trfo - why at 12c?, page-2

greenwayb, a good point of comparison can be found with Nkwe Platinum options (NKPO).

NKPO first listed around August 2009 and are exercisable @ 35c on or before 31 August 2011.

Interestingly, the NKP options are exercisable at exactly double the price as TRF options and when listed had about two years to run as well.

When these options listed they came on around 6c and the NKP share price at the time was around 26c.

More simply, at the time

NKP sp = 26c, NKPO = 6c (exercisable @ 35c), and currently,

TRF sp = 54c, TRFO = 12c (exercisable @ 70c)

Shareholders recognise the upside potential of both companies with development of major projects commencing well before the options expire.

Now,

NKP sp = 56c, NKPO = 27c

You can see the massive leverage that exposure to options gives compared to shares, also it frees up capital to explore other opportunites in the market.

Hope that helps.


Stagman