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

To: Peter Bourgeois who wrote (3432)	5/21/1999 9:32:00 AM
From: Gemini	Read Replies (1) \| Respond to of 7235

Just skimmed the annual report last night. One issue that was not clear to me was the reserves and how long they would last. With other resource companies that I have shares in, there is always clear information that allows the reader to see that, for example, the mine has an expected life of another 10 years, with estimated rates for these years. Is this true for diamond companies, did I miss something. Comments appreciated. TIA.

To: Peter Bourgeois who wrote (3432)	5/21/1999 9:59:00 AM
From: GEORGES	Read Replies (3) \| Respond to of 7235

I have just received the AR from SUF and here are my conclusions: 1. 5 out of 8 directors own 1000 shares or less which is a disgrace.Their directors fees should be paid out in shares in lieu of cash until they each own a minimum of 10 000 shares. 2. The co. is sandbagging on Camafuca. I think the potential and reserves are enormous,because we will have spent a total of $24 000 000 in two years on the project which indicates that management has great confidence in Camafuca. ($6.7MM spent in 1998 + $4MM budgeted for 1999+ $6.5MM USD to maintain 51% interest = $24 MM CDN) 3. So far the NWT seems to be a bust. We are finding some diamonds but they are the size of fish eggs compared to golf balls we are finding in Angola and SA. 4. I agree and voted in favor of the restructured stock options plan. The plan does not favor CJ but 4 key employees. If you look at the Summery Compensation Table on page 3 of the annual notice you will see that none of these 4 employees received a bonus for 1998, despite a great year for SUF. I think their compensation is very low and reworking their stock option plan is fair and equitable. 5. I voted in favor of the Private Placement Financing of 13 000 000 shares because I want Management to be able to act quickly if a golden opportunity presents itself. This approval dos not mean that we will be issuing shares tomorrow at $4.50 but that if CJ finds a great deal to be done at a much higher price in the future he will have had prior approval to issue 1 or 5 or 13 million shares.I am putting my faith that management will create increased value to me despite dilution. Finally, I hope that the board will decide to set a floor on the price of the stock and support it at no less than $5.00