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

To: gemsearcher who wrote (4962)	11/12/1999 2:53:00 PM
From: PHILLIP FLOTOW	Read Replies (1) \| Respond to of 7235

Here we go again: Diamond exports halted Business Day (Johannesburg) November 11, 1999 By Ilja Graulich Johannesburg - The government diamond valuator has halted diamond exports for a second time this year, with the stipulation that the bar will not be relaxed unless stiff demands are met. One of the most serious requirements recently added to an existing set of demands is that De Beers must pay the costs of the valuator, which is headed by Claude Nobels. The row dates back to April when the then newly appointed valuator, Nobels' company, DVIC Valuations, disputed the valuation process that had been used for decades and refused to sign off diamond parcels for export. BoE diamond analyst Hilton Ashton says in an industry report that the valuator "is holding De Beers to ransom on three counts". The first is that De Beers must pay the valuator's costs, which would normally be the responsibility of the SA Diamond Board. The board, which appoints the valuator by tender process under the Diamond Act, falls under the Department of Minerals and E minerals and energy affairs department. Government obtains revenue through duties levied on the diamonds destined for export according to a value agreed on by the producer and the valuator. Ashton says that it is "incredulous that a private company can be called to pay costs of an organisation appointed, indirectly, by government". He called for a full investigation of the diamond industry and the board in particular. The valuator's demand is in contrast to statements by Nobels, who said recently that he was not interested in money and could not be bought. The money questions came up after it was confirmed that Nobels was the highest paid valuator in the history of the post. Nobels said that De Beers could not go on challenging the state and "must become a good corporate citizen". The valuator is also demanding that SA diamonds held in London be returned and that De Beers become a joint venture partner in developing a black empowerment cutting industry. Ashton says that the SA Diamond Board, the body responsible for the valuator's fee, is almost bankrupt, following extensive refurbishment of board offices and alleged mismanagement of board affairs. The report says that blame should be laid at the door of Phakamile Ngaki, deputy CEO of the board, who has been suspended in connection with overexpenditure issues. "The board's operation has become something of a circus," says Ashton. De Beers spokesman Tracey Peterson has confirmed that there has been a delay with the export of the series "97", but that De Beers is in the final stages of concluding export arrangements. Ashton says De Beers' results for the year will be negatively affected by the dispute. PHIL

To: gemsearcher who wrote (4962)	11/13/1999 12:35:00 PM
From: crudestope	Read Replies (1) \| Respond to of 7235

Dear Gemsearcher, I know it won't console you much now but did you at no time consider looking at SUF's chart when it was trading at a much higher level? Surely you must have noticed that all mining and oil shares regularly go up and down like a yo-yo? Mainly due to analysts' reports. That's how they justify their existence. Sell or buy recommendations, it doesn't matter which commission wise. SouthernEra is no exception. A continuous never ending price rise only happens in cloud cuckoo land and the Isle of Crude. One further comment. SUF is now and has been for sometime in a damned if I do, damned if I don't situation. Damned for being optimistic some years ago and now damned for being cautious and not releasing news until the agreements have been signed and delivered. Or do you prefer the hype and promotion associated with junior mining companies? I know it helps the share price but for every gainer there is a loser and it is usually the small investor who gets fleeced. I am sure it has taught you a lesson: never buy a share when it has trebled in price. You may miss another double but it is unlikely. Think of it this way: 10 cents to 20 cents, not difficult,100% increase; 20 cents to 40 cents, difficult, 100% but to the 10c buyer 400%; 40 cents to 80 cents, very difficult, 100% but 800% to you know who; 80 cents to 160 cents, extremely difficult, 100% but 1600% to..... (This formula holds good whether it is a cent or a few dollars share). Etcetera. Gues who's the one jumping ship at the slightest bit of trouble still showing a profit? And there are always sellers (real or shorters) but not always buyers. The latter will sit back and wait..... for a lower price! You also know that shorters (mainly financial institutions and brokers) always win because they have the financial resources to win. Hence why in Australia short selling in junior mining stocks is illegal. Too many small investors were fleeced many, many years ago. Anyway, here's wishing you a great week-end. Crudestope.