penoa at discount, page-8

With respect, I'm not so sure that PENOCs provide a superior option than PENOAs at the moment - PEN is scheduled to go into production circa March 2012 which is well before the 30 June expiry of PENOAs.

With management continuing to meet scheduled targets, I would not be surprised at all if PEN became a producer on or even before this date. But as we all know, delays do happen and not all events are within management's control (plant contruction, U3O8 price, world events, among others).

As of this morning, there is a 5 point difference between PENOA and PENOC (5.9 and 6.4 respectively). If you believe that PEN will meet its production targets, the former would appear prima facie to offer better leverage.

Ultimately, I think that it comes down to how much you value the safety net of an additional 3.5 yrs.

I own all three PENs and believe that both PENOA and PENOC are cheap compared to heads but I have been accumulating PENOAs in anticipation of exercising them well before expiry date.