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

To: DIAMOND JIM who wrote (2941)	4/15/1999 5:44:00 PM
From: maxed	Respond to of 7235

Here is a chart on supply and demand for Platinum. This looks like a good business to be getting into. Eddy platinumguild.org

To: DIAMOND JIM who wrote (2941)	4/15/1999 5:49:00 PM
From: Confluence	Read Replies (2) \| Respond to of 7235

Hello All, I came upon some data/facts, most of which I would expect are being disseminated to analysts at the dog & pony. **************************************************************** Summary ($CAN) CAPEX 61.6 Mil Revenue 83.21/t Mining costs 27.74/t Annual Sales 57.35 Mil Net After-tax EPS 23.5 Mil Production 120,000 oz PGM pa = 140,000 oz Au equiv @ 60,000 tpm Total Reserve 10.48 Mil oz, Total resource potential 3X because of steep dips, Cash cost per oz of Prod., US$86/oz PGE or US$75/oz Au equiv. ************************************************************* From a more detailed commentary, I picked out a few items: -Mining rate 60,000 tpm - 120,000 oz PGE pa + 1,406 tonnes Ni + 848 tonnes Cu + 27 tonnes PA -Large additional potential on strike and down dip -Chromite markers to control mining and keep dilution down -Shaft, infrastructure & development in place +R110 mil Tax loss carryforward (C$26.6 mil) -Proximity to Klipspringer -Concentrate purchase contract with Impala therefore no marketing worries -orebody close to surface -similar sulphide content in 2 reefs, therefore can blend for optimum concentrator recovery. Allows for mining contingencies and quicker payback. -Can obtain services of experienced PT miners and mgmt. Chris Jennings has PT experience (Western Platinum Mines). SUF has backing of Impala Platinum Mines. -Low Capex versus North America. 4.5 year payback -Uncertainty on Russian export ability. Weak Rand/Dollar exchange favours "Boom" for RSA Pt/Pd producers. -Finance available in RSA. SUF contribution could also be paid for by selling royalty or charging a premium to a partner ***************************************************************** Why Implats Mothballed Messina: -didn't want it in the first place -total change of mining method -pessimistic dilution estimates -lack of internal champion -too small -lower PGM value compared to other Impala mines -poor marker outlook in '92 -10.5% IRR ******************************************************************* There is bunch of other stuff, but I'm beat. It will be interesting to see how the analysts see this. Certainly the cash flow issues after M1 seem to have been addressed. Regards, Confluence

To: DIAMOND JIM who wrote (2941)	4/15/1999 10:43:00 PM
From: DennyKrane	Respond to of 7235

Dow Jones Newswires -- April 15, 1999 Dow Jones Newswires SouthernEra Resources To Buy 54% Stake In Messina Ltd. Dow Jones Newswires TORONTO -- SouthernEra Resources Ltd. (T.SUF) said it has agreed to purchase a 54.17% controlling stake in Messina Ltd. (O.MES) from Messina Holdings Ltd. for $10.5 million. In a news release, the company said Messina Ltd.'s assets include its Messina Platinum Mines Ltd. unit and about $9.4 million in cash. It said it's purchasing Messina Holdings' entire stake. SouthernEra Resources Ltd. (T.SUF) said that, under the agreement, it must complete a bankable feasibility study within four months. The feasibility study will likely show that Messina Ltd.'s (O.MES) Messina platinum mine can generate a rate of return of at least 20%, it said. A pre-feasibility study showed a 24% rate of return, it noted. The company said the transaction is subject to other conditions, to be satisfied before completion of the bankable feasibility study. It didn't elaborate. The Messina Platinum Mines property is 16 kilometers southeast of SouthernEra's Klipspringer Mine office in the Northern Province of South Africa, it said. SouthernEra said the pre-feasibility study showed initial annual production of about 120,000 ounces of platinum group metals and gold, and about 1,406 metric tons of nickel, 848 tons of copper and 27 tons of cobalt a year eventually. SouthernEra Resources is a diamond-mining company. Messina Ltd. is a South African mineral exploration company. Messina Holdings is a unit of Impala Platinum Holdings Ltd. (O.IM), a South African plantinum producer.