Mongrel! Some good points. ROY does have great infrastructures...

Mongrel! Some good points. ROY does have great infrastructures compared with others eg PDY (850mt market cap about $20m), DMA (1.2bt market cap $20m). HOWEVER, market does not value low grade ore that much. Sino experienced massive cost blow out at Cape Lambert & Belmoral.

What I like about ROY:
1) Great infrastructure
2) Large tonnage with further drillings
3) Cash in the bank
4) Board is working hard to be the front-runner in that region

Problem:
1) Global debt crisis & interest rate increases in China, hard to get funding
2) Need some DSO to get market excited; DMA 1.2bt market cap only $20m not very exciting
3) MAY have missed the boat; 2014-15 iron ore may be oversupplied as FMG was saying
4) Sovereign risk - mining tax & carbon tax (transportation)

Nevertheless, $0.17 is a bit too low IMO. P.S. Interestingly, DMA is next door to AGO... ?takeover.