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

To: Peter Bourgeois who wrote (4288)	8/11/1999 1:01:00 PM
From: russet	Read Replies (2) \| Respond to of 7235

Additional hamster thoughts, My understanding is the broker/analysts are using conservative figures provided by management of SUF. SUF is guiding analysts down in 2000 because they believe M1 grade and value are drill indicated to decline, even though that decline is not showing up in the actual processing yet. Analysts are incorporating only these management provided figures into their projections because, as we all know, SUF has nothing else going for it,....right? There is no chance for a rich PGM mine in Messina,...no chance to mine Camafuca, the largest, highly diamondiferous pipe in the World,....Brazil is mined out right, no more diamonds there, local miners got them all with there picks and shovels,...and all the diamonds have been found in the NWT,...and of course, no other diamonds will be found on Marsfontein or Klipspringer in SAf, can't increase production there, can we? Canadian analysts who cut their teeth on Ekati and Diamet and big North American projects have a hard time dealing with the different mining environment in Africa. M1 was rushed into production in a year thanks to the experience of DeBeers training. SUF is full of former DeBeers employees. In SAf you get the mine up a running as quickly as possible to get the life giving and life sustaining cashflow pulsing through the company. As time goes on, you can increase profitability and cashflow by adding production capacity. If M1 was in Canada, we would still be years from producing let alone having a cashflow rivaling the great Dia Met of Ekati's last quarter(We did you know, take a look http://www.diamet.com/version2/CON99APR.html. ). Of course Ekati is to produce at 9000 tpd (Dia Met share 29%, .29 x 9000tpd = 2610 tpd share) compared to Suf's under 3000 tpd and increasing,...but what will we be producing at in the 7 years it took Ekati to get up and running,...yes, they found their first diamondiferous pipes in 1991 http://www.diamet.com/version2/history.html,...my how time flies. Interesting that Dia Met is priced at $23.25 and have 33 million shares fully diluted(both classes) to SUF's 29 million shares,...Hmmmmmmmm. Quite the market multiple there, almost like an internut. My feeling, Dia Met is going to drop by their fiscal year end and SUF is going up over the next year or two when the analysts, who at the moment are just reprinting SUF management's conservative numbers, realize that earnings are above those figures. Just another hamsters thoughts. No need to get the wheel spinning too fast yet. Interesting to see Yorkton being a big buyer the last few days, even though their analyst down graded SUF from strong buy to buy. Hmmmmmm.