who's laughing now, page-53

Lastword,

I now better understand what you meant. Whilst the fair value may be circa 3cents, I do expect them to trade higher initially. BS assumes a rational behaviour of market participants (lognormal distribution curve etc etc). This is not the case with most equity market participants, including NKP/O holders, which results in "fat tails", which results in a higher "value" placed on the option. I will participate in any offer purely on this basis, with the intention of taking (any) profits immediately. I hold ample to heads in the event of subsequent JV.

NB, not sure why you refer to these new options as an "extension". Even PL doesn't dare imply that they are. (please refer to the announcement).

Of course if JV announced then they will have proven to be a great investment. If no JV at the end of 2012 then they too will expire worthless.

Provided that margin/debt requirements can be managed correctly, gearing the heads looks a better (ie more logical) medium to long term proposition than NKPO Mark 2.

Regards,

avarive09