Ann: VTEM Results From Doolgunna West , page-16

Hi Red,

It's good that you brought up the issue of fully diluted MC, I cant remember how many times iv seen this topic being argued over on HC.

I agree with you max # of shares when option exercised = 76m @ 45c = 34m, less current cash of 4m then less option exercise proceeds of 7m, leaves EV of only 23m, which is still a bargain.

I know technically speaking the fully diluted MC is over 30m, but i do think when ppl talk about MC on HC, most of them refer to the MC without the dilution from options (as this tends to be the value given by most trading platforms).

And i think it does make sense from timing perspective, as shares converted from options wont come into play until 2013 (assume no early conversion). Therefore, the price impact of these option dilution can be disregarded for now, for HC purposes :) (also out of 41m ord shares, 10m are not quoted on the market, which would limit the impact too).

To be fair, if you think people on CYS thread are trying to understate CYS's MC, you should go to every other thread & see how other ppl quote their shares' MC. im pretty sure majority would just take the figure on their trading platform as given (which would be undiluted in most cases). After all, most care about shares having immediate impact, & nobody wants to have to take out their calculator & go thru previous quarterly to find out the exact MC in technical terms.

Any feedback appreciated. GL to all holders.