Contested Diamond Parcel Sparks New Conflict at Vast... Investors Challenge Management on Gem Weight Discrepancies

Vast Resources Investors of Vast Resources, a diamond mining company listed on the London Stock Exchange, have raised concerns with manage...

Vast Resources

Investors of Vast Resources, a diamond mining company listed on the London Stock Exchange, have raised concerns with management regarding what they claim are inconsistencies in the weight of a diamond shipment recently made available by authorities in Zimbabwe, after waiting for a decade.

Shareholders are seeking transparency regarding a decrease in reported volume and an unexpected change in financial projections.

   

The clash took place during a question and answer session, with the specifics revealed by the Alternative Investment Market-listed research firm this week. The platform was created to tackle "frequent issues" raised by investors.

Central to the conflict is the diamond stock made available to Vast following a long legal struggle with the Reserve Bank of Zimbabwe.

The conflict arose following a regulatory statement on November 17, indicating that a parcel weighing 126,677.5 carats had been put up for sale. This was in stark contrast to an earlier announcement on May 7, 2025, which mentioned a total parcel weight of 135,139.47 carats, including around 36,475 carats of high-quality gemstones, as outlined in the report.

   

Major investors asked for an explanation regarding the apparent decrease in carat amount and requested more information about the new classification categories mentioned in the November update.

In its reply, Vast refuted any decrease in the total carat quantity.

The company has repeatedly emphasized that the balance of higher quality stones is being processed to ensure that Vast's shareholders gain from the increased value obtained by transforming raw stones into a refined product," Vast stated. "There has been no decrease in the number of carats,

The company stated that it has cleaned and enhanced 47,670.23 carats of stones that were previously categorized as industrial grade, upgrading them to a more valuable classification. A remaining amount of 8,461.97 carats — referred to as subject to "unavoidable boiling losses" — is being retained for a future, gradual sale.

   

Even with the technical explanation, the lack of clear connection between the original 135 139-carat figure and the 126 677-carat offer in the initial November statement has increased investor concerns.

As stated in the document, investor worries increased following management's apparent reversal of previous statements about the company's financial obligations.

Earlier discussions had indicated that the funds generated from the diamond sale alone would be enough to completely settle the company's secured debt. However, the announcement on November 17 suggested that further financial arrangements could be necessary.

When questioned about when the company became aware of a possible shortage, Vast stood by its position, stating it had "not assumed this to be true nor informed the market about it."

It referenced its latest annual report, which mentioned utilizing diamond proceeds "and other financial strategies" to pay off debt.

"Although it is expected, given the appropriate sales conditions, that diamond sales alone could provide enough financial resources to settle the company's existing debt, the company has not depended on this outcome nor informed the market about it," management stated.

The diamond-filled area at the heart of the dispute has a complicated past.

A 129,400-carat shipment was kept by Zimbabwe's central bank for almost a decade as proof in a legal case regarding mining rights that were once held by De Beers. The Supreme Court of Zimbabwe recently decided in Vast's favor, directing the return of the gems, which come from the diamond-rich Marange region in Zimbabwe.

With a critical debt payment deadline of December 31, 2025 fast approaching, the company stated it has "no immediate plans" to carry out a share issue to secure funding.

Nevertheless, its acknowledgment that diamond sales might not be enough to meet the debt responsibility has caused shareholders to doubt the actual worth of the asset — and the timing and openness of management's messages.

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