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

To: Tomato who wrote (875)	4/18/1998 6:09:00 PM
From: Factfinder	Read Replies (3) \| Respond to of 7235

I believe south African law is based on Dutch Roman Law. To address a later point about the integrity of the judicial system, my experience has been good in SA and I believe that justice will prevail if the facts are as represented by SUF. This will be a highly sensitive matter that can affect the future of capital availability for projects in RSA. This will not be a kangaroo court I can assure you and senior Government will be monitoring the progress and I expect will intervene with Section 24 if Section 17 can't be applied because of a loophole. I spent three years in RSA recently and I think I have a pretty good feel for the ways of the land. My money is still on SUF.

To: Tomato who wrote (875)	4/18/1998 6:15:00 PM
From: Goalie	Respond to of 7235

Hello Tomato: You must have been a good student... you're on the money with your law. As for your questions about Klipspringer, I understand SUF owns 100% of an estimated 35,000 hectars, and a couple of small pieces through an option or a jv with others (including De Beeres). As for your other questions, I have been leafing through a number of research reports by outside analysts. Yorkton (John Hainey, Dec 16/97) has a share target of $20; estimates M1 at 685,000 tonnes, avg three carats per tonne at US$142/c with earnings of $2 per share a year. HSBC James Capel, Sept 12/97; target $26; M1 est 2.7M tonnes at 3.11 carats per tonne at US$119/carat for a return of US$370M, with mining and processing costs at $10-$15/tonne above ground, and $25 underground. TD Securities Sept. 18/97; target $29, based on cash flow multiple of 8.5 times forecast for 1998 after-tax cash flow and a discounted cash flow valuation of SUF's various assets of 624.6M -- $27.04 per share assuming 23.1M shares. M1 is est. at $3.40 per share after tax in 1998 rising to $4.50 per share in 1999. This is based on 455,000 tonnes at M1, at 3 carats per tonne, at $150 per carat, for a gross value of US$205Million. Sprott Securities Oct. 20/97; target $25-$30 per share; goes over the same numbers as above, estimates M1 at $2.75 per share. Hope that helps. Goalie.