Despite a recent scoping study estimating that the Mankayan copper-gold project in the Philippines has a pre-tax net present value of $459m (£283m), Bezant Resources has decided to monetise its flagship asset by selling it.
Mankayan's net present value would rise to $1.5bn calculated on January 2011 metal prices, and the study estimates that the project holds 1.4m tonnes of copper and 3.9m ounces of gold. Yet the board is wary of the risks of developing such a project and decided that outright sale would better maximise value. Talks and site visits are ongoing with various potential buyers from the mining and industrials sectors.
Meanwhile, Bezant raised £4.75m through a placing at 50p to fund an option to acquire a package of 11 copper and gold exploration licences, known as the Eureka project, in Jujuy, Argentina. The two-year option allows Bezant to acquire 100 per cent of Eureka in return for staggered cash payments of up to $3.9m, of which the $0.5m paid to date gives Bezant a 15 per cent holding. Singer Capital Markets is forecasting a current year pre-tax loss of £1.4m and loss per share of 2.4p.
| BEZANT RESOURCES (BZT) | ||||
|---|---|---|---|---|
| ORD PRICE: | 38p | MARKET VALUE: | £23.3m | |
| TOUCH: | 37-39p | 12-MONTH HIGH: | 79p | LOW: 17p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 18p | NET CASH: | £0.84m | |
| Half-year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | nil | -0.86 | -2.19 | nil |
| 2010 | nil | -0.98 | -2.03 | nil |
| % change | - | - | - | - |
| Aim: Mining | ||||
