options strike is 1.8c. so whatever heads settle at - deduct 1.8c and thats where options should be priced at when dust settles
heads closed 2.3-2.4c - so oppies closed at 0.5c. and mind you some people would have made 50% intraday on their oppies also - hard not to recycle before buying back in
if options start to lift above heads minus the 1.8c its on increased expctation of future gains in heads price
options convert to shares - so there's no cap on option pricing.
options do provide significantly more leverage. and you;d think risk is upside given the general metcoal price environment is seen as strong and strengthening atm and this is already what you;d have to say is an emphatically underpriced asset base
USD$586M NPV for OEDP after paying back $USD276M in capex - and thats before considering asset values for 87% Ovoot reserve left over, the rail line rights and the road asset value and any ex-AKM toll earnings
On a stock valued ~$65maud.
So long as market is comfortable on metcoal margins remaining just solid - let alone strengthening - the intrinsic massive undervaluation should propel the stock
think it tells you why a billionaire like Mr T - whos not been in resources before - was attracted enough to take such a massive position
he obviously knows about big free cash flows
AKM Price at posting:
2.4¢ Sentiment: Buy Disclosure: Held
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