127,500 new shares issued this quarter

Employees are in a rush to convert their options:

01/07 5,000 employee options exercised @$2.5071
15/07 6,500 employee options exercised @$2.5071
26/08 5,000 employee options exercised @$2.5071
12/09 50,000 employee options exercised @$2.5071
12/09 36,000 employee performance rights @$0
14/09 25,000 employee options exercised @$2.14

Total cash collected by Troy Resources this quarter from issue of new shares: ~$220,000

In my mind this rush to convert is driven by the appetite to collect a dividend in October (the options did not expire until April 2012). This can be interpreted as employees having expectations of a large dividend being declared - I thus infer that actual production rate is now much closer to budget rate.

Announcement of Dividend Reinvestment Plan is also consistent with a large dividend being considered.

There is plenty of cash for a nice dividend payment, a final fully franked dividend of $0.08 per share can easily be paid (~$7M) to achieve a reasonable dividend payout rate for the year.

I am looking forward to the announcement

Alejandro
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DYOR, this is not investment advice
STO, BDR, TRY, PEM, HCH, ELT