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

To: russet who wrote (6414)	1/15/2001 11:47:17 AM
From: Letmebe Frank	Read Replies (2) \| Respond to of 7235

Heres some good info on SUF. Before you read it, I am wondering if I am wasting my time: Is there anyone here who is not checking posts on Stockwatch or Stockhouse? stockwatch.com stockhouse.com Good Luck to all - the funometer is about to go into high gear! Copied from StockHouse - Stockexpo: Resources and other Smallcap Southernera (SUF/Toronto) 2.34 Southernera I have featured here several times, and it seems to be getting ready for another run. The company produces diamonds from its mine in South Africa, which has accounted for most of the cash flow in the last year or two. In addition, it has diamond exploration targets in Canada and has acquired a platinum mine near its diamond mine called Messina, which it aims to get back in production shortly. Southernera is a well followed stock, and has given some great returns in the past. The management recently was replaced, and the original team seem back in control, which has settled the market down a bit. They recently closed a small financing at these levels, which will finance the Canadian exploration primarily. The old diamond mine will continue to produce cashflow from a new discovery adjacent to the mine, which will underpin the company. In addition Messina should begin production this year, following its financing (likely through debt). The market cap of Southernera is around C$60m, which is a pretty low risk bet as the future production from the platinum is going to be very profitable at these prices and the cash flow from diamond production more than underpins it at present. As I write this, they just made an announcement that their huge Angolan diamond project has moved to a production decision phase, with the feasibility study being accepted by all partners. The project, though carrying high political risk carries an IRR of around 185% on the first phase, which is attractive enough to warrant taking the risk of production, given the extremely short payback period. SUF is tremendously undervalued in the market given the advanced state of its projects, and any success in one of them should result in a big rerating of its share price.