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

To: VAUGHN who wrote (6557)	5/23/2001 8:09:42 PM
From: Valuepro	Read Replies (2) \| Respond to of 7235

Hi, Vaughn & Phil SUF has disappointed in the last few years and it's reflected in the stock price. Seems we had more exciting times with the company under the original management structure. I think some saw them as bringing about a loss of focus, but one has to admit the company in those days was a lot more communicative, a lot more shareholder friendly, and more energized. Back then, I never failed to have a cordial reception in person, on the phone, or via e-mail with executives or PR staff. The attitudes reflected in personnel changes from those days are dramatic in this regard and I'm left feeling that ordinary shareholders are unimportant. I used to be quite the SUF enthusiast. No longer. I agree with you, however, that while the long term outlook is still bright, the former anticipation toward short term rewards does not run to the high levels once held by current and former shareholders.

To: VAUGHN who wrote (6557)	5/24/2001 10:06:04 AM
From: geoffb_si	Respond to of 7235

Keep up the negative talk, guys...it's working! <gggg> VAUGHN: As regards the discussion of upside. I believe SUF has the potential and will probably appreciate after PGM production starts in August, but I do not share the enthusiasm of some for a major move over the near term. I believe you're probably right. I don't see it going much over 4.50 before August, in the absense of a diamond discovery, a PGM acquisition, a dual listing on the AIM, or a takeover offer. Posted upbeat AR quotes aside, the company also indicates that almost all revenues from Messina will go toward debt retirement over the next two to three years. The upside to this is if PGMs continue to trade at US$600/oz. The bank deal will probably require that Messina pay back 90% of revenue, assuming a floor level of US$450/oz. That leaves a lot of gravy for Messina in the "lean" years of paying back the bank debt, IF PGMs continue in this trading range. A year into that time span, deep pockets will probably take a position in anticipation of debt elimination, however, baring another PGM spike or a major Australian (first world) discovery, I don't see the general market piling on board until after the horizon can be seen. I disagree. PDL traded differently than what you allude to above. PDL has traded well-above a normal P/E valuation, in anticipation of increased production next year. Deep pockets may take a position not long after SUF is in limited production, in anticipation of future production increases. In that respect, so long as payback is as rapid as anticipated, I would prefer SUF to develop and expand Messina through borrowing rather than by giving away a % such as was done with Camafuca, or by diluting our equity with an underwriting, such as is requested in the AR Information Circular. I agree with you here, BUT, I think it's prudent of the board to look at all possibilities before making a decision. And that's exactly what they're doing... In that respect, I hope shareholders will vote against management's request to issue dilutive financings through their AGM vote or mailed ballots. I'm voting in favor, for the reasons gemsearcher previously notes. Further, until management has increased our share value, I do not support and would urge shareholders to reject management's requested featherbedding. If management wish to take a salary cut in lieu of share options then I would support that, but not to have their cake and eat it too. In case you haven't noticed, current mgt and board has increased shareholder value from about 1.25 to 3.40. If you have another stock that's performed similarly in the past year, please give me the name. Might be worth looking at. Finally, I note that management is not asking our permission to give away part of Messina in return for third party financing/development! It might be a good idea for mgt to put the final Messina financing before the AGM, especially if it involves a JV. I hope shareholders will send a clear message of concern about this issue before and at the AGM calling for a vote from shareholders on the matter. Sounds like a good idea. Regards