"However, the fact that the options (though out of money) are on...

"However, the fact that the options (though out of money) are on issue should be included because one has to assume the worst case scenario when valuating the company"

assuming all options are excercised you have to do a DCF Model to give a correct valuation. to not do so and include them in your working is pure manipulation. your analysis doesnt take into account this, so for the benefit of HC, i shall do it here.


assuming all options are excercised

108million options @ 25c = 27m capital injection.

discounted cash flow analysis compunding monthly at 7% over 42 months shows a Net Present Value of 21,15m (2dp)


so

VPE Component = $22m
NPV of injected capital = $21.15m
Cash on Hand = $1m
Spinel @ $4m

total of 48.15m

total quotes shares (assuming all shares are excercised) = 108+105 = 213m

(ignoring convertables as they are only excercised on success of spinel which will will be overall NPV>0 )

NTA = 48.15m/ 213m = 22.6 cents per share.

and if options arent excercised then my previous valuation also stands. either way you look at it ODN is significantly undervalued, almost 100%

at 11.5c its current traded discount is simply too low