consevative valuation, page-3

Well I speak to people in the industry, I still think he is way overpaid and believe me if RMS doesnt produce some massive profits real soon the whole board may be gone. This project has been pumped up to such an extent that if they actually fail everyone will need to go.

I hear the arguement from people in the minning industry time and time again, you should see what i could paid here and there etc but if all the shareholders put the foot down there large salaries would disappear. It seems that they want to be rewarded for the probablility of future success. I dont mind that the director is overpaid at this point as long as he doesnt want a large carrot if it does happen. At this point of time I would rather have someone in control who was putting a good team together, and has the experience.

I have a bit of an ill feeling that rms will not be as big as everyone hopes but big enough to give them enough cash so they can take advantage of a dead market desperate for finance.
Thats why I am sticking with RMS, some of the old sticks from south australia who are on the board just make me nervous. We have an MD in charge now who seems to have a good history from my sources and thats all Im concerned about.

Judging by his character he is not afraid to think big and doesnt have a bait and switch mentaility like manny exploration companies do in australia. I have observed heaps of hype in the last 2yrs, its been a real education lesson for me. If you are looking for a good company they must spend cash. Its all chance I know but RMS spends dollars in the ground, there is no other way to make it happen. If you look at a lot of small caps, they dont spend money in the ground and last for manny years nibbling at cash and doing capital rasings.