Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: .Trev who wrote (2213)	11/23/1998 8:11:00 PM
From: Confluence	Read Replies (2) \| Respond to of 7235

Hello All, Just some thoughts on this NDR/LTL stuff. While it is good that litigation threats have been removed, why does that imply that SUF will move quickly to make a deal? These two companies had previously planned to merge, and may quickly resume such actions. When you call the offices of either, the same receptionist answers: "Lytton New Indigo". Should they get together, the entire package may be more attractive to SUF. Right now, I understand that New Indigo has no dough, and that its President is still suing Lytton for wrongful dismissal. While this will probably fix itself, Lytton has only a couple million bucks left. Who else is a possible suitor for the companies? De Beers apparently hasn't been interested, RTZ is busy with Aber, BHP has Ekati, so who is left to fund the exploration? Wouldn't SUF be wise to slow down the process, and drag things out as long as possible, assuming no other suitors? I'd think the European shareholders who brought the idea to SUF would keep them apprised of the situation. So I think that things may take a while to develop here. Further to this, if the directors were meeting to talk about NDR/LTL, why would they go to RSA? I think that they're likely heading south for a complete review of operations and developments at Klipspringer. I'm sure they'll deal with the takeover talks, but aren't the situations at Klipspringer, Angola and NWT more important right now? I mean, this stock should be much higher with what is on the table NOW, with a great Q3, with October pointing to over $0.40 in after tax earnings for the first month of Q4, with November production sounding good, with the primary kimberlite about to produce, with the new plant to add to production from the fissures in Q299, with results from Camafuca soon, with Cassanguidi producing a windfall, with all the rest of the blue sky. The point I'm trying to make is that SUF does not need NDR/LTL right now. These companies might make a great acquisition, but why not let the shares drift lower for 6 months, see some appreciation in SUF's price and then make a deal offering the LTL/NDR shareholders 5% of SUF? With the fire sale on all types of mining assets going on all over the world right now, why not examine all the other options, and deal with the feuding folks after they've calmed down for a few months? My 2 cents worth. Confluence