder the Ministry of Economy to approve grant of association licence to mine at Baita Plai
  • Completed a drilling programme on the Carlibaba prospect on the Manaila extended licence with positive results announced
  • Prospecting  activities commenced on Piciorul Zimbrului and Magura Neagra in line with Vast's strategy to increase the resources near Manaila and expand its Romanian mineralised footprint 

 

Board and Management

  • Appointment of Brian Basham as non-executive director on 30 June 2017.  Brian Basham did not offer himself for re-election at the Annual General Meeting held on 20 October 2017.

 

Post period end:

  • Resignation of Roy Pitchford as Group CEO with effect from 31 December 2017; due to be replaced by Andrew Prelea, the President of Vast's Romanian subsidiary, who will also be appointed to the Board

 

Share Issues

Date

No of Shares

£

$

Reason for issue

4 Apr

6,116

31

39

Open offer warrants exercised

1 Jun

20,000,000

57,000

73,473

Advisor warrants exercised

14 Jun

51,386

207

335

Open offer warrants exercised

26 Jul

225,017

1,125

1,488

Open offer warrants exercised

 

 

 

 

 

 

 

 

 

 

 

 

CHIEF EXECUTIVE OFFICER'S REPORT

 

The half year results have been affected by a number of scenarios that have impacted the period both positively and negatively.

 

The cost of sales increase, from 58% of revenue for the half year to September 2016 to 79% of revenue for the current half year, has been occasioned by additional overburden stripping at the Pickstone-Peerless Gold Mine in Zimbabwe to facilitate sulphide mining and to provide adequate mining areas for future periods. The benefits of this overburden removal will be positively felt during future reporting periods.

 

The 2017 Annual Report Strategic Report refers to the transaction with Sub-Sahara Goldia Investments ('Sub-Sahara'), which involved the divestment of an effective 25% interest in the Pickstone-Peerless Gold Mine and the Giant Gold Mine in Zimbabwe.  This transaction was only completed after 31 March 2017 and accordingly its effect - a loss on disposal of interest in subsidiary loans of $12.538 million - is reflected in these half year statements.  Under the arrangements, 49.9% of the parent company's loans to Canape Investments (Pvt) Limited were sold to Sub-Sahara and these loans are now reflected as a liability in the Group's accounts, whereas prior to the transaction they cancelled out on consolidation.  Further explanation is given in note 10 to the financial statements. 

 

Reagent consumption at the Manaila Polymetallic Mine Zinc flotation circuit was higher than planned as a consequence of inefficiencies in the flotation, thickening and concentrate filtrate sections. The quality of the zinc concentrate improved significantly, but initially, at the expense of the quantity of zinc recovered. The areas of inefficiency in the zinc flotation circuit have been identified and are being addressed. The focus now is to maintain the quality, reduce the costs, and increase the quantity produced.

 

The mined grades at Manaila have been below expected levels because of funding constraints limiting overburden removal in areas of higher grade. The lower mined grades have consequently constrained the copper and zinc concentrate volumes. The plant throughput increased 49.2% over the six months to March 2017 in terms of tonnes milled and resulted in lower grades. The increase in the milled tonnage however exacerbated the need for increased overburden removal. The cash constraint occurred as a consequence of acquiring 49.9% of Sinarom Mining SRL by accelerating loan repayments to the vendor that would have had to be repaid without the benefit of the additional holding in the Company.

 

At the time of this transaction it was expected that a strategic investment into Sinarom would have recovered the $2.5m paid for the 49.9% interest, as well as provide funding for evaluating the new prospecting areas in Romania. The absence of the strategic investment funding occasioned by the adoption of a preferred form of funding by way of offtake finance, thus reducing potential dilution, has constrained Vast's cash resources until the alternative offtake funding is secured.

 

The weakening of the United States Dollar vis-a-vis the Romania Lei, created an exchange rate gain that assisted in reducing the current period's overhead expenses compared to the half year to September 2016.

 

The anticipated offtake funding will enable increased overburden stripping at Manaila, exposing higher grades that will enable increased levels of copper and zinc concentrate production. It will also facilitate construction of the new metallurgical complex at Manaila, enable the reopening of the Baita Plai Polymetallic Mine, and, along with the increased production at the Pickstone-Peerless Gold Mine, will enhance both the profitability and the cash generation capacity of the Company.

 

With regard to Zimbabwe, notwithstanding the recent political developments, it is anticipated that the profits generated in the Pickstone-Peerless Gold Mine after repayment of the bank overdraft, which was obtained in order to fund the recently constructed sulphide plant, will, unless agreed otherwise with our co-investors, be retained in Zimbabwe in order to finance the development of the Giant Gold Mine. 

 

My stepping off the board and management of the Company facilitates the passing on of the baton to younger management. Andrew Prelea is Romanian and well placed to pursue the Company's focus there and take Vast to its next level of development.  As a consequence of this change, and as mentioned in the announcement of 30 January 2017 dealing with the agreement by Sub-Sahara to make a $4 million loan to the Company repayable after four years, Sub-Sahara has the right to recall the loan on 60 days' notice. Sub-Sahara has duly been asked to confirm that as a result of the change they will not be seeking to exercise this right.  

 

Vast will be focussing on its core operations in both Romania and Zimbabwe, vigorously addressing the opportunities in both jurisdictions and building on its experience and intellectual know-how gained since its transformation to a mining company that begun in 2014.

 

To this will be added appropriate board and management expertise along with an interactive approach with shareholders to assure a commonality of purpose. The Company will continue with its efforts to be an attractive investment to institutional shareholders as well.

 

I wish the Company, board and management every success for the future.

 

Roy Pitchford

Chief Executive Officer

 

 

 

CHAIRMAN'S STATEMENT

In Romania, our focus during the period has been to secure the Baita Plai association licence, to improve the performance of the Manaila Polymetallic Mine and to expand our mineralised footprint in the area proximal to the present open pit mining operation.

 

At Manaila, as indicated in the September quarterly production report, copper concentrate volumes and quality have improved considerably. Zinc concentrate quality is also meeting off-takers' requirements and volumes are slowly improving. A third revenue stream through a pyrite concentrate, which includes gold and silver, is being ramped up.  These improvements will transform this underperforming asset into a cash flow positive mining operation in due course.

 

Drilling in the adjacent Carlibaba prospecting licence area, which has been undertaken to determine its suitability as a second open pit mine within the Manaila licence area,  has delivered the first indications of an extensive and resource rich prospect.   We are hopeful that we will be able to declare a JORC compliant Mineral Resource for this asset in the first Quarter of next year and, based on the drill results received to date, and subject to an economic assessment, we believe that Carlibaba will support the development of a second open pit operation at Manaila, in addition to a new metallurgical processing facility on site, which would reduce Manaila opex costs.

 

The award of Baita Plai association licence has absorbed much executive time over the last year and I am happy to report that significant progress in meeting the authorities' due diligence requirements relating to the award of the Baita Plai association licence has been made in the last few months. We have confidence that a positive outcome in this regard is imminent

We are continuing to evaluate the Piciorul Zimbrului and Magura Neagra prospecting licences, which are potentially valuable additions to our growing portfolio of interests in Romania.  Located 74km from Manaila, both licences are attractive polymetallic targets and we look forward to further advancing these assets in 2018 as we look to build our mineralised footprint.

 

Political developments in Zimbabwe are encouraging.  The Board believes that political stability and an improved management of the local economy herald more favourable prospects for the Group's Zimbabwean assets.    

 

At Pickstone-Peerless, the new sulphide plant has been brought on stream and is producing significantly higher volumes of gold, further enhancing the its cash flow generative capacity. The evaluation of the proximal Giant Gold Mine licence area has also commenced. This will enhance further the value of the Group,s Zimbabwe gold assets.

 

Prices for the Group's key commodities: copper, zinc and gold are holding up well. A key driver for these prices is a stronger global economy in part arising from the continued momentum of China's economic growth and in part the prospect of electric vehicles.

 

Finally, Roy Pitchford has resigned from the board with effect from 31 December 2017. I would like to thank Roy for all his work on behalf of the Company and wish him well for the future.

 

Brian Moritz

Chairman

 

 

For further information visit www.vastresourcesplc.com or please contact:

Vast Resources plc
Roy Pitchford (Chief Executive Officer)

www.vastresourcesplc.com
+44 (0) 20 7236 1177

Beaumont Cornish - Financial & Nominated Adviser
Roland Cornish
James Biddle

www.beaumontcornish.com
+44 (0) 020 7628 3396

Brandon Hill Capital Ltd - Joint Broker
Jonathan Evans

www.brandonhillcapital.com
+44 (0)20 3463 5016

SVS Securities Plc - Joint Broker
Tom Curran

Ben Tadd

www.svssecurities.com
+44 (0)20 3700 0100

St Brides Partners Ltd
Susie Geliher
Charlotte Page

www.stbridespartners.co.uk
+44 (0) 20 7236 1177

 


 

Consolidated statement of comprehensive income

for the six months ended 30 September 2017

 

  

30 Sep 2017

31 Mar 2017

30 Sep 2016

  

Unaudited

Audited

Unaudited

  

Group

Group

Group

 

Note

$'000

$'000

$'000

Revenue

 

14,882

23,767

14,117

Cost of sales

 

(11,815)

(17,381)

(8,180)

Gross profit

 

3,067

6,386

5,937

     

Overhead expenses

 

(2,509)

(8,047)

(5,509)

Depreciation and impairment of property, plant and equipment

4

(1,259)

(2,593)

(1,019)

Profit (loss) on sale of property, plant and equipment

 

29

81

167

Share option and warrant expense

 

-

(1,648)

(384)

Other administrative and overhead expenses

 

(1,279)

(3,887)

(4,273)

   

 

 

Profit (loss) from operations

 

558

(1,661)

428

     

Finance income

 

20

105

90

Finance expense

 

(676)

(812)

(253)

Loss on disposal of interest in subsidiary loans

10

(12,538)

-

-

   

 

 

(Loss) profit before taxation from continuing operations

 

(12,636)

(2,368)

265

     

Taxation (charge) credit

 

-

(1,193)

-

   

 

 

Total (Loss) profit after taxation for the period

 

(12,636)

(3,561)

265

     

Other comprehensive income

    

Items that may be subsequently reclassified to either profit or loss

   

Gain on available for sale financial assets

 

2

3

-

Exchange gain (loss) on translation of foreign operations

 

(976)

750

119

Total comprehensive profit (loss) for the period

 

(13,610)

(2,808)

384

     

Total profit (loss) attributable to:

    

- the equity holders of the parent company

 

(13,916)

(4,437)

(947)

- non-controlling interests

 

1,280

876

1,212

  

(12,636)

(3,561)

265

Total comprehensive profit (loss) attributable to:

    

- the equity holders of the parent company

 

(14,890)

(3,684)

(828)

- non-controlling interests

 

1,280

876

1,212

  

(13,610)

(2,808)

384

     

Loss per share - basic and diluted

3

(0.30)

(0.13)

(0.04)

     

Loss per share from continuing operations- basic and diluted

 

(0.30)

(0.13)

(0.04)

 


Consolidated statement of changes in equity

for the six months ended 30 September 2017

 

­

 Share  capital

 Share premium

 Share option reserve

 Foreign currency translation reserve

 Available for sale reserve

 EBT reserve

 Retained deficit

 Total

 Non-controlling interests

 Total

 

 $'000

 $'000

 $'000

 $'000

 $'000

 $'000

 $'000

 $'000

 $'000

 $'000

At 31 March 2016

16,105

71,652

2,099

(1,978)

(3)

(3,942)

(67,471)

16,462

11,518

27,980

           

Total comprehensive loss for the period

-

-

-

750

3

-

(4,437)

(3,684)

876

(2,808)

Share option and warrant charges

-

-

1,648

-

-

-

-

1,648

-

1,648

Share options and warrants lapsed

-

-

(1,857)

-

-

-

1,857

-

-

-

Convertible loan fair value adjustment

-

-

-

-

-

-

223

223

-

223

Shares issued:

          

- for cash consideration

2,064

2,112

-

-

-

-

-

4,176

-

4,176

- to settle liabilities

1,251

1,038

-

-

-

-

-

2,289

-

2,289

At 31 March 2017

19,420

74,802

1,890

(1,228)

-

(3,942)

(69,828)

21,114

12,394

33,508

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive loss for the period

-

-

-

(976)

2

-

(13,916)

(14,890)

1,280

(13,610)

Share options and warrants lapsed

-

-

(79)

-

-

-

79

-

-

-

Investment received in subsidiary - Ronquil Enterprises (Pvt) Ltd

-

-

-

-

-

-

(757)

(757)

2,457

1,700

Interest in mining asset

-

-

-

-

-

-

(4,604)

(4,604)

4,604

-

Acquisition of NCI in subsidiary - Sinarom Ming Group SRL

-

-

-

-

-

-

(4,075)

(4,075)

1,772

(2,303)

Shares issued:

          

- for cash consideration

28

49

-

-

-

-

-

77

-

77

At 30 September 2017

19,448

74,851

1,811

(2,204)

2

(3,942)

(93,101)

(3,135)

22,507

19,372

 


Consolidated statement of financial position

As at 30 September 2017

 

  

30 Sep 2017

31 Mar 2017

30 Sep 2016

  

Unaudited

Audited

Unaudited

  

Group

Group

Group

  

$'000

$'000

$'000

Assets

Note

   

Non-current assets

    

Property, plant and equipment

4

43,929

38,563

32,805

Deferred tax asset

 

465

465

1,658

  

44,394

39,028

34,463

Current assets

    

Inventory

5

2,806

2,811

2,123

Receivables

6

5,490

5,960

4,438

Available for sale investments

 

12

10

8

Cash and cash equivalents

 

1,723

1,326

2,797

Total current assets

 

10,031

10,107

9,366

Total Assets

 

54,425

49,135

43,829

     

Equity and Liabilities

    

Capital and reserves attributable to equity holders of the Parent

    

Share capital

 

19,448

19,420

17,618

Share premium

 

74,851

74,802

73,170

Share option reserve

 

1,811

1,890

1,781

Foreign currency translation reserve

 

(2,204)

(1,228)

(1,859)

Available for sale reserve

 

2

-

(3)

EBT reserve

 

(3,942)

(3,942)

(3,942)

Retained deficit

 

(93,101)

(69,828)

(67,716)

  

(3,135)

21,114

19,049

Non-controlling interests

 

22,507

12,394

12,730

Total equity

 

19,372

33,508

31,779

     

Non-current liabilities

    

Loans and borrowings

7

19,059

3,166

1,314

Provisions

9

1,140

1,095

948

  

20,199

4,261

2,262

Current liabilities

    

Loans and borrowings

7

7,974

3,935

2,349

Trade and other payables

8

6,880

7,431

7,439

Total current liabilities

 

14,854

11,366

9,788

Total liabilities

 

35,053

15,627

12,050

Total Equity and Liabilities

 

54,425

49,135

43,829

     

 


 

Consolidated statement of cash flow

for the six months ended 30 September 2017

 

 

30 Sep 2017

31 Mar 2017

30 Sep 2016

 

Unaudited

Audited

Unaudited

 

Group

Group

Group

 

$'000

$'000

$'000

CASH FLOW FROM OPERATING ACTIVITES

   

Profit (loss) before taxation for the period

(12,636)

(2,368)

265

Adjustments for:

   

Depreciation and impairment charges

 1,259

2,593

1,019

(Profit) loss on sale of property, plant and equipment

(29)

(81)

(167)

Loss on disposal of interest in loans

12,538

-

-

Convertible loan FV adjustment

 - 

223

-

Liabilities settled in shares

 - 

2,289

55

Share option expense

 - 

1,648

384

 

1,132

4,304

1,556

Changes in working capital:

   

Decrease (increase) in receivables

(274)

(1,658)

(542)

Decrease (increase) in inventories

(3)

(722)

(211)

Increase (decrease) in payables

(1,307)

1,010

823

 

(1,584)

(1,370)

70

Cash used in operations

(452)

2,934

1,626

    

Investing activities:

   

Payments to acquire property, plant and equipment

(6,084)

(8,769)

(1,496)

Proceeds on disposal of property, plant and equipment

 64

234

378

Proceeds of third party investment in subsidiary

 1,700

-

-

Payments to acquire controlling interest in subsidiary

(2,303)

-

-

Proceed of loan assignment

 2,300

-

-

    

Total cash used in investing activities

(4,323)

(8,535)

(1,118)

    

Financing Activities:

   

Proceeds from the issue of ordinary shares, net of issue costs

 77

4,176

2,976

Proceeds from loans and borrowings granted

 7,171

5,272

-

Repayment of loans and borrowings

(2,076)

(3,352)

(1,518)

Total proceeds from financing activities

 5,172

6,096

1,458

    

Increase (decrease)  in cash and cash equivalents

397

495

1,966

Cash and cash equivalents at beginning of period

 1,326

831

831

Cash and cash equivalents at end of period

 1,723

1,326

2,797

 


 

Interim report notes

1             Interim Report

The condensed interim financial statements, which are unaudited, are for the six months ended 30 September 2017 and consolidate the financial statements of the Company and all its subsidiaries. The statements are presented in United States Dollars.

 

The financial information set out in these condensed interim financial statements does not constitute statutory accounts as defined in Section 434(3) of the Companies Act 2006. The condensed interim financial statements should be read in conjunction with the consolidated financial statements of the Group for the year ended 31 March 2017 which have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union ("IFRSs"). The Auditor's report on those financial statements was unqualified and did not contain a statement under s.498(2) or s.498(3) of the Companies Act 2006.

 

While the Auditors' report for the year ended 31 March 2017 was unqualified, it did include an emphasis of matter concerning going concern, to which the Auditors drew attention by way of emphasis without qualifying their report. Full details of these comments are contained in the report of the Auditors on Pages 13 and 14 on the annual financial statements for the year ended 31 March 2017, released elsewhere on this website on 22 September 2017.

 

The accounts for the period have been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" ("IAS 34") and the accounting policies are consistent with those of the annual financial statements for the year ended 31 March 2017, unless otherwise stated, and those envisaged for the financial statements for the year ended 31 March 2018.

 

After review of the Group's operations and of the funding opportunities open to the Group, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the Directors continue to adopt the going concern basis in preparing the unaudited condensed interim financial statements.

This interim report was approved by the Directors on 21 December 2017.

 

2             Segmental analysis

 

 

 Mining, exploration and development

 Administration and corporate

 Total

 

 Europe

 Africa

  
 

 $'000

 $'000

 $'000

 $'000

 Six Months to 30 September 2017

    

 Revenue

 2,832

 12,050

 - 

 14,882

 Production costs

(2,212)

(9,603)

 - 

(11,815)

 Gross profit (loss)

 620

 2,447

 - 

 3,067

 Depreciation

(747)

(510)

(2)

(1,259)

 Profit (loss) on sale of property, plant and equipment

 29

 - 

 - 

 29

 Other administrative and overhead expenses

 2

(123)

(1,158)

(1,279)

 Finance income

 - 

 20

 - 

 20

 Finance expense

 - 

(575)

(101)

(676)

Loss on disposal of interest in loan accounts

-

-

(12,538)

(12,538)

 Profit (loss) for the year from continuing operations

(96)

 1,258

(13,798)

(12,636)

 

 

 

 Mining, exploration and development

Administration and corporate

 Total

 

 

 Europe

 Africa

  

 

30 September 2017

 $'000

 $'000

 $'000

 $'000

 

 Total assets

 15,388

 38,957

 80

 54,425

 Total non-current assets

 11,716

 33,165

(487)

 44,394

 Additions to non-current assets

 2,145

 3,939

 - 

 6,084

 Total current assets

 3,672

 5,792

 567

 10,031

 Total liabilities

 5,278

 14,447

 15,328

 35,053

 

Year to 31 March 2017

    

 Revenue

 2,629

 21,138

 - 

 23,767

 Production costs

(3,746)

(13,635)

 - 

(17,381)

 Gross profit (loss)

(1,117)

 7,503

 - 

 6,386

 Depreciation and impairment

(1,338)

(1,251)

(4)

(2,593)

 Profit (loss) on sale of property, plant and equipment

 81

 - 

 - 

 81

 Share option and warrant expense

 - 

 - 

(1,648)

(1,648)

 Other administrative and overhead expenses

(769)

(457)

(2,661)

(3,887)

 Finance income

 1

 104

 - 

 105

 Finance expense

 - 

(89)

(724)

(812)

 Taxation (charge)

 - 

(1,193)

 - 

(1,193)

 Profit (loss) for the year from continuing operations

(3,141)

 4,617

(5,037)

(3,561)

     

 Total assets

 10,878

 34,860

 3,397

 49,135

 Total non-current assets

 9,001

 29,720

 307

 39,028

 Additions to non-current assets

 2,681

 6,386

 - 

 9,067

 Total current assets

 1,876

 5,141

 3,090

 10,107

 Total liabilities

 7,362

 6,213

 2,052

 15,627

 

Six Months to 30 September 2016

    

 Revenue

 1,310

 12,807

  -

 14,117

 Production costs

(2,389)

(5,791)

  -

(8,180)

 Gross profit (loss)

(1,079)

 7,016

  -

 5,937

 Depreciation and impairment

(296)

(721)

(2)

(1,019)

 Share option and warrant expense

  -

  -

(384)

(384)

 Other administrative and overhead expenses

(852)

(231)

(3,190)

(4,273) 

 Finance income

(1)

 20

 71

 90

 Finance expense

-

(33)

(220)

(253)

 Profit (loss) for the year from continuing operations

(1,964)

 4,176

(1,947)

 265

 

 

 Mining, exploration and development

 Administration and corporate

 Total

 

 Europe

 Africa

  

30 September 2016

 $'000

 $'000

 $'000

 $'000

 

  Total assets

 11,679

 31,156

 994

 43,829

  Total non-current assets

 9,210

 25,249

 4

 34,463

  Additions to non-current assets

 1,319

 - 

 177

 1,496

  Total current assets

 2,469

 5,908

 989

 9,366

  Total liabilities

 6,204

 3,038

 2,808

 12,050

 

 

3             Loss per share

 

30 Sep 2017

31 Mar 2017

30 Sep 2016

 

Unaudited

Audited

Unaudited

 

Group

Group

Group

Loss per ordinary share has been calculated using the weighted average number of ordinary shares in issue during the relevant financial year.

   
    

The weighted average number of ordinary shares in issue for the period is:

 4,676,819,360

 3,457,555,538

 2,702,338,385

    

Losses for the period: ($'000)

(13,916)

(4,437)

(947)

    

Loss per share basic and diluted (cents)

(0.30)

(0.13)

(0.04)

    

Loss per share from continuing operations - basic and diluted

(0.30)

(0.13)

(0.04)

    

The effect of all potentially dilutive share options is anti-dilutive.

   

 


4       Property, Plant and equipment

 

 Plant and machinery

 Fixtures, fittings and equipment

 Computer assets

 Motor vehicles

 Buildings and Improvements

 Mining assets

 Capital Work in progress

 Total

 

  $'000

 $'000

 $'000

 $'000

 $'000

 $'000

 $'000

 $'000

Cost at 1 April 2016

7,997

165

174

487

3,559

22,184

1,623

36,189

Revaluation

23

(6)

-

72

318

-

-

407

Additions during the year

559

46

58

240

47

1,281

6,836

9,067

Reclassification

946

1

-

2

(470)

1,520

(1,999)

-

Disposals during the year

(97)

-

-

(159)

(17)

-

-

(273)

Impairment

(962)

-

-

-

-

-

-

(962)

Foreign exchange movements

(65)

(4)

(5)

(37)

(206)

(39)

(78)

(434)

Cost at 31 March 2017

8,401

202

227

605

3,231

24,946

6,382

43,994

Revaluation

-

-

-

-

-

-

-

-

Additions during the period

440

8

98

10

2

411

5,115

6,084

Reclassification

838

(29)

29

-

235

188

(1,261)

-

Disposals during the period

(83)

(62)

(78)

(60)

-

-

(35)

(318)

Foreign exchange movements

163

5

2

44

216

281

36

747

Cost at 30 September 2017

9,759

124

278

599

3,684

25,826

10,237

50,507

Depreciation at 1 April 2016

2,157

92

116

296

234

151

604

3,650

Charge for the year

902

29

23

76

154

833

-

2,017

Disposals during the year

(55)

-

-

(61)

(3)

-

-

(119)

Foreign exchange movements

(41)

(2)

-

(28)

(40)

(6)

-

(117)

Depreciation at 31 March 2017

2,963

119

139

283

345

978

604

5,431

Charge for the year

768

9

47

104

44

283

4

1,259

Disposals during the period

(83)

(62)

(78)

(60)

-

-

-

(283)

Foreign exchange movements

62

4

-

31

27

47

-

171

Depreciation at 30 September 2017

3,710

70

108

358

416

1,308

608

6,578

Net book value at 31 March 2016

5,840

73

58

191

3,325

22,033

1,019

32,539

Net book value at 31 March 2017

5,438

83

88

322

2,886

23,968

5,778

38,563

Net book value at 30 September 2017

6,049

54

170

241

3,268

24,518

9,629

43,929

 


5             Inventory

 

Sep 2017

Mar 2017

Sep 2016

 

Unaudited

Audited

Unaudited

 

Group

Group

Company

 

$'000

$'000

$'000

    

 Minerals held for sale

 1,029

 1,369

 924

 Production stockpiles

 946

 606

 525

 Consumable stores

 831

 836

 674

 

 2,806

 2,811

 2,123

 

 

6             Receivables

 

Sep 2017

Mar 2017

Sep 2016

 

Unaudited

Audited

Unaudited

 

Group

Group

Company

 

$'000

$'000

$'000

    

 Trade receivables

 384

 101

 443

 Other receivables

 520

 694

 1,293

 Short term loans

 526

 457

 - 

 Prepayments

 982

 1,677

 539

 VAT

 3,078

 3,031

 2,163

 

 5,490

 5,960

 4,438

 

 

7             Loans and borrowings

 

Sep 2017

Mar 2017

Sep 2016

 

Unaudited

Audited

Unaudited

 

Group

Group

Company

 

$'000

$'000

$'000

 Non-current

   

 Secured borrowings

 20,757

 4,839

 1,741

 Unsecured borrowings

 - 

 - 

 119

 less amounts payable in less than 12 months

(1,698)

(1,673)

(546)

    
 

 19,059

 3,166

 1,314

 Current

   

 Bank overdrafts

 5,023

 859

 - 

 Unsecured borrowings

 1,253

 1,403

 1,803

 Current portion of long term borrowings

 1,698

 1,673

 546

    
 

 7,972

 3,935

 2,349

 Total loans and borrowings

 27,033

 7,101

 3,663

 

 

8             Payables

 

Sep 2017

Mar 2017

Sep 2016

 

 

Unaudited

Audited

Unaudited

 

 

Group

Group

Company

 

 

$'000

$'000

$'000

 

    

 

 Trade payables

 5,377

 5,784

 4,125

 

 Other payables

 1,250

 1,325

 2,478

 

 Other taxes and social security taxes

 160

 237

 749

 

 Accrued expenses

 93

 85

 87

 

 

 6,880

 7,431

 7,439

 

 

9             Provisions

 

Sep 2017

Mar 2017

Sep 2016

 

Unaudited

Audited

Unaudited

 

Group

Group

Company

 

$'000

$'000

$'000

    

 Provision for rehabilitation of mining properties

   

 - Provision brought forward from previous periods

 1,095

 954

 954

 - Liability recognised during period

 45

 141

(6)

 

 1,140

 1,095

 948

 

 

10       Financing arrangement

On 29 May 2017 the Company completed a financing arrangement with SSCG Africa Holdings Ltd originally announced on 30 January 2017. Under this arrangement the Company received gross proceeds of US$8 million, principally to advance the Company's core activities in Romania. This comprised a US$4 million loan, repayable on 30 January 2021 and a US$4 million payment in respect of a 49.99% interest in the Company's principal Zimbabwean assets, consisting its 50% shareholding in Dallaglio Investments (Private) Limited, the holding company for the Pickstone Peerless Gold Mine, and the assignment of 49.9% of the intercompany loan owing by Canape Investments (Private) Limited to Vast Resources Plc.

 

The assignment of the intercompany loan, with a book value of $14.838 million, for consideration of $2.3 million (included in the $4.0 million referred to above), gave rise to the recognition of a loss on disposal of $12.538 million as reported in the Statement of Comprehensive Income

 

11       Acquisition of remaining shareholding in Sinarom Mining Group SRL

On 22 March 2017 the Company announced it had concluded an agreement to acquire the remaining 49.9% interest in Sinarom Mining Group SRL ("Sinarom"). The purchase consideration for the shares and loan accounts comprising the assets acquired was a total of $2.303 million and, all conditions precedent being met, the acquisition was concluded on 19 July 2017.

 

12          Events after the reporting date

Baita Plai licence

On 18 October 2017 the Company announced that its Romanian subsidiary, African Consolidated Resources SRL, had been advised in writing  that a board meeting of Baita SA had concluded on 16 October requesting its shareholder - the Ministry of Economy - to approve the association on the licence for the exploitation and processing of the polymetallic ore from the Baita Bihor SA exploitation perimeter, which contains the Vast Resources 80% owned Subsidiary AFCR Polymetallic Mining assets in Baita Plai, in compliance with all the current legal provisions.

 

Management

Brian Basham did not offer himself for re-election as a director of the Company at the Annual General Meeting held on 20 October 2017.

 

On 18 December 2017 Roy Pitchford announced his retirement as Group CEO with effect from 31 December 2017. The Company announced that Andrew Prelea will be appointed to the Board and CEO position to replace him.

 

Fund raising

Placing and open offer to shareholders

On 21 November the Company announced the completion of a placing of 190,476,190 ordinary 0.1p shares at an issue price of 0.525p per share. The proceeds of the issue were $1.32 million (£1.0 million) and the shares were issued on 5 December 2017.

 

On 24 November the Company announced that it was making an open offer to shareholders of an entitlement to subscribe for 1 share for each 20 shares held, at an issue price of 0.525p per share. On 12 December the Company announced that this offer had been over-subscribed by a factor of 34.5%; the offer raised £1.23 million (approx. $1.64 million) . As a result of this offer 234,261,876 new ordinary 0.1p shares will be issued.

 

Exercise of warrants

Date

No of Shares

£

$

 

9 Oct

2,228

11

15

Open offer

17 Oct

2,112

11

14

Open offer

27 Oct

1,061,060

5,305

6,926

Open offer

30 Oct

183,180

916

1,198

Open offer

1 Nov

265,161

1,326

1,750

Open offer

3 Nov

36,794

184

243

Open offer

21 Nov

1,000,000

5,000

6,600

Open offer

27 Nov

807,018

4,035

5,326

Open offer

6 Dec

382,062

1,910

2,570

Open offer

13 Dec

123,533

618

826

Open offer

 

 

Change in joint broker

On 21 November the Company announced the appointment of SVS Securities Plc as Joint Broker.

 

 

**ENDS**





This announcement is distributed by Nasdaq Corporate Solutions (One Liberty Plaza, 165 Broadway, New York, NY 10006. Tel: +1 212 401 8700. www.nasdaqomx.com) on behalf of Nasdaq Corporate Solutions clients. Source: Vast Resources plc, Nettlestead Place, Maidstone Road, Nettlestead,, MAIDSTONE, ME18 5HA,, United Kingdom
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