Weigh up your options!
As foretold here the Bezant resources General meeting voted in favour of the sale of their Mankayan asset. Now from what I can gather the company are aiming to return 50% of the sale proceeds to share-holders. After fees,consultations,advice regarding the special dividend I come up with a figure of approx $30 million dollars! Which equates to a return of approx 32/33p per share.
Bearing in mind that Bezant are still only trading at 31p then any buyers or current holders are actually potentially holding free stock. It’s a no brainer really as the company plan to refocus on their Argentinian assets. So after the dividend is paid what residual value will be in the company? Well they will still have over $30 million dollars themselves and they are planning to progress the Eureka asset whether the option is exercised or not after all they have just pocketed $7 million dollars regardless of when or if the option is exercised. Remember this company have traded as high as 73.5p over the last 12 months. The current Mark Cap is showing at just over £20 million. Yet the company are on the verge of pocketing $70 million dollars. You don’t have to be a mathematical genius to run the figures. There’s huge gains to be had here.
They are certainly undervalued at the time of writing. I think they should go to 50p over the next few weeks/months as the number crunchers begin to bolt on the potential from the Mankayan option. Remember nothing is certain in the current climate however Bezant offer an excellent opportunity for holders of the stock to sit out and await the outcome of the option.
Viva!
Dan
Hi Dan
What do you see the sp at after the sale
Regards Steve
After the sale/return of dividend it will certainly fall back. If they pay 32p then logically the sp will fall back by this much. But it’s not going to drop to zero. There’s still value,assets and cash in the company. I suppose it depends on how high they go once the option is exercised.
Dan
I thought the dividend was approximately 50% of the gross cash received? The taxes and costs to be paid from the bit staying in the company?
“In the event that the option is exercised … the company anticipates that approximately 50 per cent of the gross sale proceeds will potentially be available for distribution to Shareholders.
“A return of cash to shareholders will be subject, inter alia, to obtaining professional advice from our financial, legal and tax advisers and prevailing exchange rates at the appropriate time, and taking into account the view of Shareholders at that time (as appropriate).
“Of the 50 per cent of funds retained, all taxes will be paid out of this sum with the remainder being retained to progress the company’s copper-gold exploration portfolio.”
well done dan great find thanks …
good luck all
Hiya Dan
“Bezant offer an excellent opportunity for holders of the stock to sit out and await the outcome of the option”
What about prospective purchasers – how will they fare? Are they in on the distribution or not?
I ask because there seems to be an awful lot of sales today and I can only imagine that must be because they feel that they won’t qualify
Cheers
Kieran
Of course current holders will qualify. Until the option is taken then it’s a waiting game. Most ploughing money in are trading the stock to make their margins. The company haven’t announced a cut off point for the dividend because the option needs to be exercised.
Dan