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

To: gemsearcher who wrote (4355)	8/19/1999 10:00:00 AM
From: PHILLIP FLOTOW	Read Replies (2) \| Respond to of 7235

From today's paper: Market faith in SouthernEra shaken Mine boss goes to bat for stock after tough week Stephen Miles Financial Post A plea for market respect by Christopher Jennings, president of embattled diamond miner SouthernEra Resources Ltd., fell mostly on deaf ears on Bay Street yesterday. The company's stock (SUF/TSE), which has lost almost 8% in the past week, dipped to an intraday low of $2.70 on the Toronto Stock Exchange before clawing its way back late in the session to end up 14½ at $3.09. Mr. Jennings' bid to stem a prolonged slide in the shares came in an extensive statement, in which he appealed to shareholders to ignore destructive rumours circulating and to take a second look at the company. But analysts said SouthernEra's troubled past had already spooked many investors. Confidence was further eroded by an apparent loss of focus from core diamond activities, following recent news it would diversify into platinum. "We wish to reassure shareholders of the strength of the company's assets...," Mr. Jennings said. "There are a lot of misperceptions in the marketplace about diamonds in general, and our company specifically; the main one being that our joint venture mining project at Marsfontein has a short lifespan." The firm is hoping to expand its South African property's mineable deposits. The strategy to diversify into platinum was not well understood, Mr. Jennings added, but the proximity to its Klipspringer property and "good economic fundamentals" made the project attractive. Mr. Jennings said the company also has a valuable asset in Angola, the Camafuca kimberlite pipe. One analyst, who asked not to be named, said Mr. Jennings was effectively shooting himself in the foot with his comments. "Most investors look upon SouthernEra as a diamond play, but when you throw in platinum and palladium it adds another big question mark," he said. Another mining industry source said playing up the promise of properties in politically unstable Angola was like throwing fuel on a fire. "Angola ... are you nuts? Investors just don't want to know." The source said Mr. Jennings' credibility on Bay Street had been sliding since a dispute over the ownership of the Marsfontein property with heavyweight De Beers Consolidated Mines Ltd. The stock traded as high as $20.50 on Oct. 8, 1997. "There is a history of disappointment with the shares," another analyst said. The latest blow was that earnings and cash flow from the Marsfontein project were coming in much lower than expected. PHIL