Dear 29101971,
When you state, 'that Quantum hold all the aces', are you suggesting they are capable of selling BEZ to themselves or creating some artificial concractual breach, that leads to that type of result? If not, what other aces are you talking about? Surely, the BEZ directors at the time of entering the arrangement have weighed up the commerciality (and thus benefits in their entirety) for BEZ, this isn't a one sided bargain!
The timing benefit as explained by Tran in his 12.13pm post is clear to all. By way of example, you may remember that David Tweed would offer to buy shares at 'today's' price and pay the seller for those shares, say 3 years hence. Tweed was hoping that between the 'now and then', the shareprice would have gone up and essentially he didn't have to come up with the purchase price for each seller because he was making money on each purchase price. It's not a difficult concept, and I don't need to repeat the principle. To be sure, I'm not suggesting QM is like Tweed in any other regard than seeking to make money on a timing basis.
The benefit that BEZ gets for allocating some of the gold to QM now, is that no plant funding/mine development cost is incurred. Again, this is not a difficult concept. Of course, the sooner Bez get producing, then hopefully, the smaller the forgone revenue (on the basis the gold price rises over time as is anticipated!).
One of the important aspects is that BEZ is not just selling to QM, but can also sell to the broader market at the prevailing market price. Not all of BEZ's production is just sold solely to QM.
The claimed concerns are not to be dismissed, however, their elevation to genius insight and their constant repetition doesn't advance any discussion. These concerns have been set out and addressed in earlier posts. It is rehahshing and not new ground. The uncommericality of some of the 'concerns' is the ridiculous part of these threads. This company and its plans aren't a Coporations Law exam question. We are dealing with genuine businesses, with genuine gold resources, with genuine binding agreements, in genuine commercial settings. The lack of commerciality imputed by those holding concerns is amusing.
If QM try any corporate silliness (which I think is an absurd notion), I am not afraid to contact Allan Myers AC, KC and have him appear in an oppression action. I have little doubt, other members would contribute to funding his reading, drafting, preparation and appearance fees, for same.
So how about we stop with the 'my dad's tougher than your dad' and re-read the posts and wait for the next annoucement. The company has foreshadowed genuine progress this quarter, in the last QR. That is where the insight is to be gained, the meeting or otherwise of stated objectives, not in the raising of utterly speculative and old concerns.
Expand
