Bezant Resources Share Discussion Threads

[tiger60] 10/12/2012 13:54

The problem for BZT is one of credibility.

Two major errors. Firstly, the initial negotiations and granting of the option. Secondly, taking money out of a loss making company in a rather underhand way - ie not apparent how the share price purchases were executed until the accounts were published.

However, the investment case is good, even strengthened on the news but enough investors have been alienated by the length of the option wait and the lack of news flow from BZT on the chances of the option being taken up. We knew GF's FPIC was encountering delays and therefore the FTAA. General Elections in PH in May 2013 I believe will result in a stalement until the summer.

Still here, thinking of buying more but BZT need to be more upfront and investor friendly. It definitely is not a Rip off in fact as potential goes for returns from this point it looks a good bet. But I reiterate at this point 24p - lets wait until the dust settles and reassess without the emotion.

[bezant shareholders] 10/12/2012 13:44

robhammers all the money from the placing will come back to shareholders, excluding goldfields. its basically a way from them to give us an early payment. its a great deal.

[robhammers] 10/12/2012 13:32

they need the placing to keep up their own salaries. ITS a RIP_OFF!!!!

[bezant shareholders] 10/12/2012 13:13

ok so as far as i understand it this is the structure of the deal


- GF to subscribe to $7.5 m worth of shares at 26p = aprox 18,050,000 m new shares. or aprox 28% more shares. new TSII = 83m

BZT will return minimum of $7.5 m back = aprox 7p a share H1 2013

if they ruturn back the $2.5m down payment also it will be aprox 9.5p a share H1 2013.

If the option is exercised then we will get back aprox 22p a share from the 60m with the newly revised share total of 83m.



so total returned to shareholders 1- 29p a share ( 7p H1 2013)
2- 31.5p a share ( 9.5p H1 2013)



the deal is very similar to the original option but obviously we have to wait another year but we get a little money now and the rest later as well as having goldfeilds on board. i think it is actually a very good deal considering goldfields need to wait to get a few more things sorted out in the Philippines.

[mazag2] 10/12/2012 10:38

Overall return to shareholders is still c. £0.30p same as before but with greater certainty and commitment being shown by GF as well as £0.07p at some point in the very near future

A further delay of 12 months for full purchase was expected and therefore not a surprise to most shareholders. The delay is offset by the fact that we may have resource and expertise support for the Argentine project from GF - the world's 4th largest gold miner - not a bad shareholder to have in my opinion.
It would be good to get greater insight on this from the BoD.

Overall, what is not to like - given that GF could have let the option lapse and walked away.

[abacus23] 10/12/2012 10:09

I wish these companies thought about the shareholders having to understand it.

If there is a 7p dividend now and a 24p dividend on Jan 2014, does this not get us to 31p?

Or have i mis-understood it?

[currypasty] 10/12/2012 09:48

cb7.. how are they paying extra ?

before they were paying $70m, 7 up front then 63

now they are paying 7 already, then 2.5, then 60.5... or total $70m


what is different is now its $70m/ 65m shares, or 67p a share

then it will be $70m / 83m = 52p a share


its bonkers !

[abacus23] 10/12/2012 09:44

Well thats why Gerrard and Bernard were not at the AGM, they were negotiating the deal.

Well as Bezantshareholders and others have said, we didn't think it would be by 2013.

Well, as we said, they have bezant by the short and curlies. GF have negotiated a better deal.

There will be a lot of unhappy shareholders, wait a year, get diluted, receive a tiny payout, and then have to wait another year for a smaller payout.

I'll watch and see.

[mazag2] 10/12/2012 09:40

GF are investing a further US$10 million on top of the US$7 million.
The funds from the placement will be returned to all shareholders with the exception of GF.

If they exercise the option at some point in the next year then c. 50% of US$60 million is paid to all shareholders - and by this one would assume GF too. So I work out the placing to be c. 18.3 million shares (US$1.575 - £1) an increase in number of shares of c.30% from 60 million - giving them c. 23% of BZT

Based on US$1.60/£ I make this to be a very small dilution if at all of the proposed 50% special divi - £0.24 per share in stead of £0.29/30p - given the upfront payment

Anyone disagree ?

Positives:
GF are putting another US$10 million showing commitment to purchase Mank.

Does this mean they believe the Argentine project to be a viable project ?

Expertise and resource allocation from GF to BZT ? GF will be a near 23% shareholder in BZT after the placing - less than 25.1% blocking ownership

Negatives:
A further 12 month wait

Possible purchase of BZT ?

Any other views ?
I think it is better than nothing at this stage and feel a payment of some of the proceeds to be better than another wait of 12 months or more

[cb7] 10/12/2012 09:27

GF are paying in total an extra $5m, up from 63 to 68m. The $7.5m payment will fund a divi around 7p. However, they will get about 18m shares, giving them approx 15% of the co....so they will get the $5m back when the final payout arrives. As shareholders we will get less than anticipated in 2014, but at least we're getting 7p in 2013.
This deal is really quite neutral. On the positive side it shows commitment from GF, not only to buying Mankayan but to BZT. The main doubt could be that its a springboard to getting BZT on the cheap.

[currypasty] 10/12/2012 08:38

that is bonkers... if were worth double this shareprice, a dilution like this gives us only half the money back..

we dont want 26p a share back, weve waited all this time, and will have to wait another year for double that.. if we only wanted 26p a share, we could sell our shares.. crazy

[situl] 10/12/2012 08:34

The first Divi. is ecluding Goldfields shares. "Minimum amount of US$7.5m, being the subscription proceeds, intended to be returned to shareholders, excluding Gold Fields, subject, inter alia, to shareholder approval at the appropriate time"

[acliff] 10/12/2012 08:31

looks like the placing dilutes us and then we get it back as a divi, I guess it shows commitment from goldfields?

[david77] 10/12/2012 08:30

CP "what the hell is a placing for ?"

"Planned Initial Return of Capital
-- Planned initial return of capital to Bezant's shareholders in the first half of 2013

o Minimum amount of US$7.5m, being the subscription proceeds, intended to be returned to shareholders, excluding Gold Fields, subject, inter alia, to shareholder approval at the appropriate time "

This is to pacify shareholders who will be disappointed by delay of bigger payout:

" o Approximately 50% of the gross US$60.5m sale proceeds will potentially be available for further distribution to all Bezant shareholders, assuming future exercise of the Option and completion of the sale of Asean"

[currypasty] 10/12/2012 08:03

what the hell is a placing for ?

o Gold Fields to subscribe for US$7.5m of equity in Bezant at a price of 25.97 pence per ordinary share representing a premium of 5 per cent. to the volume weighted daily VWAP at which Bezant's Shares were trading on AIM for the 25 trading days preceding 6 December 2012 (being the latest practicable business day prior to the date of the subscription agreement)

[daytraders] 09/12/2012 21:03

Yeh and bad show all around imo, glad im out for now.

[tunnelking] 09/12/2012 20:12

wonder if we will see plenty of sells in the morning.imo yes.
General sentiment is the GF takeup option will be delayed and postponed for another 6-12 months.This will suit the Bod who have their free shares bought from their 'well earned' self awarded bonus.When this tanks below 20p i wouldnt be suprised to see more director buys in the january sales.Meanwhile the directors continue to draw their 'not so good compared to the rest' monthly salary which they richly deserve due to the company now offering maximum shareholder value.

Gerry(and other directors) didnt even show at the AGM FFS!
TK

[kramch] 08/12/2012 14:58

Some kind person has put a write up on the Sharesoc AGM forum;



You have to scroll down and then go to the end page of the thread,
(You may have to register, which takes a few seconds)

K.

[tunnelking] 08/12/2012 07:17

Did anyone go along to the Agm?appreciate some feedback.thanks
Tk

[bezant shareholders] 04/12/2012 11:30

ayiman you have to subtract 45% tax paid by the directors on those bonuses, it does clearly state in the results that the bonuses, net ( after) tax were used to buy shares on the open market. Bernard in fact added more of his personal money to buy more shares.

[ayiman] 04/12/2012 11:02

Bernard bought c £110k of shares in january and another £13k or so in June, Gerard bought just under £100k worth so that still gives them plenty of change out of the bonus they awarded themselves.
This was in response to criticism that they owned no shares in the company I remain unconvinced that they were justified in awarding themselves a cash bonus before any deal was done. If it had been structures as share options to be exercised at a future date this would have been more equitable.


Directors Deals for Bezant Res (BZT)
Trade Date Action Notifier Price Currency Amount Holding
18-Jun-12 Buy Dr Bernard Olivier 23 GBX 52,000 497800
13-Jan-12 Buy Dr Bernard Olivier 26.1 GBX 445,800 445800
13-Jan-12 Buy Gerard Anthony Nealon 27.75 GBX 363,000 363000


ayi

[bezant shareholders] 03/12/2012 21:55

tiger everyone who is a shareholder has a right to complain about the lack of value created. all i am saying is go and speak with them and get the answers you are looking for. i have done my best for the group and was reassured at least by bernard but dont get me wrong we need mankayan sorted out and right now its not.

the lunch was moved so that an RNS could be made i think, so expect something maybe tomorrow or wed morning. re

< How will we get more money? Any amount paid will be subtracted from the $63m if the option is extended.>

the option will expire so i presume they will need to negotiate a new one. if the price tag stays the same. i.e 70m then they negotiate the same deal we will get another 7m down payment-non refundable and still the 63m.

lets wait and see what the next few days brings.

[tiger60] 03/12/2012 16:48

The lunch planned for today was re arranged to Wed - which unfortunately - although I work in the city - I cant attend. As to the AGM I doubt I have the time and therefore one could say that I have no right to complain but to be honest I have devoted too much time with too little return..going to switch off and enjoy the holiday season