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

To: GULL who wrote (1510)	6/10/1998 12:38:00 PM
From: Peter Bourgeois	Respond to of 7235

Hi Gull! Good article and I am glad that you posted it. The writer has a different view than I, and like him I am also expressing my view. The reporter for B.D. may be unaware that Diamonds were valuable long before DeBeers and IMHO will be valuable with or without DeBeers. Perhaps I am wrong here but I do not believe that the Crown Jewels have a DeBeers stamp on them. I guess if DeBeers had not coined the (Diamonds are forever) logo then the pre DeBeers Jewels would be less valuable today. My two cents worth, and now that the Canadian Dollar is taking a beating, probably less than two cents. Cheers !!! Peter

To: GULL who wrote (1510)	6/10/1998 4:24:00 PM
From: INFOMAN	Read Replies (2) \| Respond to of 7235

If the following extract is true, then IMHO, CJ has deliberately underplayed the importance of the Marsfontein farm ( M1 ). If the M1 mineral rights are not acquired by SUF, and the proposed envisaged cash flow not generated to meet the Angolan scheduled payments, SUF will then forfeit their stake in Camafuca. All hinges around the M1. If SUF loses the Camafuca operations as well as the M1, then the future for SUF will indeed be bleak. Quote from Business Day: 'One of the terms, as set out in SouthernEra's latest annual report, is that if "the company does not acquire the mineral rights to the farm Marsfontein and fails to make the payment, the company's interest in the (joint venture) shall be assigned to SAA and Comica". In other words, without Marsfontein, SouthernEra stands to get nothing for its first C$7m instalment plus the C$2m it has spent on developing Camafuca.' SUF will need all it's negotiating skills to avert disaster, as the balance of the Klipspringer Project, outside of the M1, is more of a long term project that will take some time before the realisation of any substantial profits.