20th Dec 2016 09:23
LONDON (Alliance News) - Vast Resources PLC on Tuesday said its revenue surged in the first half of its financial year thanks to new production coming on line, helping to swing to an interim profit.
Revenue for the group multiplied to USD14.1 million in the six months to the end of September from USD1.0 million a year before, following the successful commissioning of the company's Pickstone-Peerless gold mine in Zimbabwe and Manaila polymetallic mine in Romania in the second half of its prior financial year.
Gold production from Pickstone-Peerless rose 75% to 9,452 ounces in the recent six months, against 5,409 in the six months to the end of March. Copper concentrate production from Manaila fell 5.6% against the same prior period.
Post-the period end, Vast commenced a second revenue stream from Manaila and has kicked off a drilling programme at the Faneata tailings dam, also in Romania.
Vast said it made pretax profit of USD265,000 in the half-year to the end of September, compared to a USD3.6 million loss a year before, thanks to the rise in revenue and lower overheads costs. The company's cash balance on September 30 was USD2.8 million, up from USD1.9 million a year before, partly thanks to USD3.3 million in capital raised over that year.
Vast Chief Executive Roy Pitchford said the group remains confident on the long-term potential for Pickstone-Peerless and is continuing to develop its assets in Romania.
"We continue to believe that Romania represents a significant opportunity for the company; by applying the lessons we have learnt at Manaila we believe that there are multiple additional new valuable prospects available to Vast and we continue to employ an opportunistic outlook when appraising new projects," said Pitchford.
Shares in Vast were up 3.1% at 0.16 pence on Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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