NVA

2.44%

21.0¢ nova minerals limited

I wonder who comes up with the NPV? Wgy not just link it to what...

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Magic2000

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26/10/22

03:08

Post #: 64395205
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Originally posted by danbradster: ↑

From the description, I think:
1. If they meet the hurdles, then they're allowed to convert the options.
2. They'd have to pay up the $1.20 to convert each option.
3. It would hardly be worth the risk for them if the SP was just around $1.20.
- But if the SP was $1.50-1.80, then the directors would pay up. It would be a bad look for them to convert, then sell them quickly to lock in the profit, so they'd only convert if the options were well in the money, and they planned to hold medium term.
- If they didn't have enough liquid cash to convert them, then they might need to take out a loan to fund the conversion, so they'd need a further margin of safety in the SP to justify the risk, so say a >$1.50 SP.

So it's not free shares, but free options. It's like a performance bonus - it's only worth something if the SP gets to $1.20-$2.00+ by late 2025.

Only if we reached a very high SP, say >$3.00, that the dilution would become more obvious.

If the SP was $1.40, and the directors paid up $1.20 to convert, then it would be like a low cost raising for $6.9m - hardly bad at all. (Equivalent to $1.15m of profit/discount given to the directors, but any alternative capital raising would have had high fees anyway).

But if the SP was $4.00, and the directors were able to convert 5.75m shares at $1.20, then it would be like giving them a $16.1m bonus (!) (the unrealised profit on the options). And worse still if they had also given themselves 10-20,000,000 more options over the following years.

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I wonder who comes up with the NPV? Wgy not just link it to what really counts which is the market cap? that's the only NPV that matters, nothing the company says or any company they are paying to come up with numbers makes a difference! Net present value is the market cap and not what a PFS or SS says

NVA Price at posting: 68.5¢ Sentiment: Buy Disclosure: Held
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Last 21.0¢		Change 0.005(2.44%)		Mkt cap ! $57.35M

Open	High	Low	Value	Volume
21.0¢	22.5¢	20.8¢	$99.89K	465.3K

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No.	Vol.	Price($)
2	3431	20.5¢

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Price($)	Vol.	No.
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No.	Vol.	Price($)
1	2931	0.205
3	119500	0.200
1	4107	0.195
1	5700	0.190
2	54054	0.185

Price($)	Vol.	No.
0.225	38649	3
0.230	109646	5
0.235	20384	1
0.245	30000	1
0.250	433	1

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