Rick, your questions are certainly valid. HOWEVER, those who have done their DD, shouldnt place too much emphasis on the recent events for several reasons. The M1 pipe, although rich, is not the centerpiece of SUF; its only a minor portion. The completion of the processing plant (2000tons/day) is on schedule and, firstly, it will process the stockpiles SUF already has, and then it will expand to other areas (if the dispute is further delayed for some reason). Klipspringer(owned 100% by SUFand is not in dispute) will start earning from this operation which will increase eventually to 10,000tons/day. And, we havent heard of the grading/results from the anomoly north of the M1 pipe (which may even be better than M1 and is not in dispute), nor have we received gradings from the fissures, from Sugarbird and Leopard (unless I missed something), from Camafuca, or more on the aluvials. How about NWT? What about Uganda? Didnt SUF had a jv with Rae Gold which was halted? It seems that SMK Investments in Johannesburg, as well as other investment houses have so far not altered their 1- to 3-year forecasts (see the research reports avbl thru SUF office on the SUF website: www.southernera.com) -- $20-$43 by SMK -- and may also come out with similar recommendations as did SMK. Of course some investors will get nervous; its natural. A company like SUF, which has been taking a high moral road (as Chris Jennings has done in the past several years) and has as good prospects as SUF has --indeed presents a buying opportunity at this price level (if you missed a lower point), IMHO, because after Feb 24th (or after March 1 when the processing plant opens) I bet you wont see SUF trading at 12-bucks!
For what its worth, thats my personal take on this! Also, don't count out a settlement prior to the court case -- remember R1 million has been set aside according to S.A. law to settle issues like this (with some 'golddiggers')... And that amounts to approx $350K Cdn (maybe split between Randgold and SUF, I assume). Randgold is commited to deliver the property to SUF.....
Cheers.Laz. |
