@WayneEnterprises answering your question.
No specific advice is intended or given. Observations are provided.
If you have confidence in management, resource, product/market, strategy and development plans then options can be used as a way to leverage to a greater holding. It is ultimately up to individual investors to make their own conclusions about project fundamentals, their own tolerance for risk and make their own investment decisions.
The below is a hypothetical example with $10,000 parcels bought at the current trading prices. Essentially a comparison of investment strategies based on heads or on options. You can make your own observations from this.
First Comparison of Number of Units Bought with a Parcel of $10k | Column 1 | Column 2 | Column 3 | Column 4 |
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| 1 | | Parcel Size | Price | Number |
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| 2 | Heads | $ 10,000 | $ 0.039 | 256,410 |
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| 3 | Options | $ 10,000 | $ 0.029 | 344,828 |
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Comparison with heads rerated at 10c and options $0.092 | Column 1 | Column 2 | Column 3 | Column 4 | Column 5 | Column 6 | Column 7 |
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| 1 | | Price | Number | Value | Cost to Exercise at $0.012 | Total Outlay | Cost per Share |
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| 2 | Heads | $ 0.100 | 256,410 | $ 25,641 | | $ 10,000 | $ 0.100 |
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| 3 | Options | $ 0.092 | 344,828 | $ 31,724 | $ 4,138 | $ 14,138 | $ 0.041 |
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Comparison with heads rerated at 20c and options $0.192 | Column 1 | Column 2 | Column 3 | Column 4 | Column 5 | Column 6 | Column 7 |
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| 1 | | Price | Number | Value | Cost to Exercise at $0.012 | Total Outlay | Cost per Share |
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| 2 | Heads | $ 0.200 | 256,410 | $ 51,282 | | $ 10,000 | $ 0.039 |
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| 3 | Options | $ 0.192 | 344,828 | $ 66,207 | $ 4,138 | $ 14,138 | $ 0.041 |
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Comparison with heads rerated at 30c and options $0.292At this point the option holding is exercised with own funds
| Column 1 | Column 2 | Column 3 | Column 4 | Column 5 | Column 6 | Column 7 | Column 8 | Column 9 |
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| 1 | | Price | Number | Value | Total Outlay | Cost per Share | Profit per share | Total Profit | Profit Advantage |
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| 2 | Heads | $ 0.300 | 256,410 | $ 76,923 | $ 10,000 | $ 0.039 | $ 0.261 | $ 66,923 | |
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| 3 | Heads converted from options | $ 0.300 | 344,828 | $ 103,448 | $ 14,138 | $ 0.041 | $ 0.259 | $ 89,310 | 33.5% |
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My own perspective is that based on what we currently know about the project, there is relatively good potential for the project to be generating quite strong cashflows by the end of 2020. This of course can be continuously reassessed as the company progresses the project.
I only hold options currently. I am comfortable with my investment. No specific advice intended.
(20min delay)