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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (130)	10/11/2001 6:28:52 PM
From: geoffb_si	Read Replies (1) \| Respond to of 39344

Russ: Your analysis of SUF is exactly why I'm invested in SUF (and no other S. African stocks). PGMs have been in the tank, but SUF has established floor protection on all of the production starting in late 2002 (~120k oz net to SUF). They are currently in limited production (20k oz), will be in full production in late-2002, and have a goal to increase production to 500k oz within 5 years (70% net to SUF). (This increase to 500k oz is probably dependent on good PGM prices.) It's a phenomenal growth story that doesn't even include the diamond production. Should see good stock appreciation in the next 1-2 years, unless the world economy collapses. As far as a takeover, I would venture that RTZs ownership (~18%) is friendly and in strong hands. That may change down the road, but if RTZ wants to buy SUF, it would probably be a friendly offer, not a hostile offer. I am really surprised that no company has taken a run at SUF considering the assets, but most Majors are risk-averse, and may be waiting to see a few quarters of production before a move. Also, RTZ and mgt owning 20-22% of shares would make a takeover tough. I can't recommend a comparable PGM stock outside of S. Africa. Geoff