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

To: gemsearcher who wrote (5367)	1/13/2000 11:44:00 AM
From: OnSide	Read Replies (1) \| Respond to of 7235

This is ridiculous. I've missed so many opportunities lately cause I'm sitting on this dog. I don't see that any of the things we are waiting for involve out of the blue surprises. ie new Pres. So why the friggin delay!!!!Piss poor planning and lack of regard for shareholder sentiment. Selling begets selling but sellers turn to buyers when the buying starts. Any idea how many shares they did buy back on the repurchase program.

To: gemsearcher who wrote (5367)	1/13/2000 12:51:00 PM
From: Confluence	Respond to of 7235

Hello gemsearcher, I agree with your comments, and would add that in this extended period of shareholder misery, nothing, not a single project that SUF, under the guidance of its present Board, has announced, has had any movement towards firm completion, including and especially the new CEO search. (rumour has it that the soon-to-be-former mgmt is still on vacation on a warmer continent) Other things not completed: 1) The Messina deal, including acquisition, sign-off by RSA authorities, Bankable feasibility, acquisition financing, project financing, etc. No news leads to thoughts of Marsfontein. 2) A mining grade for the Leopard fissure from the various stoping material. SUF, along with the remaining analysts providing coverage, need this grade to develop cash flows into the future. At the AGM, we were told that SUF would mining at a rate of 20,000 tpm by Dec. This has been delayed 'til March, but what of all the material thus far processed? No news is bad news. 3) What is the real valuation of the Leopard diamonds? At the teleconference from the Q3 results CJ told us that he expected a high number. This has not materialized. Does he not understand that a CEO can't mislead shareholders repeatedly? Or is there good news coming on this front? No news is bad news. 4) What in heaven's name is going on in Angola? A director told us at the AGM that bulk sample results would be forthcoming by the end of Aug/99. This did not happen, and has not happened yet. Why? Does SUF have the operational competency to carry this out? Apparently new people have been assigned to this project, then removed. What have we to show for the acquisition expense and all the other operational expenses? If this is viable, should a competent operator be able to determine that by now? No news is bad news. 5) What is going on in Brazil? SUF jumped to inform shareholders that someone else found a snazzy diamond just off our property, leading to expectations of good news. No news is bad news. 6) Other than preparing golden parachutes for SUF management, what steps has this board taken to ensure that a bid for the company at, say, $5 doesn't rob all long-suffering shareholders of the intrinsic value of our assets? No news is bad news. (a good question for the legal eagles out there) 7) DILUTION. Given that SUF cash flows from M1 are really the only source of revenue pending full production of the Leopard fissure, and given that budgets could easily have been prepared early in '99 with regard to the cash payment for Camafuca and the expected cost of Messina, why would a competent company issue convertible debt now, at a five year low on the share price, instead of ensuring liquidity for all projects by diluting at $7, or $5 or even $3. Now, shareholders aren't even sure if we'll be diluted at $2. (the rumour is US$5 million, or CDN $7.4 million at about $2 or the equivalent of 3.7 million shares, just under 15% of the company). But even this is not complete, as the stock continues to drift lower under this pressure. No news is bad news. 8) The web site has not been updated. A poor effort that had been promised a facelift ages ago. 9) Investor relations does not exist. Why not? What is this board thinking? Sorry to ramble, and in spite of my criticisms, I still believe that SUF has tremendous intrinsic value that will be realized eventually. I just believe that management and the Board have done shareholders the ultimate disservice by not bringing any of this eventuality to reality yet. Regards, Confluence