Vast Resources swings to a loss in first half as CEO steps down

Mining production company Vast Resources saw revenue from its two operational mines grow 5% over the six months leading to 30 September but a number of factors, including the increased cost of sales, swung the group to a loss.

Operationally, Vast saw a 20% increase in gold production to 8,775 troy ounces at its Pickstone-Peerless mine in Zimbabwe, and its Romanian operation, raised copper concentrate production 35% to 1,910 tonnes, but watched its zinc contrate production slip 9% to 270 tonnes.

Vast Resources managed to cut overheads 45% to $2.5m over the period, but the $14.9m in reported revenue was not enough to keep the firm in the green as a whopping $12.5m of exceptional items dragged it to a $12.6m pre-tax loss, compared to the $300,000 profit it had recorded at the same time twelve months earlier. Excluding these, EBIT jumped 30% to $560,000.

Earlier this month the firm advised that chief executive Roy Pitchford was standing down from his role as of 31 December and would be replaced by Andrew Prelea, president of Vast's Romanian subsidiary.

The firm raised its loan facilities $1.6m in order to fund its Romanian activities, and also raised its overdraft more than $5m to fund construction of its Zimbabwean sulphite plant. At the end of the first half, cash balances had fallen to $1.7m.

As of 1340 GMT, shares had fallen 9.28% to 0.503p.