It is easy to see why they came up with that USD $6bil figure of total value on 3mil oz. It is because they used the USD $2000/oz average price.
3mil oz Ă— USD $2000 price = USD $6bil value.
They clearly stated there: given Quantum earns 10% discount, therefore they expect the maximum benefit to Quantum is up to USD $600mil. 10% Ă— USD $6bil = USD $600mil.
But the deal was not like you and me and everyone else including that "Independent Expert" thought. Initially we all thought that gold will be delivered to Quantum at spot gold price at the delivery time. And Quantum will simply pay 90% of the spot gold price at that time of delivery after deducting 10% discount. But the latest update has shed the light on the deal structure and this is the important point:
gold price is set at the time of pre-payment deposit into drawdown account, not at the future gold delivery date and it is called "REFERENCE PRICE".
Quantum is bloody smart with this deal. Very very smart. It won't be USD $600mil maximum benefit to Quantum. It can be USD $multibillion benefit to Quantum if gold price scales USD $2500, $3000 in 2026-2027 and continues to grow at average 8%-10% per year further into 2030-2035. It will be massive to Quantum.
It is easy to see why they came up with that USD $6bil figure of...
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