Hello Will,
Welcome to the SUF thread. I appreciate your commentary on SUF, though you seem to have only looked at one part of SUF.
As Midas points out on the Stockwatch thing, SUF is doing many other things, notably, beginning production (next week) from the Leopard fissure. By the end of 1999, production will be 20,000 tpm with expected recoveries of about 14,000 carats, 100% attributable to SUF. Given that the announced resource will provide production for 20 years, it could be expected that SUF will develop the remainder of the fissure system in the near future, by building modular plants, allowing greater future production to come from near-term earnings.
Another addition would be Messina, in which SUF presently has a 54% interest (pending completion of a bankable feasibility study) and the ability to purchase the remaining 46% (net cost of US$10million, after cash in Messina is netted back to SUF). This project has about 10 million ozs of Platinum equivalents (almost half palladium), much upside, much pre-production work already completed, is very similar to fissure mining, and has synergies with Klipspringer (about 10km north). Messina is likely to contribute to earnings in 2001. At present SUF plan (likely to be increased), this is expected to generate almost $1.00 per share in earnings.
Yet another is Camafuca, the world's largest undeveloped diamondiferous kimberlite pipe. With a resouce of over 8.7 million carats (using old De Beers data that seems to be about one-third of present results) in only the top 80 metres of ore, it is quite likely
that this might be the world's richest single deposit, especially with the high quality gems found to date. SUF is presently processing a 15,000 tonne bulk sample, with results expected in August. Security is an issue, although mgmt is confident, so very few feel SUF is accorded any value from this asset. Limited production, from a very economical cutting wheel dredge, could begin as early as next year, with very positive earnings implications.
And then there is the blue sky in Brazil, where intensive exploration has been carried out for years, with SUF adding its efforts just recently. At any time, good news could be forthcoming.
The NWT has been a disappointment for SUF, but some on this thread feel that much potential still lies in both the Munn Lake sill (like WSPs only bigger? ;-) ) and at Yamba Lake with several pipes already in the bag. In fact SUF has already found over 50 pipes, with many diamondiferous, but none economical. Odds are that SUF should get lucky, especially with the large land holding.
Thanks again for your story!
Confluence |
