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: don jackson who wrote (2736)	4/6/1999 4:55:00 PM
From: Confluence	Read Replies (4) \| Respond to of 7235

Hello Vaughn, Jimmy, Gord, Don et al, Thanks Vaughn for the update. Don I think the forward looking PE is about 4, with the cash flow multiple approaching 2! But few seem to care. I called the pres of Canabrava today and had a nice chat. His name is Rory Moore, he did a PHD under John Gurney in RSA, and used to head up BHP's office in Kelowna for five years as the exploratory work with Dia Met was progressing. While cautious, he was very much anticipating working with SUF. He said that the Canabrava Property was the most advanced asset of the company, with Teck having outlined 2,000 targets, 700 on the high priority list. Unfortunately, with Teck having little experience in exploring for diamonds, an ineffective drilling program was run over the past couple years. Teck made a corporate decision to get out of diamonds to concentrate on gold/metals, so CNB needed to find a new partner. While several companies were interested, SUF was most responsive, including local DD over the past while. (BTW, CNB has properties in Ontario with excellent chemistry, but SUF passed on the properties, allowing Kennecott to do almost the same deal as the SUF deal; refer to CNB website) As part of the DD that SUF has done, several priority targets have been identified thru geochemical and geophysical means. The aim is to drill test these in the very near future. CNB is very pleased to have the resources of SUF to help it find diamondiferous pipes. While only this one property is included in the JV, SUF has the ability to see two years worth of results before committing the larger dollar amounts. I figure that about 3 weeks earnings from Marsfontein will pay for these first two years. How about that for leveraging production! Interestingly, RM was very much awed by the SUF's ability to "print money" from the Marsfontein mining and to bring assets into production so quickly (Klipspringer). He has tremendous respect for SUF's technical abilities and mentioned that any discoveries would be relatively easily brought into development. I asked his perception on SUF's share price and he was simply bewildered. He didn't understand the market's lack of comprehension of SUF's tremendous progress so far. Anyway, very positive sounding for future prospects. This answers part of the my question regarding what SUF folks have been doing over the last while, ADBF (After De Beers Fight). Again, I own SUF because of the people. While they might not be so hot at promoting their own story, hands down they are the best diamond explorationists on this planet. Have any of Canada's other diamond companies been willing/able to develop new properties outside of Dia Met and Aber? Certainly nothing close to that of SUF. Does anyone have any constructive thoughts on how SUF can go about improving its share price? Regards, Confluence