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

To: GEORGES who wrote (3336)	5/12/1999 9:41:00 PM
From: Gord Bolton	Read Replies (1) \| Respond to of 7235

---------------------------------------------1998----------1999E -----------------third quarter--------fourth quarter---first quarter tonnage through put-----60,298----------82,594----------52,243 carats recovered-------207,551---------342,503---------173,631 grade(cpht)----------------344-------------415-------------252 Co. share of production-93,652---------137,001----------69,452 Revenue------------$20,652,000-----$23,588,000-----$12,223,552 net income---------$11,857,000---------$86,000------$4,300,000 Georges revision--------------------$7,000,000 My main point is that there is something more about the numbers that does not compute for me. carats recovered-------207,551---------342,503 Revenue------------$20,652,000-----$23,588,000 I actually thought the price of diamonds was going up in the fourth quarter but for 135,000 more carats they only got an additional $3 million. Hopefully there will be additional revenue from the 98 4Q showing up on the 99 1Q or that the relationship will be skewed in the opposite direction. That should create a positive earnings surprise and would tend to smooth out what might have otherwise been a very disappointing 99 1Q.

To: GEORGES who wrote (3336)	5/12/1999 11:44:00 PM
From: Gord Bolton	Read Replies (1) \| Respond to of 7235

TORONTO, Feb. 18 /CNW/ - "Marsfontein Joint Venture Production (SUF 40%/De Beers 60%) ----------------------------------------------------------- SouthernEra Resources Limited (SUF-TSE) is pleased to report that in January and February, 1999, the remaining 197,006 carats of the 1998 production of Marsfontein M-1 diamonds was valued by De Beers at an average price of US $130.74 per carat. During the 4-month period, September to December, 1998, 528,754 carats of diamonds from the Marsfontein M-1 pipe were recovered, with a total value of US $83,340,966. Total production of diamonds from the M-1 pipe, from September 1998 to-date, now stands at 650,875 carats. More than 80% of the total value of production to-date has been contributed by diamonds of one carat or greater. These larger diamonds constitute slightly over 50% of the total carats recovered." From this I gather that there is an additional $10,302,625.00 revenue from 1998 4Q that will show up as revenue on the 1999 1Q. Of course it would follow that some of the revenue from production in the 1999 1Q will be deferred to the 2Q. When the valuation thing shakes out maybe SUF will end up with more than $130 per carat. Just for the heck of it I went out looking at retail diamonds the other day. A one carat rock in a ring was available for a mere $5,000.00. It was not pure white and had an inclusion visible to the naked eye- kind of like a popped popcorn kernel in a shot glass.