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

To: Letmebe Frank who wrote (6840)	3/8/2002 9:56:39 AM
From: geoffb_si	Read Replies (1) \| Respond to of 7235

Ralph/Letmebe: If a Major is looking to take over SUF, RTZ is the best possibility, as they own ~20% of SUF shares. If RTZ were interested, it would likely be a friendly offer, and I don't think our BOD would accept less than $10, but my guess and $7.50 will buy you a small cup of Java at Starbucks. As to whether an offer would be made before or after full production (~130k oz net to SUF), I believe a buyer would get a better price before full production begins. And, because of SUF's API (Accelerated Production Initiative), they are already "Showing the Money" to an interested suitor. I.e., if SUF is successful on the API, a lot of risk is removed as long as there are no scalability issues with going to full production. JMO... As to whether I believe SUF will be taken out? No idea, but I feel pretty comfortable holding SUF, other than the RSA risk. The ownership by RTZ, and their predisposition towards the SUF board (remember they were part of the palace coup), will ensure that SUF gets fair price if there's a takeover. And the alternative of no takeover, while it requires more patience, looks pretty darn good, too. Kind of a win-win situation for shareholders, eh? Geoff