Hello Vaughn,
I hope you, and all, enjoyed a great long weekend.
Thanks for the long post, it was informative as usual. As usual, I would suggest that the proper forum for your questions/discussions would be with Dr. Jennings and the rest of SUF mgmt.
It seems obvious to me that SUF has decided where its best interests lie, after over 7 years of heavy exploration in the NWT, and frankly that is why I own SUF. Unlike you, I feel unable to make a better technical decision than the people of SUF. They, with all the data in hand, would seem better able to make the risk/reward calculations.
I don't want to sound annoyed, but it seems like you're waging a war of words with SUF over resource allocation via this thread. Why not just call them? Perhaps you should submit a resume? ;-)
In case you think I'm 100% behind SUF, here are some things I feel:
Am I annoyed at the share price? Yes!!!!
Do I think mgmt should be doing more re:share price? Yes!!!!
Does SUF communicate effectively with the market? No
Do Canadian analysts understand SUF? No
Has SUF been effective in dealing with the sellers in the market for the past 6 months? No!!!
Whew, I feel better!
A couple more points:
- I understand that this Rombouts is a consultant to many diamond companies. I see from his email address that this is so. Would it not seem reasonable that he feel it necessary to expand on his various client's projects?
- He states that Klipspringer is to produce about 70,000 carats per year. Having talked with management (processing of the stock pile started last week!), I feel comfortable with production (after a few months in the start-up) leveling at 20,000 tpm with a grade of around 70 cpht for monthly production of about 14,000 carats and an annual take of over 160,000 carats. (He's not on the SUF payroll!)
- The GDV dispute with De Beers initiated with production from Marsfontein, but includes all diamonds De Beers produces in RSA. Nonetheless, SUF is still being payed by De Beers for its share of production. Points to SUF people for guarding the cash flow!
- I couldn't find any reference in his words to any Angolan exploration. Comments were only made on the two properties that were already in production. And even then, then tone seemed positive for the Catoca mine (over 1 million carats), and the initial numbers from Luzamba (US$19 million from 100,000 carats or US$190/carat) would seem to indicate why some companies feel the upside is too great to pass up. But it is still an horrible corner of the world.
- Brazil was only given a passing reference, and SUF/CNB were first on the list. My deduction is that Rombouts does no work in this part of the world. With the talented people at SUF and CNB, I can see why they have no need (unlike many other companies) to bring in hired guns to evaluate their properties.
Seems to me like reading Rombouts words and view of the diamond world is subjective, like the cup is half-full/half-empty agrument.
Regards,
Confluence |
