value of the 2 percent royalty , page-17

Trader Tan, I coulden't help but compiment you on your insight - excellent post! Some try to see the down payment on royalties as a negative - as if firms such as Cliffs just give $3m away on a "just in case" scenario - get real! Non refundable royalties are only offered if the purchaser is certain that they will recover their funds in a reasonably short term.

You will remember that at the GM in July RdB mentioned that the royalty from Johnson range would happen sooner than most ppl think and he said (see Rubik's post) that it will happen sooner than most ppl think and that this alone would value GDN sp over 20c.

Perhaps if you do a bit of research will discover just how long it will be befoe Cliffs intend to mine the resource, a phone call to Cliffs Natural Resources Inc.
Steve Baisden, 216-694-5280
Director, Investor Relations and Corporate Communications
[email protected]

Perhaps you will find what RdB knows and that the resource is currently being drilled to evaluate it and that mining is not so far in the distant future as you think.

5m ton per annum at todays price will equate to better than $10m par annum for GDN at to days prices, with many analysts projecting prices to double or more over the next few years - all that calculated without GDN needing to expend 1c on infastructure or lifting a shovel lol.

It is then no surprise that GDN directors consider it a reward for loyal S'holders - they will certainly smile about the effect on market capital when this comes home to roost.

But all MOHO - DYOR