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

To: GULL who wrote (1209)	5/22/1998 4:36:00 PM
From: INFOMAN	Respond to of 7235

SouthernEra, in their inept attempt to acquire the M1 mineral rights, made a very simple but fatal mistake. They have by way of the printed media, attempted to trash the owners of the mineral rights, ownership which was confirmed by SUF's withdrawal of their application in terms of section 17. They have neglected the fundamentals in negotiating with an adversary, that is to keep to the business at hand without maligning them. They have ignored this very basic business principle, which has weakened their position and pretty well shut the door on their hopes of mining the M1. You will recall in my previous postings that the heirs were willing and able to negotiate with SUF. They ignored the heirs, gambled in their application and failed. What ground has SUF gained? Absolutely none. What they have succeeded in doing, is having the heirs enter into a agreement with De Beers. SUF have blundered in a most miserable fashion. I have spoken to some of the heirs who, contrary to what has been posted, are extremely happy that SUF has finally admitted to the errors of their ways. IMHO, (considering the way they have been treated) the heirs would rather see the M1 mined by De Beers than by SUF. SUF is also suffering from delusions of self importance. The so called foreign investment that they are proposing is not going to affect the South African Reserve Bank's balance of payments. De Beers has always been a generator of foreign exchange. It is the very nature of their business. For SUF to think that the DME will favour them in place of De Beers is ridiculous. They are suggesting that this matter, which in reality is a straight forward business deal, will have some global political fallout and be the ruin of South African foreign policy. This has the hallmark of a cheap detective novel. SUf is a junior mining company, and taking into account their past practices, will most probably stay one. Do you have any information relating to their acquisition of other mineral rights they presently hold? Regards

To: GULL who wrote (1209)	5/23/1998 1:58:00 PM
From: Jadrew	Read Replies (2) \| Respond to of 7235

Apology ? These postings by yourself (I assume a DeBeers "associate") and Infoman (I assume a lawyer representing the "lottery" winners) are becoming a nuisance. The majority of the people who post here are individual sharesholders or shorters following the company. Once this M1 thing is over will you promise to leave ? Gull, you can begin to worry about ABER (you know who they are ?) marketing their own diamonds and Infoman, you can "adjust" to the new South Africa laws (retraining may be a suggestion). As far as the current situation is concerned. Let's see. 1) DeBeers prospects and abandons M1 (no heirs in sight). 2) SUF and Rangold prospect and find a deposit. 3) Heirs appear with brilliant legal representation. 4) DeBeers somehow become involved (before/after heirs ?) 5) Financial Post in Canada reports that DME supports SUF 6) Brilliant heir's lawyer runs off to SA court saying "You can't say that, we still have negotiations going on." 7) Infoman reports a "News Flash" supposedly retracting the statement, BUT fails to mention that minister still retains right to section 24, expropriation of property. 8) SUF stock suffers as a result as market doesn't like uncertainty 9) Section 17 withdrawn. 10) Debeers in negotiations with SUF, I assume to discuss "marketing" of SUF's production from various sources. 11) South African DME minister has to make a call on section 24 "In the public's best interest." Let's guess. The decision will be in favour of DeBeers basically reinforcing the idea that inherited mineral rights should be passed down in perpetuity, just like in the good "old" days. International company's will see this as just another risk of doing business and still happily invest in SA. Dream on. This is 1998.