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

To: russwinter who wrote (7140)	1/11/2004 10:28:02 PM
From: Letmebe Frank	Read Replies (1) \| Respond to of 7235

Hello Russ - The value of these robust margins for SUF will be recognized. I've seen some reports that indicate that the Rand problem will reverse. Steve Saville had this to say, somewhat out of context, but should be reflective of the view toward SA platinum miners: "..., but the major SA gold stocks certainly seem to have much greater upside potential than their NA counterparts from both technical and fundamental perspectives. " LMBF

To: russwinter who wrote (7140)	3/3/2004 8:59:06 PM
From: Letmebe Frank	Read Replies (2) \| Respond to of 7235

Russ, other SUF faithful, below is a great summary of the pro's and cons of SUF - good discussion: "I too am overweighted with SUF because of its potential but there are a number of reasons it is so low. 1. SA royalty bill 2. Rand exchange rate - every 1 rand per dollar increase takes 25 dollars of the margin. Rand up from 15 to 7 in the past two years. 3. Repeated missed production targets - they are not on track as they promised 80000 tpm for September 2003 and have not met it yet. 4. Cap on pt price for Messina through buying agreements. 5. Repeated dilution - along with missed production targets this has greatly decreased investor confidence in management. 6. Waste of money with US 7 million diamond exploration program. What are they missing? 1. Increase in prices of other commodities beside pt that are coming out of Messina. 2. Pricing based solely on Messina Phase 1 while Messina Phase 2/3/4 plus Millenium which are unrestricted by pt or pd caps are ignored. 3. Use of money to pay down debt or advance smelter project. 4. Gabon gold??? They need to break this company up and have separate diamond exploration company plus a south african pgm miner. It still has great potential but is dragged down by a number of factors and under the current set up it is impossible to realize any value for the diamond assets." Message 19871703 Reply: "< 5. Repeated dilution - along with missed production targets this has greatly decreased investor confidence in management. > The last financing was done above market prices and I don't have a problem with SUF for doing that deal. Financing at $6.40 versus the current $5.10 market price: "The Company has completed its previously announced equity financing with a syndicate co-led by RBC Capital Markets and BMO Nesbitt Burns Inc. of 10.00 million units at a price of C$6.40 per unit, each unit consisting of one common share and one-half of one share purchase warrant. In addition, the underwriting syndicate exercised an option to purchase an additional 2.05 million units, resulting in total gross proceeds of C$77.12 million. Each full warrant entitles the holder to acquire, at any time up to 5 years following closing of this offer, one common share from SouthernEra at a price of C$10.00 per share." Your points are valid for possible reasons that the stock is where it is, but risk/reward still looks too compelling to me and I too am overweight on this one. " Message 19872237 "I didn't mind the dilution either in terms of a long-term development plan for the 4 phases at Messina plus a possible smelter. However, I think most stockholders were quite unhappy with it as it came on the heels of another major financing... and I think it led a lot of money to the door. Its a great company, I just think it has an image problem due to the factors I mentioned. That being said, I think the market is totally ignoring all the positives. " Message 19872463 LMBF