Besra informed the market that it was negotiating with Quantum Metal for an off-take and funding deal of up to USD $300mil = AUD $450mil in October 2022 at the time gold price was at AUD $2600/oz. Today gold price is above AUD $3600/oz, an increase of more than AUD $1000/oz, adding AUD $3.3billion to the value of 3.3mil oz resource and potentially AUD $5billion to future upgraded resource if the company's stated target of 5mil oz MRE is realized (drilling results over the last few years have hit gold everywhere and will be incorporated into the upcoming MRE upgrade).
That AUD $3.3billion increase in resource value is on top of whatever potential profit that Quantum was calculating at the then AUD $2600/oz at the time it entered negotitation with Besra. Quantum wouldn't have entered into negotitation if it had not been absolutely confident to make massive profit at AUD $2600 gold price for such a giant AUD $450mil pre-payment deal. How much confident it is now with current AUD $3600/oz gold price I wonder. And looking ahead gold price upwards trajectory is unstoppable in the world of high inflation, high anxiety, wars and conflicts every where and the de-dollarization process by many countries only starting.
Again on top of that, Quantum is also the biggest shareholder of Besra at 30% holdings. It is the biggest beneficiary.
There is no way in this world Quantum would not do everything it can to get Bau project into production to reap the multi-billion dollars reward. If gold price plays out the way many big institutions forcast, Quantum is going to reap AUD $7bil to AUD $10bil over this off-take deal by my calculation. Quantum can easily bring in partners for a take-over or for more off-takes and/or funding if it chooses to do so.
Sp is about to explode to all time high in the weeks and months ahead IMHO.
DO YOUR OWN RESEARCH.
Top40 shareholders know how compelling this stock is.
BEZ Price at posting:
11.5¢ Sentiment: Buy Disclosure: Held
