this stock is set to take off, page-7

Not really, the fully diluted number is not really relevant as the market trades on the day, not in the future. As there is no guarantee that the options will be converted (although they probably would) they cannot be used in the calculation.

Most stockbrokers get around this conundrum by looking at enterprise value. ROY's EV is essentially its market captilisation minus it's cash holdings. That number is around $40M, or a bit over 7c per tonne.

Taking an in situ comparable sales value of 30c/t would give ROY an EV of $161M or 4 times the current price = 72c. The great thing about thinking about it in this way is that the options out there are already priced into the share price, so you don't need to get complicated by talking about a "fully diluted" share base. (of course, you could, but then you would have to discount the current SP, making the uplift the same as a relative percentage).

The only assumption here is choice of in situ value. The 17c mentioned by one of the contributors here is base on a magnetite resource that needs a rail and a port. Razorback has both and so is at the upper end(though by no way the maximum) of the comparable sales yardsticks.