Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from the line of Brian Luster.
Brian Luster - Abernathy Group
Good morning Sophocles, how are you?
Sophocles Zoullas
Well. Thanks Brian.
Brian Luster - Abernathy Group
Just a quick one this morning. The options that you all have that are coming due in March.
Sophocles Zoullas
Yes?
Brian Luster - Abernathy Group
Do they appear as an asset on your balance sheet anywhere?
Alan Ginsberg
No.
Sophocles Zoullas
No, they don't.
Brian Luster - Abernathy Group
How can we think about the value of them? I'm just looking at the value on your last exercise options and there's a pretty decent spread between what you all would have been paying to purchase the vessels versus the current market value of the vessels.
Sophocles Zoullas
Correct, I agree with you.
Brian Luster - Abernathy Group
Any idea what the spread is on these?
Sophocles Zoullas
I would say we still have a while till we have to make that decision. I think the best way for you to think about that is, in the last two weeks all of a sudden there's been a huge surge in demand, not only for drybulk ships to charter, but we anticipate there will be a pickup in demand also for secondhand and newbuild positions because of the repricing of iron ore contracts between 65% and 71%.
So I think right now you should think that what we're doing is we're taking a look at the market before we have to exercise the options and seeing what the recent news from the iron ore mining companies, what that impetus will do to the value of our options. But to answer your specific question, we do not carry it as an asset, even though the options that we did exercise about two months ago are showing to be very well timed purchases.
Brian Luster - Abernathy Group
Do you have any idea what the approximate average exercised price is on these remaining options?
Sophocles Zoullas
$42.3 million, that's our strike price.
Brian Luster - Abernathy Group
Excellent, thank you.
Operator
Your next question comes from the line of Natasha Boyden, Cantor Fitzgerald.
Natasha Boyden - Cantor Fitzgerald
Thank you. Good morning, gentlemen.
Sophocles Zoullas
Good morning Natasha.
Natasha Boyden - Cantor Fitzgerald
Soph, I just want to sort of dig into something. There was a line in the press release about a big acceleration delivery calendar for your 35 ships. I just want to clarify in the presentation, is this the actual delivery schedule that is going to happen?
- To read the full transcript on Seeking Alpha, click here »
