is 250% gain possible for 2011 ?

cash at 30 Dec 2010 = $9,071,366

estimate cash burn (delayed due to rain) for March 2011 quarter for additional 500mt ORC = $3,888,000

hopefully, another $3,888,000 spent in the June 2011 quarter for another 500mt

although appearing expensive, $9,071,366 can reach up at least 1,500mt in total

this quarterly report will show the cash burn

if so, when this cash is burned, the EV/t at the current share price of 20.5 cents = 0.035 cents

a magnetite deposit should trade on least 15 cents per tonne however the ROY deposit should trade on a premium due to location, infrastructure, cheaper labour costs, etc

an example of a magnetite sale was CFE sale of 1.6bt for $400m or 25 cents per tonne. excellent location but high labour costs

so at a conservative EV/t of 21 cents per tonne, hopefully ROY can reach $1.00 share price when 1.5b tonnes is JORCed

hopefully, by the end of 2011, ROY will have proved up 1 billion tonnes, giving a share price target of 68 cent on EV/t of 21 cents

today's share price = 20 cents

31/12/11 share price = possible 70 cents