i have held ROY since that first announcement of the JV for...

i have held ROY since that first announcement of the JV for Razorback.
In my opinion it was like GBG.

GBG has the JV partner who have been paying for all the development. ROY have secured a highly sought after tenement and secured a JV partner willing to fund it.
It sits within easy reach of the infrastructure approx 40km from rail, water, electricity with no requirement for employee village and a port very close too.

This has success written all over it.
however it is not a short term story.
The Spike was due to the announcement of the Rights issue which were 10c shares 1:1 for every share held.
Then for every right converted you received the ROYO 10c options (again in the money). If you convert them in May 2010 you get free 12c replacement options.

so ROY has cap raisings covered by these staged options and rights issues.

The down side of that is that the ROY shares become the secondary game. ROYO has far more strategic value than ROY.
why would you own ROY? if you want exposure to ROY you would do it through the options.
Now for the next problem....no one really wants to sell their ROYO and no one really wants to buy ROY.
Once the options are converted in May this will no longer be the case. ROY fans will buy the ROY heads as normal and ROYO (or new code for 12c options) for leverage as they normally would.
This combined with some serious drill results will make this one of the most sought after iron ore specs in the market place.
$1 is certainly possible within 12 months but not guaranteed (disclaimer).
I have a large enough parcel to make me very happy if it goes there.

Play this one for a great 1-3 year return imo.

CI