Ann: Change of Director's Interest Notice, page-21

Whether any cash arrives or not from Quantum in August is not that important really.

We have enough cash for the next 14 quarters at current expenditure, we don't actually need any more right now.

In fact the only beneficiary of a further remittance would be Quantum themselves as they lock in the price for an off-take delivery at some point in the future.

But what of Quantum?

There does certainly seem to be some issues and a certain lack of communication about how Quantum will resolve them, but, that is a Quantum issue and not a BEZ issue.

In fact lets consider it all goes horribly wrong for Quantum and they end up in a legal mess with the Malaysian regulator and the business is ultimately liquidated.

Just for the moderators I am not suggesting that will happen but as a BEZ shareholder I would like to make a few points on the subject.

Certain posters over the last few months have suggested that should Quantum fail then BEZ will have to repay all the cash received so far, and Quantum will be forced to dump approx 120mn shares on the market collapsing the SP to almost zero.

No ... wrong!

That is not how liquidations work. The Liquidator / Receiver call him what you will has one task and that is to extract the maximum return for creditors.

The legally binding GPA would still exist and all BEZ would need to do is fulfill their GPA obligations as per the off-take contracts already in place. So in this case the Receiver would become the recipient of the gold which can then be sold for the benefit of creditors.

And the 30% shareholding Quantum owns, again here the Receiver would be tasked with extracting the maximum value even if that meant holding onto the shares for a long period of time. Such a block of stock could also be block sold and could easily be the foundation for a T/O at some point for the right purchaser.

As an example maybe one could consider another unregulated firm that got into difficulties.

Back in 2014 Mount Gox a Tokyo based crypto exchange became insolvent after a massive hack stole almost 1mn BTC.

Receivers were appointed for Mount Gox and it took the Receivers 10 years before they had extracted all the value they could and finally paid out creditors.

10 years!

In fact if Quantum were to become insolvent it would very likely be a great thing for BEZ as we will keep the money we have already and the pilot plant and our 3.3mn ounces in situ and only need to supply the gold.

By then our new MD will have started work and will be busy putting plans in place to get the JORC compliant total up to 5mn ounces Au.

If on the other hand Quantum sorts their life out and restarts remitting cash for off-take deals that is also a great thing for BEZ.

So either way I am pretty positive that it will be BEZ that will be the ultimate beneficiary here whether Quantum rises phoenix like or succumbs to the heat.

As I have written here a few times this year I think Mr Market has got this one wrong ... again!

EB