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3 FURTHER REASONS TO ADD BEZANT RESOURCES #BZT TO YOUR WATCHLIST

THE CONTENT OF THIS BLOG / WEBSITE (OR CONTENT ASSOCIATED WITH IT) IS NOT INTENDED AS INVESTMENT ADVICE, IT IS FOR INFORMATION PURPOSES ONLY. YOU SHOULD TAKE PROFESSIONAL FINANCIAL ADVICE IN CONNECTION WITH, OR INDEPENDENTLY RESEARCH AND VERIFY, ANY INFORMATION THAT YOU FIND ON THIS BLOG / WEBSITE AND WISH TO RELY UPON, WHETHER FOR THE PURPOSE OF MAKING AN INVESTMENT DECISION OR OTHERWISE. WE ARE NOT REGULATED UNDER UK FINANCIAL SERVICES LAW. THE AUTHOR OF THIS BLOG MAY HOLD AN INTEREST IN THE STOCK FEATURED.

BEZANT RESOURCES #BZT
Share Price: 0.42p
Market Capitalisation: £4.24m

Bezant is a natural resources exploration and development company with copper-gold projects in Philippines and Argentina.

Mankayan their Philippines project is, “One of the most significant, undeveloped, copper/gold deposits in the world that is defined to an advanced resource standard.”

To read my previous blog on Bezant Resources #BZT click here

3 FURTHER REASONS TO ADD BEZANT RESOURCES #BZT TO YOUR WATCHLIST

THEY HAVE CASH TO PROGRESS THEIR MANKAYAN COPPER-GOLD PROJECT

On the 31st May Bezant announced it had, “raised, £800,000 at a price of 0.36p to progress the Company’s Mankayan copper-gold project, located on the Island of Luzon in the Philippines.”

The Mankayan copper-gold project is very significant, especially for a company of Bezant’s size.

An independent JORC ore reserve and mineable inventory statement and conceptual study which was released in January 2011, estimated probable ore reserves of 189 million tonnes at 0.46 per cent. copper and 0.49g/t gold, resulting in total recoverable Metal Reserves of 811,000 tonnes of copper and 2,210,000 ounces of gold.

Based on copper at US$3.00/lbl and gold at $1,250/oz.

Post-tax net present value (NPV) is approximately US$793m.

Total post-tax net cash flows of approximately US$3.7 billion over the 28 year mine life, which is $132m (£98.9m) per year.

So the free cash flow from 1 years production would be more than 23 times the current value of the company.

This is impressive and even more so when you consider that, “The eastern side of the ore body has the propensity for an increase in the resource tonnage and grade, which could potentially add further value to the overall economics of the project.”

 

RENEWAL OF MPSA EXPLORATION PERIOD FOR MANKAYAN PROJECT

On 29th May the company announced, “that the Mineral Production Sharing Agreement (“MPSA”) which governs the 534 hectare contract area comprising the Company’s Mankayan Project, Benguet Province, Philippines, has been renewed for a standard period expiring in April 2020″, by Philippines Department of Environment and Natural Resources Administration (DENR).

This seems to be a very postive development and a change in sentiment from the previous announcment in February, where the DENR contacted the company suggesting a possible cancellation of the Mineral Production Sharing Agreement.

Mining activities had been under pressure from the government and Department of Environment and Natural Resources Administration (DENR) to become more environmentally responsible.

According to Reuters, Filipino President Rodrigo Duterte has warned miners to follow tighter environmental rules or shut down shortly after he took office in 2016, has so far upheld a ban on new open pit mines, despite a push by senior officials to soften the policy.

Bezant’s Mankayan project is planned as an underground and Laurence Read, CEO of Bezant, commented on the announcement:

“It is a testament to the quality and diligence of our Philippines team that the exploration period for our Mankayan Project’s MPSA has been renewed. The core of the Philippine Government’s strategy is that ‘Mining shall be pro-people and pro-environment in sustaining wealth creation and improved quality of life’. I look forward to the roll out in due course of our technical and community programmes which are aimed at adding value to a project which we already deem to be world class, but which has substantial potential for enhancement.”

 

SKIN IN THE GAME

Colin Bird, Bezant’s Executive Chairman invested £50,000 in the recent fundraise representing 6.25% of the total Fundraising amount.

Following this investment Colin Bird will be interested in 25,000,000 shares, representing approximately 2.5% company’s enlarged share capital.

Tiger Resource Finance an Investment Fund, of which Colin Bird is Chairman, also holds 55,555,556 in Bezant representing a 5.5% interest in the company.

The combined shares means Colin Bird holds, directly and through Tiger Resources, 8% of the company.

I also think it’s quite telling that out of 21 investments, Tiger Resources have made, their investment in Bezant Resources is the biggest.

 

How does it fit in with my research model, C.C.A.S.S.H which you can read more about by clicking here

GREEN = POSITIVE

BLACK = NEUTRAL

RED = NEGATIVE

CAPITALISATION:

£4.24m – it’s a micro-cap and dwarved by the potential of their Mankayan Project.

CHART:

There’s been no spike or agressive rise in the share price. The share price has been, pretty much, flatlining since December 2017.

The recent placing was 17.24% below the previous days closing price but the drop was bought into. Volume was impressive, which is not unusual after a placing. There was 180m share traded, 32 times averge daily volume on a placing of 222m shares. At the end of the day the share price was 18% above placing price.

ASSETS

An Independent JORC Ore Reserve and Mineable Inventory Statement and conceptual study which was released in January 2011, estimated Probable Ore Reserves of 189 million tonnes at 0.46 per cent. copper and 0.49g/t gold, resulting in total Recoverable Metal Reserves of 811,000 tonnes of copper and 2,210,000 ounces of gold.

Based on copper at US$3.00/lbl and gold at $1,250/oz.

Post-tax net present value (NPV) is approximately US$793m.

Total post-tax net cash flows of approximately US$3.7 billion over the 28 year mine life, which is $132m (£98.9m) per year.

So the free cash flow from 1 years production would be more than 23 times the current value of the company.

SHAREHOLDERS

Chairman Colin Bird and his investment company Tiger Resources hold 8% of the company.

SIGNIFICANT MILESTONE

Now they have the funds there should be potential news on both their, Mankayan copper-gold project and their Eureka Copper-Gold project in Argentina.

 

HEAD HONCHOS

CEO, Laurence Read and Chairman Colin Bird have a lot of experience in turning resources companies around. Not all their projects have been successful and this is mainly due to the projects assets lacking potential. Their Mankayan is not lacking in this department.

 

Bezant Resources is a micro cap company with an project, in Mankayan, that has both impressive scale and grade. The commodities involved here are also equally exciting, especially copper.

Every expert predicts a copper supply deficit materialising over the next 5 – 10 years as demand grows.

This is due to the growth in traditional demand plus increased sales of electric vehicles, which require around 3 times as much copper as internal combustion engined vehicles. Combine this with the fact that there’s a lack of bigger copper mines coming online, to satisfy this demand and its inevitable that the price of copper will rise, making copper projects more valuable and more sought after.

So as Bezant Resources uses the proceeds from their recent fundraise to advance this project by optimising the scoping study and potentially increasing the resource, time is on their side. They will be working against positive backdrop where the copper price will be rising.

Of course, investing in Bezant is still high risk. They are still at exploration stage, in a country whose government hasn’t looked kindly in mining companies over the last few years but the renewal on the Mineral Production Sharing Agreement may suggest a positive change in sentiment.

If this is the case and this asset works out for Bezant then shareholders can expect truly excellent returns from this level.

Is it possible to quantify the expected return?

Not accurately but given the fact the Gold Fields nearly bought Mankayan for $70m (£52.5m) in 2014 when copper’s future wasn’t as bright as it is now, then it gives us a ball park figure.

Now take into account that since 2014 most governments in the world have issued deadline dates on when their countries will cease the sale of diesel and petrol engines, in conjunction with the lack of copper mines coming online and this $70m may seem a little conservative.

To add BEZANT RESOURCES #BZT to your Vox Markets Watchlist, click here and tap the, “Follow”, button

THE CONTENT OF THIS BLOG / WEBSITE (OR CONTENT ASSOCIATED WITH IT) IS NOT INTENDED AS INVESTMENT ADVICE, IT IS FOR INFORMATION PURPOSES ONLY. YOU SHOULD TAKE PROFESSIONAL FINANCIAL ADVICE IN CONNECTION WITH, OR INDEPENDENTLY RESEARCH AND VERIFY, ANY INFORMATION THAT YOU FIND ON THIS BLOG / WEBSITE AND WISH TO RELY UPON, WHETHER FOR THE PURPOSE OF MAKING AN INVESTMENT DECISION OR OTHERWISE. WE ARE NOT REGULATED UNDER UK FINANCIAL SERVICES LAW. THE AUTHOR OF THIS BLOG MAY HOLD AN INTEREST IN THE STOCK FEATURED.

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THE CONTENT OF THIS BLOG / WEBSITE (OR CONTENT ASSOCIATED WITH IT) IS NOT INTENDED AS INVESTMENT ADVICE, IT IS FOR INFORMATION PURPOSES ONLY. YOU SHOULD TAKE PROFESSIONAL FINANCIAL ADVICE IN CONNECTION WITH, OR INDEPENDENTLY RESEARCH AND VERIFY, ANY INFORMATION THAT YOU FIND ON THIS BLOG / WEBSITE AND WISH TO RELY UPON, WHETHER FOR THE PURPOSE OF MAKING AN INVESTMENT DECISION OR OTHERWISE. WE ARE NOT REGULATED UNDER UK FINANCIAL SERVICES LAW. THE AUTHOR OF THIS BLOG MAY HOLD AN INTEREST IN THE STOCK FEATURED.

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