SouthernEra Resources has published an update detailing its highlights from the second quarter of 2004.

For the three months to June 30, SouthernEra made a net loss of $12.2 million (16 cents per share) compared to a net income of $1.2 million (2 cents per share) in the second quarter of 2003.

Meanwhile, the Canadian platinum and diamond producer revealed that the transaction increasing its stake in Johannesburg-listed Messina Platinum to 91.5 per cent has been completed.

Development at Messina Platinum's Phase 1 Mine was deemed satisfactory over the quarter, with rates having doubled since January. The Phase 2 feasibility study completed has also now been completed.

However, production during the quarter was adversely affected by illegal industrial action and, consequently, was less than satisfactory.

The firm's operations at Messina Platinum also continue to be negatively impacted by the strength of the South African Rand, although the company welcomed the announcement by the South African Reserve Bank that it is taking action to weaken the currency.

Commenting, SouthernEra's president and CEO Patrick Evans said: "We are proud of our progress at Messina over the three-and-a-half years since development and stoping at Messina commenced.

"For a company that had no platinum assets four years ago, we have built the Phase 1 mine in about half the time it normally takes to bring a mine of this size into production and Messina is already well past the halfway mark to full production".

Mr Evans added: "Despite the challenges associated with any new mining operation, we have constantly sought continuous improvements."

SouthernEra also highlighted encouraging platinum group metals and nickel assay results from stream samples collected within the new Monts de Cristal 'Kinguele' ultra-mafic complex in Gabon, which will now be explored further.