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

To: russet who wrote (3558)	6/6/1999 8:35:00 AM
From: Gord Bolton	Respond to of 7235

SUF's shares are trading at a ridiculous price in relation to the P/E of the last quarter and they have increased plant capacity by at least 50% over the 1st Quarter. Production from the 100% owned Klipspringer properties will begin in about a month. Exploration indicates that the fissure that they are mining has blows and satalite pipes along the way and extends for at least 30 kilometers. There are also parallel fissures. Along with the pipes, blows and fissures there are large quantities of rich alluvial gravels. This is very low cost high profit mining where money invested is paid back very quickly. I believe that they will be mining diamonds on the property when I am long gone. Those who are worried about running out of diamonds may take comfort that SUF will be diversified into the Messina Platinum-Paladium-Nickel-Cobalt-Copper mine which would almost justify the current share price by itself. Based upon producing assets and assets schedualed to come into production we should be at or around $20.00 per share. But wait a minute, this is an exploration company with huge potential in Brazil, Uruguay, Canada, etc. In addition to all of the above SUF has >50% of Camafuca-one of the largest diamondiferous Kimberlite pipes in the world. Angola is currently unstable and there is a war going on over diamonds. Will this situation continue forever? At some point in time the warring parties in Angola will decide that the cost of war is too high and there will be a political settlement. When the situation settles down Camafuca may be worth a billion dollars or more. South Africa has been remarkably stable and is in fact the economic and social star of Africa. Wealth in South Africa is a result of abundant Natural Resources and arable land. Some companies also benefitted significantly from Apartheid and the exploitation of Black Labour. The future is very bright in South Africa for a Canadian Company who can work together with the various social and political forces to develop natural resources and create jobs. SUF has been doing a fantastic job so far and stands ready to do a great deal more. Anybody in the diamond business has to deal with DE BEERS one way or the other. That is reality. SUF is very profitable in spite of the existence of DE BEERS and their relationship. The share price sitting at $5.00 should be seen as an anomoly and a buying opportunity. It will not last long. I agree with russet that it is frustrating but nothing seems to come easy. Institutional investors will wake up one day soon and will have to compete for a chunk. Then we will see happier days on the SUF thread. And unfortunately this month people wanting to invest dollars in the diamond business have a lot of exciting choices RXD, WSP, MPV, MGJ, AOT, and more. SUF does need to do more to get the market fully informed of their own potential for profit, discoveries, and growth. Their web site is badly out of date and they could do a great deal more to keep investors informed. They need to know that the investing world had changed greatly over the past few years and nearly everyone is looking at month to month share performance. If they are not providing it the money will go elsewhere and the share price will lag in spite of all the great things that are happening which the world does not know about.

To: russet who wrote (3558)	6/6/1999 8:43:00 AM
From: maxed	Read Replies (1) \| Respond to of 7235

Hi. russett. We all share your frustration. I also own KRT so I know frustration big time. I have to disagree on your statement about there current earnings being a negative. Any cash flow is a positive no matter how it is generated. This has allowed them to explore in Brazil and the NWT without going into debt or increasing the number of shares floating around. This has allowed them the opportunity try and become independent of DeBeers. Look at the share price of ABZ and DMM.A and WSP and there cash flow or lack of it. For the most part these are one trick pony's. If you had $100,000 to invest in only one of the 4 which one would you pick that will give you the biggest return over the next 2 years. But I do respect your opinion and that is what makes the market work. If no one got fed up with a stock there would never be any seller thus no stock available for people like me to buy. Eddy.