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

To: RBMac who wrote (2084)	10/11/1998 11:27:00 PM
From: Confluence	Read Replies (2) \| Respond to of 7235

With the unrealized value of SUFs many assets, including Camafuca, Luo and the increasingly impressive Cassanguidi, not to mention the confidence mgmt has expressed in the upcoming drilling season up north, I would doubt very much, and be very annoyed, if SUF paid much more than market value (approx $10mil) for a company that has no money, just failed in a merger attempt with LTL (dubious at best), and may soon be picked up for almost nothing. With the great cash flow now being generated at Klipspringer and Angola, the first great quarterly earnings due very soon, the mgmt of SUF having the luxury of a seemingly positive relationship with De Beers, and mgmt being able to concentrate on adding, rather than protecting value, it shouldn't be surprising to hear that they've engaged many down-in-value prospecting companies. If you were a shareholder of NDR, or CAV, wouldn't a deal with SUF be very much at the top of your list? Aber has a mine to get financed, Diamet plays their own game, MPV is busy/frustrated, BHP is going hard with Ekati and will have time later, Kennecott is very busy with Diavik and kinda slow elsewhere, and our friends at De Beers probably scare most underfinanced juniors. So a 10 for one deal into SUF would likely be disappointing, but palatable, for NDR holders. Methinks Mr. Kaiser, who has had few comments about SUF since Tli Kwi Cho, may wish for much higher ratios, but I'd guess that SUF would simply suggest waiting 'til later. It would also seem likely that the appointment of Mr. Patrick Evans to SUF's board is quite timely. While he was at the RSA consulate in TO he was quite informative, and regularly communicated with the brass in RSA. Apparently his resume is most impressive, and he can call on various Southern African heads of state by first name. Maybe undervalued situations in this part of the world, supported by govts impressed with SUFs ability to find and produce quickly (the M1/De Beers fight notwithstanding) would like a good, honest, politically clean operation like SUF as partners? I've always wondered how SUF could've gotten Camafuca. Just some musings, but I'm sure the next news about earnings (Q3 at 50 cents/share?), good news in Angola, the onset of drilling in NWT, and one or two of many other rumblings will lead to significantly higher share prices. Are we watching the maturation process of the next made-in-Canada mining powerhouse? Regards, Confluence