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

To: VAUGHN who wrote (4279)	8/11/1999 1:04:00 AM
From: russet	Read Replies (1) \| Respond to of 7235

Hamster calculations: An interesting calculation based on 3000 tonne per day plant (less than installed capacity at present) for Klipspringer only, that means no Marsfontein, no platinum, no Brazil, no Angola, no NWT. It is only for production from the Klipspringer fissure system,...you know,..the one that runs potentially for 18 km (Leopard),...the one that likely has a twin fissure running a bit to the north (where Sugarbird blow is) ,...the one they will still be mining when we are all planted in the ground. 3000 tpd x .5cpt(figuring on dilution) x ($CDN165{$/carat}-$25{mining/processing}-$17{DeBeers})x312 days(Sundays off) - $2,000,000 {General&Admin}=$55,564,000cdn./29 million shares = $CDN1.92 per share EBITDA Even a market multiple of 2 (rather low) gives almost $4.00 CDN per share. Suf is now undervalued, even if Suf did nothing else but mine the Klipspringer fissure. Perhaps Suf should just turf the rest. Please check the calculations and tell me I'm wrong. Watching the share price drop today, I thought a foreign army must have attacked the plant in SAf,...or maybe SAf fell into the ocean,...or aliens landed(ggggg). Nope. People sold and I filled the cage with $3.30 stock. Am I right, tune in next year. I'm a medium term investor who buys undervalued stock, plants it, and harvests it when it grows. Suf says they now have 6 adits into the Leopard fissure, and are tunneling horizontally down the fissure now. When M1 and the Marsfontein gravels get mined out in 2-3 years (yes, there is lots of gravels to keep it going for that long), the Leopard and Sugarbird fissures will be brought into full production. By then mining and stockpiling should be so advanced, perhaps another processing plant will be in order. Hmmmmmm,...multiply EBITDA by 2 maybe???? For now I believe conservation of precious cash is in order folks, unless something comes along that looks really promising,...like perhaps Messina or Camafuca which both appear to have huge proven resources. Only question is, are they economic under present conditions? Don't have any better prospects yet. Those are the conservative hamster calculations folks. Do your own and tell me I'm wrong. russett, just another hamster.

To: VAUGHN who wrote (4279)	8/11/1999 1:16:00 AM
From: DIAMOND JIM	Read Replies (1) \| Respond to of 7235

Hello Vaughn..good to see you back.. I must concede the need for NWT PIPES..(note emphasis) for this company to regain it's stature.. Some good news from the farm may bring us back to $7-8 (where I might make some money) but the halcyon days of $20 will need a domestic find of Aber like quality. Brazil won't register this year unless they start panning the rivers soon for that elusive 100ct fancy. Hope the 'spear does well too. Regards DJ