That is a good sign
@Deadfred.
I have been clicking on its Malaysian website every single day for the last 4-5 weeks and wondered if that CEASE AND DESIST notice will ever be removed and here we are it has been removed last night.
It is a good sign.
This is primed for explosive re-rate.
Take a look at AGC again. Its drilling assays results are just very ordinary, nothing spectacular at all, with $10mil cash on hand compared to BEZ's $30mil cash on hand and 3mil oz resource with Exploration Target of 4.9mil oz to 9.3mil oz, and pilot plant almost ready for construction now that land access for pilot plant and tailngs dam has been secured. DFS to be put out for tender in July.
What is the probability for AGC to be lucky enough to continue to drill and hit more gold? What is its probability to get to 1mil oz resource? Let alone 3mil oz resource? At this early stage, I think that probability is close to zero until it continues to report further hits in many more rounds of drillings. It would take it at least 5 more rounds of drillings, further 2-3 years of drillings, tens of $million more, forget about pilot plant, PFS, DFS,...to come to a day of having its first ever resource statement of 1mil oz and its MC is already $87mil or EV of $77mil while BEZ's EV is $12mil. This is why BEZ's sp is primed to explode 500% easily on a couples of updates and pre-payments in the months ahead.
Don't forget BEZ has already secured an off-take agreement of 372580oz worth more than AUD $1.3bil so far with more to come.
SXG is sitting on more than $635mil MC (total shares and options, all options are well in the money, is around 215mil units, with 94mil shares about to come out of escrow in the next few days) with no MRE yet and Exploration Target of 1mil oz to 1.6mil oz. Even if we assume SXG will upgrade its Exploration Target by 100% to 2mil oz -3.2mil oz it is still far behind BEZ in terms of activities to move its project towards production as it is at this stage far from pilot plant design, construction, DFS and off-take agreement. Also to get to off-take and ulimate construction and mining, it will needs to raise at least $1/2 billion for CAPEX. From here to there, its share dilution will need to increase by at least 100% to 150%.
The question here is: if SXG is able to sign up some off-take agreements, what its MC and sp will increase to? 100% up from here? That would give it a MC of $1.3bil? That is where BEZ is at right at now. Off-take agreement secured. That is equivalent to $3 sp for BEZ.
BEZ has no dilution going into production with USD $300mil = AUD $440mil-$450mil pre-payment deal with Quantum regardless of Quantum is going it alone, or with its own partners, or with further new off-take partners that Besra can sign up with.
