Good post, although I dont agree with all your points it provides some info I wish to discuss with you and others.
I would like to think that they are doing slightly more than looking at old russian estimates and converting them to JORC.
The fact is we were not around at the time the Russians did the drilling. We do not know how they arrived at their figures and we are not aware of any internal/external factors that may have affected their estimated.
I do however agree that we can "discuss" and "consider" the possibility that they may have understated their resource estimates for tax purposes. To put 100% faith in this however would be misguided IMO.
Secondly you have not provided the full background to my quote.
Go Reds stated that ROS was going to announce something significant (I wont say what or when because a. it would be ramping and b. Go Reds provided no evidence and therefore his statement can be discounted).
I responded with the two quotes you have provided. To say I do not want ROS to grow is incorrect, however you must admit that ROS has been listed on the ASX for circa 1 month, they are essentially an unknown Australian company which has the potential to purchase a significant stake in a potential copper asset.
If they decide to proceed with the purchase it will require a significant amount of time and money to bring into production and start generating an income. Regardless of how good management is, adding additional projects does increase the difficultly and potential of delays. (something I as a potential shareholder would then have to consider with my estimated value for the company).
In regard to raising $100m, I agree that a large resource will make it easier to secure the funding. However $100m is a $100m and it wont just pop out of thin air. ROS will have to consider a number of options including a CR which has the potential to dilute existing shareholders and therefore needs to be considered. We must not forget that we are not talking about a resource in Australia and therefore political risk for both the company and financer needs to be considered.
Finally I am interested in your statements regarding management. What makes you think they are so competent? have you invested in other countries they have managed? can you provide some insight into their past? (not a dig, i am genuinely interested)
ROS Price at posting:
35.0¢ Sentiment: None Disclosure: Not Held
