Read my posts again. I'm not out,..just much reduced, and much poorer for my investment in SUF.
Unlike others, I still trust CJ and the management of SUF to keep the company profitable. Like Vaughn, I believe that exploration success will be all that could drive this company's shareprice up in the near future. Hamster calculations show the shareprice is in line with eps calculations for Messina profitability in 3 years. The shareprice is telling us that no profitable production will occur from Klipspringer and Camafuca at the moment,...a conservative view that I now agree with. Current company thoughts seem to indicate that the extension of M1 underground is the best course of action,...along with mining the extensive gravels on the Marsfontein and Klipspringer properties. These gravels are easy to mine, and have proven rich in diamonds. The majority of the fissure mining will likely not contribute much to eps unless higher grade portions are found, or production capacity can be wretched from the processing of Marsfontein (only 40% SUF).
One should think about what will happen to diamond demand once the Millennium is past.
As Confluence says, and the company and I agree with,....eps will drop in the next few years. Thus there will be little support for the share price from eps increases over this time. So we will wait for shareprice increases from some other events.
I was at the PDAC,...and I talked at considerable length with SUF folks. I like them,... I trust them,...and they are a competent and hard working bunch. They have good projects, and have taken a lot of chit from shareholders, but have held the course and persevered in directions they consider the best in the long run for the company and all longterm shareholders. The key is to get Messina up and running. There is little doubt that once the initial project gets in gear, expansion will occur (if PGM prices hold,...and they should). In the meantime we hurry up and wait,...for exploration success. I cannot recommend holding, when there are so many other stocks jumping up all around us.
Just a dumb squished hamsters review. Who listens to dumb squished hamsters anyway? |
