Agoracom: Small Cap Investment - Noront Resources

HIGH-GRADE NI-CU-PT-PD-ZN-CR-AU-V-TI DISCOVERIES IN THE "RING OF FIRE"

NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)

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Need some help over here

Milsy1

Nov 30, 2009 01:50PM

Re: Need some help over here

Zooloo

Nov 30, 2009 02:10PM

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Re: Need some help over here

in response to

Need some help over here

Milsy1

posted on Nov 30, 2009 02:14PM

Your calculation of share value ("At the time of today's offer, NOT's S/P was $2.25 and based on a 3.5 to 1, this equates to $0.6428 per share.") is correct so NOT values the warrant at ($0.86-0.642= $0.218/sh x 7) $1.52/warrant.

The valuation is based on the Black-Scholes model of valuing warrants (without dividends). The longer the duration to the strike date (5 years) and the more volatility (a lot recently) in the stock price the more they are worth. Here is a handy calculators to use if you want to run various scenarios.

http://www.hoadley.net/options/optiongraphs.aspx?warrant=Y

... Been There

27 Recommendations

Re: Need some help over here

Milsy1

Nov 30, 2009 02:29PM

Re: Need some help over here

khareema

Nov 30, 2009 02:49PM

Re: Need some help over here

crazytrade

Nov 30, 2009 02:53PM