HPC Follower
08 Oct 2017
Issue of shares This week, we can expect FDI to issue, in aggregate, c. 520,000 shares each to both "Pacific Road"
and Resource Capital Fund VI L.P. in respect of the interest due on the Eurobonds, for the quarter ended 30 September 2017. I expect these to be held as these two parties grow their overall share holdings in FDI.One late trade last Friday was worth £105,435 = 450,000 shares; not reported until 16:37... but was this a buy or a sell; and what was the justification for a relatively large trade?Another find of large diamonds or a poor financial re-structuring deal for shareholders could still make a bid difference to the share price and the market capital value of FDI, which has shrunk by nearly 60% over the last 9 months, one way or another.The FDI directors and the major shareholders hold c.70% of the shares, so have a great incentive to decide what they honestly believe will be best for all the shareholders; assuming that any equity placement (at about 20p a share, assuming a 10% discount) for extra cash will also be matched with an Open Offer. I do hope, however, that significant dilution can be avoided.
HPC Follower
03 Oct 2017
Re: RNS Extract This report, on page 9, identifies the properties of the main zones. K5 & K6 are the best, but represent the smaller areas at the top of the Main Pipe, whilst they increase in volume with depth:-[link]
HPC Follower
03 Oct 2017
Re: RNS Extract The RNS a week or so ago stated:-"This average realised value per carat represents the continued lower than expected occurrence of larger, better quality diamonds and a subdued market, as was experienced in the previous quarter. The board of Firestone (the "Board" believes that this is due to two factors; · Firstly, the overall market environment, where a combination of oversupply and the previously reported Indian de-monetisation programme is still having an impact on the lower quality Run of Mine goods, as well as the fact that the summer months are traditionally the quietest time in the rough selling season; and,· Secondly, the lower-than-expected occurrence of larger, better quality diamonds at Liqhobong. The Board believes that the lower frequency of higher value diamonds to date is potentially a function of the mining that has taken place since commissioning in the lower grade areas within the open pit, and which is now nearing completion. Over time, mining will progress into all areas of the open pit and the Board expects the average value per carat to improve. "Previous presentations/reports have identified the K5 and K6 areas (K5 of which increases with depth) as holding the highest proportion of carats per hundred tonnes of kimberlite ore - and past reports have identified these with larger gem stones being found. They must be getting very close if not into these zones given the RNS above. I have no guarantees on this, but if the RNS is to be believed, the chances of more large gem stones being found in the next few months must increase.This will, I fear, not change the need to re-structure the financing a bit to enable a new mining plan for FDI to have a much better chance of generating enough revenue to meet interest and capital repayment obligations.
gliderpilot2
03 Oct 2017
Re: RNS Extract KalanAmazing. Do you do lottery predictions too? 
HPC, What makes you think that this find came from the 'better areas' (K5)? TheRNS states that OVER TIME they will move to the better areas.Good news today, one of the most sensible posts I have ever read on these boards from BADDOG, and a good rise. Concern must be another RNS in the next few days re issue of more shares to pay debt interest which send's it back down again.
KALAN
03 Oct 2017
Re: RNS Extract Bounced to 23p glider pilot.
HPC Follower
03 Oct 2017
Re: RNS Extract Well, FDI have tried to answer your question today... large, gem quality and light yellow. At 134 carat, this should be worth a bit more than the $1m obtained for the last such stone.It is encouraging that such stones are not being broken.The reasons for mining some of the poorer areas first are:- 1. Commissioning needed a lot of the equipment to be tested and adjusted to collect the maximum value of the diamonds flowing through, enough of the smaller ones and all of the larger diamonds;2. Better areas were avoided initially to minimise any damage or missing of larger diamonds3. Stock-piled areas needed to be cleared first, and these were diluted with waste material4. Before going down the Mine Pipe, so the trucks can wind round the outside, the top of the Main Pipe has to be levelled, so the highest areas have to be mined first.5. Coverings above the Main Pipe and around the edges of the Main Pipe have to be The volumes here will vary over time and dependent on the cuts planned.Large diamond finds may cause FDI to re-think their mining plan and re-structuring of the financing... but they will want to minimise the risk of running out of cash in this early phase of development and production.I'm glad now that I topped up a bit last week, under 20p a share... don't think anyone anticipated this latest diamond find so rapidly after potentially changing their mining plans.I personally still feel FDI will do better than Lucara over the next few years... but one can always spread the investments... also STEL perhaps...
nat-king-coal
03 Oct 2017
Re: The turn of a shovel You could not make this up a weekago this dropped likea brick on concerns we are mining in the wrong place uncertainty'sabout what was down there and the potential for investors andso on then on a turn of a shovel it has all changed.(If i new then what i know now i would be a very rich man)Insight/ cognizance /astuteness/ and dare i say corruption. Take your pick or should i say shovel
HPC Follower
03 Oct 2017
Re: Report from the Press The report does seem to indicate that diamond stocks have been over-sold... which I suspect will correct itself as diamonds become rarer (as generally forecast with mine exhaustion of resources expected over the next few years) assuming the biggest companies will manage their sales to ensure there isn't any over supply which would damage the value of their own assets.If FDI can find a few more large diamonds in the next few weeks, as is quite likely in the K5 zone, this should minimise the cost of any debt re-structure; indeed FDI might change their mind on the mining plan and stick with the original plan if this will save enough cost.
HPC Follower
03 Oct 2017
Excellent news - 134 carat gem This great news, soon after reaching the better area (K5, I assume) in the mining path across the surface of the Liquobong Main Pipe:- 3 October 2017 Firestone Diamonds plc ("Firestone" or the "Company" (AIM: FDI) Recovery of 134 carat gem-quality diamond Firestone Diamonds plc, the AIM-quoted diamond mining company, is pleased to announce the recovery of its largest diamond to date, a 134 carat gem-quality light yellow diamond, from its Liqhobong Diamond Mine, located in Lesotho. The Board believes this recovery, the second of over a hundred carats since production commenced, reinforces the potential for large stones at Liqhobong as the Company continues early stage mining.
BADDOGREX3
03 Oct 2017
Report from the Press [link]
BADDOGREX3
03 Oct 2017
Re: RNS Extract I have sympathy with both of your views. These days after many years of wading in and buying more to average down when shares have fallen short of expectations. I have a bottom draw full of worthless paper. My holdings are down to some steady funds that have grown nicely and have enabled me to sleep at night and have some expectation of a reasonable retirement Today I have a handful of equities with great expectations.I have learnt as you Kalan not to rush in ever again just as the dust has settled. I have listened to Directors who I trusted at Proactive investor meetings and read endless analysts reports on my investments that have eventually fallen at a fence. Taking a loss is not easy so if you can topping up is a more painless stance . However it could be that we throw good money after bad.Why risk buying now when often after fund raising the price can fall further,I have bought in the past at less than the directors have paid and less than fund managers and have by sitting on my hands avoided some unmitigated disasters. Admittedly I have missed the bus on a couple of occasions through doing this.It has to come down to what you are able to do because of your financial circumstances and your experience, Loosing money is not fun.. I look at FDI and as a model I take Lucara who are 5 years ahead.What is different about them is Lucara has succeeded and Firestone have stumbled .I see blue white diamonds and big ones coming from Lucara but I only see yellow diamonds and not many really special ones coming from FDI.Now we are told that the directors who are vastly experienced and have been planning this venture for ages have been digging in the wrong place and wasting money milling sub prime rock so they have almost run out of money.Do I trust in their judgement any more, is that trust still strong enough to give them more of my money or should I give it to lucara who have produced but who have seen their price slide by 50% but are profitable and pay a dividend. Its a gamble with FDI its more secure with Lucara and even more secure in my investment funds.I wonder why FDI have not produced pay dirt ,why didn't they mine some material from the main pipe and prove the resource? I want to see that they can do it I need now to see some good stones.Yes I may miss the first spike in the price when they do but I can live with that. I want them to prove to me that they can hack it , they had a chance and fell at the first fence.Some one once said "A mine is a place where minerals lie below and directors lie above".Are they telling me the full story Have they been mining the good areas and they are not so good as they thought. Is the kit working as it should or are they smashing up the good stuff and not telling us.Some thing is not right, all that expertise and investment and little to show.Prove you are worthy of more of my money and my trust FDI. Prove you can do what Lucara did. No new money until that day.
KALAN
02 Oct 2017
Re: RNS Extract Well you have a clear strategy HPC and as long as it works for you that's all that matters. Michu on FRR has 20 oilies and takes a similar view to you - you win some you lose some and make sure you take those gains to the maximum to offset any losses.Seen lots of different strategies by being overactive on BB's - I tend to annoy people I know but I find it's the best way to learn from others - you get 10 posts having a go at you and then a gem that helps you.My strategy is the Alex Ferguson approach now - started in January as I decided to do something different as buy on fundamentals and hold wasn't working too well. When he sent Man Utd out the last thing he said to them was 'clean sheet'. He was focused on not conceding first and foremost because then you can't lose. After that the only option is draw or win.In the past I would have said to myself - FDI has dropped from 55p to 30p it's got to be cheap and bought some. Now I have learnt to be ultra cautious and wait for it to be an absolute bargain that is rejected by almost everyone and then shows a little sign of interest from a few bargain hunters - just got 3 shares and trading one. Held most of the shares you mention above at some time and have read your posts with interest over the years. Thanks for sharing your info on the board - I think their strategy is the right one - maximising the income over the lifetime of the mine but it's very brave as cash flow is king and this is what has caused an otherwise good position to present such a buying opportunity - but still not yet for me - 'clean sheet' - no losses is my target and then gains if possible.
HPC Follower
02 Oct 2017
Re: RNS Extract I know the FDI directors quite well now and trust their judgement (more than most AIM company directors)... and that they are collectively doing all they can to best reduce the cash flow out and re-structure debt payments a bit whilst they move more optimally to the better (proven historically) areas for finding larger, high quality diamonds.I am confident that a reasonable deal will be agreed as the two largest shareholders are also providers of some of the bigger loans. This is 30 year mining plan that should be very profitable once the debts start to be paid down and profits rise.I've waited 10 years now for Liquobong production to become profitable and, having topped up again, will not gamble by moving out my investment for an uncertain return when large diamonds could be found at any time now.I too hope JPL will be successful for us both Kalan, but apart from FDI, I have far more invested in ASA, AST, CZA, FRR, GKP, NANO & VOG - whose share prices can change rapidly at present. I have a portfolio overall of around 25 stocks which I monitor closely, top up those shares on weakness and top slice after good growth. I watch about 80 others, 30 reasonably closely and 50 in another list which have been there for so long now that they are mainly >90% down (MOST) or successful (about FIVE, > 300% up). These I add to occasionally when I see enough to be a buy interest, so I can easily see their RNS to help me react quickly if needed, and enter the discussions when I want to.
KALAN
02 Oct 2017
Re: RNS Extract I think you are right HPC - the price looks better but the prognosis has worsened - have to wait for the finance re-packaging now IMO. If I still held gilderpilot I think I would be hoping for a dead cat bounce after that steep fall to sell into (as I posted before selling at a loss is always the most difficult thing). Sell at 23p say and buy back in at a placing of say 17p and you get 30% more shares which means it doesn't have to go as far back up to get you to break even - say 40p instead of 50p fro instance.Still watching and waiting - don't think the bounce will be very high and not worth trying to trade. The dream can still come true here but starting from 17p instead of 50p unfortunately.(Could sell here - put in JLP - vested interest it is my major share - for ride from 4.4p to 5.5p IMO and then come back here with your cash to get back in after re-financing /finance raising - aggressive rather than passive strategy perhaps - your choice - good luck.0
HPC Follower
29 Sep 2017
Re: RNS Extract It should be borne in mind that this 30% drop was on the back of less than 0.2% of the shares being traded (total buys & sells); so none of the major shareholders are bailing out.The RNS did state they were just starting to reach some of the better areas (K5 I assume), so the chances of finding some better gem stones will improve for the next few months. They broke several stones > 100 carats before, so there must be more there to find and extract without significant damage given the new crushers, etc. It is also encouraging that mining is proceeding to name-plate throughput targets.My share price average is now down quite a bit more with my purchases below 20p today, and I will top up again if the share price sinks further. Such top ups will make no tangible difference for major shareholders, but can be good for PIs with limited funds and enough confidence in FDI to overcome risk fears.Finally, we have a good entry price for Kalan (and others interested) but, being risk adverse, he will probably wait for big diamond or re-financing news to be assured on which way the share price should move.
