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Gold/Mining/Energy : SOUTHERNERA (t.SUF) -- Ignore unavailable to you. Want to Upgrade?

To: Andrew who wrote (3999)	7/14/1999 7:47:00 AM
From: Andrew	Read Replies (1) \| Respond to of 7235

Well I needed an excuse to take post #4000 so I thought I'd post this FWIW SouthernEra Resources Limited - SouthernEra fourth most active conference SouthernEra Resources Limited SUF Shares issued 26,881,395 1999-07-09 close $4.44 Monday Jul 12 1999 Week ended July 9th by Stockwatch business reporter SouthernEra was reviewed in the last issue of Forum Watch, moving up to claim fourth position among Canada Stockwatch's most active conferences this week. There have been no newsworthy developments in the interim. Conference discussion early in the week picked up on Sufferring's frustration with SouthernEra's languishing share price. Drawing on some information provided by Sufferring and from SouthernEra's news releases, WillP drew attention to a number of uncertainties: "You'll note the differences of opinion as to mining rates, dilution, and other such uncertainties. The market abhors uncertainty." In a subsequent post, he commented: "SouthernEra is valued for M1, and little more. Possibly, the rest of Klipspringer is starting to creep in a bit...but not much. The rest? Totally no value. I expect SUF to climb a bit when Leopard is more fully understood by the market. I don't think Camafuca will move it whatsoever until some earnings start creeping onto the balance sheet." Midas agreed that sorting through the SouthernEra news releases "can be kind of confusing," going on to suggest: "The Ndau section of the Leopard fissure will be developed over the next six months. By the time that the plant catches up with the stockpile both the Ingwe and Ndau should be producing 12 to 15 thousand tonnes per month each." By his "rough production estimates," SouthernEra should be reaping $8,348,400 (U.S.) net per month for the third quarter. In a well-presented post, Que Seria commented on Sufferring's suggestion that the company should intervene in the market: "I feel your pain, but I also feel it isn't management's business to make infusions of the company's precious capital in order to keep the stock price from falling...Later on, when the company needed cash to meet exploration and construction needs, we would look back on such short-term palliatives and spell them D-I-L-U-T-I-O-N. An ugly word, which SUF is trying to avoid having pinned on it...I see investors being cool to SUF, in a once-burned, twice-shy mode. Its obvious appeal lies in considerable resources at Klipspringer, what I believe are soon-to-be confirmed reserves of PGMs via Messina's property and diamonds in Angola, with blue sky in the NWT. The downside is that skeptical investors want SUF to 'show me the money' (i.e., profits projected from reserves likely to last a decade) before they buy." The attempts to address Sufferring's concerns seemed to have little effect as he repeated his call for the company to intervene in the market and, going further, questioned the accuracy of the information being released: "Anyone, is there an agency that will look into the activities of this company, and investigate the validity of the information they are releasing?" Another carefully considered response was offered by Que Seria, who suggested: "Unless people are intending to sell in the short-term for whatever reason, or lack confidence in the long-term, why should they care about near-term downdrafts in the stock price? I'm looking at persistent selling and thinking about buying more shares if the price has some more of these spikes down on low volume. I sure don't want my capital dollars going to assure a steady exit price for other stockholders, no matter what their needs to exit the stock." Midas was more direct, providing some figures before closing with: "Get out your calculator and then buy some more cheap shares. There is no better buy on the market that I can identify except maybe the East Lost Hills partners." GeoffB joined the discussion with another lengthy and well-argued post: "In my experience, the stock markets rarely correctly reflect the value of a stock in the resource sector. Stocks go from being overvalued to oversold in a very short time, mostly because in the early stages, a resource play is very difficult to value. SouthernEra has 'graduated' from being a resource play to being a stock with valuable assets (undervalued at current prices), earnings and a P/E (when was the last time you saw that in a resource stock)." His conclusion was that Sufferring made the right decision in buying shares of SouthernEra. "Now, you just have to wait for the rest of the market to realize that." SouthernEra finished the week at $4.44. (c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com old url (better for printing)