New Copper Offtake Secured with Trafigura for Baita Plai

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

13 March 2024

Vast Resources plc
(‘Vast’ or the ‘Company’)

New Copper Offtake Secured with Trafigura for Baita Plai

Vast Resources plc, the AIM-listed mining company, is pleased to announce that it has secured a new exclusive offtake agreement with Trafigura Group Pte (‘Trafigura’) for all copper concentrate (‘the New Offtake’) produced at the Company’s 100% owned Baita Plai Polymetallic Mine in Romania (‘Baita Plai’). The New Offtake builds on Vast’s existing relationship with Trafigura, which is one of the world’s leading independent commodity trading and logistics companies, following the exclusive offtake agreement signed with Trafigura in October 2022 relating to the Takob Mine in Tajikistan.

The New Offtake agreement, which will be in place until June 2025, will replace the existing copper concentrate offtake agreement. The New Offtake agreement pricing terms are in accordance with market practice, with adjustments for the grade of material delivered, and at a small discount to the LME cash settlement quotation averaged over an agreed period for copper, silver and gold to ensure competitive pricing.

Copper concentrate production is ramping up at Baita Plai with dry metric tonnes increasing by 24% from Q4 2022 to Q4 2023. In addition, as previously reported, the Company is currently working to accelerate development of the underground decline access ramp at Baita Plai, which is expected to substantially increase productivity through reduced underground haulage times and also provide faster access to high grade ore at depth. As a result, the Company expects the overall grade of concentrate produced at Baita Plai to increase, and for there to be a reduction in grade variability which will align with the Company’s offtake objectives with Trafigura.

The Board would also like to advise shareholders that discussions regarding the terms and conditions of the extension of the loans to A&T Investments SARL and Mercuria Energy Trading SA beyond the current effective repayment date of 29 February 2024 are continuing, and the Company will update the market once finalised.

Andrew Prelea, Chief Executive Officer at Vast Resources PLC, commented:

“Vast has been developing a relationship with Trafigura, one of the world’s leading independent commodity trading and logistics companies, since early 2022 and we are delighted to report this new exclusive offtake over our producing asset in Romania. The terms of the offtake ensure that Vast will benefit from the widely forecast price increase over the coming months and into 2025 as global supply struggles to meet demand, with UBS going as far as to say that ‘a copper supply crunch is unavoidable’. As a Company in production, which continues to ramp up with limited additional capex required, Vast is in a solid position to capitalise on these market dynamics through its new offtake with Trafigura.”