With binding contract of 372580oz so far signed and paid with 5%...

With binding contract of 372580oz so far signed and paid with 5% pre-payment, the value of the contract is worth = 372580oz × current USD $2350 ÷ 0.66 AUD/USD = AUD $1.3bil.


AUD $1.3bil binding off-take contract so far.


With AUD $38mil paid so far and $15mil (USD $9.8mil) to be paid in coming weeks, Quantum is already sitting on paper profit of 372580oz × (USD $2350 - $1710) ÷ 0.66 = AUD $361mil profit.


Note: USD $1710 is the effective price that Quantum has locked in after 10% discount on the average purchase price of USD $1900 for that 372580oz.


Again, just on that 372580oz binding off-take gold purchase contract alone, if gold price is heading towards USD $3500 - $4000 by 2028-2029 when Bau project is in production and generate enough gold volume for delivery to Quantum, Quantum stands to reap the benefit of 372580oz × (USD $3500 - $1710) ÷ 0.66 AUD/USD = AUD $1.01bil. That is the potential profit for that 372580oz that Quantum has signed binding purchase contract alone.

Of course the AUD/USD will likely increase back to 0.68 to 0.70 range by then. So, adjust that potential profit accordingly as you want. The potential profit is still easily above AUD $950mil even at 0.70 AUD/USD exchange rate.


In summary:


- Quantum has entered into AUD $1.3bil binding gold purchase contract for 372580oz, based on current spot gold price.

- Quantum's intention is to enter many multiple contracts of multiples × 372580oz in the next 24 months.

- This 372580oz binding contract has been paid with 5% deposit inclusive of the USD $9.827mil to be paid this month (or next few months I dont really care).

- And already it is sitting on paper profit of AUD $361mil.

- If gold price forcasts by major financial institutions like UBS, Citi Group, Goldman Sach,...are correct, gold price could be heading to USD $3500-$4000 by 2028-2029, Quantum is potentially sitting on around AUD $1bil profit just on what it has contracted so far (372580oz of gold purchase).

- If Quantum is to continue its GPA signed with Besra to fund up to USD $300mil (AUD $450mil) for up to 2.3mil oz - 2.4mil oz (the way gold price is going, USD $300mil pre-payment will only be enough for Quantum to contract up to 2.4mil oz, not 3mil oz, due to new high gold prices as i have explained a few weeks ago), Quantum will likely stand to benefit up to AUD $7bil if it fully funds the USD $300mil as its original plan.

(Note: I am talking about gold price in 2028-2029 at USD $3500-$4000. The contract with Quantum will no doubt last for 15 years - 20 years for BAU project to deliver the full amount of 2.3mil oz - 2.4mil oz. What is the gold price likely to reach 5 years - 15 years after 2028-2029? History has shown gold prices has consistently grown at average 10% per year). Do your maths on this gold price projections for the years 2035-2045 and you will have your brain twisted with how much Quantum can potential earn.


- Besra, with support and agreement from Quantum, can go to the market to get 1 or 2 more off-take partners for the 600k oz - 700k oz off-take contracts if it chooses to do so in the meantime.


- For me, there is no way Quantum would not want to go ahead with more pre-payments to lock in more binding off-take contracts. Just look at the profit it is already sitting paper based on the current gold price (AUD $361mil profit based on current gold price) and potential AUD $1bil profit based on major financial institutions's gold price forcasts. It is very compelling investment for Quantum. I am not concerned too much with Quantum paying the USD $9.827mil this month or next few months because the figures above tell me Quantum or Dato has got the best deal of his business life with Besra and will not let go of it. The only worry for me is Quantum may launch a "stragetic acquistion" (take-over) of Besra as it has clearly stipulated in its disclosure statement lately which may end up with 30c offer rather than $1-$2 as my target and expectation if Bau project goes to production with Quantum.


PS: one of the funniest things i heard from some young get-rich-quick kids yelling lately is "why pilot plant is delayed?, "why the USD $9.8mil is delayed?" over and over again. Clearly it shows they don't understand investments in mining stocks at all. Delay in mining is a CERTAINTY. The pilot plant contract with the manufacturer was signed, at USD $1.2mil = AUD $1.8mil. It is a contract for God's sake. It must be done and delivered. It is very very very....very common to be late as all other activities in its journey to become a producing mine. In fact it is very "abnormal" for any activity (assay results, metallurgical testworks, EIA, mining permits, off-takes, funding arrangements,....) to be on time. Same as the funding deal. It can always be delayed due to many various factors. If you expect perfectly on time delivery, you are obviously very amateur at investment in mining stocks. The bottom line here is Quantum stands to reap the biggest ever reward in its history with the current off-take deal with Besra (I could not think of any off-take deal in my 25 years investment on ASX where the off-take customer is clearly having such a brilliant risk-reward deal with a potential producing mine).





Do your own research.