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

To: VAUGHN who wrote (2399)	2/2/1999 7:33:00 PM
From: Goalie	Read Replies (1) \| Respond to of 7235

Thanks, Vaughn for the EXCELLENT POST!!!! Regards, Goalie.

To: VAUGHN who wrote (2399)	2/3/1999 1:07:00 AM
From: The Fix	Respond to of 7235

Hello Vaughn, Thanxs for the response back. Like I said, CJ is sure not pleased with this latest little shell game that Nicky has started. The rules have changed in mid-game. The overhead has just gone up, DBRSY keeps the marketing rights and gets to skim Consulting fees like there's no tomorrow. What good corporate citizens. What's next...All foreign ownership gets the boot out of RSA? I sure hope not for us SUF shareholders. If and when Munn is a hit (Pipes) I sure as hope that CJ shuts Georgie Burne out in the cold. Good evening and keep the posts coming. fIXER

To: VAUGHN who wrote (2399)	2/3/1999 2:11:00 PM
From: BozkurtD	Respond to of 7235

Hello Vaughn, Thank you for a good and very informative posting. DeBeers wouldn't give anything away unless they get more than what they give in return. I strongly believe that this deal was agreed on in principal when ministry granted the mining rights to DeBeers for the M1. Let's look at the bright side. These people are paying 200M Rand for 29.4% of M1's rights. That would be around $50M CDN. If they expect let us say 30% return on their investment (I am assuming that they want to make money out of this deal), that will make SUF's part of M1 at around $88M CDN. That is an asset value of $3.00 CDN per share. This does not include the unproven reserves. You are concerned about these three points: "1. They have to play by the new rules if they want to stay in the game, and 2. The market will penalize us further because now 40% doesn't really mean what the number implies, and 3. New discoveries are probably not going to be exclusively SUF's" May be I am missing something but I can not see what the problem is. I don't know why the new discoveries are not going to be exclusively SUF's as long as SUF holds the 100% mining rights, I don't know why SUF's 40% doesn't really mean what the number implies and why the market will penalize SUF if the deal is made within DeBeers' portion of M1 rights and also I don't understand what you mean by the "new rules". When I look at the SUF I see a good and positive future. They will have production out of Klipspringer in a couple of months. They are going to increase the processing rate at M1, they will have some production at Camafuga and who knows what they will find in Canada. I agree with you that Canadian diamond play is very important. That is the reason why DeBeers is already involved here. Where I came from we have a saying, " One who plants winds harvests hurricanes". If DeBeers start planting winds in Canada they will start harvesting their Canadian hurricanes. Their tactics that worked with corrupt African governments won't work here. I am sure that SUF is aware of the importance of a Canadian diamond find under their name and they will do what they can. But one should take into account the fact that it is much cheaper and feasible to search for diamonds in RSA than NWT. They can work in RSA for 12 months a year and move the equipment around anytime unlike the NWT. Also labor is cheaper there. IMHO they should focus on Klipspringer. If they can come up with a good find where they have 100% ownership, that will help them to finance more operations in the NWT. Regards, Bozkurt