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

To: maxed who wrote (4939)	11/10/1999 4:42:00 PM
From: Confluence	Read Replies (1) \| Respond to of 7235

An excerpt from Hilton Ashton, noted South African Diamond analyst, in his Diamond Industry Review, dated Nov 8, 1999: "SOUTHERNERA TO APPOINT NEW CEO Embattled SouthernEra has announced that Dr. Chris Jennings will stand down as CEO before Christmas. In a tele-conference Dr. Jennings assured investors that a short list has been drawn up, and that the successful candidate will be chosen soon. The new CEO will also have full authority within parameters laid down by the board. The market should respond positively on this news. The stock price has fallen from C$13 to below C$2 over the past 18 months. The market criticised top management for nepotism, bungling the rich Marsfontein farm rights, and its insistence on pouring money into the Camafuca pipe exploration in Angola, which Dr. Jennings now describes as being a large low-grade pipe. Did De Beers not discover that years ago? Dr. Jennings says that SouthernEra's data will be combined with Diamang's data for a final decision on the pipe by March 2000. The company expects to have the report on the viability of Messina Platinum from external consultants by mid-November. Refer to our recent diamond conference notes for details on the project. The M1 pipe will be mined out by mid-2000; by then management hopes to have the Leopard fissure mining at 20ktpm rising to 40ktpm as plant capacity becomes available. The problem with fissure mining is that its unit costs per tonne are higher than pipe mining. As a result SouthernEra's earnings are forecast to fall until 2002 when the Messina Platinum project starts producing. The stock has been depressed by events, but the market will want to see new management renew confidence in the company's future before taking the price higher. The stock rates as a STRONG SPECULATIVE BUY." Sorry, no URL to point towards. Regards, Confluence