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

To: Ron S. who wrote (1987)	9/9/1998 3:57:00 AM
From: Ron S.	Read Replies (1) \| Respond to of 7235

SouthernEra venture a gem, by first results The Financial Post Wednesday, September 9, 1998 By PETER KUITENBROUWER ÿAfter weathering a long period of trouble, investors and analysts sang the praises of SouthernEra Resources Ltd. yesterday as the firm announced strong results from its joint venture South African diamond mine. ÿ"It certainly looks like a very profitable [diamond] pipe," said Michael Curran, mining analyst at Merrill Lynch Canada Inc. ÿSouthernEra said the sandy soil on top of the Marsfontein find has so far yielded eight carats of diamonds a tonne, with 90,000 carats recovered so far. An independent valuator priced the diamonds at US$204 per carat, the firm said. After resolving a dispute over the rights, SouthernEra holds 40% of the venture, while De Beers Consolidated Mines Ltd. owns 60%. ÿSouthernEra president Chris Jennings yesterday spoke highly of his joint venture partner. "After being fairly brutal to us in the initial stages, they really are trying to make this thing work. I am feeling great today. I have never seen anything of this grade." ÿIn Vancouver, De Beers spokesman Tom Beardmore-Gray said, "As far as we know, everything is proceeding smoothly on the project." ÿInvestors took a quick shine to the results, bidding up the stock (SUF/TSE) 85› to $6.95 in heavy trading of more than 800,000 shares. ÿ"Everyone I've talked to has never seen a grade of diamonds like this," said one SouthernEra investor in Toronto. "I'm blown away by it." ÿDaryl Hodges, a corporate finance vice-president at HSBC Securities, called the results "great news for the company. ÿ"Who knows what remains to be found?" he said. "But clearly this company is making its way out of the woods." ÿHSBC has a "buy" rating on the stock and a target price of $8.50.ÿIf strong results continue, many investors are liable to feel bitter that SouthernEra lost its battle to control all of the find, analysts said.ÿ"Everyone would like them to have 100%" said Hodges. ÿCurran, who has a "neutral" rating on the shares, called the results,"a nice bonus.ÿ"It means you don't have to raise money in a weak capital market to continue mining," he said. Still, he cautioned that Marsfontein is a comparatively small deposit, with a mine life of two to three years.ÿUnder the terms of the deal, De Beers has sole marketing rights to the diamonds. ÿ canoe.ca