The higher gold price the better for all gold projects including BAU gold project.
Why?
1. The USD $9.8mil due is for only 98k oz contracted at $2002. That is only 3% of the 3mil oz of the deal.
2. We don't know when QM transfer the $9.8mil over, whether the price will or will not be adjusted to reflect the current higher price. That remains to be seen.
3. In commercial law, when they did transfer the money which was for technical reason sent back to QM and later QM transfer successfully, what price is valid? At first attempt of transferring or at later transfer? Let me tell you this: when an email of acceptance is sent it is effectively valid at that point, not at the time of the other party is aware or read that email. This is a technical thing for the parties involved to agree to. We dont know the outcome yet. In other words, if I send an email to accept the purchase price of a property to the seller's agent, the deal is valid at the time I sent the email, regardless of whether the agent or the owner of the property read that email on that day or 1 week later or not aware of my email of acceptance or not reading my email. This means a contract of purchase is valid at the time I sent the email and the owner of the property and its agent cannot change their mind and cancel the sale contract for whatever reason (change of mind or due to a higher offer from another buyer). So, again that is the technical point that the 2 parties will sort out and we don't know what is the result yet.
4. The most important thing is: there are still plenty of gold to be contracted at future gold prices. 98k oz does not alter the bright prospect of BEZ locking in more contracts at higher prices. Not at all. With QM or with other off-takers. Serious investors will not take this specific lot of gold purchase of 98oz at USD $2000 or at $2300 as a determinant to their decision to invest in this stock. It is not a big deal in the grand scheme of things. They look at the bigger picture that is the project can go to production. That is much more important to them and to me.
BEZ Price at posting:
8.9¢ Sentiment: Buy Disclosure: Held
