Proposed Directors of Tirupati Graphite explain why they have requisitioned an GM. Watch the video here.
I don't know why you were recommending my silly post - archaeological artifacts of relatively pure alloys are of course going to be totally different from assay samples.
Upon further reading, yes it's accurate but it can depend upon how homogenous the samples are, and I suppose how they are prepared and exhaustively/representatively sampled. I would assume that since it's used effectively with low detection thresholds to find gold then it'd be pretty effective for more abundant copper.
https://www.researchgate.net/publication/266564964_Testing_the_applicability_of_handheld_portable_XRF_to_the_characterisation_of_archaeological_copper_alloys
Worth a read, looks as if XRF results should be quite accurate for major elements like copper.
I'm not sure exactly how the interoil figures relate to ours except for the gas compressor issues.
Other than that, are you optimistic about production going forward - gas as well as oil?
Cost of sales in 2020 seems high vs revenue; revenue surely must be much higher this year but will cost of sales be lower, is there any prospect of that?
So there was another problem with a gas compressor? But we are producing more oil.
Where do you you think production is going medium term?
And are gas prices so significant in the short term as we are in the southern hemisphere?
It's not exciting news like 'we're going to dig the gold out tomorrow', and the rube-goldberg contraption of the terms takes the steam out of it further. Things have to fall in place for it to work out optimally for Bezant; IDM relisting, the license renewal, IDM acquiring 100 percent, the project itself; but if they do then I think it's likely to work out significantly better than the previous deal, for which Bezant retained a 20 percent interest in their stake plus 5.6 million of the 42 million shares Asiaphos was going to issue.
If I'm right about Bezant Res owning 64 percent plus option to buy the rest of Mankayan from Bezant Holdings, then the current deal is actually very comparable with the previous deal except that Bezant may well end up with 27.5 percent of 100 percent of Mankayan rather than a slightly higher percentage of 64 percent of Mankayan.
If I'm right though, and I'm not sure of that because the question arises: who in the world owns the rest of Bezant Holdings? And again I'm interested in the terms of the option to acquire the rest of the company.
If IDM relist and there is interest in their shares, then it's already a good deal; if Mankayan is developed and proves lucrative then it seems an excellent deal. I suppose IDM at least will have to focus as it's their only mineral asset.
Background information
Asean Copper holds a 40 per cent. shareholding in Crescent Mining and Development Corporation ("CMDC"), which is incorporated in the Philippines and is the sole holder of Mineral Production Sharing Agreement No. 057-96-CAR (the "MPSA") in respect of the Mankayan Project. Asean Copper also holds a 40 per cent. shareholding in Bezant Holdings Inc., which is incorporated in the Philippines and holds the balancing 60 per cent. interest in CMDC, and has a conditional option (scheduled to expire on 30 June 2022) to acquire the balancing 60 per cent. of Bezant Holdings Inc. (together, the "Asean Copper Ownership Structure").
https://www.londonstockexchange.com/news-article/BZT/mankayan-project-update/15131745
I think Bezant Resources doesn't own all of Bezant Holdings, despite the name, but through Asean Copper Bezant Resources owns 40 percent of Bezant Holdings.
So CMDC owns the Mankayan license. Asean Copper owns 40 percent of CMDC. Bezant Holdings owns 60 percent of CMDC and therefore of Mankayan. Asean owns 40 percent of Bezant Holdings and has an option to acquire the remaining 60 percent.
So in that case Bezant Resources never owned all the Mankayan license and would have had to, through Asean Copper, buy all of Bezant Holdings to get it. It owned 40 percent through Asean and 40 percent of the 60 percent Bezant holdings had (again through Asean Copper). So 40 + 24 = 64 percent.
So how good the deal was depends in part on how much they would have had to pay through the option to get the other 36 percent? Because after the current deal it'll be this IDM Mankayan that had to pay for that should they want it, while the 27.5 percent Bezant Resources gets of IDM will be theirs and so their interest in Mankayan will grow for free if IDM acquires the rest. But I don't know what sum the option would involve - possibly a lot to a small company like BZT though.
I am not claiming this is accurate, just unpicking the threads a bit. Please correct me if I am missing the mark!
I'm just being realistic. Penny stocks like this are penny stocks because they have challenges, that's why we get in cheap.
I was more interested in you explaining your positive views on the company than you commenting on my views.
I am uncertain about the stock, but on balance, after a fair amount of research, I think it is a good opportunity. That's as positive as I will get on any stock.
Hi maidit308.
You have been extremely positive about this share for a long time. Why?
I think it may do very well, but debt, costs, production levels (increasing overall or decreasing or level?), are concerns; I 've been studying the 2020 report in detail, and while I do think this company is undervalued based on current production, assets, commodity prices, production upside etc, it also clearly has serious challenges to overcome, and I think the turnaround needs to accelerate, plus any further setbacks could be quite serious, as could further dilution (for investors at least).
Would you accept that, or are you more optimistic than that, and if so, why?
Yes, that's what I thought. As to the second reason, his withholding them would not be allowed as far as I know, but at the same time, if I were a CEO in this type of company, I would be reluctant to release anything positive over the summer when it would likely be ignored by the market.
Actually what I should have asked was did you mention them in the BAG meeting, but your reply anyway tells me that you didn't learn anything significant. I would have thought you would have asked. Would it have been price sensitive for CB at least to say 'we're still waiting for them?'
Hope there is news soon! Thanks and good luck.
Yeah, that view fits the facts, it may be like that.
The optimistic view is that they are a company with limited funds, looking for resources in sketchy locales during a pandemic, after several years during which few projects were even viable due to the prevailing commodity prices, and derisking somewhat by hedging between several different projects to avoid existential issues for the company if one projects goes wrong.
The strategy of Colin Bird across all his companies has been to position to take advantage of the copper bull market he anticipated, some like XTR have made discoveries and risen in price, some have not. It doesn't look very successful (yet) but it looks like what it says on the tin. I don't trust Colin Bird as in trust him to prioritise small investors, not to dilute, not to promote his company's probability of success to investors beyond what the immediate prospects, at least, turn out to hold, but I do think he knows what he is doing and his goal is to prove up resources and grow his companies.
If the good news the company posted this year was accurate, that good news becomes no worse through a lack of news later on, and the projects it is involved in are no less interesting, and further news could see interest in them and the sp pop.
However, the assay results are several months late. The Mankayan project was also a large reason for the company holding its value, though licensing issues can't really be accelerated so perhaps the waiting is inevitable. But MrTriumph mentioned negatives: if those negatives relate to the most important existing projects, to the assays as well as Mankayan, which caused the recent-ish rise, and the positives relate to new, smaller projects like Cyprus, then I think we need to know.
Did you ask about the assay results and the Philippines license renewal? I can understand irons in the fire, and you are right looking at other explorers that came good like UFO; this is the way prospecting works, and periods of low commodity prices slowed things down in the past too. There is nothing really that is unusual about Bezant's slow progress, and I think people who suggest it's a scam don't really appreciate this and the realities of getting things done in different parts of the world during a pandemic; there's nothing to indicate that this company is not what it says it is.
But a lot of people bought in due to the assay results. There has to be a reason why these haven't been released. This is not normal for any company, to report something so promising, incendiary even, and be this late/silent for so long. If I was a member of any group like your contacting the CEO, this is what I'd be interested in and it seems that you must have asked at least. Throw us a bone? Or at least give us your take on why it is taking so long.
Thankyou for the helpful reply. Yes, I agree that it is sentiment rather than value.
I look at other producing companies at similar levels and in general they have less debt (though most have some), higher market caps, some higher by far, but generaly poorer/fewer assets. I do recognise it's hard to be sure exactly how good the assets are from the information available, but the reserves look good, a pipeline has been installed, and the new gas well Monte Aymond is already to some extent derisked (please correct me if I've misinterpreted this).
Compared to many other companies however, we do seem to have been slow in exploiting our assets, slow in absolute terms and when set against the company's projections, and that is surely part of the problem, more so than the short perhaps. People in these kinds of stocks look for news, momentum as much as or more than value.
Were the positives more significant than the negatives? Or more specifically, there were certain positives this year that got people enthused about this stock, do you think they are still positives?
Regular income does sound good but people are interested in Bezant for the blue sky projects with huge potential upside.
Why did it spike? Was it just ramping?
On the chart it looks as though there was a steady rise up to the spike. Without the ramp plus shorting, I wonder what would have happened.
Also, I wondered why did the shareholders vote to allow share issuance this time when they voted against it last time? Some people here seemed sure that the vote would be against since the share price is so low - what made it seem like a good idea to shareholders now?
Is it that a. the long term holders think it's worth holding and b. all the investors who were spiked earlier in the year have sold out and c. the stock awaits news before people take interest because of sentiment related to b.?
I'm thinking/hoping the long slide was due to impatience and not, as in some companies, an exodus of people who were aware of some problem that I am not aware of.
I suspect it will rise when it is producing the projected several thousand barrels a day net to COPL, which seems likely to happen but hasn't yet, or when/if it proves a discovery, or when the Nigerian asset is in play, or perhaps if it managed to buy CUDA for a song without dilution. Like every other oil company, I think - I don't think it's a huge mystery.