HARARE, July 13 (The Source) – AIM-listed junior miner Vast Resources, which has operations in Zimbabwe and Romania, has seen its share price has fallen dropping 67 percent in the year-to-date, a new low for a mining stock on the index, on weak investor sentiment.
The former African Consolidated Resource (AFCR)’s stock is the worst performer on the mining index, which is up 37 percent this year.
Its Zimbabwean operations include Pickstone-Peerless Gold Mine (PPGM), a 50:50 joint venture with Grayfox Investments, a consortium of Zimbabwean investors. It is also examining the possibility of developing an open pit mine at the nearby Giant Gold Mine which has a current inferred resource of about 1,6 tonnes (500,000oz) of gold.
A research report by market analysts, buysellsignals, noted that investors remained bearish about the stock, both in the short-term as well as in the long-term based on technical indicators.
“In the last three months the stock has hit a new 52-week low four times, pointing to a downtrend,” the report notes.
Vast Resources is the United Kingdom’s 73rd largest mining company by market cap. Last year the company reported an operating loss of $8,9million.
Last week, the miner said it has raised, in aggregate, £855,000 (about $1,14 million) before costs through a placing and subscription of 300 million ordinary shares of 0.1 pence in the company at a price of 0.285 pence per Ordinary Share.
The 584 hectare Pickstone-Peerless mine was commissioned in August last year and produced its first gold a month later — 8,5 kilogrammes.
In the three months to March 31, 2016, it produced 87,3 kg (2,808 ounces).