Ann: Appendix 2A and Top 20 Holders, page-34

Leverage.

The oppies are a steal at current price IMO, when factoring in expiry and the proposed timeline over the next 3 years (which is key, wouldnt touch them if the expiry was any less)….. we should be on the doorstep of production and revenue.

Let’s do some rough math, assuming you’re a longer term holder.
Assume we also only end up with 1.5B SOI.

If we don’t have a SP of at least $1, something has gone terribly wrong.

The risks for the oppies are :
a) Not being in the money
b) No funds to exercise them (which is why I usually keep some heads too).
c) If you exercise them, you restart the clock on the “12 months CGT discount”.


So with $100k you can now buy :

a) approx 870k heads @ 11.5c
At $1 = $870k - $100k (initial investment)
= $770k profit (pre-tax)

b) approx 3.7M oppies @ 2.7c
At $1 = $3.7M - $1.036M(exercise price) - $100k (initial investment)
= $2.564M profit (pre-tax)

Again, these oppies, given where the company currently sits on their timeline and the generous expiry, are an absolute steal IMO.




Cheyne