coombs remuneration

Hi Folks,

Spurred by the genuinely positive announcement this week down some research, but don't like what I see on two fronts.

1) Cashflow. Seems to me that unless they drastically reduce costs their outgoings (excluding E&D) will about match their income (excl hedging gains) at spot prices, providing they meet stated prdn tartgets. Hardly exciting or sustainable.

2) MD's salary. It always concerns me about the purpose of a company when the MD/CEO's salary appears out of whack with the companies size/fortunes. Coomb's basic salary of $494k may be acceptable, but the $496k cash bonus (for what ? underwhelming production), plus oppies. Total package costs $1.32mm for a company still in pretty dire straits?

I note Coombs is on the remuneration committee, appears to be the senior/founding director? I also note his shareholding is modest, the other directors holdings are negligible except for a heap of options. Not a recipe that excites me. Does this smell less than encouraging to anyone else?

There are heaps of positives about the company, however these two are currently barriers to my considering the company further.

Can anyone convince me that I should?

EL