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

To: Confluence who wrote (2446)	2/12/1999 6:22:00 PM
From: Andrew	Respond to of 7235

Hello Confluence, Vaughn and all. The point that I'd like to add is that with this cash flow from Marsfontein and the rest of Klipspriger we will benefit tremendously if we have a significant discovery in the NWT this year. With the number of years it takes to prove up a deposit and get approval, likey 2-3 years, ie size, grade, feasability, environmental, SUF could very well be sitting on a mountain of cash by the time they are preparing to develop. I believe that most analysts making cash flow projections are not accounting for the additional cash flow which will be realized from the addition of the 50 ton per hour plant which as far as I know will likely be processing material from the fissures sometime this year. In short I believe that SUF would not be looking at a severe dilution like the one that for example Aber shareholders have had to and may continue to endure. The costs would likely be lower for SUF as well since the lakes they are drilling in are shallower (less than 10 meters) and smaller than Aber's and draining as opposed to building dykes would cost less. I have also heard mention of the possibility of a small dividend being paid this year by SUF. This may bring attention to the stock and help appreciate the share price. A .10 US annual dividend would be approx. a 2% dividend yield at the current share price. I'm sure with the cash flow numbers being thrown around 10 cents US would not be out of hand. We may be getting ahead of ourselves talking about a discovery but IMO SUF has perhaps the most methodical exploration program going in the NWT this winter and the likelyhood of a discovery is high. I know for a fact from speaking with Chris Jennings that he is very optimistic of a discovery this winter. One question Confluence, Your cash flow and earnings numbers, are they in $US or $Can. Regards, Andy