To all:
Another news release from SUF
*=*=*" SOUTHERNERA RESOURCES LIMITED - REPORT TO SHAREHOLDERS, SIX MONTHS TO JUNE 30, 1998
TORONTO, Aug. 7 /CNW/ - SouthernEra Resources Limited (SUF-TSE) today
announced that net income for the six months to June 30, 1998 was $2,062,000
on revenue of $11,255,000 after absorbing a loss for the first three months of
$2,003,000. On a per share basis, the net income was 8 cents per share,
compared with a loss of $1,384,000 or 6 cents per share for the comparative
period in 1997. The Company announced that the Klipspringer project in South
Africa was deemed to be in commercial production on April 1, with diamond
recoveries totaling 49,951 carats from processing 65,200 tonnes of ore,
largely from the Sugarbird Blow, during the second quarter.
As previously announced, the dispute over the ownership of the mineral
rights on the privately owned portions of the Farm Marsfontein was settled,
with De Beers Consolidated Mines Ltd. obtaining a 60% interest in the Joint
Venture. Subsequent to the end of the quarter, the Joint Venture received a
mining authorization to commence mining for diamonds, and on August 6, the
Company announced that 22,390 carats had been recovered during the first few
days of sampling the shallow residual superficial deposits overlying the M-1
kimberlite pipe.
The Company also announced on August 6, that an agreement had been signed
buying out Randgold & Exploration Company Limited's interest in the property,
securing the Company's interest in Marsfontein at 40%.
Production in Angola totaled 8,015 carats in the second quarter at Luo
and 5,415 carats at Cassanguidi, compared to 11,466 and 1,400 carats
respectively in the first quarter. The political unrest in the country is
affecting operations at both sites.
Plans were announced for the development of the Leopard fissure system to
produce 10,000 to 12,000 tonnes per month by the second quarter of 1999, and
to process bulk test samples at Camafuca in the second half of this year to
assess the potential of mining higher grade sections of the pipe separately.
The exploration staff has been expanded and an energetic programme was
initiated for the second half of 1998.
The Company went on to say that after spending $17.7 million on
exploration, property acquisition and plant and equipment during the six
months, the cash on hand at June 30 was $6.2 million and the working capital
was $7.8 million. "*=*=*
I guess first three months of loss is caused by the M1 dispute. The Camafuga is promising. Apparently there is a military base in the vicinity of Camafuga and it seems like it is one of the safer spots in Angola. The Leopard fissure should bring in a steady cash flow as well.
I still can't get over the fact that they were able to produce over 22,000 c. of diamonds in just two days. If the things keep going this way the second half figures should be much more impressive. SUF supporters, things are looking very good.
Regards
BozkurtD
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