Sorry westaussie but i cant agree with your suggestion for Royal to test the gold potential on their non core assets. Royal's last couple of capital raisings were on the back of the iron ore so those investors could be put out if their money is directed towards this type of exploration particularly as initially it is grassroots exploration which at times can be quite expensive for little return.
lets stick with Razorback - with the huge size of the resource, management should be heading up to Asia to meet with potential buyers. if the iron ore price volatility continues it will cause a number of Chinese domestic iron ore operations (producing ore at approx $100/t) to shut down and as these Chinese steel producers need supply, a project like Razorback may be just what they need.
However, in order to exploit their gold potential, Royal could consider spinning these assets out into a new float or shell company?
MFE Price at posting:
8.0¢ Sentiment: LT Buy Disclosure: Not Held
