372580oz × USD $1900.83 = USD $708mil = AUD $1.07bil at current AUD/USD exchange rate.
1. That is the portion that has been "contracted for purchase by Quantum" so far. That is a binding contract, has been locked in, and paid with 5% deposit (pre-payment).
2. Normally with a gold stock of 3mil oz resource, receiving that news alone, of more than AUD $1bil binding off-take agreement, with 5% prepayment, would send its MC to $300mil MC easily.
3. With further up to 8 more binding off-take agreements of similar size to come to bring to total of 3mil oz purchase agreements, market must be fighting to buy up.
4. 5% pre-payment of USD $708mil = USD $35.4mil which is what the company has updated us lately and that is including the latest USD $9.827mil to be remitted. What it means is: that latest USD $9.827 has been "contracted", it is binding and it must be paid. It is part of the 372580oz that has been "contracted" (binding agreement/binding contract). What people should look forward to is the next lot of deposits, the next lot of 372580oz to paid and to be "contracted". I think the company should only update contracted purchase quantity and associated pre-payments each quarter, not each month or each transaction.
5. A perfect storm combination of inflation and interest rate falling in 2024 and 2025, Trump likely back in the oval office, geopolitics conflicts around the world, central banks purchase of increasing amounts of gold, China+Russia, India and other BRICS nation pushing alternative currency system against the US dollars, is under way and is supporting gold price to make solid gains in the years and decades ahead.
6. Gold is likely to be USD $3000/oz the way it is going by 2026 and is forcasted to be so by UBS, Goldman Sachs,...and could possibly be USD $3500-$4000 by 2028 when Quantum receives its first gold delivery from Besra.
If we take a conservative price of USD $3000 by 2028 and the "contracted" reference price of USD $1900 less 10% discount which is equal to USD $1710, QUANTUM stands to benefit:
So, by paying 5% deposit now of USD $35.4mil or around AUD $53mil, Quantum stands to benefit AUD $700mil to $1.25bil. That is ginormous return on investment and that is why I believe QM is making a brilliant deal with BESRA.
AUD $53mil to earn profit of $700mil to 1.25bil in 4 years = stunning ROI to me.
7. With this kind of compelling investment purchase contract, QM can use it as collateral assets or whatever you call it to sell more gold notes to its clients and bring more cash in for further lots of purchase contracts to BESRA.
8. The way i see it is: BEZ is sitting on a fair value of around $300mil -$400mil MC right now. If you compare BEZ to SXG's current MC of $350mil, BEZ should even be double SXG's MC.
But if you are extremely conservative investor, then I think you can be absolutely safe with a $200m MC fair value expectation.
In other words, if anyone selling their shares at 15c-16c, they are giving away 200% to 500% premium to those traders/manipulators who are relentlessly trying to trick your brain and your patience with a few sell orders day in day out.
9. The only question for QM is: to make this happens. To make sure the project will be up and running. The risk is in this process of getting the project into production. And that is what QM and BESRA are doing with everything in the background. Drilling, upgrade MRE, stage#2 metallurgical work, technical personels recruitment on the ground, DFS, pilot plant, working with local authorities on process plant, mine design, construction permits,...All of these activities are outlined clearly in the last quarterly report.
ALL IN MY OPINION. TAKE IT OR LEAVE IT. DO YOUR OWN RESEARCH.
BEZ Price at posting:
14.5¢ Sentiment: Buy Disclosure: Held
