bidding up now, page-19

re: azr - one the move... wind...

For those not averse to taking on a little risk, in my opinion, the options offer an excellent chance for a substantial return...but they could also end up worthless, which one must take into account!

As I see it, Koolan is worth much more now than it was when various brokers were putting values on AZR in the 25c range.

From what I can gather, Koolan's latest reserve upgrades have already put the project into the broker's "best case scenario"...but with more drilling results due and higher iron ore prices than predicted, their original models are now looking a little under-done!

Add in another 20% rise in Iron Ore next year and AZR begins to look very cheap!

They will have little problem forward selling their high quality Ore, which means they can debt fund the project to any level.

The only question that remains...is what will be the final mix of equity versus debt?

My back of envelope figures indicate little difference to the share price regardless of how things pan out.

If the options get exercised, you get dilution, but you also get the cash at pretty fair prices and end up with less debt.

If however the options aren't exercised, you may have fewer shares on issue, but more debt per share.

In the end, it pretty much cancells itself out, which I suspect the market might be catching onto!

Cheers!