Vast secures new copper offtake agreement with Trafigura

The new offtake agreement 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 agreement, which will be in place until June 2025, will replace the existing copper concentrate offtake agreement. The 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 4Q22 to 4Q23. In addition, 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.

Andrew Prelea, CEO at Vast Resources PLC, comments:

“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.”

Read the article online at: https://www.globalminingreview.com/mining/14032024/vast-secures-new-copper-offtake-agreement-with-trafigura/