BS options val, page-11

Hi Guys,

The options are certainly attractive at present and represent a way to gain leverage for a knowledgeable investor (being aware of the risks).

However, given the relative price points of the heads and the options you could just about treat the options as partially paid shares right now given that there is, intermittently, absolutely no premium to pay for the options (i.e. the Options Price + Strike Price = Current Head Price).

On a very temporary basis in the last couple of days an implied discount even exists (i.e. the Option Price + Strike Price < Current Head Price).

Under these circumstances you can either:

(1) Invest less into CDV now for the same exposure, deploying those excess funds elsewhere until the call in three years time

(2) Gain additional exposure to CDV for the same outlay, remembering that in three years time you'll need to source additional funds for the call.

Personally, this is a no brainer way to gain additional exposure to a great deposit and excellent management as we enter a new gold bull market.

Cheers
John