Financial theory often takes some time to penetrate industry and when it does it can result in a paradigm shift in valuations and mental models. The Black Scholes option valuation was first published in 1973, although the authors were only awarded a Nobel Prize in 1997. The valuation of real options has been applied to the oil and gas industry for some time, however it has only recently been more widely applied to the non-oil, mineral resource sector. The use of real option valuation (ROV) for the valuation of marginal and short mine life resource projects is a more useful valuation tool than the conventional DCF, NPV valuation tool. The application of ROV has major implications for corporate strategy. It generally favours equity over debt funding and non-hedging over hedging. A retrospective assessment of the successful development of the Lennard Shelf Operations demonstrates the concepts of implementing real options and the value destruction of limiting operational flexibility through debt and hedging activities.