With AUD $38mil (USD $25mil) paid in advance for 275000 oz off-take at USD $1900 and 10% discount to give effective price of USD $1710, and assuming spot gold price at USD $3500 in the year 2027-2028, Quantum stands to benefit: 275000oz × (USD $3500 - $1710) ÷ 0.68 AUD/USD = AUD $724mil profit.
Most of major international financial institutions including UBS, MORGAN STANLEYS, BANK OF AMERICA, CITI GROUP, ...are predicting gold price breaching USD $3000 in 2025. USD $3500 assumption price in 2027-2028 may prove to be too conservative.
So, by pumpming AUD $38mil pre-payment into Besra to stand to benefit AUD $724mil, QUANTUM has done a brilliant calculation and stragetic move. This just shows how smart they are. That is on top of 30% shareholding that Quantum will also reap a big reward on. They deserve our respect and admiration.
They will do everything to get Bau project into production to reap the rewards.
BEZ Price at posting:
11.0¢ Sentiment: Buy Disclosure: Held
