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

To: VAUGHN who wrote (4769)	10/21/1999 3:40:00 PM
From: Rocky510	Respond to of 7235

Thanks Vaughn for an excellent knowledgeable posting. eom

To: VAUGHN who wrote (4769)	10/21/1999 4:27:00 PM
From: Peter Bourgeois	Read Replies (1) \| Respond to of 7235

Hello Vaughn, Once again you have given us an excellent update. Hopefully you will be able to give us some new update information from the great white north soon. Well almost white anyways. Again many thanks! Cheers!!!

To: VAUGHN who wrote (4769)	10/21/1999 4:38:00 PM
From: Valuepro	Respond to of 7235

Vaughn, I echo the thanks of the others, and, by the way, I've been into Canabrava and Spider for years. Spider stock (SPQ.A, C$.06), while a long shot, is worth pocket change as the potential returns are obscene. VP

To: VAUGHN who wrote (4769)	10/21/1999 6:05:00 PM
From: m.philli	Respond to of 7235

Thanks for the info, that's why I was wondering if we'd get immediate notification when a 1 million plus diamond is discovered. In this nest we'd have to class one like that, more like a "robin egg". (O.T.) if they go ahead an use DNA to reproduce mastadons, releasing them into the wild. Do you think the Canadian CHARTER OF RIGHTS AND FREEDOMS,and my being Caucasian, would allow me a "hereditary" right to hunt and kill them to supply my family food. (ggggg)

To: VAUGHN who wrote (4769)	10/21/1999 6:41:00 PM
From: russet	Read Replies (1) \| Respond to of 7235

Hi Vaughn, SUF's balance sheet is deteriorating. The burn rate for exploration, development and acquisitions is greatly exceeding the cashflow of the company for this year. More and more exploration plays are being brought into the fold, and more and more personnel are needed, and that's increasing head office overhead costs. They are gambling on exploration plays with current cashflow. Revenue is dwindling as M1 is mined out. The cost to transport the lower and lower grade M1 ore over 10 kilometers to the Klipspringer plant is eating into the profitability of that operation. If they don't do some very tough financial planning right now, private placements will be needed to bridge the funding gaps over the next 2-3 years. That equals dilution which can be avoided if they emphasize the production projects now, and ease back on the exploration. If not,...welcome to the under a $1.00 SUF in a few quarters, because there will not be any earnings, in a quarter or two. Canabrava, the Yamba area JV's, and now Caldera won't be helped in their share price departments if SUF is forced later on to abandon them because they failed to get the current cash cows up and running efficiently, or if they stick all their money into a project that literally blows up in their face (Angola). There is a time to explore, and a time to consolidate cashflow projects. The next two years are crucial to the eventual emergence of SUF as a longterm producer of diamonds and platinum. It is also a time they are vulnerable both to financial bungling, and/or a takeover by a firm that is South African centered, and drops the JV's in the rest of the world. How will that help Yamba, Brazil and Australia? Many other shareholders and me, would prefer to see a healthy income statement with increasing revenues, cashflow and earnings, as well as a much improved use of cash which is the financial statement that the explorer faction is not addressing, before we run off and explore the world. Of course, healthy debates by both these factions is necessary to creat a world class company.