I struggle to give any value to the options.
5.5c seems a long way off.
But so is 2022 and lots of possibilities.
All in all I'm bullish for the next year or so.
Printable View
"been calculated usinga black Scholes calculation of between up to 2.1 cents per option"
Really would appreciate NTL proof reading these before release. The above and the recent minor mistakes on official releases make the company look less professional.
That being said - not surprised the spp closed with a shortfall given the timeframe and uncertainty. I will consider participating further personally - feeling more and more bullish on this one.
If I were going to invest money in NTL I would do so via the options. This is an almost binary situation. Come 2022 either the company will have done well, or not at all. No real in between. A 0.4 cent entry is far more attractive than a 2 cent entry. Either 1/5 of the cost of an entry via stock (with no dividend coming anyway) or you can get 5x the exposure. I would be selling shares and buying options if I had any.
Putting aside my (irrational) fear of options, you are correct. However heads does allow you to set stop losses and exit if things don't look so good. Options will be difficult to exit if things turn south quickly.
If level 16 at Talisman is 200 feet below sea level, & they are saying high-grade gold is deeper at Rahu than Talisman, we are talking deep. There is talk of drilling 600 m test drills at Rahu - 2000 feet. It would need a lot of gold down there to encourage digging a new 2000 foot deep underground mine in New Zealand I suspect. Prohibition shaft was the deepest in NZ, 2700 feet deep, 1/3 below sea level. 750k oz gold @ 15g/tonne. Closed 1951.
I wonder if there’s a bit of financial issues?
Note the change in wording for the shortfall offer compared to the initial spp. The funds are now also to be applied to Rahu in some form:
https://www.nzx.com/companies/NTL/announcements/308164
"Funds raised will be applied to the acceleration of Talisman and accelerating the program at Rahu for which the company has sighted and will soon be commencing the drill target at Rahu."
Emphasis mine.
The issue is that they don't really give a **** about the short term SP fluctuations or what the market thinks about them.
They are just plodding along trying to get more funding to ramp up production because they really want that gold out as fast as they can.
But they are doing it in such a silly way that they are shooting themselves in the foot too.
Gold Fever
They wouldn't be expanding operations though if they weren't finding any gold.
Looks to me though, that a lot of selling was lined up in the days before this announcement, to me it looks like people knew about the announcement today.
Big rally's at 1.8c though.
I would think some have sold at 2.3 and 2.2 and 2.1 and are now buying back at 1.8c
Some of you guys are gonna burn yourselves out panicking over the SP at this stage. We are still pre-bulk sampling! If you believe, quietly accumulate (disc: just my opinion), otherwise join the headless chicken show! Good luck all.