price firming on the sound of pennies dropping, page-17

I think everybody agrees that for any major Iron ore hopeful the CAPEX is the big obstacle to overcome.

Given the are no big funds in Australia that might assist the mining industry or Royal and the Government has no vision to develop infrastructure like the WA Government did in 1896 to 1903 by building a water pipe line to Kalgoorlie (the world longest at that time) which has resulted in a huge amounts of Gold being extract in this region for more than 100 years.

The only source of large funds is overseas and mostly from China who have now stopped investing in large projects.

With the massive supply volume becoming available from RIO, BHP, FMG and others in the near future why should they risk their money.

Unfortunately ROY and many others have missed the boat and will have to wait I believe for many years for new boom time to come back again.

I suggest it will take some time to around 2025 when the volumes demanded by India will becomes so large and with millions of people living on top of these deposits, India will not be able to meet their own demand and around 2025 the increasing volumes will become so large the boom times will return. But 2025 is a long time to wait.

But added to ROY's woes is the over hang of how and from whom they purchased the Razorback Ridge Project and where they still owe those companies around $30m.

This money according to the companies announcements has to be paid before the end of 2020 otherwise Royal may lose this project completely. This is a lot of money and the time will pass all too quickly.

In reference to this debt, I note that Mr Lewis is back in Court in Adelaide in an action initiated by the ATO over the non payment of $7m in taxes by one of the companies that were involved in Royal's purchase / sale.

The management of Royal continues to assures its shareholders that their are no skeletons in Royal cupboard about these matters.

I hope that this is true!