I dont see anything as you call it.The average of USD $1900 was...

I dont see anything as you call it.

The average of USD $1900 was contracted at the time gold prices were in that range $1850-$2000. The last lot of 98k oz was contracted at USD $2002, again was in line with gold price at the time of the contract.

The money was transmitted in good faith. Got stuck with the 3rd party which was the bank. So, it is not Quantum's fault. It was not Besra's fault either. In commercial law, the contract and the contracted price was valid at the time the money was transferred to the bank, not at the time the money was received. As i did explain before, an accpetance of an offer is valid and is legally binding when a letter was dropped into a postal mailbox, not at the time the other party receives the letter. Similarly, an email informing an agent or the seller of a property is valid at the time the email is sent, not at the time the agent or the owner of the property read the email. The agent and/or the property owner cannot dismiss its legal obligation of selling the property due to change of mind or due to another higher offer from a 3rd party. This is one of the first things one would learn when he/she starts Commercial Law at university.

Reference price is based on 5-day average price, VWAP, of spot gold prices on LME (London Metal Exchange), also called London Metal Market. It is clearly set out in the GPA (Gold Purchase Agreement) and apparently stipulated in the binding contract prepared by Besra's legal representative Wright Legal Pty.

So, nothing is disgraceful here. Nothing at all. It is just a single unfortunate event and it is just 98k oz (less than 1/30th of the planned 3mil oz off-take amount) and it does not change a thing about the nature and the scale of the deal. Future contracts will be locked at reference prices based 5-day VWAP on LME.

On another note:
As I explained this morning, in this new record gold price reality, the initial planned USD $300mil pre-payment as 5% deposit is now more realistically only enough for Quantum to contract for 2.3mil oz - 2.4mil oz. Not 3mil oz any more. That leaves Besra with 600k oz - 700k oz to sell to other off-takers or to sell it on market at spot price in the future.