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Gold/Mining/Energy : Precious and Base Metal Investing

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To: russwinter who wrote (1053)	1/1/2002 3:09:42 PM
From: Gord Bolton	Read Replies (3) of 39344

Time for value investors to take a close look at SUF.TO Southernera Resources. southernera.com SUF's main asset is the Messina platinum/palladium Mine. The Messina property may contain in excess of 16 million ounces of platinum/palladium. SUF has already shipped concentrate from small scale mine production (API) at Messina. SUF expects to complete construction of Phase One of development at Messina by September of this year. southernera.com "In early 2000, SouthernEra completed a bankable feasibility study on Messina's Voorspoed project which was chosen for its extensive infrastructure and the significant underground development work that had already been completed. The feasibility study was based on the Voorspoed resource to a depth of only 575 metres, resulting in a planned production rate of 159,000 ounces of 5 PGMs plus gold with an estimated average operating cost of US$150 per ounce of payable metal (net of nickel and copper by-product credits) and a mine life of 17 years. The mine is currently under construction with a planned commercial start-up in early 2003." southernera.com What is generally unappreciated by the North American market is the potential windfall benefits for SUF and its shareholders from the fall in value of the South African Rand. Some may have watched the share prices of South Africa gold and platinum producers soar in recent times while SUF (trading on the TSE) has been relatively stagnant. To gain an appreciation of the significance, please use the following URL to chart platinum prices against the Rand over the last two or three years. You may also try gold against the Rand. pacific.commerce.ubc.ca You will notice that while gold has doubled in value against the Rand, platinum has tripled, and both gold and platinum are currently at all time highs against the Rand. All of Messina's costs including financing are paid in Rand and all of its production will be sold in U.S. Dollars. Now you might ask, is there rampant inflation in South Africa due to the drop in value of the Rand? The answer is a simple no. Due to years of economic isolation during the Apartied years, South Africa has a largely self contained economy and they are not dependant upon foreign imports to any large extent. What the fall in the Rand has meant is that if you are developing a resource that is sold on the international market, you can get a lot more work done for less in South Africa. And the push is one to get it done quickly to take advantage of the situation. SUF's Accelerated Production Initiative at Messina was completed six weeks ahead of schedule and the recent Klipspringer diamond mine development was completed six months ahead of schedule. The year 2002 should be a very rewarding year for SUF shareholders as production draws nearer for phase one, and possibly occurs ahead of schedule. A phase two feasability study will be completed in 2002 to justify increasing production to 500,000 ounces platinum/palladium by 2005. SUF drills will also be testing the newly aquired Millenium platinum property for economic reef intersections and resources. Limited amounts of SUF shares may still be purchased on the TSE for under CAN$3.00 per share. I do not expect this opportunity to last for long as earnings per share may exceed CAN$3.00 in the immediately foreseeble future.

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