hdrwme question for the warrant gurus, page-8

re: hdrwme question for the warrant ... hooter
In the event of a (successful) takeover the Imp Vols are irrelevant - as is time to maturity - the value of the warrant will crystalise at the takover price less 75c divide by 2.

The real risk is a capital raising at less than the current SP - this shouldnt happen as HDR has already done the one cheap issue its allowed to do this FY. Also the value of the ENI permit share they picked up is such that a partial sale at fair value they should easily be covered for increased Ching capital costs and 04 exploration.

The warrants are so far in the money you WILL get something back for them - the risk is if you cover your 8c premium - think of it as insurrance on upside over 145c on a June 04 purchase.