Finally someone with a business mind.Regrettably there is a core of loud and ignorant contributors following IVZ with what appears to be little to no direct business experience.
No, being on your child’s schools P&C committee does not qualify as business experience. The ignorant appear always to be the quickest and loudest respondents as they lack any depth of understanding or ability to think laterally.Correct Fatty Fingers extending the IVZO options via a 1 for 1 transfer on current option expiry, if the scenario to delay the next drill and priorities 3D surveying becomes the plan forward, offers mutual benefits to both holders and the company.
The suggested option 3 being by far the simplest way forward to deal with a potential backlash if pivoting from progressing down the path in which the company took to market.The benefit of keeping the options in market are:-
Maintained credibility with institutional investors offering benefit in both future conversion capital and future capital raises. (Trashing the options 6 months prior to expiry as seen playing out on the market at present, does not add credibility in business capital raising circles)
An extended option timeframe via a 1 for 1 rollover into a new option on current expiry, offers the company a virtually no-cost future capital raise in the form of future dated option conversion funds.
Maintaining confidence with all investors in respect of the information, path and objectives the company has taken to market.
The foundation on which investors make their investment decision.Currently there is very little stopping the company fulfilling the 2 drill plan it took to market at the last capital raise other than the current wet season which will no longer be a barrier to progress within the next few months.
The current planning may result in a better path forward over a longer time frame, but these are choices or business decisions that deviate from those taken to market and the company has a responsibility to investors that made time sensitive decisions based on an achievable exploration path supplied by the company which can realistically be completed within the timeframe of the option expiry.
In short the options have just shy of six months to expiry a relatively lengthy time in which to complete the second drill in line with the original plan taken to market.Before the P&C committee shout their ignorant way through replies, none of this has any bearing on the risks of investing. Failed machinery, collapsed wells and natural disasters are all potential known unknowns that an investor takes on board when investing.
But a company pivot needs to be done with great care as to not materially change the nature of the offer taken to market. A bank would require new guarantees in a situation where time frames are to change.
The risk profile changes.We the investors are the bank and due-respect needs to be given to maintain credibility and from a legal perspective accountability.
Lastly in relation to a comment made earlier in which someone wrote, the value of the option is $0, possibly the most stupid comment I’ve read. To that person, do you seriously think in putting together the capital raise offer document, the raise institution told investors the deal will include attached options at xyz rate but their completely worthless, really! The attaching of options and decision by the company to make these options tradeable on market is directly related to the plan taken to market for capital raise and the expiry date being an achievable timeframe in which the plan could be completed and potentially successful. The value of the option is a direct reflection of the projects progress and success.
The current value of the option has been severed from the measure of success through the introduction of a potential pivot or change in plan. An unknown unknown.This is just business, nothing more and business is held to accountability.
