options, page-44

What are people's view on the options now? 8 months till expiry and MAK continuing to fall. Currently a premium of 42.5c on the oppies. The fpo has to double just to make them in the money.

Based on the past thus far, I dont expect they will be producing to their current timeline. Their timetable now shows feasibility study to be completed by end of March 2010. There is no way mining will commence by July (3 months later) on that basis. Looking back to the timeline presented in April (6 months ago) the feasibility study was to have been completed by August/September this year and production commencing approximately 9 months later.

In 6 months the project has basically been delayed by almost a year.

All this means that the only realistic driver that could possibly see MAK move anywhere near close to the exercise price of 75c by end of May next year is a definable and quick RP spot price rise. Just cant see that happening at this stage.

Think MAK does need to continue on with their progress but once they get to a feasibility study stage I'd be waiting for the spot prices to show a clear indication of appreciation before spending the big dollars on mine development. Just my opinion.