Bezant Resources Share Discussion Threads

[eswr] 21/3/2013 14:45

King Suarez - it is NOT correct that the option cannot be extended again or the deal terms changed (albeit Goldfields run the risk of losing their $17m down payments/investment made in BZT). All they have irrevocably committed to do is not to vote their shares in relation to any future extension on change to the deal terms; it is totally normal in these circumstances that they are "disenfranchised" from voting. In fact I could say that because they have access to the property and are doing further work on site (which they are paying for) that they might decide it is a good idea NOT to exercise in full but instead make a further downpayment.

[euclid5] 21/3/2013 12:48

so we will hear by Dec/Jan 14 the latest if they take up the option or not

[euclid5] 21/3/2013 12:48

so we will hear by Dec/Jan 14 the latest if they take up the option or not

[king suarez] 20/3/2013 21:48

euclid5,

The option will not be extended again, it's take it or leave it this time:

"Gold Fields has also irrevocably and unconditionally agreed that it will not, at any time after the Subscription Shares are issued to it, exercise any of the voting rights attaching to the Subscription Shares in relation to any future extension or material variation of the terms of the Option whilst remaining a "substantial shareholder" (as defined in the AIM Rules)."

KS

[euclid5] 20/3/2013 21:29

Thanks King S for the Rec Div date & thanks for the above post ESWR - quite factual post

[eswr] 20/3/2013 21:25

The key risks here are
a) a delay in Goldfields exercising the option (it has already been extended by 1 year so far)- I believe it will eventually get exercised
b) cash being spent on Eureka which does not generate an acceptable return

The risk of a further delay is more significant than it appears


1. Goldfields extended the option period by paying $2.5m which reduced the balance due from $63m to $60.5m. That bought them a further 12 months. They also invested into BZT and acquired a 21% stake and is entitled to receive any further dividends/returns of capital which BZT may make EXCLUDING this first payment of 8 pence. If there is a further payout of 24 pence per share (as is likely if Goldfields exercise) then Goldfields paid 25.97 - 24 = 1.97 pence per share for the 21% stake they bought = £359k to buy themselves an extra year.

2. It is quite possible that Goldfields could again ask for an extension and/or ask for a price reduction depending on their outlook for copper and gold, estimated project costs etc. What would BZT board do? They would have to negotiate because Goldfields is the only buyer with the synergies to make the project work and they own a 21% stake.

3. In mining, projects often take longer and in the current environment major gold companies are being very cautious about committing capex to new projects. I am not saying they won't exercise the option but don't be surprised if there is another extension/delay. Look at the how favourable the terms of the extension were that they negotiated - it tells you about the bargaining power.

So, as and when Goldfields exercise you get 24 pence + 8 pence = 32 pence and so you are basically "riding for free" (with a small profit of say 2 pence vs closing price now of 30 pence) with Eureka and cash balances to spend on Eureka of say 18 pence per share. Remember Eureka is in Argentina which is not a great location for projects at present given investor reactions to Government nationalisations. So, a great deal of the profit opportunity here is being recycled into Eureka.

[king suarez] 20/3/2013 20:44

Ex-div date is 23 April.

On top of the above valuation you need to include cash at bank (at least £5m) + whatever value you ascribe to Eureka.

[euclid5] 20/3/2013 17:16

Below extract taken from the Feb 13 BN



Valuation

Mankayan is likely to be sold for a total consideration of US$70m to Gold Fields. Therefore we value the project at its likely disposal price which is based on an arms length transaction between a willing buyer and a willing seller.

As the cost of Mankayan is £3.48m the sale is going to result in a profit which is taxable. The company's assessed loses of £19.266m as at 30 June 2012 will be offset against this profit thereby reducing the tax liability.

On this basis we estimate a tax liability of approximately £4.96m. Therefore the after tax value of the project is likely to be approximately £39.35m or 47.44p per share.

Assuming a 20% risk that Gold Fields may not exercise the Option to acquire the project we arrive at a valuation of £31.48m or 37.95p per share for the Mankayan project using a US$- GBP exchange rate of 1.58.

[euclid5] 20/3/2013 17:08

what is the Ex date for the special Div anyone?

[lfc4ever] 20/3/2013 14:34

tiger- explain?

[hazl] 20/3/2013 14:17

funny how people keep trying to talk this down .The only good news we have had in ages.

[ayiman] 20/3/2013 14:11

I don't think these prices will be around for long, I can't see the share price staying at this level in the absence of any news. The bod do not appear to be doing anything at the moment and unless there are developments in Argentina there is nothing to move the share price upwards. Now that GF has such a large holding they can in effect control what happens to the Argentina asset so we are at their mercy on two counts. For LT holders this might be a good time to cut losses.

Ayi

[king suarez] 20/3/2013 14:03

82m shares is correct, yes, it includes the additional 18m shares issued to Goldfields in exchange for the $7.5m that is being returned to all shareholders (excluding Goldfields).

[tiger60] 20/3/2013 13:25

This is just funny.....nobody knows what they have invested in...keep buying!!

[lfc4ever] 20/3/2013 13:13

one would assume that the fact that they are paying the dividend demonstrates that the option will be exercised, for if they had serious concerns that it might not, they would presumably want to hold on the cash.

therefore, not surprised that the announcement has led to the price rise.

[king suarez] 20/3/2013 12:34

IF the option is taken up should see 50p+ more like.

$60.5m will be coming in (c£40m) + the cash currently at bank (

[daytraders] 20/3/2013 12:02

yes, it was fair value at 23p/24p, and if they do take the option up, i can see 40p

[blondeamon] 20/3/2013 11:50

I am talking about today and right now. Can't judge a stock because you bought at the highs mania.

I understand what you're saying though, been there. I am just saying that right now, right here with this price this is a bargain!

It's like byuing at 22p per share, can't tell me you don't believe it won't go higher than that. My estimate is this will settle arround 40 before any fresh news.

[daytraders] 20/3/2013 11:47

"but what always happens is that if the company is good, like this one"

That made me laugh, tell that to the people that were in at over 70p and the last placing 50p inc me.

But good luck to you all anyway.

[blondeamon] 20/3/2013 11:38

@Daytraders: That's the same for all shares but what always happens is that if the company is good, like this one, share price quickly reverts to pre-dividend price within a few days or weeks.

And in any case, I dont mind the 30% dividend!! If you bought under 30 it's a huge bargain!!

In all honesty, I see this going over 50 soon so these prices won't be around long to grab.

[thetoonarmy2] 20/3/2013 11:27

Not if loads of mugs keep buying it wont!

[daytraders] 20/3/2013 11:26

people still dont get it thou, yeh your get 8p divi, but share price drops by the same amount. its not like your getting it for free.

[blondeamon] 20/3/2013 11:12

This was just tipped in famous Simon Thompson column in IC:

" A golden nugget of an investment

Bearing this in mind, I was drawn to this week's news from small cap resource company Bezant Resources (BZT: 25.5p) which has just announced the return of £5.2m, or 8p a share, to all shareholders apart from Gold Fields, the major gold miner which has just acquired a 21 per cent stake in the company at the equivalent of 25.97p a share. "

"Investors buying Bezant shares at 25.5p now are guaranteed a 8p a share cash return next month. Subject to shareholder approval at an EGM on 9 April, the payment will be made on 30 April."

Prepare for take-off to the 40s really soon!!!