Firestone Diamonds plc is a UK-based international diamond mining and exploration company with operations in the Namaqualand region of South Africa and Botswana. Namaqualand, which is located on the west coast of South Africa, has been one of the world's largest alluvial diamond producing regions for the past 60 years, with total production to date estimated to be worth more than $3 billion. Botswana is the world's largest producer of diamonds by value, with annual production of over 20 million carats worth over $1.6 billion.

Firestones strategy has been to build a portfolio comprising advanced development and production projects to provide sustainable cash flow to fund ongoing exploration programmes and to provide an early return on investment, together with large scale exploration projects which have the potential to yield significant reserves of gem quality diamonds.

The company operates the Avontuur Mine and the Oena Mine of Namaqualand, which produces high quality alluvial diamonds, and has a growing portfolio of advanced and early stage exploration projects in known diamond producing areas in Namaqualand and Botswana.



Since 1996 the company has increased reserves and resources more than thirty two times from 34,000 carats to over 1.1 million carats at present, with an estimated gross value of approximately 260 million. Firestone is debt free and well funded and has a highly qualified management team with extensive experience in the financing and development of diamond and other natural resource projects. Firestone is quoted on the Alternative Investment Market (AIM) of the London Stock Exchange and trades under the symbol FDI.L.

Firestone also has an exploration project in the USA.



Main Mining Pit, Avontuur Mine, Namaqualand, South Africa.






For FDI Corporate information : http://www.firestonediamonds.com/frcorporate.htm

For FDI homepage : http://www.firestonediamonds.com/index.htm

Firestone Dimaonds shares in issue: 65m 20p Ords

Firestone Diamonds PLC - Major Shareholders

Major Shareholders ---- Amount --- % Holding
Elfin Trust Company Ltd 7,200,000 16.68
Aurora Investment Trust 7,200,000 16.68
Gartmore Investment Mgt 5,418,116 12.56

Thanks Andy.

Queen1,

Well we were well and truly thumped today, surprisingly more than what I consider lesser resource stocks. Not quite sure why that should be, but I have high hopes we will soon recover.

I can't see any news being released in the current climate, so a move back up to support around 150p is probably the best we can hope for at present.

Andy, funny you beat me to it. It has been quiet on this thread while the sp has sauntered lower on no news but after today I was going to drop you a line. Obviously almost all of my shares have shown red today but as you say, surprising that FDI should be dropping by almost double-figures. Still, as they say, a good stock doesn't become a bad stock overnight.....

Hi Andy - Any thoughts around FDI at present? I know that the markets as a whole are suitably depressed and most of my shares have been in the red for the last couple of weeks but I was hoping that FDI would continue to sparkle and buck the trend :-(

Queen1,

So was I!

Looking at the chart below, there appears to be a gap to be filled around 120p, so we MAY fill that before we rise again.

Thanks Andy.

Andy, it looks as though you may be right. It really is starting to piss me off though. How come all of a sudden FDI is a "bad" company only a few weeks after surging ahead on a wave of good news. Nothing has changed so why is it dropping like a lead weight?

queen1,

Well to be honest I'm not sure.

Clearly the drop that has occurred in the general mining sector recently has taken it's toll, but the FDI drop has been greater than that.

I genuinely believe the prospects are as good as they were three months ago, when the price rose so dramatically, and feel we must surely have blown away any froth now, so hopefully we have seen the bottom now.

I would have thought we were due some news soon, and it can't come soon enough IMO.

Agreed Andy. I'm certainly not about to sell, just a little frustrated.

Frustration is starting to turn into despair - what's going on? Andy, you seem quite connected with these guys, any views from the company on the 40% drop seen in the last couple of months?

queen1,

No, checking the trades, the volume is low, and nobody with a notifiable interest seems to be selling.

I may try and ring Phil Kenny tomorrow, I agree, it's really disappointing to see such a drop, but provied 120p holds, we should be ok IMHO. If it drops through, I will be looking for FDI to supply some news to the market to support the price.

We have the potential for news from either Groen River or Botswana in the near future, and the free float is small, so I'm not sure how much further the price can fall.

Interesting that we fell the exact same percentage as Bidi Mining today, and less than AFD, although that's no consolation for us of course.

Queen1,

Hopefully we have bounced off the bottom now, and the 150DMA too!

Please.....!

Queen1,

Well we have a better day today(so far, touchwood!), +8p at the moment, to 142.5p MID.

Volume lowish, and mostly private investor size trades.

Queen1,

Moving northwards again this morning, and I have topped up again, I feel there is real quality here, and the opportunity to buy below 150p was too hard to resist.

Stock is in short supply I hear.

Hmmm - I've been trying not to get carried away Andy but the last few days have been better. What are the implications of the stock supply on this one?

queen1,

It's a tightly held stock, directors hold over 30% including trust funds, and institutions hold a fair chunk, which takes us over 50%, then we have some large holders!

Altogether that doesn't leave many in the free float, which makes you wonder how it could drop so much from the high!

I would like to see a little more volume to accompany the recent rise personally, some news would be welcome!

Thanks Andy

Queen1,

Now THIS is an impressive RNS IMHO!
=========================================

Firestone Diamonds PLC
13 May 2005

Firestone Diamonds plc

Senior Executive Appointment

LONDON: 13 May 2005 - The Board of Firestone Diamonds plc, ('the Company'), the
AIM-quoted diamond mining and exploration company, is pleased to announce the
appointment of Mr. Tim Wilkes as Director Resource Development for the Firestone
Diamonds group.

Mr. Wilkes joins Firestone from De Beers, where he was General Manager Mineral
Resource Management, with responsibility for the management of De Beers' mineral
resource portfolio worldwide, and was the Competent Person responsible for the
evaluation, classification and reporting of the company's mineral resources and
reserves.

Mr. Wilkes brings over twenty four years' experience in the diamond industry,
including twenty years with De Beers. He has worked extensively on kimberlite
and alluvial diamond exploration, evaluation and mining projects worldwide,
including four years at the Orapa Mine in Botswana, and six years on the west
coast of South Africa and Namibia. He is Chairman of the sub-committee for
diamonds of the South African Mineral Resource Committee (SAMREC), which is
responsible for the publication of the SAMREC Code. The SAMREC Code sets out
standards for reporting of exploration results, mineral resources and mineral
reserves in South Africa.

In his new position, Mr. Wilkes will be responsible for leading the development
of Firestone's mineral resource portfolio. His primary focus will initially be
on the Company's strategic projects, as follows:

the Mopipi and Orapa projects in Botswana, which are being explored in
joint venture with De Beers, and where a number of kimberlites have been
recently discovered and are in the process of being evaluated

the Jwaneng project in Botswana, which is also being explored in joint
venture with De Beers

the Company's other new exploration projects in the Orapa and Jwaneng
areas

the Groen River Valley project in Namaqualand



Mr. Wilkes will also be responsible for the identification and evaluation of
potential new projects for the Company in Southern Africa and elsewhere. Mr.
Wilkes will report to Philip Kenny, Chief Executive Officer, and will join the
group's Executive Committee.

Commenting on today's announcement, Philip Kenny, CEO of Firestone Diamonds,
said: 'We are delighted that Tim has decided to join Firestone. He is one of
the leading professionals in his field, and the extensive experience and skills
that he brings to our senior management team will be a great asset to the
Company in developing and expanding the Company's project portfolio.'

For further information:

Philip Kenny, Firestone Diamonds +44 20 7370 6452 / +44 7831 324 645
Leesa Peters, Conduit PR +44 20 7618 8760 / +44 7812 159 885
Jamie Cumming, Bell Lawrie White +44 141 314 8103 / +44 77 6804 4620

Website: www.firestonediamonds.com

Sparkling diamonds soaring in popularity.


The Sunday Times
22 May 2005

http://www.timesonline.co.uk/article/0,,2095-1622100,00.html


A HUGE increase in global demand for diamonds will force prices up by a third in the next few years, it is predicted. Either that or the market will face a $3 billion (1.6 billion) supply shortage by 2012, writes Dan Box.

James Picton, an analyst at WH Ireland, will warn an international diamond conference tomorrow at the London stockbroker Hargrave Hale that demand will rise by at least 50% by 2012, to $14 billion (7.7 billion).

This is equal to the combined annual production of Russia and Botswana, the worlds biggest diamond producers. Meanwhile, reserves in Australia and Canada are declining.

As a result, prices for rough diamonds, from which gems are cut, will go up by at least 30%. Although much of this will be absorbed by companies that act as middlemen in the diamond trade, the price of gemstones will inevitably rise.

You have supply going up by 1% a year on average, and demand going up by at least 5% a year, he said. But that was a conservative estimate and the real increase in demand could be much higher.

There are going to be other mines coming on stream, but nothing like another $3 billion worth. Thats almost another De Beers. Its just not going to happen, he said.

Demand was being driven by both the industrial and commercial markets, while there had been a massive new increase in demand for gemstones in China and India, Picton said.