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.