Vast Resources plc · LSE:VAST
Vast Resources — Investor Presentation (November 2017)
20 slides from Vast Resources's investor presentation, November 2017
Slide 1: Investor Presentation November 2017
Produc tion Expansion Value Ac c retion I N V ES TO R P R E S E N TAT I O N / N OV E M B E R 2 0 1 7
Slide 2: Disclaimer
DISCLAIMER These materials do not constitute or form any part of any offer or invitation to sell or issue or purchase or subscribe for any shares in Vast Resources plc. (the “Company”) nor shall they or any part of them, or the fact of their distribution, form the basis of, or be relied on in connec
Slide 3: Company Snapshot
COMPANY SNAPSHOT Market AIM Hargreaves Lansdown Asset Management - 13.44% SHAREHOLDERS Ticker VAST Halifax Share Dealing - 9.22% Share price 0. 62p* TD Direct Investing - 7.68% Market cap £29.05m* Barclays Wealth and Investment Mgt (UK) - 6.39% Directors and Associates - 1.08% Shares in issue 4,685,
Slide 4: A Vast Opportunity
A VAST OPPORTUNITY * US$23.8m GENERATIVE REVENUE PROSPECTIVE PORTFOLIO For the year ended 31 March 2017 (2016: £7.2m) ▪ Two producing mines – Manaila Polymetallic Mine in Romania and Pickstone- Peerless Gold Mine in Zimbabwe 2.2c per share (1.7p) ▪ Third mine – due to Valuation by Brandon Hill UPLIF
Slide 5: Strategic Portfolio
STRATEGIC PORTFOLIO MINE VAST STATUS ORE MILLED PRODUCTION INTEREST 3 months ended 3 months ended Sep 2017 Sep 2017 MANAILA POLYMETALLIC 100% IN PRODUCTION – 39,135 tonnes Cu - 1,082 dry tonnes / 17.9% MINE commissioned August 2015 Zn – 118 dry tonnes / 42.3% Expansion potential via Carlibaba ROMANA
Slide 6: Highlights from Q3 Quarterly
HIGHLIGHTS FROM Q3 QUARTERLY HEADLINE FIGURES “Q3 2017 was a record quarter for Vast, which saw operations at the Manaila Polymetallic Mine in Romania and the Pickstone-Peerless Gold Mine in Zimbabwe outperform the previous quarter in terms of tonnes mined, tonnes milled, copper concentrate produced
Slide 7: Value Creation
VALUE CREATION Vast transitioned from explorer to producer in 2015 and created significant value – however this has not been reflected in the share price to date NET PRESENT VALUE PER BRANDON HILL CAPITAL ‘MINING FLASH NOTE’, 19 OCTOBER 2017 Manaila Polymetallic Mine $15.2m (100%) Baita Plai Polymet
Slide 8: Value Creation
VALUE CREATION Vast has built a diverse portfolio, which strongly positions the Company for growth ▪ The combination of working in two jurisdictionally different markets, coupled with the difficulty of raising finance, has held the share price at disproportionate lows compared to the independently d
Slide 9: Pickstone-Peerless Gold Mine
PICKSTONE-PEERLESS GOLD MINE Reported NPV12% for 25% interest in Pickstone-Peerless is US$37.4 million (Brandon Hill Capital, 19 October 2017) 2013 – NAV reported following completion of Definitive Feasibility Study as US$17 million 50% earn in with Grayfox generated US$4 million for Pickstone-Peerl
Slide 10: Baita Plai Polymetallic Mine
BAITA PLAI POLYMETALLIC MINE Reported NPV12% for 80% interest in Baita Plai is US$49.7 million (Brandon Hill Capital, 19 October 2017) ▪ Investment of approximately US$4 million to date for RE-OPENING OF THE MINE TO acquisition, care and maintenance, legal fees, COMMENCE BY END OF 2017 improvements
Slide 11: Manaila Polymetallic Mine
MANAILA POLYMETALLIC MINE Reported NPV12% for 100% interest in Manaila is US$15.2 million (Brandon Hill Capital, 19 October 2017) Since acquiring Manaila in 2015 Vast has: 5x Cu Increased Cu concentrate quality from Zn Commenced production of separate Zn concentrate and pyrite Increase in open pit J
Slide 12: Manaila Expansion
MANAILA EXPANSION Significant potential to materially increase resource tonnages and extend Manaila mine life ▪ Objective to establish a second open pit mining operation at Carlibaba, adjacent to Manaila, and establish an enlarged mining complex that will utilise a centralised metallurgical processi
Slide 13: Operations at Manaila
OPERATIONS AT MANAILA INVESTOR PRESENTATION | NOVEMBER 2017 12
Slide 14: Piciorul Zimbrului & Magura Neagra
PICIORUL ZIMBRULUI & MAGURA NEAGRA Historical exploration activities have demonstrated both licences’ prospectivity for polymetallic mineralisation ▪ Piciorul Zimbrului and Magura Neagra are located 74km from Manaila ▪ Prospecting activities commenced in October 2017: ▪ Initial access surveys to the
Slide 15: Funding - Romania
FUNDING - ROMANIA Application of recent funding ▪ Recently, US$9.6m was raised via the sale of a 25% interest in the Pickstone- Peerless and Giant gold mines, and the raising of corporate loans from Sub- Sahara Goldia Investments ▪ These funds have been utilised as follows: Grayfox loan repayment US
Slide 16: Funding - Romania
FUNDING - ROMANIA The reopening of Baita Plai and the new metallurgical complex at Manaila require funding The estimated additional capital requirement for Romania is: US$ Manaila new metallurgical complex 4.0m Baita Plai mine reopening 1.2m Baita Plai underground resource drilling* 0.6m Piciorul Zi
Slide 17: Funding Opportunities – Romania
FUNDING OPPORTUNITIES – ROMANIA Significant interest from strategic investors, off-take partners and project financiers to develop the Romanian mining assets ▪ Two strategic investment possibilities have been offered to Vast, one Romanian that was matched by Vast’s strategic Zimbabwean investor. The
Slide 18: Funding Opportunities – Romania
FUNDING OPPORTUNITIES – ROMANIA Vast is focussed on best positioning the company for growth whilst mitigating dilution to shareholders Constructive discussions are in progress with several international parties interested in providing funding for the optimisation and expansion initiatives through no
Slide 19: Summary
SUMMARY Rapid transformation from exploration company to mining company with a total NPV valuation of US$102.3 million (Brandon Hill Capital, 19 October 2017) ▪ Two mines in operation – expansion and optimisation initiatives underway which is expected to significantly enhance production profiles ▪ D
Slide 20: Contact details
Roy Pitchford | Chief Executive Officer T: +44 (0) 20 7236 1177 Andrew Prelea | President & Executive Director Romania T: +40 (747) 118 888 St Brides Partners |PR & IR Susie Geliher + Charlotte Page T: +44 (0) 20 7236 1177 susie@stbridespartners.co.uk charlotte@stbridespartners.co.uk
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