by 29101971Noteholders chase Quantum.Quantum chase BEZ.Simples.
Your arguments are weaker and more desperate. Quantum was doing fine as a bullion trader for the last few decades. Why would they want to get into trouble with their gold noteholders and jeapadize their lucrative bullion business?
The off-take and pre-payment deal they signed with Besra gives them massive benefit in $billions by locking in REFERENCE PRICE now for future gold delivery. That is a brilliant stragetic move by QUANTUM in my book. Just the 10% discount on REFERENCE PRICE already give them close to AUD $1bil advantage alone (at average REFERENCE PRICE of USD $2150 × 3mil Oz × 10% discount ÷ 0.68 assumed long term average FX rate = AUD $948mil). While the first lot of gold has been locked in at REFERENCE PRICE of USD $1900, the bulk of the pre-payment deal is still to be paid down over the next 2 years, and therefore I expect the average REFERENCE PRICE will be around USD $2150 - $2200).
Now that we understand the way the deal works, it is clear that Quantum is going reap the benefit in $multibillions by the expected difference between REFERENCE PRICES and future spot gold prices. There is clear historical evidence that gold price INCREASED over the years and past decades at more than 11% per annum which indicates gold price could be above $3400 per oz in 5 years time (mind you, even at USD $2400 in 5 years, Quantum still stands to benefit another $billion in the price difference above the average REFERENCE PRICE). In 5 to 10 years time, it could be even much higher if history of gold price is relied on. There is no guarantee about it but there is a high and reliable probability about it. As I said, what Quantum calculated and mapped out this deal is a brilliantly smart deal for it. I do not think anyone of us including myself fully comprehend how gigantic the benefit Quantum will potentially earn from this deal to get BAU project into production.
That is not to mention the profit they typically earn over the last few decades as a bullion trader from this 3mil ounces of gold supplied by BEZ.
As a biggest shareholder of BEZ, again who is going to benefit the most from a successful BAU project? Again, it is Quantum.
Your argument in previous post that Quantum has installed 2 directors on BEZ's board of directors as a concern. I find it weak and weird. What do you expect? Do you expect Quantum to wilfully throw the money into BAU project without having some supervision and control over it? Quite the opposite, I would find it a concern if Quantum had not put any of their people onto BEZ's BOD. It would show they don't care about progressing the project into production and it would show they don't have a genuine commitment to it. If they don't put their people onto BEZ's board of directors, how could they speed up this project? How could they make sure things move faster?
By the way, 2 directors out of 4 directors is not majority. If you say 2/4 gives Quantum a majority then it also means BEZ with 2/4 directors also has a majority. So, who holds a minority then? I call it a balanced and healthy representation on the board.
A CEO will be announced when they have signed. Nothing to be fuzzy about. He/she will be selected when the time comes and when needed by from both BEZ and Quantum. I dont see a big deal whether a CEO is appointed next month or next quarter or in 2024.
Those millionaires from CITICORP continue to hold 49.5mil shares is telling.
Those millionaires from HSBC now hold 39mil.shares after topping up 3.6mil shares.These investors are sharp minded investors. Just follow them.
3 insiders (director, ex-director, Chief Technical Officer) from BEZ suddenly become top14 shareholders. Especially John Seton immediately loaded up 3mil shares over the last few weeks after his last holdings notice, to become top13 shareholder. What does it tell us? They must have great knowledge, insight, and conviction in this stock don't they?
Hundreds of exploration stage mining stocks dream of having big enough resource and move to off-take negotiations. Pre-payment of AUD $450mil is out of their wildest dreams. They would be over the moon. Go and tell them off-take agreements and pre-payment financing deals would turn into disasters if it goes pear shaped (WHAT?) and therefore their companies should quickly terminate those off-takes and juicy pre-payment deals.
If you want to talk "IF IT GOES PEAR SHAPED", you must convince them how? why? what is the probability of it going pear shaped. Does a company or a project has better chance of NOT going pear shaped than another company or similar scale project that does not have any off-take and pre-payment? All of a sudden, and this is my first time experience of seeing such weird argument, a project that has signed a very big off-take agreement with a big pre-payment deal eliminating the need for share dilution significantly if not completely, becomes a negative rather than a positive for the company and its project. All mining companies in the world should cancel their off-takes and financing deals,and go back to raising capital bit by bit, $millions by $millions, then $hundreds of millions by $hundreds of millions, by issuing 300%, 500% more shares?
So, i ask again, what is your bottom line:
BEZ with $multibillions off-take agreement, AUD $450mil pre-payment deal, no further dilution of shareholder's interest (or minimal dilution and I don't have any issue with it if it is needed), OR
BEZ with no off-take agreement, no pre-payment deal of AUD $450mil, 200%-500% further dilution of shareholder's interest.
Which one do you prefer?
All directors have topped up shares big time to now become top14 shareholders and all millionaire clients of CITICORP and HSBC have continued to hold and topped up shares as well as other new top20 shareholders. What does it tell you?
Anyway, enough of my rant (and i wont get back to this anti science, anti-commonsense argument). Good luck with convincing other holders to sell cheap shares to you guys. You won't get them from top20, top30, top50 though I believe.
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BEZ Price at posting:
16.0¢ Sentiment: Buy Disclosure: Held
