Hello Confluence
For Paul, please note, that I did not say, "Munn was done", that was another poster. What I said was that "no summer program was announced" therefore no one should reasonably anticipate one. If SUF's recent "style" is any indication, expect to hear about the dike core analysis in a casual passing reference, possibly on the next NWT exploration update.
After that announcement, if it is not stated, you should try to find out whether SUF still believes that the Yuri was sourced from Munn Lake? IE: Is the Yuri geochemistry and dike geochemistry identical? On the face of published information, I do not believe that it is.
For what it is worth, you might also try to find out why SUF did not complete the Margaret Lake sonic fence drilling and generated target diamond-drilling program, and confirm whether it will be undertaken next winter?
I do not believe that anyone who has followed SUF's NWT programs this spring has missed observing the fact that they have not exactly been actioned as planned and scheduled. This follows on the heels of a similarly disappointing 1998 effort.
While there is nothing anyone can do about equipment break downs, etc, there really is no excuse for failing to allow enough time to complete the programs, not having replacement equipment available, using reliable and proven contractors, and having last year's samples processed and plotted in advance of the program's start-up.
I appreciate that cost significantly factored into many of the decisions that resulted in these incomplete programs. However, if adequate precautions had been taken such as more thorough and expedited advance work alluded to above, shareholders would not today have to wait at least another year to find out 100% of the potential of a number of our NWT plays.
On another more upbeat note:
WEEKLY MARKET COMMENTS
ROUNDS
News: Cutting centers are doing more business and better quality 3/4
and larger H+ SI+ goods are getting real tight. Even the 4/4 and VVS's
are waking up. Oversizes trading in the 20's. Polished prices are set
to move upwards even though buyers have not yet woken up to the new
reality. Some goods are trading for higher prices in Israel than New
York. Expectations are high for next weeks Vegas show. U.S. first
quarter 99 polished imports up 5.7%, exports up 26.2%, retail jewelry
sales up 16% to $4.37 billion.
....Imports of polished diamonds into the U.S. reached $2.12 billion
during the first quarter of 1999, up 5.7 percent from the first
quarter of 1998. Polished exports jumped 26.2 percent to $732 million
for the three-month period.
....U.S. Retail jewelry store sales for the first quarter of 1999,
ended March 31, were strong - up 16 percent from the first quarter of
1998 to $4.37 billion.
....The following is an excerpt from a joint press release issued by
De Beer's Central Selling Organization (CSO) and the Israel Diamond
Manufacturers Association (IsDMA) following the first of their bi-
annual meetings:
The IsDMA reported that trading conditions in general were showing the
first signs of improvement since the setbacks brought about by the
economic crises in the Far East nearly two years ago. Since the
beginning of 1999 morale within the Israeli industry was much better
and this was reflected in the significant increases in both rough
supply imported for local manufacturing, as well as polished imports.
The IsDMA anticipates that total polished exports for the whole of
1999 will increase by five percent to around $3.8 billion.
Hausman said that the erosion in local manufacturing capacity has
stabilized, and that a revival in manufacturing was underway with an
increase in the number of factory units evident. Although he was
greatly encouraged by the turnaround in sentiment and improved trading
conditions, he cautioned that the market dynamics in the foreseeable
future needed careful managing, and it was important for any recovery
to be underpinned on a solid, secure basis.
The IsDMA requested the CSO to remain cognizant of the need to
maintain a high level of direct supply. It also put forward proposals
towards reviving the young manufacturers initiative through Diamdel as
an important component of securing the industry's future. It asked
the CSO to keep under review the addition of new Sightholders.
RETAIL NEWS AND FINANCIALS
.... Tiffany & Co. reported strong sales and earnings growth in its
first quarter ended April 30, 1999. For the quarter, net sales rose
20 percent to $272 million while earnings jumped 45 percent to $16
million. U.S. and international retail sales contributed equally to
the strong results, each rising 22 percent. Direct marketing sales
increased seven percent to $23 million. Commenting on Tiffany's
successful strategy, Michael J. Kowalski, president and CEO, said
"store expansion increases Tiffany's presence in important markets,
product development generates innovative jewelry and other product
design introductions and marketing communication heightens awareness
among increasing numbers of customers."
.... Signet Group plc, the parent company of Sterling Jewelers,
recently reported group sales of $358 million for the first quarter
ended May 1, 1999. The figure represents a 13 percent increase over
last year. The comparable store sales increase reached 8 percent.
Business in the U.S. accounted for 70 percent of the group sales for
the period. Signet operates approximately 1,400 jewelry stores,
including 790 in the U.S. operating under the names Kay Jewelers, and
Jared - The Galleria of Jewelry.
....Bradley J. Stinn will be resigning as the Chief Executive Officer
of Crescent Jewelers, a privately-owned, West Coast affiliate of
Friedman's Inc. According to a statement from Friedman's,
arrangements are currently being made to replace Stinn, who will
remain the president, CEO, and a director of Friedman's Jewelers, and
will also remain a director of Crescent. The move comes following a
collapse in negotiations between Crescent Jewelers and its
shareholders regarding the restructuring of the company's finances.
The company also announced that it has retained ING Baring Furman Selz
LLC to advise Crescent on financial options, including a possible sale
of the company in or out of bankruptcy. Stinn's resignation will
become effective only upon the appointment of a new Crescent CEO.
MINING NEWS AND FINANCIALS
.... De Beers Consolidated Mines has concluded an agreement to acquire
a 21 percent stake in Anglovaal Mining Limited (Avmin) for a total
cash consideration of $122.9 million. Avmin's primary holdings are
the Venetia and Finch diamond mines. According to De Beers, Avmin's
diamond interests motivated the purchase and it has no interest in
expanding its holdings. Analysts suspect that De Beers may have its
eye on Avmin's 88 percent-owned Saturn project.
.... SouthernEra Resources Limited said diamond production at its 40
percent owned Marsfontein joint venture in South Africa reached
200,132 carats during the first quarter of 1999, ended March 31. The
company's 40 percent share totaled 80,053 carats. Net after tax
income for the three month period was $4.9 million on revenue of $11.8
million, compared to a loss of $2 million during the first quarter of
last year. Cash flow from operations was $9.6 million. The average
price per carat from Marsfontein for the quarter was $121, down from
$147 per carat during the fourth quarter of 1998. The company said
the rich overburden of its M-1 pipe, which was mined in 1998,
consisted of average stone sizes and quality significantly better than
that which is projected for the run of mine production in 1999.
SouthernEra's other projects include exploration in South Africa,
Angola, and Canada. The company is currently commissioning additional
equipment to boost production at its Klipspringer plant. It has also
entered into an agreement to acquire a 54 percent interest in Messina
Limited, which owns Messina Platinum Mines in Northern South Africa,
and expects that the project will be profitable within three years.
The company said it plans to invest $41 million in the project during
the next three years.
(c) Copyright 1999
*********
Confluence, regarding that anticipated phone call, it did not occur, even after the requested Fax was resent. It has been several weeks now. In that light, and unless I hear from him shortly, I would have to assume that my perspective on the direction being taken is not all that far off.
Regards |
