Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
I have ridden the up and down waves with ESS (previously PIO) over many years and feel that there is some optimism with the company at this time. I was issued with some options many months back which expire in November 2022. Does that mean I need to convert them at that time or take another action to gain benefit? I understandable they are tradeable before that date. Thanks and regards Brian
Hi Brian,
Essential Metals (ESS) is a new one for the MM report, for those not familiar with the company it’s a $124mn miner with a lithium project that’s caught some investor’s attention in 2022 helping the stock more than double since March – a similar tale to many of its more senior peers.
Moving onto the issued options which closed at 36c on Friday, they have a 15c strike and expire on 30/11/2022, with the stock closing at 50c they have basically no time value (theta) – it is all intrinsic. The value of the options can be released by selling them on market (the right price being the share price minus the strike price of the options or above) or for holders that want to buy more shares, the options would need to be exercised through the company directly, and 15c per share paid in cash – holders have over 2-months to decide.
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