HPC Follower
17 Jan 2018
RNS News as expected.... breaking even
chiromawa54
03 Jan 2018
January sale Firestones January sale seems to be off to a weak start. 80% off cost a year ago .Is this not a bargain.
HPC Follower
02 Jan 2018
Re: Now what happens ? As I understand it, some of the largest stones (excepting the two 100+ carat light yellow ones worth about $1 million each) found so far in the "softer" middle are not gem quality diamonds, but brown to yellow boart (i.e. are crystalized). Also, note that dark yellow gem stones are worth 10x the light ones...However, lots of small/medium size yellow and clear diamonds are being found, and a few very large 200+ carat Type II clearer gem stones have been found in the Main Pipe before, albeit broken by the old, smaller gap crusher. Ore recovery and processing remains at the target, 24x7 level.It is hoped that good diamond recovery will improve from the lower, not weathered kimberlite, a bit away from the middle; statistically the chances are good, but there are no guarantees in nature.
BADDOGREX3
02 Jan 2018
Re: Now what happens ? Thank you HPC you have explained this very well.So does this mean that if the big type 2's are there then they are actually mining that very prospective area at the top of the main pipe now and we can expect to see some exceptional stones being recovered shortly or should we expect a longer time scale.. am I being too optimistic? Happy New Year ....We live in hope
HPC Follower
02 Jan 2018
Re: Now what happens ? The shares offered in the Open Offer to shareholders were fully underwritten by the placement, so they just clawed those unsold back. Thus FDI did get all the extra cash wanted. The deal with ABSA was important to preserve cash in the next 18 months in particular.The revised mining plan just does the original Cuts 1 and 2, leaving out Cut 3 which would deepen the hole. It is 2.5 years until they actually have to make a decision to proceed with Cut 3 or not, but the assumption for those financing the venture is no Cut 3 whilst diamond recoveries are poor and rough stone prices are historically low.They are now about to take the next spiral of cuts in the kimberlite out from the centre, down one level from the starting top level which was quite "weathered" and diluted with waste.The quarterly figures due end January, with the results of three sales, will give us a better guide for the future.
BADDOGREX3
29 Dec 2017
Now what happens ? The company has only raised 30% of the money it needed?So how will it manage to carry out the revised mine plan,was any light shone on this issue at the AGM?
HPC Follower
29 Dec 2017
AGM All resolutions passed... Chairman & CEO (Stuart Brown) attendedNothing very significant reported... diamond prices are weak but improving a bit behind other commodities.Debt is too high, hence the re-structuring.Mining is pretty well to schedule in terms of cuts and tonnes of ore processed - the 9 year plan will just dig a smaller hole - starting from the middle in consecutive rings. The final decision on Cut 3 doesn't need to be taken for 2.5 years... although company value is now predicated on the revised plan pending revenue improvements.Can't see much movement in the share price in the near term right now unless some good gem stones start to be found again.
nat-king-coal
29 Dec 2017
Re: AGM I hope it's good news you hear HPCIf we keep hitting nothing but bedrock all the time i think a change of name could be on agenda Flintstones Diamond's maybe ?????
HPC Follower
29 Dec 2017
AGM Off to the FDI AGM today, so will provide an update...Agree this is still high risk as the better areas grow in volume with increasing depth, and larger diamonds still have to be found, unbroken, in much greater quantities than they have done so far. Then it would only take a few really big, good quality stones...
BADDOGREX3
22 Dec 2017
OPEN OFFER I didn't take it up .You couldn't make it up..They had every chance to get this right ..Years of preparation, they failed to think that they needed to prove the basic investment premise.Investors were led to believe that there are big type two stones a plenty to be had and yet they didn't bother to mine that prospective area ?So they failed to pay back the mounting debt had to borrow more money on the facility and then the ,money ran out and they had to go groveling to the major investors.What would Sir Alan have said to these Apprentices???? They may be incompetent ,They may be spinning us a yarn, many AIM companies do.You cant call it bad luck They know where the big stones are but they say that they didn't mine them .How do they expect us to believe them.Why would I give them more money when I have Legg Mason Japan and Lucara Diamonds in my Portfolio?Why have they opted to subscribe to the offer Perhaps they were told they had to as a condition ..To be certain if they had not taken it up the stock would have crashed,so they had no choise,but I have and they are not getting my money until I see pay dirt..Prove you can do what you said and then and only then will I buy in again.My bet is that it will be some considerable time before this proof materialises and in the mean time there is plenty of opportunity for further weakness.
JohnyCash
21 Dec 2017
Re: Open Offer now closed "25,994,806 Open Offer Shares not applied for by Qualifying Shareholders"Some of those were mine. I have lost confidence in this company and not willing to take the risk – my funds better employed elsewhere with greater certainty of success.I certainly don’t believe in ‘averaging down’ (But each to their own)[link]
KALAN
15 Dec 2017
Re: Open Offer now closed Good luck HPC - petra has had a hammering over recent months but appears to be on the turn - hopefully the same thing will happen to FDI in due course - one bit of good news is all it will take.
HPC Follower
15 Dec 2017
Open Offer now closed It's midnight on 14th December, so the door is now closed on the Open Offer at 10p a share...Personally, I've sought to add 43% to my overall FDI share holding, to average down and retain my overall share percentage in the company. Given the Major Shareholders and Directors who have committed to the firm placement are excluded from bidding for Open Offer shares, I'm hopeful I will get all the shares I've requested.Only time will tell now as to whether this was a good idea, or not, but I don't feel the CEO and others would have bought so many extra shares without reasonable justification in full knowledge of the structure of the Main Pipe and likely diamond content.Having said this, I do wonder whether I should have put this extra money in some other investment opportunities, but I am following my "gut feel" based on studying the Liquobong resource and diamond outputs to date for many years.One day, FDI will start finding more, very large gem stones, and the future will be bright - especially if diamond prices strengthen as forecast over the next few years and beyond. It is disappointing, however, that new FDI share buyers on the open market will have a much lower share price cost average than mine.
KALAN
12 Dec 2017
Re: STRONG BUY now, below 15p a share fully agree with all you say HPC - this sp could be bargain basement but we need more info. Took profits on SAR for now but intend being back in for the longer term. Your bitcoin comment rings true plus some other punters favourites - everyone seems to want instant success - refreshing to see you sticking buy the shares you have investigated and invested in - the market just doesn't seem fair at times. FDI production timing is very unfortunate.
HPC Follower
12 Dec 2017
Re: STRONG BUY now, below 15p a share Kalan, I fully accept that investing in FDI is not without risk, and positive returns may not be quick (certainly compared to the prospects of FRR, ZIOC, VOG & JLP).I equally did not expect FDI to make the placement price so low (at 10p); which has re-set the current Share Price too. The price of rough diamonds is weak at present, especially the smaller stones. A lot of money that might buy diamonds is tied up in bonds and Bitcoin "gambles". Nevertheless, 80% of the areas mined from the Main Pipe so far have been poorer areas for the larger/best gem stones, and the most prospective K4 & K5 zones have only just been reached - and are smaller in area near the top of the Liquobong kimberlite.The placement and Open Offer price per share, I'm sure, is partially designed to allow major shareholders and PIs to average down their cost per share whilst increasing overall shares of the company. They do need the extra cash to help meet their debt repayments without breaking into their contingency funds.The revised 9 year programme will concentrate on mining the best zones first (so I'm guessing the hole could be oval above the K4 & K5 zones for a few years before widening); there has been no reduction in the forecast total volume of carats that might be extracted from the Main Pipe - but revenues to date have forced the change in plans and thus the write-down of the asset value. This value, and further development could rapidly be written back in if diamond prices improve with expected shortages against demand over the next few years, and/or if larger/fancy diamonds are found more often (the top area is often not the best for the biggest stones, due to wear and tear).The backing from the Major Shareholders and the additional purchases in the Placement by the some of the other directors, especially by the CEO (Stuart Brown) is still encouraging at this stage. But, this isn't currently a company to "bet the house on".It will be another year, I feel, before we get a better view of how the FDI finances are improving, or not. Many diamond companies are struggling at present... but this may cause closure of some of the deeper, older diamond mines earlier.As for SAR, I'm sticking with this for the longer term - although not a lot of cash - as I'm keen to see how the technology gets used and the impact on health improvements over the next few years. As for JLP, the SP disappoints...
